AIB Group (A5G) H2 2025 earnings summary

Executive summary

• Profit after tax exceeded €2.1 billion in 2025, with a return on tangible equity (ROTE) of 25% and earnings per share (EPS) of 93.3c, reflecting strong profitability and capital generation.

• Net interest income (NII) was resilient at €3.75 billion, down 9% year-over-year but ahead of expectations due to structural hedging and higher deposit/loan volumes.

• Returned to full private ownership in June 2025, distributing €2.25 billion to shareholders, including a €1 billion buyback and €1.25 billion in cash dividends, and maintaining a CET1 ratio of 16.2%.

• Achieved strategic progress in digitalization, sustainability, and customer engagement, serving 3.4 million customers.

Financial highlights

• Total income was €4.5 billion, down 8% year-over-year; NII down 9%, net fee and commission income up 4% to €692 million.

• Costs rose 1% to €1.99 billion, resulting in a cost-income ratio of 44%.

• Gross loans increased 2% to €72.3 billion; new lending up 2% to €14.7 billion; customer deposits grew 7% to €117.2 billion.

• Earnings per share (EPS) flat year-over-year at €0.933; total cash dividend per share up 58%.

• Asset quality remained robust with ECL coverage at 1.6% and cost of risk at 24bps.

Outlook and guidance

• 2026 guidance: NII circa €3.8 billion, other income >€750 million, costs to rise by 2%, cost of risk 20–30 bps, and customer loans to grow by 5%.

• ROTE expected to remain above 20% in 2026, with CET1 targeted above 14%.

• Ordinary dividend payout policy set at 40–60%, with capacity for above-policy payouts.

• Medium-term lending growth CAGR of 5% targeted through 2027; asset growth targets of 5% for 2026 and 2027.