Bank of Ireland reports €721m first half profits, says households and economy resilient to trade threats
Guidance for the full year was affirmed on Tuesday, in the bank's half year update despite the wider uncertainty around trade and the global economy.
CEO Myles O'Grady, the Irish economy remained resilient. Sustained savings activity over many years means household net worth is at an all-time high, the bank said.
"Bank of Ireland is well positioned to navigate this environment, generating strong levels of capital to support customers, grow our balance sheet, invest in the business and deliver attractive shareholder returns,' Myles O'Grady said.
Bank of Ireland reported net interest income, a key measure of any bank's profitability, of €1.67bn in the first half of the year and upgraded full year guidance for net interest income to €3.3bn.
Business income was up 4%, driven by strong Wealth and Insurance performance, while operating expenses rose 3pc, in line with guidance. The bank has a cost to income ratio of 48pc.
A modest impairment charge of €137m included an additional management adjustments of €40m, essentially a reflecting of caution on potential yet unseen risks.
In relation to the Irish economic backdrop in which Bank of Ireland primarily operates, the bank said the economy is resilient and growing against a more uncertain external backdrop, particularly in relation to international trade arrangements.
"The Group's Economic Research Unit forecasts headline GDP growth of 8.1pc in 2025 and 3.2pc in 2026 and these forecasts incorporate consideration of the current evolving policy framework.'
'In addition, it is worth highlighting that a combination of above-average economic growth and prudent management of the public finances over many years have positioned Ireland with one of the lowest debt-to-GDP ratios in the European Union. Irish consumers and businesses are also in good balance sheet shape.'
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