By Elena Vardon

AIB Group nudged up its guidance after reporting strong performance for the first nine months of 2025, which it said positions it well the rest of the year.

The Irish bank now expects net interest income--the difference between it earns on loans and pays out on client deposits--to come in above 3.7 billion euros ($4.3 billion), compared with more than 3.6 billion euros previously as customer accounts are now expected to grow by around 4%--compared to its previous 3% view--and loans to customers should still grow around 3%.

AIB also raised its exceptional gain guidance to around 150 million euros from 100 million euros previously, mostly on the sale of its minority stake in AIB Merchant Services to joint venture partner Fiserv.

The lender, which returned to private ownership after Ireland's government fully divested its stake earlier this year, still expects around 750 million euros in other income and to book an around 3% increase in costs.

"Net interest income has remained resilient throughout the interest rate cycle due to the growth in our loan book and deposit base," Chief Executive Colin Hunt said, adding that its performance is underpinned by a supporting economy. Total new lending for the period to Sept. 30 increased by 5%.

AIB on Tuesday posted a 10% decline in net interest income to 2.8 billion euros for the nine months, as expected given that higher loan and deposit volumes only partly offset lower interest rates. Other income fell 12% compared to a year prior, when the bank say higher equity gains, while income from commissions and fees grew 2% over the period, it said.

Its common equity Tier 1 ratio stood at 16.6% at the end of September, up from 16.4% at the end of June.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

November 04, 2025 02:39 ET (07:39 GMT)

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