Bank of Ireland Group (BIRG) Q3 2024 earnings summary

Executive summary

• Loan book grew 4% year-to-date, with Wealth Assets Under Management up 15% to €52.8 billion.

• Strong capital generation supports growth, technology investment, and shareholder returns, including a €520m share buyback and interim dividend of 35 cents per share.

• Operating in robust Irish macroeconomic conditions, with record employment and low inflation supporting business activity.

Financial highlights

• Net interest income was 3% lower year-to-date, in line with expectations, with FY24 guidance unchanged at ~€3.55 billion.

• Business income, driven by Wealth and Insurance, is performing as expected, with mid-single digit percent growth guidance for FY24.

• Operating expenses rose 6% year-to-date; cost-to-income ratio at 45%.

• Customer loan balances increased to €82.5 billion from €79.7 billion at end-2023.

• Customer deposits at €100.7 billion, up €0.5 billion from end-2023.

Outlook and guidance

• FY24 guidance unchanged: NII ~€3.55 billion, business income mid-single digit percent higher, operating expenses up 5-6%.

• Impairment charge expected at ~20 basis points; ROTE expected above 2023’s 17.3%.

• Strong capital generation expected, with 310-320bps net organic capital generation for the year.

• Distributions to include progressive dividends and share buybacks, targeting CET1 >14%.