AIB‘s new lending increased by 11 per cent to €3.6 billion in the first quarter of the year, with senior executives saying that the bank has seen “very little” impact from the Middle East conflict, which has pushed up fuel prices globally.
Chief executive Colin Hunt and chief financial officer Donal Galvin told analysts on a call that the fuel crisis has not yet led to an uptick in problem loans or had an impact on loan demand or savings rates.
The bank said in a trading statement ahead of its annual general meeting (agm) on Thursday morning that it remains on track to reach its full-year targets as the Irish economy continues to “perform well”.
Two gardaí were called to the agm to remove a shareholder, who had refused repeated requests from chairman Jim Pettigrew over the course of 25 minutes to yield the floor as he aired grievances over the repossession of a tractor. “I’ve done agms for 30 years and I’ve never had to do that,” the Scottish financial services veteran told remaining attendees.
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Gross loans on the bank’s balance sheet grew by 1.7 per cent for the period, to €73.5 billion, AIB said in the trading update.
“We’re looking at a very, very strong pipeline over the next number of months,” said Hunt, highlighting that this spans demand for mortgages to business loans and credit for large-scale renewable energy and infrastructure projects on both sides of the Atlantic in its climate capital unit. “The flow is very, very reassuring at this point in time.”
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Galvin added that the geopolitical turmoil has resulted in “very little impact to date” on either borrowing or savings activity among customers.
Net interest income dipped 3 per cent to €920 million, with lower rates partially offset by an increase in the bank’s loan book. It continues to expect its full-year net interest income to rise to €3.8 billion from €3.75 billion in 2025. This will be helped by expected European Central Bank rate increases this year to combat inflation.
Other income increased by 8 per cent, driven by a gain on the sale of investments in bonds, it said. Galvin said that the bank has invested the proceeds into more bonds from euro-area sovereigns and agencies. Net fee and commission income decreased by 5 per cent on the year.
Operating costs edged 2 per cent higher, in line with company forecasts, while its number of employees remained flat at almost 10,200, measured on a full-time-equivalent basis. Hunt said he still expects employee levels to fall 3 per cent naturally in both 2026 and 2027.
“Having entered 2026 with great momentum in our business, the group delivered a strong performance in the first quarter,” said chief executive Colin Hunt.
“Notwithstanding the geopolitical uncertainty, the Irish economy continues to perform well and we remain confident in our outlook for 2026. We remain on course to deliver strong, sustainable returns to our shareholders as we progress through the final year of our current strategic cycle.”
Non-performing loans equated to about 2.3 per cent of total loans, broadly in line with the ratio at the end of last year. AIB booked a “small” net loan loss charge during the quarter, it said, even as “asset quality remains resilient”.
AIB also announced that non-executive director Basil Geoghegan, an investment banker and outgoing chairman of airport operator DAA, has been appointed deputy chair of the bank.
