Updated / Friday, 2 May 2025 09:44
Bank of Ireland has kept its full year guidance unchanged after it said its group performance in the first quarter of 2025 was in line with expectations.
In a trading statement for the first three months of the year, Bank of Ireland said that similar to the other Irish banks its net interest income (NII) fell by 8% in the first quarter compared to the same time last year – in line with its expectations – due to lower average interest rates.
Net interest income is a metric for measuring banks’ income from lending and deposits.
The bank said the NII fall was partially offset by volume growth in both deposits and core loan portfolios, and the benefit of the bank’s structural hedge programme.
Bank of Ireland said that net lending at its Retail Ireland business increased by €0.3 billion, driven by continued strong growth in mortgage lending. Its mortgage market share of new lending was 37%, it added.
Its Retail UK net lending increased by €0.2 billion, but its Corporate and Commercial net lending decreased by €0.5 billion, which it said reflected deleveraging within portfolios it was exiting of €0.4 billion and lower SME and Corporate lending in Ireland of €0.2 billion.
Meanwhile, customer deposits amounted to €103.2 billion by March 2025, an increase of €0.1 billion, on the back of growth in Retail Ireland and Retail UK, partially offset by lower Corporate and Commercial volumes.
Bank of Ireland said its asset quality remained “strong” and its non-performing loan ratio was 2.5% of gross customer loans at March 2025. up from 2.2% in December 2024.
“Overall, the NPE ratio remains near historical lows and is 70bps lower year year on year. The Group continues to focus on achieving further asset quality improvements through a combination of organic and inorganic activity,” it added.
Myles O’Grady, Bank of Ireland Group CEO, said the bank had a very good start to the year, with performance and profitability in line with its expectations.
“Positive domestic economic conditions supported robust customer activity, with the core loan book growing in the quarter, notably our Irish mortgage book by 3.5% annualised,” he said.
“Deposits were strong at €103 billion, while Wealth AUM of €54.5 billion benefitted from net inflows of €0.5 billion. Asset quality remains robust. With strong business momentum, our guidance for the year remains unchanged,” the CEO stated.
Mr O’Grady said that against a backdrop of global trade negotiations and potential impacts, it 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,” he said.
“The group’s differentiated business model in structurally attractive markets continues to generate high levels of capital. This allows us to support our customers, invest in our business, and deliver attractive shareholder returns,” he added.
