Bank of Ireland Group (BIRG) Q1 2026 earnings summary

Executive summary

• Strong Q1 performance driven by disciplined execution, franchise breadth, and resilience in the Irish economy.

• Loans grew 5% annualized to €83.6bn; Irish franchise lending up 8%; deposits remained strong at €107.2bn.

• Wealth and insurance net inflows reached €1.1bn, with robust asset quality and high capital generation.

• Strategic priorities focus on Irish growth, capital optimization, and future investment to drive top-line growth and returns through 2028.

Financial highlights

• Net interest income (NII) for Q1 was flat year-over-year, with guidance reaffirmed at €3.4bn for 2026.

• NII expected to exceed €3.6bn in 2027 and €3.85bn in 2028, based on current rate assumptions.

• Customer deposits at €107.2bn, flat due to seasonal effects, with expected growth in subsequent quarters.

• Operating and restructuring costs rose by ~2% year-over-year; Q1 included €94m in regulatory fees.

• CET1 ratio at 15.2%, reflecting strong organic capital generation of ~50bps.

Outlook and guidance

• All 2026 guidance and financial targets reaffirmed, including NII of ~€3.4bn, statutory ROTE of ~12.5%, and mid-to-high teens annual EPS growth.

• Upside potential exists for NII if higher rate expectations materialize, but current guidance is maintained until interim results.

• Cost income ratio expected to remain flat versus 2025; impairment charge to be low-to-mid 20bps.

• Mortgage market share remains strong at 41%, with system growth and housing completions projected to exceed 40,000 for the year.

• Strong net organic capital generation of ~250bps expected for 2026.