Bank of Ireland sees net loans grow 5% amid 'strong start' to 2026

Lender is forecasting a total net interest income of around €3.4bn this year

In a trading statement issued on Friday, the pillar bank saw its net loans grow to €83.6bn. 

Bank of Ireland has welcomed a strong start to 2026 despite uncertainty from evolving political events, with net loans growing by 5% in the first three months of the year. 

In a trading statement issued on Friday, the pillar bank saw its net loans grow to €83.6bn, driven by momentum in the bank's Irish franchise across both mortgages and commercial lending. Bank of Ireland said its share of new lending in the mortgage market was 41%.

Net interest income - the difference between the interest banks pay on loans and the interest they charge for loans - was flat at the beginning of 2026 on an annual basis, which Bank of Ireland said was in line with expectations. 

It said its performance reflected "strong business momentum" led by deposits, which rose by €4bn compared to the start of 2025, an increase in loans, higher bond income and favourable structural hedge dynamics. 

The lender said these factors offset lower average interest rates from the European Central Bank (ECB), fx impacts and planned deleveraging in Bank of Ireland said it will retain its existing 2026 net interest income guidance of €3.4bn, which is based on an expected average ECB deposit rate of 2%. 

For reference, the bank said a 25bps increase in the ECB deposit rate would generate an annualised net interest income benefit of around €45m.

Total fee income grew by 1% in the first three months of this year and was in line with expectations, while growth in wealth income was offset by lower fee income in corporate and commercial, which the bank had a strong first quarter in 2025. Assets under management in Bank of Ireland's wealth and insurance segment rose to €60.3bn, which was up by €300m compared to the end of 2205.  

“The Group had a strong first quarter, underpinned by its successful strategy, the breadth of its franchise, and the resilient Irish economy," said Bank of Ireland CEO Myles O'Grady.

“The Group has started 2026 with momentum, with loans growing by 5% annualised, deposits strong at €107bn, and Wealth AUM net inflows of €1.1bn. Asset quality is strong across our portfolios and we remain vigilant to the evolving geopolitical environment."

The chief executive said it recently set out a strategy to 2028 to create "significant customer and shareholder value." 

"Its building blocks are to drive growth in Ireland; optimise capital allocation; and invest for the future. This strategy capitalises on our unrivalled position in one of Europe’s best-performing economies, our proven track record of delivery and our highly capital-generative business model."

Reaffirming its guidance for 2026, the lender is anticipating a net interest income of around €3.4bn, which assumes an average ECB deposit rate of 2%, total fee income to be 4% higher and total costs of around €2.2bn.