Ireland's AIB Group H1 profit rises
Ireland's AIB Group H1 profit rises
Overview
Ireland bank's H1 net profit rose to €939 mln, supported by stable net interest income
Net interest income for H1 was nearly unchanged, while total income grew 2% yr/yr
Company announced €406 mln interim dividend and continued €1 bln share buyback programme
Outlook
AIB expects 2026 net interest income to be above €3.8 bln, up from prior guidance of about €3.8 bln
Company sees 2026 other income at about €800 mln, up from previous guidance of over €750 mln
AIB expects 2026 customer deposits to grow about 3%, up from prior guidance of 2-3%
Result Drivers
OTHER INCOME GAINS - 15% increase in other income driven by higher gains on loan disposals, investment securities disposals and equity investments
LENDING GROWTH - 10% increase in new lending, with growth across all lending segments, especially corporate and property lending
COST INCREASES - Operating costs rose 2% due to salary inflation and higher variable pay, partially offset by lower staff numbers
Company press release: ID:nRSd4574Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Profit After Tax |
| EUR 939 mln |
|
H1 Net Interest Income |
| EUR 1.87 bln |
|
H1 Net Interest Margin |
| 2.68% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for AIB Group PLC is €11.00, about 3.6% above its July 29 closing price of €10.62
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
July 29 - Ireland's Permanent TSB H1 profit jumps on higher interest income
July 30 - Netherlands' ING Q2 net profit rises 16% on expanded customer base
July 30 - Austria's Erste Group H1 profit rises on Polish acquisition, lifts 2026 outlook
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)