31st Jul 2024 10:26
(Alliance News) - Bank of Ireland Group PLC on Wednesday lifted its outlook, after reporting flat first-half net interest income, benefitting from higher interest rates.
The Dublin-based lender reported that pretax profit in the first half of the year rose 5.4% to EUR1.08 billion, up from EUR1.03 billion a year earlier.
Net interest income was EUR1.80 billion, unchanged from a year before, though Bank of Ireland said this was up 2% on a like-for-like basis.
"[The] performance reflects higher interest rates, growth in lending income particularly in Ireland, higher funding costs and continued strong commercial pricing discipline," Bank of Ireland said.
For the full-year, it now expects net interest income of EUR3.55 billion, which would be a roughly 2.7% decline from the fourth quarter of 2023 annualised run rate of EUR3.65 billion.
The new outlook is at the "higher end of the guidance" given previously.
Bank of Ireland had previously forecast a 3% to 4% decline from the fourth-quarter run rate net interest income.
"The group had an excellent performance in the first half of 2024, reporting a profit of EUR1.1 billion, up 5%. This performance - underpinned by growth in our loan book and wealth assets, higher income and robust capital generation - supports upgraded earnings guidance for the year," said Chief Executive Myles O'Grady.
"We are now half-way through our three-year strategy. We're meeting or beating our targets and investing for the future. This year we've announced a range of improvements to our branches, ATMs, contact centre services and fraud support for our customers. The launch of innovative green mortgages and the expansion of agri-business green lending, and an increased funding commitment for housing development were important developments in H1."
Shares in Bank of Ireland were down 0.4% to EUR10.46 each in London on Wednesday morning.
By Sophie Rose, Alliance News senior reporter
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