AIB reports 10% drop in interest income as loans and deposits rise

AIB customers hold €114.3bn in accounts, up €4.4bn from December 2024, reflecting 4% growth in Irish volumes.

AIB reported a resilient performance in the third quarter amidst a declining interest rate environment.

Publishing its trading update this morning, the bank reported net interest income (NNI) of €2.8bn for the nine months to September 2025, a 10% drop year-on-year, primarily attributable to lower prevailing interest rates.

The bank now expects NII of more than €3.7bn this year, upgraded from previous guidance of €3.6bn based on rate assumptions of an ECB deposit rate of 2.00% and a BOE rate of 3.75% at the end of the year. NII has remained resilient throughout the interest rate cycle and has stabilised.

The bank's balance sheet shows gross loans of €72.2bn, an increase of €0.9bn since December 2024. New lending reached €10.5bn, up 5% year-on-year. Its mortgage market share was 31% year-to-date.

AIB customers hold €114.3bn in accounts, up €4.4bn from December 2024, reflecting 4% growth in Irish volumes.

AIB Chief Executive Colin Hunt said it was another strong quarter for the bank.

"The Irish economy continues to show resilience despite a challenging international backdrop," he said.

"Our 3.4 million customer base positions us well for the remainder of the year and for the medium term. We continue to implement our strategy at pace, delivering sustainable returns to our shareholders, and supporting our customers and communities.”