1st May 2026 09:34
(Alliance News) - Bank of Ireland Group PLC on Friday said its performance in the first quarter was in line with expectations, while it expects little change to its UK motor finance provision.
The Dublin-based lender said net interest income was flat in the first quarter of 2026, in line with expectations.
The bank said momentum in deposits, loans and bonds was offset by lower average interest rates, foreign exchange impacts and planned deleveraging in exiting portfolios.
Bank of Ireland retained its existing 2026 net interest income guidance of EUR3.4 billion, but noted "potential upside" from recent higher interest rate expectations.
The current guidance is based on an expected average European Central Bank deposit rate of 2.0%, while a 25 basis point increase would generate a EUR45 million annualised benefit to net interest income.
The bank reported net interest income of EUR3.37 billion for 2025.
On Friday, it said total fee income was 1% higher in the first quarter and in line with its expectations. Growth in Wealth income was offset by lower fee income in Corporate & Commercial.
Total 2026 fee income is expected to be around 4% higher than EUR816 million in 2025.
The company said customer loans were EUR83.6 billion at the end of the first quarter, up 1.3% from EUR82.5 billion in December, representing around 5% annualised growth.
Bank of Ireland said operating expenses and restructuring costs rose by 2% on-year in the first quarter, including EUR94 million of the expected EUR130 million of annual regulatory fees and levies.
The bank noted the final details of the UK Financial Conduct Authority's motor finance redress scheme, and said it does not expect any material change to its cumulative motor finance provision of GBP374 million.
Bank of Ireland maintained its 2026 guidance. It expects total costs around EUR2.2 billion from EUR3.03 billion in 2025.
The company expects mid-to-high teens annual growth in earnings per share.
"The group had a strong Q1, underpinned by its successful strategy, the breadth of its franchise, and the resilient Irish economy," said Chief Executive Officer Myles O'Grady.
"The group recently set out a compelling strategy to 2028 to create significant customer and shareholder value. Its building blocks are to drive growth in Ireland; optimise capital allocation; and invest for the future. This strategy capitalises on our unrivalled position in one of Europe's best performing economies, our proven track record of delivery and our highly capital generative business model."
Earlier this month, Bank of Ireland proposed exiting London, deeming its listing "no longer in the interests of the company".
It said trading of its shares on the LSE "has been negligible relative to overall trading in the company's shares". It is also listed on the Irish Stock Exchange.
Shareholders will vote on the proposal at the bank's annual general meeting on May 21.
Shares in Bank of Ireland were up 0.4% at EUR16.62 on Friday morning in London.
By Michael Hennessey, Alliance News reporter
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