Bank of Ireland posts €1.9bn profits before tax in 2024

Chief executive Myles O'Grady says bank has positive outlook for 2025

Bank of Ireland chief executive Myles O’Grady expressed a positive outlook for 2025 after the bank posted profits before tax of €1.9bn in 2024. Picture: Naoise Culhane 

Bank of Ireland has reported profits of €1.9bn in 2024, its full year figures released on Monday morning show.

The results showed adjusted return on tangible equity (ROTE) of 16.8% and shareholder distributions of €1.2bn, with the bank targeting an adjusted return on tangible equity of above 17% in 2027 and continued strong levels of capital generation predicted from 2025 to 2027.

"We are now two-thirds of the way through our current strategic cycle and continue to meet or beat all our business targets," said Bank of Ireland chief executive Myles O'Grady. "This performance reflects focused and consistent strategic execution, our differentiated business model, and the attractive markets where we do business. Our strategy is to build stronger customer relationships, a simpler business, and a more sustainable company. These pillars are driving our performance and will future proof our business as we look to the future with confidence.

“The Group enters 2025 with momentum across all business lines. Notwithstanding potential impacts to global trade, our business model continues to be highly capital generative for the coming year and beyond, supporting customer growth, business model investment and attractive shareholder returns."

The 2024 results showed Irish loans were up 6% and deposits up 2%.

Net interest income in 2024 stood at €3.565bn supported by organic loan growth in Ireland, customer deposits increasing by 3%. Business income rose 4% to €764m supported by strong wealth and insurance performance. Income from fees was up fee 6% and assets under management rose 19% to €54.9bn. 

Operating expenses stood at €1.97bn "in line with guidance", the company said, with a cost to income ratio of 46%. 

The group saw a 32% increase in sustainable finance lending versus 2023 to €14.7bn, and the bank said it is on track to deliver on a target of €15bn by 2025.  

New customers increased by 5% while the Net Promoter Score, a measure of customer satisfaction, increased by 11 points in the year. Complaints fell 21%, "reflecting the improvements the Group has made in a wide range of products and services including in its digital channels".

Operating expenses rose 6% in 2024, primarily reflecting inflation, increased pension costs and continued investment. This included an additional investment of €30m in strategic growth and simplification opportunities to drive future efficiencies. Cost to income ratio was 46% in 2024.

The Group’s loan book increased by €2.8b during 2024 to €82.5bn, including a €3.2bn increase across Irish portfolios, a modest increase of €200m in Retail UK, partially offset by planned deleveraging in our international loan portfolios, primarily reflecting planned rundowns in Corporate GB and US CRE.

Customer deposits were €103.1bn, €2.9bn higher versus 2023, predominantly driven by higher Retail Ireland volumes of €1.5bn.

The Group’s liquid assets of €44bn at December 2024 were relatively stable with wholesale funding of €10.9bn, lower by €900m.  

Bank of Ireland predicts 2025 net interest income is expected to be greater than €3.25b and business income in 2025 is expected to be around 5% higher than 2024.