Bank of Ireland Group (BIRG) Q4 2024 earnings summary

Executive summary

• Highly capital-generative business with strong loan, deposit, and AUM growth, supported by a robust Irish economy and market leadership.

• Achieved sustainable lending up 32%, reaching €15 billion target a year early.

• Maintained market leadership in Irish mortgages (40% share), wealth, and assurance, with significant digital and ESG progress.

• Customer satisfaction and digital engagement at all-time highs, with significant improvements in operational simplicity and complaint reduction.

• Strategic focus on sustainable growth, operational efficiency, and attractive shareholder returns, with capital generation and payout ratios among the highest in peer group.

Financial highlights

• ROTE reached 16.8% for 2024, with a target of >17% by 2027.

• Net interest income €3,565m, down 3% year-over-year; business income up 3% to €730m; total income €4,312m, down 3%.

• Operating expenses rose 6% to €1,970m; cost-to-income ratio increased to 46%.

• Underlying profit before tax €2,130m (+5%); statutory EPS 141.9c (+1%).

• AUM reached €54.8bn (+19% y/y), with record net inflows and strong market growth.

Outlook and guidance

• Medium-term ROTE target above 17% by 2027, with strong and sustainable capital generation of ~750 basis points over three years.

• FY25 guidance: NII > €3.25bn, total business income growth ~5%, operating expenses +3%, cost-to-income ratio <50%.

• NII expected to grow from €3.25 billion in 2025 to €3.5 billion in 2027, driven by balance sheet growth and structural hedge benefits.

• Operating expenses targeted to remain around €2 billion annually through 2027, requiring productivity and cost reduction initiatives.

• Asset quality expected to remain strong, with cost of risk in the low-to-mid-20 basis points.