AIB chief 'expects profitability to ease' next year as rates fall

The lender forecasts net interest income, fuelled by monetary policy changes by the ECB, will reach about €4bn for the year

AIB chief executive Colin Hunt said AIB continued to be 'prudent but conservative' in its lending and there was 'no evidence of over lending out there'. Picture: Miki Barlok

AIB chief executive Colin Hunt predicted the lender’s profitability would ease next year as the European Central Bank (ECB) embarks on an interest rate cut roadmap, albeit at a gradual pace.

AIB, which is a dominant player in the Republic of Ireland’s small retail banking market, posted an after-tax profit haul of €1.1bn for the first six months, bolstered by a high interest rate environment, and said it remained “confident” on its outlook for the rest of the year.