AIB raises full-year forecasts on loan, deposits and interest income growth

New lending to September was up 17% to €12.3bn.

AIB has upgraded its full-year forecast on the back of strong growth in the third quarter.

In a trading update, the bank reported a 3% jump in total income compared to 2025, with net interest income of €2.87bn earned so far this year, up 2%. Other income was up 7%.

AIB said it was upgrading its full-year net interest income to more than €3.85bn from its previous forecast of €3.8bn. Other income is expected to be approximately €800m for the year. The forecast is based on rate assumptions of an ECB deposit rate of 2.5% and a Bank of England rate of 4% at December 2026.

The bank also recorded strong growth in its loan book. Gross loans increased to €76.3bn, up €4bn or 5.6%. New lending was up 17% to €12.3bn. New mortgage lending was up 4% at €3.2bn. AIB now holds a 28.4% share of the mortgage market.

Personal lending in Ireland of €1bn reflected a larger customer base. New lending to SMEs in Ireland of €1.2bn improved compared to the prior year.

“I am pleased to announce that the Group had another strong quarter reflecting the resilience of the Irish economy and the continued momentum in our business. Gross loans have increased by €4bn since December 2025 to €76.3 billion, with new lending to September up 17% to €12.3 billion, of which 43% was green lending," Chief Executive Colin Hunt said.

Customer deposits in the first nine months of the year increased by €3.2bn or 2.7% to €120.4bn, with 93% of accounts based in the Republic of Ireland. Customer deposits are expected to grow by 3%-4% in 2026.

AIB said operating costs were up 3% impacted by salary inflation and other employee benefits, partially offset by lower average staff numbers. Staff numbers at the end of the third quarter were 3% lower at 10,017.

"While the international environment remains uncertain, our disciplined approach, market-leading franchise and strong capital position enable us to continue to support our 3.5 million customers, the communities we serve and the wider Irish economy," Hunt said.

"As we enter the final months of our current strategic cycle, we remain focused on delivering sustainable growth and shareholder returns. We look forward to updating the market on our next strategic cycle to 2030 at our 2026 Annual Financial Results in March 2027.”