Bank of Ireland has reported continued business growth and solid financial performance for the third quarter of 2025, supported by strong lending and deposit activity in its domestic market. The lender also raised its full-year net interest income (NII) forecast, reflecting confidence in its outlook to 2026 and beyond.
In its interim management statement for the three months to September 30, the bank announced that it now expects NII to exceed €3.3 billion for the year, slightly up from previous guidance of “around €3.3 billion.” Despite this upgrade, NII for the third quarter was 7% lower than the same period last year, driven by lower average interest rates and portfolio deleveraging in areas the bank is exiting.
The decline was partly offset by rising loan volumes, growth in customer deposits, and gains from its structural hedge programme. Total customer loans stood at €82.2 billion at the end of September — steady compared to June — while customer deposits increased to €105.5 billion, up €2.4 billion from December 2024.
Bank of Ireland highlighted strong performance in its Retail Ireland division, where net lending rose by €2 billion in the quarter, supported by robust mortgage demand. The bank maintained a 41% market share in new mortgage lending this year. Sustainable finance lending also climbed to €16.5 billion, up from €15.5 billion in June.
However, Corporate and Commercial lending fell by €1.1 billion, as moderate growth in Irish portfolios was offset by €1.3 billion in portfolio deleveraging. Retail UK lending increased by €0.3 billion on a constant currency basis.
Asset quality remained strong, with non-performing loans declining to €2 billion, down from €2.2 billion in June. The bank’s non-performing exposure (NPE) ratio stood at 2.5%, remaining near historical lows.
Group CEO Myles O’Grady said the bank continues to benefit from “positive momentum,” with solid growth across loans, deposits, and assets under management. “These are translating into high levels of organic capital generation, supporting further balance sheet growth, business investment, and attractive shareholder returns,” he said.
O’Grady confirmed that the group completed a €590 million share buyback programme announced in February, reducing its share count by 12% since 2022. An interim dividend of 25 cents per share will be paid on October 30, as part of the group’s ongoing dividend growth policy.
The bank also disclosed that provisions related to the UK motor finance investigation could rise to around £350 million (€400 million), up from £143 million (€167 million) previously. The increase reflects the likelihood of more eligible cases and potential changes in redress methodology.
Despite ongoing global uncertainties, O’Grady said Ireland’s economy “remains resilient and growing.” Shares in Bank of Ireland rose in Dublin trading following the update.
