Bank of Ireland profit falls in 2025 as it sets 2028 targets

Bank of Ireland on 2 March 2026 reported a fall in profit before tax to €1.39 billion for 2025, from €1.86 billion a year earlier, as lower interest rates reduced net interest income. The lender also set out a strategy and financial targets for 2026 to 2028.

LOWER RATES WEIGH ON INCOME

Net interest income fell to €3.37 billion from €3.57 billion, and the net interest margin narrowed to 2.68% from 2.91%. Non-interest income rose to €808 million from €781 million. Operating expenses increased 3% and the cost-income ratio rose to 49% from 46%. Net impairment charges increased to €193 million from €123 million, and the non-performing exposure ratio was stable at 2.2%.

The adjusted return on tangible equity (ROTE) was 13.9%, down from 16.8% in 2024. The common equity tier 1 ratio rose to 15.1% from 14.6%. Customer deposits increased 4% to €107.5 billion.

The bank proposed a total dividend of 70 cents per share, up 11%, including a final dividend of 45 cents, and approved a €530 million share buyback, bringing total distributions to €1.2 billion.

2028 TARGETS

For 2026, Bank of Ireland guided to net interest income of about €3.4 billion. Under its strategy to 2028, it is targeting a statutory ROTE above 16% (equivalent to more than 19% on the previous adjusted basis), a cost-income ratio in the mid-40s on a new basis (52% for 2025 on that basis) and income growth of more than 4% a year, with investment in digital, data and AI among its priorities and about €250 million of cost efficiencies across the period. The bank also targets loans of more than €90 billion, deposits above €115 billion and assets under management exceeding €75 billion by 2028.