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Bank of Ireland Group PLC on Wednesday lifted its outlook, after reporting flat first-half net interest income, benefitting from higher interest rates. The Dublin-based lender reported that pretax profit in the first half of the year rose 5.4% to €1.08 billion, up from €1.03 billion a year earlier. Net interest income was €1.80 billion, unchanged from a year before, though Bank of Ireland said this was up 2% on a like-for-like basis. ‘[The] performance reflects higher interest rates, growth in lending income particularly in Ireland, higher funding costs and continued strong commercial pricing discipline,’ Bank of Ireland said. For the full-year, it now expects net interest income of €3.55 billion, which would be a roughly 2.7% decline from the fourth quarter of 2023 annualised run rate of €3.65 billion. The new outlook is at the ‘higher end of the guidance’ given previously. Bank of Ireland had previously forecast a 3% to 4% decline from the fourth-quarter run rate net interest income. ‘The group had an excellent performance in the first half of 2024, reporting a profit of €1.1 billion, up 5%. This performance - underpinned by growth in our loan book and wealth assets, higher income and robust capital generation - supports upgraded earnings guidance for the year,’ said Chief Executive Myles O’Grady. ‘We are now half-way through our three-year strategy. We’re meeting or beating our targets and investing for the future. This year we’ve announced a range of improvements to our branches, ATMs, contact centre services and fraud support for our customers. The launch of innovative green mortgages and the expansion of agri-business green lending, and an increased funding commitment for housing development were important developments in H1.’ Shares in Bank of Ireland were down 0.4% to €10.46 each in London on Wednesday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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