Bank of Ireland reports €721m profit, raises NII outlook

Published 29/07/2025, 07:12
Bank of Ireland reports €721m profit, raises NII outlook

DUBLIN - Bank of Ireland Group reported a profit before tax of €721 million for the first half of 2025, with an adjusted return on tangible equity (ROTE) of 14.8%, according to a press release issued Tuesday.

The Irish lender announced an interim dividend of 25 cents per share, representing a 40% payout ratio, and reaffirmed its guidance for a progressive dividend for the full year.

Bank of Ireland upgraded its full-year 2025 net interest income forecast to approximately €3.3 billion, up from its previous guidance of more than €3.25 billion, citing positive momentum across lending and deposits.

The bank reported strong balance sheet growth in Ireland, with loans and deposits increasing by 5% on an annualized basis during the first half of the year. Assets under management grew by 3%, with net inflows equivalent to 4% of opening assets under management.

"The Group had a good H1 performance and is on track to deliver its full year targets," said Myles O’Grady, Bank of Ireland Group CEO, in a statement accompanying the results.

Operating expenses increased by 3% year-over-year, in line with the bank’s expectations, primarily due to higher staff costs. The cost-to-income ratio stood at 48% for the period.

The bank’s capital position remained strong with a pro forma fully loaded CET1 ratio of 16.0%, up from 14.6% at the end of December 2024. Organic capital generation was 110 basis points in the first half of the year.

Asset quality metrics showed a non-performing exposure ratio of 2.6%, which the bank noted was close to multi-year lows despite a 40 basis point increase since December 2024. The impairment charge for the period was €137 million, equivalent to 33 basis points.

Bank of Ireland reaffirmed its full-year 2025 guidance for adjusted ROTE of approximately 15% and organic capital generation of 250-270 basis points. The bank also maintained its medium-term outlook, expecting ROTE to build to more than 17% by 2027.

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