REG - Bank of Ireland Grp - Q1 2026 Interim Management Statement

Bank of IrelandAnnouncement

01/05/2026 07:01

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RNS Number : 7716C  Bank of Ireland Group PLC  01 May 2026

Bank of Ireland Group plc (the "Group")

Q1 2026 Interim Management Statement - Strong performance, in line with
expectations

1 May
2026

_____________________________________________________________________________________

Comment:Myles O'Grady, Bank of Ireland Group CEO:

"The Group had a strong Q1, underpinned by its successful strategy, the
breadth of its franchise, and the resilient Irish economy.

 

"The Group has started 2026 with momentum, with loans growing by 5%
annualised, deposits strong at €107 billion, and Wealth AUM net inflows of
€1.1 billion. Asset quality is strong across our portfolios and we remain
vigilant to the evolving geopolitical environment.

 

"The Group recently set out a compelling strategy to 2028 to create
significant customer and shareholder value. Its building blocks are to drive
growth in Ireland; optimise capital allocation; and invest for the future.
This strategy capitalises on our unrivalled position in one of Europe's best
performing economies, our proven track record of delivery and our highly
capital generative business model.

 

"As we conclude Q1, the Group reaffirms 2026 guidance and our financial
targets out to 2028, including Return on Tangible Equity building to >16%,
and mid-to-high teens annual growth in Earnings Per Share."

 

Highlights: Strong Q1 performance, in line with expectations; 2026 guidance unchanged
 ·         Strong organic capital generation of c.50bps
 ·         Net loans €83.6bn, +€1.1bn in Q1, with c.5% annualised growth
 ·         Deposits €107.2bn, flat in Q1 reflecting seasonal effects
 ·         AUM of €60.3bn, supported by net inflows of €1.1bn
 ·         Total income in Q1 tracking in line with expectations
 ·         Total operating costs including restructuring costs +c.2% y/y
 ·         Asset quality strong; NPE ratio improved to 2.0% vs 2.2% at end-2025
 ·         CET1 ratio of 15.2%(1)

 
    Macroeconomic developments; Ireland continues to perform resiliently
Ireland performed well in Q1 despite uncertainty from evolving geopolitical events. The economy continues to display resilience, reflected in updated forecasts from Bank of Ireland's Economic Research Unit that project broadly unchanged growth rates for the more domestically-focused Modified Domestic Demand at 2.7% and 2.4% respectively for 2026 and 2027 (vs 2.3% and 2.4% previously).
 
Income in line with expectations

Net interest income was flat y/y in Q1, in line with expectations. The
performance reflected strong business momentum led by deposits (up €4bn vs
Q125), loans (up €1.2bn vs Q125), higher bond income and favourable
structural hedge dynamics. These factors offset lower average interest rates
(ECB deposit rate averaging 2.0% vs. c.2.8% in Q1 2025), fx impacts and
planned deleveraging in exiting portfolios. While noting the potential upside
to NII from recent higher interest rate expectations, the Group retains its
existing 2026 NII guidance of c.€3.4bn (based on an expected average ECB
deposit rate of 2.0%). For reference, a 25bps increase in the ECB deposit rate
would generate an annualised NII benefit of c.€45m.

 

Total fee income (including share of associates and JVs) was +1% in Q1 and in
line with our expectations. Growth in Wealth income was offset by lower fee
income in Corporate & Commercial, which had a strong first quarter in
2025. Assets under management in Wealth & Insurance rose to €60.3bn
(+€0.3bn from end‑2025), with net inflows of €1.1bn partly offset by
market performance (‑1%). Total FY26 fee income(2) is expected to be c.4%
higher than FY25.

 

 

Costs tracking as anticipated; retain c.€2.2bn full year guidance

Operating expenses and restructuring costs rose by c.2% y/y. Q1 includes
€94m of the expected c.€130m of annual regulatory fees and levies. The
Group notes the FCA's final details on the UK motor finance redress scheme.
The Group does not currently expect any material change to its cumulative UK
motor finance provision of stg£374m.

 

Balance Sheet - Strong Q1 lending performance

Customer loans were €83.6bn at Q1 (December 2025: €82.5bn), equivalent to
c.5% annualised growth, driven by momentum in our Irish franchise across both
mortgages and commercial lending. Sustainable finance lending reached
€18.2bn, +21% y/y. The activity by division was as follows:

 ·       Retail Ireland: net lending +€0.5bn, driven by mortgages (market share of
         new lending at 41%)
 ·       Corporate & Commercial: net lending +€0.5bn, reflecting growth in Irish
         SME and Corporate of +€0.3bn, CRE lending of +€0.2bn and other corporate
         portfolio lending of €0.3bn, partially offset by redemptions in exiting
         portfolios of €0.3bn
 ·       Retail UK: net lending stable vs Dec 2025 (in constant currency), with
         reported +€0.2bn

 

 Loan balances (€bn, by division)    Dec-25  Mar-26
 Total customer loans                82.5    83.6
 Retail Ireland                      41.6    42.1
 Retail UK                           19.3    19.5
 Corporate & Commercial Total        21.5    22.0
 Corporate & Commercial Core         19.7    20.5
 Corporate & Commercial Exiting      1.8(3)  1.5(3)

 

Customer deposits of €107.2bn at end Q1 (December 2025 €107.5bn) were
strong and in line with expectations. Flow to term/other products was also in
line.

