Bank of Ireland has reiterated its forecasts for 2025 after the bank said it had a “good start to the year”, with performance and profitability meeting its expectations.
The bank said that its core loan book grew during the quarter, with its mortgage book expanding by an annualised 3.5 per cent. Still, its share of the growing mortgage market dipped to 37 per cent from 40 per cent recorded for the first few months of last year and 2024 as a whole.
Deposits were stable at €103 billion, while assets under management in its wealth unit – including its Davy and New Ireland units – secured €500 million of net inflows from customers. Still, assets under management dipped by €300 million to €54.5 billion from December, amid volatile financial markets.
The group said that it has lowered its domestic economy growth forecasts – measured as modified domestic demand – to average 2.7 per cent across 2025 and 2026 from 3.4 per cent, previously, against a backdrop of global trade negotiations and potential impacts.
“Combined with the execution of the group’s strategy, this supports a positive outlook while remaining vigilant to potential risks associated with trade dislocation,” said chief executive Myles O’Grady. “We continue to engage closely with our customers as they navigate the current environment.”
The bank said it continues to expect that its full year net interest income will come in greater than €3.25 billion, and that business income – including shares of joint ventures – is expected to rise 5 per cent. It reported €3.56 billion of net interest income last year in a higher interest rate environment.
Net interest income dipped 8 per cent in the first quarter, in line with expectations, it said. Business income, including fees generated by various business units, rose by 8 per cent.
Customer loan balances dipped by €100 million to €82.4 billion from December, driven by portfolio exits within its corporate and commercial division and negative currently translation effects. However, the bank’s core book expanded by 2 per cent, it said.
Bank of Ireland said that its asset quality “remained strong”, though its non-performing loans, or exposures, ratio inched up to 2.5 per cent from 2.2 per cent in December. Still, the bank said that the ratio “remains near historical lows” and is 0.7 percentage points lower year on year.
“The group continues to focus on achieving further asset quality improvements through a combination of organic and inorganic activity,” it said. Inorganic activity usually refers to asset sales or purchases.
