By Simon Kennedy
LONDON (MarketWatch) -- Bank of Ireland (IE:BIR 0.37, -0.02, -3.91%) (IRE 2.22, -0.16, -6.72%) said Friday that it has seen an outflow of customer deposits in its capital markets business, while retail deposits have remained stable. In a trading update, the group said its loan-to-deposit ratio has increased to 160% from 145% at the end of June and that term funding with a remaining maturity of more than one year has fallen to 22 billion euros ($30 billion) from 24 billion euros over the same period. "The group is utilizing contingent collateral to obtain replacement funding, primarily from monetary authorities," Bank of Ireland said. Underlying operating profit for the year is expected to be 35% to 40% lower than the 1.5 billion euros reported in 2009, the group said. Shares in Bank of Ireland fell 4.2% in Dublin.
