AIB’s €2.1bn profit powers record shareholder payout

Net interest income falling 9% to €3.75bn on lower rates.

AIB is guiding net interest income of around €3.8bn for 2026.

AIB reported a profit after tax of €2.1bn for 2025, for what chief executive Colin Hunt described as a “landmark year” for the bank.

Strong lending, a growing customer base and continued digital transformation helped deliver a 25% return on tangible equity. AIB announced total shareholder distributions of €2.25bn , including a near-60% increase in its full-year cash dividend and a newly approved €1bn share buyback.

CEO Colin Hunt said the results demonstrate the strength of AIB’s strategy and the resilience of the Irish economy. “We are successfully executing our strategy supported by a resilient Irish economy, a growing customer base and accelerating technological change,” he said.

The bank said total income declined by 8%, driven largely by lower interest rates, with net interest income falling 9% to €3.75bn. The bank said the drop was expected and partly offset by growth in average loan and deposit volumes. AIB is guiding net interest income of around €3.8bn for 2026.

Customer activity remained robust as gross loans rose 2% to €72.3bn, while customer deposits increased 7% to €117.2bn. New mortgage lending stood at €4.3bn, giving it a 30% share of the Irish market.

AIB said its operating costs increased 1% to €1.99bn, which was below expectations, despite inflationary pressures and ongoing investment in technology. Full-time staff numbers fell by 3% to 10,207, helping to offset higher operating expenditure.

“With a strong capital base, a clear strategic ambition and a deep sense of purpose, AIB is well positioned to support our customers, the communities we serve and the Irish economy, while delivering sustainable long-term value for shareholders," Hunt said.