AIB recorded a strong performance in the third quarter of the year, growing its income and loan book as the bank continued to build on the momentum seen in the first half of 2024.
In a trading update for the nine-month period to September 2024, the bank said total income rose 7 per cent over the first nine months of the year, driven by a 12 per cent rise in net interest income. This was partly due to higher interest rates, which remain although the ECB has moved to cut rates in the past few months, and increased loan volumes.
AIB’s loan book rose 5 per cent over the period, increasing to €70.4 billion, and the bank upgraded growth guidance for the year to between 5 and 6 per cent. New lending was 17 per cent higher at €10 billion, with the bank noting positive trends in personal lending and mortgages. Some 35 per cent of new lending was categorised as “green” lending.
There was a 6 per cent rise in net fee and commission income, and costs rose 6 per cent in line with guidance on increased staff numbers, inflation and enhanced employee benefits. AIB now employs just under 10,700 staff.
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Other income was down 15 per cent on lower income from forward contracts with the completion of the onboarding of Ulster Bank loans following its exit from the Irish market.
At the end of September, AIB had €108 billion in customer accounts, up slightly from the €105 billion it held at the end of December 2023. However, the bank noted the flow of funds to term accounts had slowed in the third quarter of the year.
“We remain confident in our outlook for the remainder of 2024 and beyond given our 3.3 million customer base, competitive market positioning, growing loan book and resilient and diversifying income,” chief executive Colin Hunt said. “The Irish economy continues to perform well and AIB plays a key role in its success by supporting our customers and their communities.”
Net interest income is expected to be around €4 billion, the bank said, with costs expected to rise by up to 7 per cent plus a once-off €25 million spend.
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