Ms Francesca McDonagh:

We are always very risk aware, not just current risk but looking ahead in terms of early indicators. Our focus is working with our corporate clients in supporting them on the transactions, deals and projects that Mr. Gavin Kelly referenced in a sustainable way. The supply and demand issue is very apparent in terms of the increase in property prices and also in rental prices, but house inflation is beginning to slow. It is still high but it is coming down. One will see that the house price inflation is 8% and there was a reduction in the last quarter. I cannot project whether that will endure but the supply and demand dynamic is beginning to have the effect of some reduction in house price inflation. Prices are still rising but at a slower rate. It is also important to put in context that house prices today are still 30% below the peak and that is a reflection of many things, including macro prudential rules that are appropriate in limiting lending to a sustainable level.

When we look at an individual's mortgage application, we look at the affordability, at the loan to value ratio of the property, at the income multiples and at the credit history of the applicant to ensure we are giving mortgages that are sustainable for the people moving into the properties, and to support corporate clients on projects that make sense. We are the largest lender in Ireland and our purpose is to enable our customers to thrive, be it a big corporate or a first-time buyer, and we do it in a sustainable way. Bank of Ireland has a track record relative to any market average or statistic that demonstrates we consistently do that.