AIB has reported profits after tax of €939m for the six months to the end of June, a 1.3% increase on the €927m it reported the same time last year.
The bank said it had entered the second half of the year with confidence, but its shares were lower this morning.
AIB said its gross loans rose by 3% to €74.5 billion from the end of last year, while total new lending increased by 10% to €7.5 billion from €6.9 billion the same time last year.
Its new mortgage lending in Ireland rose to €2 billion from €1.9 billion in the first half of last year, which resulted in a mortgage market share of 30%.
The bank noted that personal lending in Ireland of €0.7 billion was broadly in line with the previous year, while new lending to SMEs in Ireland rose to €0.9 billion.
Green and transition lending of €3.1 billion accounted for 41% of new lending with €26 billion deployed since 2019 as AIB said it continues to support its customers move to a more sustainable future.
Green mortgages represented 60% of new mortgage lending, up from 58% the same time last year, it added.
Meanwhile the bank, which has 3.5 million customers, said its customer deposits rose by 1.3% to €118.8 billion from €117.2 billion at the end of last year.
The bank said its net interest income of €1.871 billion for the six months was stable as lower interest rates were offset by an increase in average volumes. It had reported a net interest income of €1.874 billion the same time last year.
But it added that it was increasing its net interest income guidance on European Central Bank rate expectations.
Its operating costs were up 2% to €1.001 billion from €979m last year in line with guidance and on the back of salary inflation and increased variable pay partially.
The increase was offset by lower average staff numbers with the bank’s workforce reducing by 2% to stand at 10,144 in June 2026, down from 10,375 the same time last year.
AIB’s CEO Colin Hunt said the bank delivered a strong first half performance, which he said reflected the resilience of the Irish economy, the strength of its diversified business model and continued momentum in the execution of its strategy.
“It’s another strong performance,” he said. “The performance… is a reflection of the strategy being implemented at pace across the organisation, which sees us broadening our range of products and services and growing our customer base, which is now at 3.5 million, highest in our history, supported by our 10,000 colleagues right the way around the country.”
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He said ongoing geopolitical tensions had yet to be reflected in the bank’s balance sheet and, while there was a modest increase in the bank’s non-performing exposure, it was still well within what he would consider an acceptable range.
“Obviously we have had some further escalation of tensions out there overnight and that is most unwelcome,” he said “We’ve had a few false dawns in relation to truces out there, but to date we haven’t seen the impact of those tensions coming through.”
He defended the fact that the bank had not yet passed on the ECB’s June interest rate rise to savings customers, saying that the bank had also not yet passed it on to its mortgage customers.
“Our job is to ensure there is an attractive array of products out there,” he said. “We believe there is in terms of the fixed rates that we offer for fixed term products and also for the 3% rate for our regular savers account.”
Recently Benjamin Toms at RBC Capital downgraded his view on AIB, saying the bank’s valuation “looked toppy” when compared to Bank of Ireland – and when taken in the context of rising competition in the Irish banking market.
AIB shares have risen by more than 50% in the past year, but when asked if Mr Toms’ assessment was fair, Mr Hunt said that he never comments one way or another on share price movements.
“The market today values AIB at something of the order of €22 billion,” he said. “I’m very much focused on continuing to drive our strategy, working with my colleagues and bringing the best range of products, largely digital enhancements to our products now to our customer.”
Shares in the bank moved lower in Dublin trade today.
