AIB upgrades outlook as ECB rates settle at 2pc

"For 2025 AIB said it expects NII of greater that €3.7bn, upgraded from previous guidance of income greater than €3.6bn. The change reflects an expectation that the ECB rate will now stay at 2pc for the rest of this year and the Bank of England will keep its rates at 3.75pc. The bank's other income decreased 12pc on the equivalent prior year period as the prior period benefitted from higher equity gains and other items."

""Net interest income has remained resilient throughout the interest rate cycle due to the growth in our loan book and deposit base," he said. "The Irish economy continues to show resilience despite a challenging international backdrop. Our 3.4 million customer base positions us well for the remainder of the year and for the medium term. We continue to implement our strategy at pace, delivering sustainable returns to our shareholders, and supporti"

Net interest income was €2.80bn in the nine months to September, down 10% year-on-year. The decline followed reductions in ECB rates during the period. AIB expects net interest income for 2025 to exceed €3.7bn, upgraded from prior guidance, reflecting expectations that the ECB will hold rates at 2% and the Bank of England at 3.75%. Other income fell 12% year-on-year while net fee and commission income rose 2%. Non-interest income is expected to be around €750m in 2025. New mortgage lending in Ireland was broadly stable at €3.1bn with a 31% market share. Personal lending increased 4% to €1.1bn. Green and transition lending represented 36% of new lending. The customer base stood at 3.4 million.

Read at Irish Independent