AIB sees new lending grow by 11% in 2026 despite geopolitical uncertainty 

CEO Colin Hunt said total lending in the first three months grew to €73.5bn

AIB said it continues to expect its full-year net interest income to be around €3.8bn in 2025. Photographer: Aidan Crawley/Bloomberg

AIB has welcomed a strong start to 2026 with growth in loans partially offsetting its declining net interest income. 

The bank said it is on track to deliver its full-year targets as the Irish economy continues to “perform well” despite geopolitical uncertainty in the Middle East.

In a trading update for the first three months of this year, the pillar bank said new lending rose by 11% to €3.6bn, contributing to gross loans of €73.5bn, which was up by 1.7% compared to the same period last year. 

Meanwhile, the lender's net interest income, the difference between the interest it pays for loans and the interest it charges on loans, was down slightly compared to the beginning of 2025, falling by 3% to €920m. This, the lender said, was due to a lower interest rate environment.

AIB said it continues to expect its full-year net interest income to be around €3.8bn in 2025.

Other income increased by 8%, AIB added, which was driven by a gain on the sale of investment securities. 

AIB also reiterated its guidance for customer loans, which are expected to grow by around 5%, with customer deposits expected to grow by 2-3%.

“Having entered 2026 with great momentum in our business, the group delivered a strong performance in the first quarter," said AIB chief executive Colin Hunt.

"Notwithstanding the geopolitical uncertainty, the Irish economy continues to perform well, and we remain confident in our outlook for 2026. AIB plays a key role by supporting our customers and communities through our extensive branch network and digital channels."