Bank of Ireland Group (BIRG) Q2 2025 earnings summary

Executive summary

• Strong H1 2025 performance with Irish loans, deposits, and AUM all growing; ROTE at 14.8% and cost-to-income ratio at 48%.

• Upgraded FY25 net interest income guidance to €3.3bn, supporting a positive medium-term outlook to 2027.

• Strategic focus on efficiency, digital transformation, and AI to achieve a €2bn cost base by 2027.

• Interim dividend of 25c per share (40% payout); €1.2bn cumulative share buybacks since 2022, reducing share count by 11%.

• Strategic execution and digital innovation are driving customer outcomes and capital generation.

Financial highlights

• H1 2025 profit before tax was €0.7bn; cost-to-income ratio at 48%; ROTE at 14.8%.

• Net interest income for H1 2025 was €1.67bn, down 8% year-over-year; total income €2.03bn, down 7%.

• CET1 ratio (pro forma) at 16.0%, up from 14.6% at year-end 2024.

• Dividend per share at 25c, down from 35c in H1 2024; interim dividend of €243m paid.

• Share buyback of €590m ongoing, with €2.6bn returned to shareholders since 2023.

Outlook and guidance

• FY25 guidance: NII c.€3.3bn, total business income growth c.5%, operating expenses c.3% higher, cost of risk c.30bps.

• ROTE guidance c.15% for FY25, building to >17% by 2027.

• Organic capital generation guidance reaffirmed at 250-270bps.

• Cost base targeted at €2bn by 2027, with restructuring charges to decline after 2026.

• Progressive full-year dividend per share and further capital returns anticipated.