Bank of Ireland sees before tax profit decline over 34%

Myles O’Grady, chief executive of Bank of Ireland. 

Bank of Ireland has seen its profit before tax fall by over 34% during the first half of the year as it sees a decline in its overall interest rate income and reports an impairment charge of €137m.

According to the company’s interim results for the period January to June this year, the company said it generated a profit before tax of €721m - down from the €1.1bn recorded during the same period in 2024.

The company reported net interest income of €1.67bn - down from €1.8bn during the same period in 2024. However, despite the fall, the bank still upgraded its guidance in this area for the year to around €3.3bn from a previous estimate of €3.25bn.

The European Central Bank has been steadily cutting interest rates over the last year, reductions which are being passed on to customers.

The company’s assets under management grew by 3% with Irish loans and deposits growing 5% which it said supports an “upgraded outlook for net interest income” this year and beyond.

The value of the bank’s loan book stood at €82.2bn in June, down from €82.5bn in December, with growth in Ireland of €1.3bn, driven by Irish mortgages.

“This was offset by foreign exchange impacts and planned deleveraging of €800m, primarily GB Corporate,” the company said.

The bank said it holds a 40% share of new mortgage lending in the country.

Customer deposits stood at €105.0bn as of the end of June - €1.9bn higher than in December, driven by higher Irish everyday banking balances.

The group’s liquid assets were €45bn at June 2025 supported by higher customer deposits, partially offset by higher lending volumes and lower wholesale funding volumes.

During the six month period, the bank reported an impairment charge of €137m which it said “reflects net portfolio activity of €97m and additional management adjustments of €40m”.

The company’s operating expenses also grew by 3%.

The bank’s business income grew by 4% to €399m year-on-year driven by strong wealth and insurance performance which was up 8%.

Chief executive of Bank of Ireland Myles O’Grady said the company is “on track to deliver its full year targets”.

“Against an uncertain international backdrop, the Irish economy is resilient. Bank of Ireland is well positioned to navigate this environment, generating strong levels of capital to support customers, grow our balance sheet, invest in the business and deliver attractive shareholder returns,” he said.

The company has announced an interim dividend per share of 25c or €243m