Published by Global Banking & Finance Review®
Posted on March 2, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleBank 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.
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.
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.
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.
"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.
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.
($1 = 0.8535 euros)
(Reporting by Padraic Halpin. Editing by Mark Potter)
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.
Bank of Ireland plans to return 1.2 billion euros to shareholders through dividends and share buybacks, totaling 100% of its earnings.
The bank will focus on artificial intelligence as a core part of its new strategy and aim for disciplined growth and cost reductions.
Bank of Ireland seeks to lower its cost-income ratio from 52% to the mid-40% range by 2028.
Full-year pretax profit fell to 1.4 billion euros, below analyst expectations, impacted by wider declines in European bank stocks and geopolitical factors.
Explore more articles in the Finance category
