Bank of Ireland Group (BIRG) investor relations material

Executive summary

• Profit before tax reached €960 million in H1 2026, up 33% year-over-year, with EPS up 36% and RoTE at 14.4%, driven by growth in loans, deposits, and wealth assets under management, alongside disciplined cost control and robust asset quality.

• Loans, deposits, and wealth assets under management grew by a combined 6%, with Irish loans up 7%, deposits up 3%, and AUM up 18% year-over-year.

• Strategy 2028 targets include >4% income CAGR, RoTE >16%, and cost/income ratio improvement to mid-40s, supported by continued investment in digital, data, and AI.

• The Irish economy remains resilient, with expected domestic growth of 2%-3% annually through 2028, supporting the bank’s positive outlook.

Financial highlights

• Net interest income (NII) grew 2% in H1 to €1,705m, with upgraded full-year guidance to €3.5bn for 2026 and €3.95bn for 2028, assuming an ECB rate of 2.5%.

• Total income increased by 7% year-over-year to €2,178m; fee income rose 6%, driven by Wealth & Insurance and investment gains.

• Interim dividend per share announced at €0.39, up 56% year-on-year.

• CET1 ratio stood at 15.5% after dividends and buybacks, with 135bps of organic capital generated in H1.

• Cost/income ratio improved to 50.5% (from 51.3%).

Outlook and guidance

• Upgraded guidance for NII, asset quality, RoTE, and capital generation; targeting RoTE >16% by 2028 and statutory RoTE >14% for FY26.

• Loan book expected to grow around 4% annually; deposit growth forecast at 3% per year.

• Cost-to-income ratio targeted to reach mid-40s by 2028, with €250 million gross cost reduction planned.

• Full-year capital generation expected at 270bps, with RWA investments consuming about 25%.

• Cost of risk expected in the mid-to-high teens bps for FY26.