The bank’s assets under management increased by 3pc with Irish loans and deposits growing 5pc.
The bank announced an interim dividend per share of 25c and reaffirms its guidance for a progressive dividend per share for the full year.
Guidance for the full year was affirmed on Tuesday, in the bank’s half-year update, despite the wider uncertainty around trade and the global economy.
Chief executive Myles O’Grady said the Irish economy remained resilient. Sustained savings activity over many years means household net worth is at an all-time high, the bank said.
“Bank of Ireland is well positioned to navigate this environment, generating strong levels of capital to support customers, grow our balance sheet, invest in the business and deliver attractive shareholder returns,” Mr O’Grady said.
Bank of Ireland reported net interest income, a key measure of any bank’s profitability, of €1.67bn in the first half of the year and upgraded full-year guidance for net interest income to €3.3bn.
Business income was up 4pc, driven by strong ‘wealth and insurance’ performance, while operating expenses rose 3pc, in line with guidance. The bank has a cost-to-income ratio of 48pc.
A modest impairment charge of €137m included additional management adjustments of €40m, essentially a reflection of caution on potential yet unseen risks.
In relation to the Irish economy, in which Bank of Ireland primarily operates, the bank said the economy is resilient and growing against a more uncertain external backdrop, particularly in relation to international trade arrangements.
“The group’s Economic Research Unit forecasts headline GDP growth of 8.1pc in 2025 and 3.2pc in 2026 and these forecasts incorporate consideration of the current evolving policy framework,” the bank said.
“In addition, it is worth highlighting that a combination of above-average economic growth and prudent management of the public finances over many years have positioned Ireland with one of the lowest debt-to-GDP ratios in the European Union. Irish consumers and businesses are also in good balance sheet shape.”
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