Bank of Ireland Reports €721 Million in First Half Profits

Bank of Ireland has announced a profit before tax of €721 million for the first half of the year, reflecting a robust return on tier one equity of 14.8%. The bank attributes this performance to effective strategic execution, signaling a strong operational foundation even amid global economic uncertainties.

The bank reported a 3% increase in assets under management, alongside a 5% growth in Irish loans and deposits. In a move to reward shareholders, Bank of Ireland declared an interim dividend of 25 cents per share, reaffirming its commitment to a progressive dividend policy for the full year. This guidance was reiterated in the bank’s half-year update, showcasing confidence in its financial health despite ongoing trade challenges.

Resilience Amidst Economic Uncertainty

Myles O’Grady, CEO of Bank of Ireland, emphasized the resilience of the Irish economy, noting that sustained savings efforts have led to an all-time high in household net worth. “Bank of Ireland is well positioned to navigate this environment,” O’Grady stated, highlighting the bank’s capacity to generate robust capital to support customers and invest in growth opportunities.

The bank reported net interest income of €1.67 billion for the first half, leading to an upgraded full-year guidance of €3.3 billion for this key profitability measure. Additionally, business income grew by 4%, driven primarily by strong performance in Wealth and Insurance sectors. Operating expenses rose by 3%, aligning with prior guidance, resulting in a cost-to-income ratio of 48%.

A modest impairment charge of €137 million was noted, which includes an additional management adjustment of €40 million, reflecting a cautious approach to potential unseen risks in the economic landscape.

Positive Economic Forecasts for Ireland

Analyzing the broader economic context, Bank of Ireland highlighted the resilience and growth of the Irish economy, particularly against uncertainties related to international trade arrangements. The bank’s Economic Research Unit forecasts a headline GDP growth of 8.1% in 2025 and 3.2% in 2026, taking into account the evolving policy framework.

Furthermore, the combination of above-average economic growth and prudent financial management over the years has positioned Ireland with one of the lowest debt-to-GDP ratios in the European Union. According to the bank, both consumers and businesses in Ireland are maintaining strong balance sheets, further supporting economic stability.

Overall, Bank of Ireland’s first half performance underscores its strategic positioning and the resilience of the Irish economy, setting a positive tone for the remainder of the fiscal year.