AIB nudges up full year Net Interest Income guidance
AIB has upgraded its outlook for its full year Net Interest Income and said it remains confident in the "resilience" of the business for the rest of the year.
In a trading statement for the third quarter, AIB said it was predicting its full year NII will come in an €3.7 billion, €100m higher than previously forecast.
But that is still down considerably on the €4.13 billion in NII income last year.
In today's trading statement, AIB said its total income for the third quarter fell by 10%, mainly driven by lower interest rates, while its NII also fell by 10% to €2.8 billion - as expected.
The bank said gross loans of €72.2 billion were up €0.9 billion on December's figure of €71.2 billion on the back of new lending of €10.5 billion.
Total new lending for the nine months to September increased by 5% to €10.5 billion, while new mortgage lending in Ireland was broadly stable at €3.1 billion and reflected a market share of 31%.
The lender noted that personal lending in Ireland was up 4% to €1.1 billion due to its larger customer base, but new lending to SMEs in Ireland of €1.1 billion was marginally lower than the same time last year.
Lending in its Capital Markets grew by 12% to €3.3 billion, with new lending driven by corporate lending and some recovery in new lending to the real estate sector, it said.
Meanwhile, the UK continued its strong performance with new lending of £1.2 billion in the first nine months of 2025, the bank added.
The lender said its customer accounts increased by €4.4 billion to €114.3 billion from a figure of €112.5 billion at the end of June with 93% of accounts based in Ireland.
Customer accounts are expected to grow by about 4% in 2025, it added.
The lender noted that Green and transition lending accounted for 36% of new lending with €20.5 billion of new Green lending since 2019 as it continues to support customers transition to a more sustainable future. Green mortgages represented 59% of new mortgage lending, it added.
AIB said its non-performing loans were unchanged from June at €2 billion and representing 2.8% of its gross loans. It added that it remains "vigilant" with careful management of its loan book.
AIB's chief executive Colin Hunt said the bank reported another strong quarter underpinned by a supportive Irish economy and its customer franchise.
"Net interest income has remained resilient throughout the interest rate cycle due to the growth in our loan book and deposit base. Gross loans have increased by €0.9 billion since December 2024 to €72.2 billion, with new lending to September up 5% to €10.5 billion, of which 36% was green lending," the CEO said.
"The Irish economy continues to show resilience despite a challenging international backdrop. Our 3.4 million customer base positions us well for the remainder of the year and for the medium term. We continue to implement our strategy at pace, delivering sustainable returns to our shareholders, and supporting our customers and communities," he added.
AIB shares rose in Dublin trade today.
