UPDATE 4-Bank of Ireland's lending margins under pressure

* Maintains loan impairment charge forecast issued in May

* Significant negative impact on net interest margin

* Shares down 0.4 percent

(Adds comments from incoming chairman, updates shares)

By Carmel Crimmins

DUBLIN, July 3 (Reuters) - Bank of Ireland (BKIR.I) said on Friday its lending margins were under pressure in a competitive market, weakening its defences against billions of euros of expected losses from soured property loans.

"I have no doubt that we face a difficult and demanding journey over the next few years," said Pat Molloy, who took over as chairman at the group's annual investor meeting. [ID:nLA1003579]

"The challenges we face are very significant."

Ireland's largest lender is in lockdown mode after the global credit crunch and a local property crash plunged the group into the worst crisis in its 226-year history.