Finance
Bank of Ireland expects to grow earnings, boost shareholder returns to 2028
Published by Global Banking & Finance Review®
Posted on March 2, 2026
2 min readLast updated: March 2, 2026
Quick Summary
Bank of Ireland forecasts earnings growth and enhanced shareholder returns to 2028, aiming for net interest income of €3.85 billion, cost-income ratio in the mid‑40% range, and €1.2 billion returned via dividends and buybacks, with AI central to its strategy.
Bank of Ireland Targets Higher Earnings and Shareholder Returns Through 2028
Bank of Ireland’s Strategic Plans and Financial Outlook
Recent Financial Performance
DUBLIN, March 2 (Reuters) - Bank of Ireland said on Monday that it expects to increase earnings, accelerate returns to shareholders and cut costs over the next three years, after reporting lower-than-expected pretax profit for 2025.
Shares in Ireland's biggest lender were 3.5% lower in early trading, similar to the 2.7% drop in main rival AIB as bank stocks fell throughout Europe due to the conflict in the Middle East.
Growth Targets and Strategic Initiatives
Net Interest Income and Lending Expansion
The bank said it expects to increase its net interest income to 3.85 billion euros ($4.51 billion) in 2028 from 3.37 billion euros last year by lending more and attracting more deposits in Ireland's fast-growing economy, and "disciplined growth" in its much smaller international business.
Cost Reduction and Efficiency Measures
At the same time, it plans to cut its cost-income ratio to the mid-40% range from 52% last year. Artificial intelligence will be at the core of the new three-year strategy, CEO Myles O'Grady said.
CEO’s Statement
"Ireland continues to be a highly attractive market and our unique business model is superbly positioned to both support and benefit from this backdrop," he said in a statement.
Shareholder Returns and Value Creation
Full-year pretax profit fell to 1.4 billion euros from 1.86 billion a year earlier, and below the 1.53 billion euros expected by analysts polled by LSEG SmartEstimate.
The bank plans to return 1.2 billion euros to shareholders through a mix of dividends and share buybacks, equivalent to 100% of its earnings.
The new strategy will drive significant shareholder value creation, including the distribution of surplus capital on at least an annual basis, the bank added.
Additional Information
($1 = 0.8535 euros)
(Reporting by Padraic Halpin. Editing by Mark Potter)
Key Takeaways
- •Net interest income expected to rise from €3.37 billion (2025) to €3.85 billion by 2028 via Irish lending & deposits and disciplined international growth.
- •Cost-income ratio targeted to fall to mid‑40% from 52%, driven by AI and cost-cutting initiatives.
- •Plans to return €1.2 billion (100% of earnings) to shareholders through dividends and buybacks, supported by strong capital generation and macroeconomic outlook.
Frequently Asked Questions about Bank of Ireland expects to grow earnings, boost shareholder returns to 2028
1What are Bank of Ireland's earnings targets for 2028?
Bank of Ireland aims to increase its net interest income to 3.85 billion euros by 2028, up from 3.37 billion euros last year.
2How does Bank of Ireland plan to boost shareholder returns?
Bank of Ireland plans to return 1.2 billion euros to shareholders through dividends and share buybacks, totaling 100% of its earnings.
3What strategic focus will Bank of Ireland implement over the next three years?
The bank will focus on artificial intelligence as a core part of its new strategy and aim for disciplined growth and cost reductions.
4How does Bank of Ireland plan to reduce costs?
Bank of Ireland seeks to lower its cost-income ratio from 52% to the mid-40% range by 2028.
5What impacted Bank of Ireland's profit in the most recent year?
Full-year pretax profit fell to 1.4 billion euros, below analyst expectations, impacted by wider declines in European bank stocks and geopolitical factors.
