Bank of Ireland Group (BIRG) Q4 2025 earnings summary

Executive summary

• Maintains unrivaled position in Ireland with strong franchises in mortgages, everyday banking, corporate lending, and wealth management, supported by respected brands and a growing international presence.

• Achieved strong FY25 financial performance with profit before tax of €1.39bn, supported by 6% growth in Irish loans and deposits and 9% AUM growth year-over-year.

• Maintained #1 market positions in Irish retail banking, mortgages, and commercial banking, with over 4 million customers.

• Irish economy remains robust, with GDP forecasted to grow 3% annually to 2028 and supportive demographics driving balance sheet growth.

• Continued digital transformation, with 81% of Irish PCA customers digitally active and significant investments in AI and technology.

Financial highlights

• Irish loans and deposits up 6% in 2025; fee income grew 7%, led by Wealth and Insurance (up 12%).

• Net interest income (NII) for FY25 was €3.37bn, with total income of €4.18bn and operating expenses of €2.16bn.

• Operating expenses rose 3% due to wage inflation and digital investment; restructuring costs of €153 million.

• Impairment charge of €193 million (23bps cost of risk); NPE ratio at 2.2%, down 40bps.

• Ordinary dividend per share €0.70, up 11% year-over-year; total distributions of €1.2bn (100% payout).

Outlook and guidance

• NII expected to grow to €3.4 billion in 2026, >€3.6 billion in 2027, and >€3.85 billion in 2028, with potential to reach €4 billion post-2028.

• Lending growth targeted at 4% per year, deposit growth at 3%, and AUM growth at 10% through 2028.

• Fee income to grow ~4% annually, with Wealth and Insurance outpacing.

• Total costs expected to remain stable at ~€2.2 billion; cost-income ratio to improve to mid-40s by 2028.

• Statutory ROTE targeted to exceed 16% by 2028, up from 12.8% in 2025.

• Progressive dividend policy with ~50% payout ratio; surplus capital to be returned to shareholders.