Bank of Ireland Group (BIRG) Q4 2025 earnings summary

Executive summary

• Maintains leading positions in Irish retail banking, mortgages, corporate lending, and wealth, supported by four strong brands and over 4 million customers in a fast-growing economy.

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

• Distributions totaled €3.6 billion over the last cycle, with €1.2 billion for 2025, representing a 100% payout of earnings.

• Strategy to 2028 focuses on Irish growth, capital optimization, digital transformation, and operational efficiency, with 81% of Irish PCA customers digitally active.

Financial highlights

• Net interest income (NII) for 2025 was €3.37bn, with guidance for €3.4bn in 2026 and >€3.85bn in 2028.

• Fee income increased 7% in 2025, led by Wealth and Insurance (up 12%) and strong performances in Davy and NIAC.

• Operating expenses rose 3% in 2025 to €2.16bn, reflecting wage inflation and digital investment.

• Impairment charge was €193m (23bps cost of risk), with NPE ratio at 2.2%.

• Dividend per share increased 11% to €0.70, with total distributions of €1.2bn (100% payout).

Outlook and guidance

• NII expected to exceed €3.85bn in 2028, with potential to reach €4bn after 2028.

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

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

• Cost-income ratio targeted to fall to mid-40s by 2028, with ambition to go lower.

• Statutory ROTE expected to rise from 12.8% to >16% by 2028.