The bank plans to issue 104 million euros to shareholders as dividends and buybacks.
Bank of Ireland, Ireland's largest lender based on assets, reported its 1.37 billion euro profit following a 374 million euro loss in 2020. This was due to the bank setting aside 1.1 billion euros to cover expected loan defaults during the COVID 19 disruptions.
The bank's previous highest profit since the Irish banking crisis was 1.2 billion euros in 2015.
A 12 percent increase in income year on year, along with a 4 percent decrease in operating costs, seemed to support plans to cut costs to 1.5 billion euros by the end of 2023, according to Bank of Ireland finance chief Myles O'Grady.
Bank of Ireland officials believe that income in 2022 will be similar to 2021, as costs continue to fall and distributions increase.
Bank of Ireland is buying most of KBC's performing Irish assets as a result of the Belgian group leaving the Irish market.