LONDON: AIB Group PLC reported a robust first-half performance for 2025, posting a profit after tax of €927 million and announcing the resumption of its interim ordinary dividend, amounting to €263 million.
The bank cited strong lending activity and resilient economic conditions in Ireland as key drivers of growth. New lending rose by €600 million to €6.9 billion, supported by gains in mortgages, corporate, and personal loans. Return on tangible equity (RoTE) reached 21.4%, with full-year RoTE expected to exceed 20%.
“This performance reflects our continued momentum in a resilient Irish economy,” said Colin Hunt, Chief Executive Officer. “We remain committed to delivering for our shareholders and supporting the Irish economy and society.”
Financial Highlights (vs. H1 2024)
- Profit after tax: €927M; EPS: 39.0c; RoTE: 21.4%
- Net interest income fell 10% to €1.87B due to lower rates
- Fee and commission income rose to €340M
- Operating costs increased 3% to €979M; cost-income ratio at 44%
- Gross loans up 1% to €71.6B; mortgage market share at 32%
- CET1 ratio at 16.4% (excluding H1 profits)
- Customer accounts rose 2% to €112.5B
The bank also issued €700M in AT1 capital, €800M in senior non-preferred green bonds, and $750M in dollar-denominated bonds.
AIB marked its return to full private ownership in June 2025 and continues to advance its three strategic priorities:
- Customer First: Customer satisfaction NPS rose to 62 in Q2 2025, up from 55 a year earlier.
- Greening the Business: €19.1B of its €30B Climate Action target has been deployed since 2019.
- Operational Efficiency: AIB is deploying Microsoft Copilot tools across its workforce to enhance productivity.
Additionally, the bank agreed to sell its minority stake in AIB Merchant Services to Fiserv, Inc., a move expected to boost CET1 by approximately 35 basis points.
AIB expects net interest income to exceed €3.6B in 2025, with other income around €750M. Costs are projected to rise by 3%, while customer loans and accounts are both expected to grow by 3%.
Despite global economic uncertainties, AIB remains optimistic about Ireland’s domestic demand and its own strategic trajectory. “We are confident in the fundamentals of our business and our ability to deliver sustainable returns,” Hunt said.