Bank of Ireland Group (BIRG) Q2 2025 earnings summary

Executive summary

• H1 2025 performance featured strong Irish loan, deposit, and AUM growth, with ROTE at 14.8% and CIR at 48%.

• Upgraded NII guidance to €3.3bn for FY25, with ROTE targets reaffirmed for 2025 (~15%) and 2027 (>17%).

• Profit before tax for H1 2025 was €0.7bn, with interim dividend of 25c/share (40% payout ratio).

• Wealth and insurance AUM at €55.6bn, up 3% annualized, with €1.2bn net inflows and 8% fee income growth.

• CET1 ratio at 16.0%, with €2.6bn returned to shareholders since 2023 via buybacks and dividends.

Financial highlights

• Net interest income for H1 2025 was €1.67bn, down 8% year-over-year; total income €2.03bn, down 7%.

• H1 PBT reached €0.7bn; underlying profit before tax was €804m, down from €1.09bn in H1 2024.

• Cost-to-income ratio at 48%, with operating expenses up 3% due to higher staff costs.

• Statutory EPS at 57.8c, down 28% year-over-year; TNAV per share stable at €10.39.

• Dividend per share at 25c, down from 35c in H1 2024.

Outlook and guidance

• FY25 NII guidance upgraded to €3.3bn, with medium-term NII expected to exceed €3.5bn by 2027.

• ROTE guidance of ~15% for 2025 and >17% for 2027 maintained.

• Organic capital generation guidance reaffirmed at 250–270bps.

• Cost target of €2bn by 2027 reiterated, with restructuring charges to support this.

• Cost of risk guidance at 30bps for FY25; asset quality expected to remain robust.