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AIB Group PLC on Thursday forecast a return on tangible equity surpassing its medium-term target, following the first quarter’s ‘strong financial performance’. ‘I am pleased to announce the group had a strong performance in the first quarter, having entered 2025 in a position of strength and with great momentum in our business,’ commented Chief Executive Officer Colin Hunt. The Dublin-based bank said its total income decreased 9% on-year in the first quarter, while net interest income declined 8% to €950 million from €1.01 billion ‘primarily driven by lower interest rates partially offset by an increase in average loan volumes’. Net fees & commissions, meanwhile, rose 7%. AIB furthermore said new lending increased 14% to €3.2 billion, and gross loans increased to €71.4 billion. Its common equity tier one, CET1, ratio was 16.8%, up from 15.1% in the prior quarter. For the full year, AIB reiterated its guidance, saying: ‘Following a strong first quarter, we remain confident in our outlook for 2025 and beyond.’ This includes customer loans rising by approximately 5%, net interest income exceeding €3.6 billion, and around €750 million in other income. ‘[Return on tangible equity] is expected to be meaningfully ahead of our 15% medium-term target,’ AIB added. ‘Notwithstanding the uncertainty in the international external environment, we remain confident in our outlook for 2025 and beyond given our market-leading customer franchise, resilient revenues and strong funding and capital,’ CEO Hunt said. ‘The Irish economy continues to perform well...We are implementing our proven strategy at pace and remain on course to deliver strong sustainable returns to our shareholders, both this year and over the medium-term.’ Shares in AIB were trading flat at 502.00 pence each in London on Thursday afternoon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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