 

 Deposit trends €bn       Dec-25  Mar-26
 Total customer balances  107.5   107.2
 Everyday Banking         86.5    86.5
 (of which term/other)    10.1    10.2
 UK deposits (EUR)        14.6    14.6
 Corporate deposits       6.4     6.1

 

At end Q1, liquid assets of €44.7bn were stable, with the allocation to
bonds rising by €3.5bn to €24.1bn. The LCR was 198% (December 2025: 191%),
the LDR was 78% (77%), and the NSFR was 153% (156%).

 

Asset quality remains strong

The NPE ratio fell to 2.0% at end-Q1, compared with 2.2% at end‑2025. Credit
trends remain strong, with stable arrears and resilient performances across
our portfolios, and we remain vigilant to the evolving geopolitical
environment. Macroeconomic scenarios used for impairment are updated
semi‑annually, with the next review at H1.

 

Strong capital generation at c.50bps in Q1

The CET1 ratio at end‑Q1 was 15.2%(1) (December 2025: 15.1%). This reflected
strong net organic capital generation of c.50bps, partly offset by dividend
accrual and RWA investment. RWAs were €56.4bn (December 2025: €55.8bn).
The Total Capital ratio was 20.3% (December 20.3%). €49m of the €530m
share buyback announced with the FY25 results was executed by 30 April.

 
2026 guidance maintained
 ·       NII of c.€3.4bn (assumes an average ECB deposit rate of 2.0%)
 ·       Total fee income(2) c.4% higher
 ·       Total costs (operating expenses and restructuring costs) c.€2.2bn; Cost
         Income Ratio flat vs 2025
 ·       Impairment charge to be low-to-mid 20bps(4)
 ·       Statutory ROTE of c.12.5%; Mid-to-high teens annual growth in Earnings Per
         Share(5)
 ·       Strong net organic capital generation of c.250bps

 

Analyst webcast

Management will host a webcast today at 08.00am BST. The webcast can be
accessed through the link below. Please log in 5 minutes prior to the start
time.

 

Please contact investor.relations@boi.com if you have any issue with accessing
this link.

 

Bank of Ireland Q1 IMS Webcast
(https://webcast-boi-q1-ims-analyst-call-2026.open-exchange.net/)

 

 (1) Pro-forma CET1 ratio of 15.2% reflects the inclusion of unaudited Q1
 profits after an ordinary dividend accrual; the Group's reported CET1 ratio
 was 14.9%, reflecting the mechanical exclusion of residual Q1 profits in
 accordance with EBA Q&A 2023_6887

 (2 ) Including share of associates and joint ventures

 (3) Comprising US Acquisition Finance balances of €0.9bn; GB Corporate
 €0.3bn and US Commercial Real Estate €0.2bn

 (4) Subject to no material change in economic conditions or outlook

 (5) The EPS CAGR does not include any positive impact from share buybacks

 

Ends

 

For further information please contact:

Bank of Ireland

 Mark Spain, Group Chief Financial Officer         +353 1 2508900 ext 43291
 Eamonn Hughes, Investor Relations Officer         +353 (0)87 2026325
 Damien Garvey, Director, Group Corporate Affairs  +353 (0)86 8314435

 

Forward Looking Statement

This announcement contains forward-looking statements with respect to certain
of Bank of Ireland Group plc (the 'Company' or 'BoIG plc') and its
subsidiaries' (collectively the 'Group' or 'BoIG plc Group') plans and its
current goals and expectations relating to its future financial condition and
performance, the markets in which it operates and its future capital
requirements. These forward-looking statements often can be identified by the
fact that they do not relate only to historical or current facts.

 

Generally, but not always, words such as 'may', 'could', 'should', 'will',
'expect', 'intend', 'estimate', 'anticipate', 'assume', 'believe', 'plan',
'seek', 'continue', 'target', 'goal', 'would', or their negative variations or
similar expressions identify forward-looking statements, but their absence
does not mean that a statement is not forward-looking.

 

Examples of forward-looking statements include, among others: statements
regarding the Group's near term and longer term future capital requirements
and ratios, loan to deposit ratios, expected impairment charges, the level of
the Group's assets, the Group's financial position, future income, business
strategy, projected costs, margins, future payment of dividends, future share
buybacks, the implementation of changes in respect of certain of the Group's
pension schemes, estimates of capital expenditures, discussions with Irish,
United Kingdom, European and other regulators, plans and objectives for future
operations, the potential impact from uncertainty around international trade
and tariff policies, and the continued impact of regional conflicts on the
above issues and generally on the global and domestic economies.

 

Such forward-looking statements are inherently subject to risks and
uncertainties, and hence actual results may differ materially from those
expressed or implied by such forward-looking statements.

 

Such risks and uncertainties include, but are not limited to, those as set out
in the Risk Management Report in the Group's Annual Report for the year ended
31 December 2025.

 

Nothing in this announcement should be considered to be a forecast of future
profitability, dividend forecast or financial position of the Group and none
of the information in this announcement is or is intended to be a profit
forecast, dividend forecast or profit estimate. Any forward-looking statement
speaks only at the date it is made. The Group does not undertake to release
publicly any revision to these forward-looking statements to reflect events,
circumstances or unanticipated events occurring after the date hereof.

 

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