By Elena Vardon
AIB Group reported a fall in total income for the first quarter as lower interest rates ate into its top line, and reiterated its full-year guidance.
The Irish lender on Thursday reported that its total income fell 9% for the three-month period compared with the same period a year prior. The decline was due to lower net interest income--the difference between what a bank earns on loans and what it pays clients for deposits--which came in at 950 million euros ($1.08 billion) and offset higher average loan volumes as well as a 7% rise in net fees and commissions.
Gross loans rose to 71.4 billion euros, marking a 200 million euro increase since the end of 2024, while new lending was up 14% in the quarter to 3.2 billion euros, the bank said.
"Notwithstanding the uncertainty in the international external environment, we remain confident in our outlook for 2025 and beyond," Chief Executive Colin Hunt said.
The Irish economy is supportive, underpinned by high employment and population growth, AIB noted.
The group expects net interest income to be greater than 3.6 billion euros for the year, along with other income of around 750 million euros. It pencils in an around 3% rise in costs over the period and expects return on tangible equity "meaningfully ahead" of its 15% midterm target.
Write to Elena Vardon at elena.vardon@wsj.com
(END) Dow Jones Newswires
May 01, 2025 03:21 ET (07:21 GMT)
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