Bank of Ireland Group PLC on Friday said it was in a ‘position of strength’ despite the European Central Bank’s interest rate decreases having an impact on net interest income.
The Dublin-based lender said net interest income fell 8% on-year in the first quarter of 2025, as expected. IT reflected lower average interest rates, with the European Central Bank’s rate having fallen to 2.8% in the first quarter of 2025 from 4.0% a year ago.
The company left its 2025 guidance unchanged, continuing to expect net interest income over €3.25 billion, compared to €3.57 billion in 2024.
The guidance is based on its interest rate outlook of an average 2025 ECB deposit rate of 2.18% in 2025. It is currently at 2.25%.
Chief Executive Officer Myles O’Grady said: ‘Against a backdrop of global trade negotiations and potential impacts, the group has updated its Irish economic forecasts, with GDP and employment growth of 3.5% and 1.8% respectively for 2025. Combined with the execution of the group’s strategy, this supports a positive outlook while remaining vigilant to potential risks associated with trade dislocation. From a position of strength and as a trusted partner, we continue to engage closely with our customers as they navigate the current environment.’
The bank said: ‘Domestic economic conditions remained supportive of our Irish franchises in Q1, with a robust labour market and growth in consumer activity and house prices. The number of people at work in the Irish economy is at a record high of 2.8 million and the unemployment rate of 4.1% in April remains close to all-time lows.’
Bank of Ireland shares were 1.6% higher at €10.50 each on Friday morning in Dublin. In London, the stock was up 1.4% at €10.48 each.
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