1st Aug 2025 11:32
(Alliance News) - AIB Group PLC on Friday reported lower profit, as net interest income was reduced by lower interest rates.
The Dublin-based bank said net interest income fell 9.7% to EUR1.87 billion in the first half of 2025 from EUR2.08 billion a year before. This was due to lower interest rates, AIB said, as the European Central Bank and other official lenders cut base rates.
Post-tax profit declined 16% to EUR927 million from EUR1.1 billion.
The return on tangible equity was 21.4% in the first half of 2025, down from 25.5% a year ago.
The common equity tier 1 ratio rose to 16.4% as at June 30 from 15.1% at December 31.
For 2026, AIB targets a return on tangible equity of 15% and a CET1 rate of over 14%.
AIB resumed interim dividend payments, announcing a payout of 12.33 euro cents.
Further, it expects a net interest income decline of around 13% for 2025 to over EUR3.6 billion from EUR4.13 billion in 2024.
Chief Executive Officer Colin Hunt said AIB remains "committed to supporting the Irish economy and society as we continue to implement our strategy at pace through our strategic priorities of putting our 3.35 million customers first, further greening our business and achieving greater operational efficiency and resilience."
AIB shares were down 3.3% at 588.00 pence each on Friday morning in London, giving it a market capitalisation of EUR14.41 billion.
By Tom Budszus, Alliance News slot editor
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