AIB raises outlook after sharp rise in new lending

AIB has raised its forecasts for net interest income and customer loan growth after new lending rose sharply in the first nine months of the year.

A trading update from the bank today showed total income rose 3 per cent in the nine-month period to the end of September. AIB’s net interest income was €2.87 billion, up 2 per cent compared to the first nine months of 2025, while other income was up 7 per cent.

Gross lending at the bank has grown by €4 billion to €76.3 billion since the end of last year, representing an increase of 5.6 per cent. New lending rose 17 per cent to €12.3 billion, which included €3.2 billion in additional Irish mortgages.

AIB previously forecast customer loans would grow by around 5 per cent this year. In the trading update, the bank has raised its full-year 2026 forecast for customer loan growth to 5–6 per cent.

The bank has also raised its net interest income forecast to more than €3.85 billion, up from more than €3.8 billion previously.

Deposits held by customers have increased by 2.7 per cent to €120.4 billion, while AIB’s costs rose 3 per cent in the nine months and its cost-to-income ratio was 44 per cent.

AIB chief executive Colin Hunt said the financial update showed the bank “had another strong quarter”, which reflected the resilience of the Irish economy.

“While the international environment remains uncertain, our disciplined approach, market-leading franchise and strong capital position enable us to continue to support our 3.5 million customers, the communities we serve and the wider Irish economy.

“As we enter the final months of our current strategic cycle, we remain focused on delivering sustainable growth and shareholder returns.”

He added that investors would be updated by the bank on its next strategic approach, up to 2030, in March 2027.

More to follow...