Bank of Ireland lifts net interest income outlook to over €3.5 billion

Bank of Ireland raised its guidance for full-year net interest income to more than €3.5 billion, the second upgrade to that target this year. Chief executive Myles O'Grady attributed the change to "positive commercial performance" reported in an interim management statement covering the nine months to the end of September.

Net interest income ran 4 percent higher year to date compared with the same stretch of 2025, which the bank tied to balance sheet growth and structural hedge benefits. Total fee income rose 6 percent from a year earlier, with about 4 percent expected across the full year. Operating costs increased 2 percent.

Consumer loans totaled €86.1 billion at the end of September, up €3.6 billion. Irish lending grew about 8 percent, driven by mortgages and loans to small businesses. Deposits climbed 3 percent to €110.3 billion, and assets under management reached €67 billion after a €1.5 billion rise in the third quarter.

The bank expects loan book growth of about 5 percent in 2026. It put statutory return on tangible equity above 14 percent this year and on track to exceed 16 percent by 2028. O'Grady said the company is delivering against its priorities and targets, citing growth in loans, deposits and wealth assets under management alongside resilient asset quality.

Bank of Ireland also revised its economic forecasts. Modified domestic demand growth for 2026 was raised to 3.9 percent from 2.7 percent, and the 2027 figure moved to 2.8 percent from 2.4 percent. Consumer inflation is projected at 3.5 percent in 2026 and 3.2 percent in 2027, with employment growth of 1 percent this year and 2 percent next year. House price inflation is forecast at 4 percent this year and 3.5 percent in 2027, alongside housing completions of 39,600 and 42,000.