29th Oct 2025 09:44
(Alliance News) - Bank of Ireland Group PLC on Wednesday nudged its net interest income outlook higher for 2025 as it highlighted positive momentum across the business.
The Dublin, Ireland-based lender now expects 2025 NII of more than EUR3.3 billion compared to prior guidance of around EUR3.3 billion and EUR3.57 billion in 2024. All other guidance was left unchanged.
Earlier this month, Bank of Ireland said its provision for motor finance could more than double to around EUR400 million from EUR167 million previously, based on its view of the industry-wide redress scheme for UK motor finance commissions.
In a trading update on Wednesday, Bank of Ireland said NII was "modestly ahead of expectations" in the first nine months of 2025, albeit down 7% from last year.
The decline in NII reflects lower average interest rates partially offset by volume growth in both deposits and core loan portfolios and the benefit of the structural hedge programme, the lender said.
Bank of Ireland said the NII performance supports confidence in the NII trajectory into 2026 and 2027.
Total business income rose 5% in the nine months, outstripping operating expenses growth of 3%.
Net lending totalled EUR82.2 billion for the nine months compared to EUR82.5 billion at December 2024, with Irish loan book 5% higher from a year ago, and a strong mortgage performance.
Group deposits reached EUR105.5 billion, up from EUR103.1 billion at the end of 2024, with Irish Everyday Banking balances up 5% year-on-year.
The CET1 ratio at end September was 16.2%, up from 14.6% at the end of 2024.
Assets under management grew 9% year-on-year to EUR58.3 billion with net inflows year-to-date of EUR1.6 billion.
Chief Executive Myles O'Grady commented: "The group continues to see positive momentum, with loans, deposits and wealth AUM in Ireland all growing strongly. These are translating into high levels of net organic capital generation, supporting further balance sheet growth, investment in our business model and attractive shareholder returns."
O'Grady said the "attractive" markets in which "we operate reinforces our positive outlook into 2026 and beyond, with return on tangible equity on track to exceed 17% by 2027. The group looks forward to presenting a refreshed strategy and updated targets in Q1 2026."
Shares in Bank of Ireland up 1.2% to EUR14.06 each in London on Wednesday morning.
By Jeremy Cutler, Alliance News reporter
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