2nd Mar 2026 11:05
(Alliance News) - Bank of Ireland Group PLC on Monday set out targets for medium-term growth as it highlighted the attractions of the Irish market.
The Dublin-based lender said pretax profit fell 25% to EUR1.39 billion in 2025 from EUR1.86 billion in 2024.
Net interest income declined 5.6% to EUR3.37 billion from EUR3.57 billion the year prior, while non-interest income rose 3.5% to EUR808 million from EUR781 million.
Operating expenses grew 3.3% to EUR2.16 billion from EUR2.09 billion. Impairment charges rose 57% to EUR193 million from EUR123 million.
Earnings per share declined 19% to 114.8 euro cents from 141.9 cents.
The adjusted return on tangible equity decreased to 13.9% from 16.8%. Ex-UK motor finance provision, RoTE was 16.3%.
Statutory RoTE was 10.9%, or 12.8% ex-UK motor finance provision.
The CET1 capital ratio improved to 15.1% from 14.6%.
The total dividend was increased 11% to 70 cents from 63 cents.
Looking ahead, Bank of Ireland sees statutory RoTE building to more than 16% in 2028 which equates to more than 19% on an adjusted basis.
The bank expects mid to high teens reported EPS compound annual growth and projects total income of more than EUR4.75 billion by 2028.
Between 2026 to 2028, Bank of Ireland forecast more than 4% total income compound annual growth, with 2027 to 2028 growth seen closer to 5% to 6%.
The bank is targetting net interest income of EUR3.4 billion in 2026, more than EUR3.6 billion in 2027 and greater than EUR3.85 billion in 2028.
"The group closed out its 2023-2025 strategic cycle on a very strong footing," said Chief Executive Myles O'Grady.
"We are poised for growth. Ireland continues to be a highly attractive market," he added.
Shares in Bank of Ireland were down 3.1% to EUR15.95 in London on Monday morning.
By Jeremy Cutler, Alliance News reporter
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