Bank of Ireland ups payout despite profit and net interest income dip

Bank of Ireland Group PLC on Monday set out targets for medium-term growth as it highlighted the attractions of the Irish market.

The Dublin-based lender said pretax profit fell 25% to €1.39 billion in 2025 from €1.86 billion in 2024.

Net interest income declined 5.6% to €3.37 billion from €3.57 billion the year prior, while non-interest income rose 3.5% to €808 million from €781 million.

Operating expenses grew 3.3% to €2.16 billion from €2.09 billion. Impairment charges rose 57% to €193 million from €123 million.

Earnings per share declined 19% to 114.8 euro cents from 141.9 cents.

The adjusted return on tangible equity decreased to 13.9% from 16.8%. Ex-UK motor finance provision, RoTE was 16.3%.

Statutory RoTE was 10.9%, or 12.8% ex-UK motor finance provision.

The CET1 capital ratio improved to 15.1% from 14.6%.

The total dividend was increased 11% to 70 cents from 63 cents.

Looking ahead, Bank of Ireland sees statutory RoTE building to more than 16% in 2028 which equates to more than 19% on an adjusted basis.

The bank expects mid to high teens reported EPS compound annual growth and projects total income of more than €4.75 billion by 2028.

Between 2026 to 2028, Bank of Ireland forecast more than 4% total income compound annual growth, with 2027 to 2028 growth seen closer to 5% to 6%.

The bank is targetting net interest income of €3.4 billion in 2026, more than €3.6 billion in 2027 and greater than €3.85 billion in 2028.

‘The group closed out its 2023-2025 strategic cycle on a very strong footing,’ said Chief Executive Myles O’Grady.

‘We are poised for growth. Ireland continues to be a highly attractive market,’ he added.

Shares in Bank of Ireland were down 3.1% to €15.95 in London on Monday morning.

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