Bank of Ireland reported a 33% drop in first-half profit as net interest income fell.
First-half pre-tax profit fell to €721 million from €1.1 billion in 2024 following a series of rate cuts by the European Central Bank. Bank of Ireland shares fell 1.7% in early trading.
However, the bank on Tuesday raised its full-year net interest income forecast to 2027 after reporting a strong increase in its loan book in the first half of the year.
The country's largest lender also noted that its February forecasts for deposit and loan portfolio growth of 3% and 4%, respectively, in 2026 and 2027 were not affected by macroeconomic uncertainty related to U.S. tariffs.
On Sunday, an agreement between the United States and the European Union, including Ireland, imposed a 15 percent tariff on most EU goods.
The bank's loans and deposits in Ireland increased by 5% year-on-year in the first half of the year, with the main driver of growth being mortgages, where Bank of Ireland holds a leading market position with a 40% share.
This resulted in an increase in the net interest income forecast for 2025 to €3.3 billion from the previous forecast of more than €3.25 billion, while the forecasts for 2026 and 2027 were also raised to more than €3.3 billion and €3.5 billion, respectively.
Analysts at Davy Stockbrokers noted in their report that the rise in net interest income forecasts suggests potential for an increase in management expectations and consensus forecasts for 2026 and 2027.
Analysts expect pre-tax profits overall to fall 18% by 2025, based on the median of 12 respondents to LSEG SmartEstimate.
Bank of Ireland chief financial officer Mark Spain told Reuters that Sunday's trade deal would not affect the bank's July 17 revision of its Irish growth forecasts and that removing uncertainty could bring some positives.
He added that the bank's loan book had not revealed any significant tariff-related issues and that the caution shown by large corporate clients amid trade tensions in April was beginning to wane.
Sourse: breakingnews.ie
