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AIB Group PLC on Friday recorded "strong" profitability and loan growth in the third quarter.
The Irish lender said total income has increased 17% in the first nine months of 2022, aided by higher interest rates - which saw net interest income grow 10%. Net interest margin for the nine-month period was 1.57%, which is improved on the 1.48% recorded in the first half of 2022.
Net interest income is expected to grow by more than 15% in all of 2022, compared to a previous guidance of 10%.
AIB noted €9.0 billion in new lending so far in 2022, with €3.5 billion coming in the third quarter, thanks to "positive trends" across Retail Banking and Capital Markets.
Chief Executive Officer Colin Hunt said: "I am pleased to report that the group had a strong third quarter and with momentum in our business, we are confident in our delivery for the remainder of the year.
"Notwithstanding the global macro-economic uncertainty and volatility, the Irish economy is demonstrating resilience supported by growth, record levels of employment and low leverage."
AIB said its fully loaded CET1 ratio was 15.4% at the end of the third quarter, which it noted is "well ahead" of minimum regulatory requirements. On top of this, the bank said its acquisition of the €5.7 billion Ulster Bank performing tracker mortgage portfolio will reduce CET1 by about 60bps reflecting increased risk-weighted assets of about €2.5 billion.
For 2022, it sees customer loans growing 5% to 6%.
Looking further ahead, AIB said it is confident of meeting its upgraded income outlook for 2022. It did note, however, that its medium-term targets are under review - owing to the "changing banking landscape, evolving operating environment and rising interest rates".
In July, AIB said pretax profit in the half-year to June 30 grew 84% to €537 million from €291 million a year ago. Net interest income grew 2% to €895 million from €881 million due to lower funding costs.
Shares were down 1.0% at 249.40 pence each on Friday morning in London.
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