AIB Group (A5G) H2 2025 earnings summary

Executive summary

• Profit after tax reached €2,139m for 2025, with a return on tangible equity (ROTE) of 25% and a CET1 ratio of 16.2%, reflecting strong profitability and capital generation.

• Net interest income (NII) was €3,748m, down 9% year-over-year, but resilient due to structural hedging and higher deposit/loan volumes.

• Customer deposits grew 7% to €117.2bn, gross loans increased 2% to €72.3bn, and new lending reached €14.7bn, with green lending comprising 43% of new lending.

• Returned to full private ownership in June 2025, having returned €21bn to the Irish state, and cancelled IPO warrants in October 2025.

• Total shareholder distributions amounted to €2.25bn, including a €1bn share buyback and a €1.25bn cash dividend, with a payout ratio of 105%.

Financial highlights

• Net fee and commission income rose 4% to €692m, offsetting lower other income items.

• Cost/income ratio was 44%, with operating costs up 1% to €1,992m; FTEs reduced by 3%.

• ECL charge was €172m (24bps cost of risk), with ECL coverage at 1.6% and NPEs at 2.2% of gross loans.

• EPS was 93.3c, flat year-over-year; payout ratio reached 105%.

• Exceptional gain of €156m from the sale of a minority stake in AIB Merchant Services.

Outlook and guidance

• 2026 guidance: NII expected at ~€3.8bn, other income >€750m, costs to rise ~2%, cost of risk 20-30bps.

• Customer loans expected to grow ~5%, deposits by 2-3%, ROTE >20%, and CET1 targeted above 14%.

• Medium-term lending growth CAGR of 5% targeted through 2027; asset growth targets of 5% for 2026 and 2027.

• Ordinary dividend payout policy set at 40-60%, with capacity for above-policy payouts.

• Launching next-generation mobile app and peer-to-peer payments in 2026.