Bank of Ireland Group PLC
(STU:BIRB)
€
18
(0%)
Market Cap: 17.19 Bil
Enterprise Value: 3.68 Bil
PE Ratio: 15.76
PB Ratio: 1.33
GF Score: 29/100 
Half Year 2026 Bank of Ireland Group PLC Earnings Call Transcript
Jul 31, 2026 / 07:00AM GMT
Release Date Price:
€18
Key Points
Positve
- Bank of Ireland Group PLC (BKRIF) reported a strong H1 2026 with profit before tax of €960 million, EPS growth of 36%, and a return on tangible equity of 14.4%, beating strategic targets.
- The company upgraded its full-year 2026 guidance for net interest income (NII) to around €3.5 billion, up from €3.4 billion, and raised its statutory RoTE guidance to greater than 14% from 12.5%.
- Irish loan book grew 7% in H1, with strong performances in mortgages (6% growth) and commercial lending (14% growth), while everyday banking deposits grew 3%.
- Wealth assets under management reached an all-time high of €65.5 billion, up 18%, driven by net inflows of €1.6 billion, supporting fee income growth.
- Asset quality improved with the NPE ratio falling to 2% (from 2.2% in December), and the impairment charge was a low €32 million, reflecting strong portfolio performance.
- The company increased its structural hedge by €8 billion in July, reducing NII sensitivity to interest rates by approximately one-third and enhancing NII resilience.
- Capital generation was strong, with 135 basis points of organic capital generated in H1, and the company upgraded full-year capital generation guidance to around 270 basis points.
- The interim dividend per share was increased by 56% to $0.39, reflecting confidence in prospects and a new distribution policy.
- Cost efficiency initiatives delivered €41 million in savings in H1, with a 2% reduction in FTE, contributing to a 0.8% improvement in the cost-to-income ratio.
- The company is investing €1.5 billion in digital and product enhancements, including a new mobile app and AI initiatives, to strengthen customer relationships and drive future growth.
Negative
- The company faces an uncertain geopolitical backdrop, which could impact the Irish economy and the bank's performance, despite current resilience.
- Net interest income growth in H1 was modest at 2%, with balance sheet growth and hedge rollovers only partially offsetting the impact of lower rates and planned deleveraging.
- The UK lending book reduced by 2% as part of a disciplined strategy focused on optimizing returns over volume, which may limit growth in that segment.
- The full-year cost of risk guidance was improved to mid-to-high 10s basis points, but this still implies a significant step-up from the H1 charge of 8 basis points, reflecting a cautious outlook.
- The company expects continued deleveraging in international corporate portfolios, with €1.2 billion remaining, which will reduce NII and require careful management.
- Average salary per employee increased by 6-7% annualized in H1, partly due to insourcing and hiring skilled staff, which could pressure cost growth.
- The savings and investment account initiative is still pending government details, and the company's readiness may require significant lead time, creating uncertainty.
- Competition in the Irish mortgage market is evolving, with potential pressure on margins from non-bank players, though the company maintains discipline.
- The NII outlook for 2028 is heavily dependent on the structural hedge repricing, with about 60% of the upgrade driven by rates, which could be volatile.
- The company's cost-to-income ratio improvement was only 0.8% in H1, which is modest relative to the 600 basis point target by 2028, requiring sustained execution.
Eamonn Hughes
Bank of Ireland Group PLC - Chief Sustainability and Investor Relations Officer
Good morning everyone.
I'm Eamon Hughes, Investor Relations Officer, and you're all very welcome to Bank of Ireland's H1 2026 results presentation.
You'll shortly hear from our CEO Miles O'Grady and CFO Mark Spain about our performance since the start of the year and then we'll open the floor to questions. So over to you Miles.
Myles O;Grady
Bank of Ireland Group PLC - Chief Executive Officer, Executive Director
' -
Thanks Eamon and good morning everyone.
I'm pleased to report a profit before tax of 960 million, driving EPS growth of 36% and returns of 14.4%. We are meeting or beating all strategic targets, growing loans and deposits. And wealth assets under management.
All of this supports upgraded guidance for this year and reaffirms a positive outlook to 2028.
On slide 5, I've summarized our updated three-year strategy and as a quick reminder, we are driving growth in Ireland, optimizing capital
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