Bank of Ireland is confident it has enough capital for European stress tests this year, chief executive officer Richie Boucher said.

The bank, based in Dublin, is now trading profitably and generating capital, Boucher, 55, said, adding the lender’s capital levels are “robust.”

“We don’t think it’s probable” the bank will need more capital after stress tests this year.

Ireland's central bank estimated the bank needed to set aside additional provisions for soured loans after assessing lenders' balance sheets in the fourth quarter. Chief financial officer Andrew Keating said the bank's 2013 earnings incorporated the regulator's views.

The bank’s core equity Tier 1 capital, a gauge of financial stability that fully reflects incoming Basel III banking rules, rose to 9.0 per cent in December from 8.6 per cent in June, Keating said.

"Bank of Ireland has emerged from the balance sheet assessment with its capital ratios intact," said Stephen Lyons, an analyst with Davy.

Bloomberg