UPDATE 3-Bank of Ireland says slowing economy hurts profit

(Adds governor quotes from shareholder meeting, updates shares)

By Paul Hoskins

DUBLIN, July 8 (Reuters) - Bank of Ireland (BKIR.I: Quote, Profile, Research) said a weakening economy is hurting its earnings and that some business customers are finding it increasingly difficult to repay loans, knocking nearly 14 percent off its shares.

"It's time for hard hats I'm afraid. It's time to run this bank in a very conservative way," Richard Burrows, governor of Bank of Ireland's (BKIR.L: Quote, Profile, Research) board, told shareholders at the company's annual shareholder meeting.

Ireland's second-biggest bank by market value highlighted the risks posed by economic slowdown and global market turmoil at the time of its full-year results in May but analysts said the tone of Tuesday's statement pointed to a deterioration in outlook.

"We have spoken to management this morning and they acknowledge that the environment has changed considerably since the full-year results in May," Davy analyst Scott Rankin wrote in a research note.

"Momentum has slowed and we will need to cut our (earnings) forecasts again by at least 5 percent," he added.

Rankin said that also had implications for other Irish banks, particularly Allied Irish Banks (ALBK.I: Quote, Profile, Research).

The country's banking stocks index was down 7.7 percent at 1342 GMT, dragging the overall Irish market .ISEQ 3.7 percent lower.