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Investing.com -- Bank of Ireland Group (IR:BIRG) on Friday reported a solid first quarter in 2025, with performance in line with expectations.
The group maintained its full-year guidance, driven by a strong core loan book, stable deposits, and healthy asset quality amid favorable domestic economic conditions.
As of April 30, the Group had repurchased 25 million shares as part of its €590 million share buyback program, at an average price of €10.91 per share. This buyback program is expected to continue through the remainder of 2025.
The core loan book grew by 2% on an annualized basis, bolstered by a 3.5% increase in Irish mortgages.
Customer deposits were stable at €103 billion, and assets under management (AUM) reached €54.5 billion, up 10% year-on-year, supported by €0.5 billion in net inflows.
Net interest income (NII) was 8% lower than the same period in 2024, reflecting ECB rate cuts and deleveraging in some portfolios.
However, the decline was within expectations. Business income, including the group’s share of associates and joint ventures, rose 8%, while operating expenses increased by 3%, driven by inflation and regulatory charges of €105 million.
The balance sheet remained stable, with customer loan balances at €82.4 billion. Net lending in the core book grew by €0.3 billion, led by strong Irish mortgage performance. In the UK, net lending increased by €0.2 billion, while Corporate and Commercial lending fell by €0.5 billion due to portfolio deleveraging.
Liquidity remained strong, with deposits at €103.2 billion and a liquidity coverage ratio of 203%.
The group issued €0.6 billion in Additional Tier 1 securities in March, with the lowest-ever credit spread for an Irish bank’s AT1 issuance.
Asset quality stayed robust, with a non-performing exposure (NPE) ratio of 2.5%, up slightly from 2.2% in December 2024 but still significantly improved from the previous year.
The group’s CET1 ratio stood at 15.9%, bolstered by net organic capital generation and the Basel IV regulatory benefit.
Capital remains a focus, with a target RoTE of 15% for the year and net organic capital generation projected at 250-270 basis points.
Bank of Ireland expects net interest income to exceed €3.25 billion, with business income up around 5% and operating expenses increasing by about 3%.
Impairment charges are expected to remain low, with a credit impairment charge of 20 to 25 basis points for the year.