2nd May 2025 08:53
(Alliance News) - Bank of Ireland Group PLC on Friday said it was in a "position of strength" despite the European Central Bank's interest rate decreases having an impact on net interest income.
The Dublin-based lender said net interest income fell 8% on-year in the first quarter of 2025, as expected. IT reflected lower average interest rates, with the European Central Bank's rate having fallen to 2.8% in the first quarter of 2025 from 4.0% a year ago.
The company left its 2025 guidance unchanged, continuing to expect net interest income over EUR3.25 billion, compared to EUR3.57 billion in 2024.
The guidance is based on its interest rate outlook of an average 2025 ECB deposit rate of 2.18% in 2025. It is currently at 2.25%.
Chief Executive Officer Myles O'Grady said: "Against a backdrop of global trade negotiations and potential impacts, the group has updated its Irish economic forecasts, with GDP and employment growth of 3.5% and 1.8% respectively for 2025. Combined with the execution of the group's strategy, this supports a positive outlook while remaining vigilant to potential risks associated with trade dislocation. From a position of strength and as a trusted partner, we continue to engage closely with our customers as they navigate the current environment."
The bank said: "Domestic economic conditions remained supportive of our Irish franchises in Q1, with a robust labour market and growth in consumer activity and house prices. The number of people at work in the Irish economy is at a record high of 2.8 million and the unemployment rate of 4.1% in April remains close to all-time lows."
Bank of Ireland shares were 1.6% higher at EUR10.50 each on Friday morning in Dublin. In London, the stock was up 1.4% at EUR10.48 each.
By Tom Budszus, Alliance News slot editor
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