Bank of Ireland raises interest income guidance to €3.3bn

Bank has set aside €400m for a car finance redress scheme

Pillar Bank reports 5% growth in its loan book and 5% rise in deposits.

Bank of Ireland is upgrading its guidance for net interest income (NII) to more than €3.3bn for 2025, citing sustained momentum in its core Irish business. 

Publishing its interim statement for the third quarter, the pillar bank said the increase reflects robust demand in its mortgage and deposit books, alongside disciplined cost control.

The Group reported strong growth in Irish loans and deposits, with the CEO, Myles O’Grady, noting the continuation of "high levels of net organic capital generation." For the nine-month period, the Group generated 185 basis points of organic capital.

However, the bank's positive report is overshadowed by the €400m impairment charge set aside for the impending UK motor finance redress scheme following the Financial Conduct Authority’s (FCA) recent consultation paper. This amount is more than double what BoI had originally provisioned for.

Group deposits rose to €105.5bn while total net lending reached €82.2bn. The bank said mortgages performed strongly, with 41% of the new lending market share.