AIB GROUP PLC HALF-YEAR RESULTS TO JUNE 2026

AIB announces a strong first half with profit of €0.9 billion and interim dividend of €0.4 billion

"AIB delivered a strong first-half performance in 2026 with a profit after tax of €939 million, reflecting the resilience of the Irish economy, the strength of our diversified business model and continued momentum in the execution of our strategy. We achieved growth across all lending segments with new lending up 10% to €7.5 billion, increased customer deposits and a strong capital position maintained. This enabled us to support our customers, invest in the business and announce an almost 60% increase in our interim dividend of 19.528c per share. We continued to make significant strategic progress, including the launch of our new mobile app and further development of our wealth management and digital capabilities. While elements of the external environment remain uncertain, our strong balance sheet and disciplined strategic execution position us well to support our customers, communities and the Irish economy for the second half of the year and beyond."

- Colin Hunt, Chief Executive Officer

KEY HIGHLIGHTS

Financial highlights: (all comparisons versus H1 2025 unless otherwise stated) 

·    Strong profitability in H1 2026

o  Profit after tax €939m; RoTE⁽¹⁾ 23.2%; EPS 42.2c

·    Total income increased 2%

o  Net interest income (NII) of €1,871m in line with prior period; H1 NIM 2.68%

o  NII for FY 2026 now expected to be > €3.8bn; previous guidance c. €3.8bn

o  Total other income of €411m up 15%; Net fee and commission income of €328m

o  Other income for FY 2026 expected to be c. €800m; previous guidance > €750m

·    Costs⁽²⁾ increased 2% to €1.0bn as guided; cost income ratio (CIR) maintained at 44%

·    ECL charge of €91m representing 25bps cost of risk; 1.6% ECL cover

·    Gross loans increased 3% or €2.2bn to €74.5bn (Dec 25: €72.3bn)

o  New lending up 10% to €7.5bn; mortgage market share of 30%⁽³⁾

·    CET1 of 16.1%⁽⁴⁾ excluding H1 2026 profit (Dec 25: 16.2%)

o  Strong organic capital generation of c. 170bps

o  Interim ordinary dividend of 19.528c per share amounting to €406m⁽⁵⁾

·    Customer deposits up 1.3% to €118.8bn (Dec 25: €117.2bn)

o  FY 2026 expected to increase c. 3%; previous guidance 2-3%

·    €1bn share buyback programme announced in March continues; €410m completed to June

2026 Guidance:

·    NII is expected to be > €3.8bn (previously c. €3.8bn)

·    Other income is expected to be c. €800m (previously > €750m)

·    Costs are expected to increase c. 2%

·    Cost of risk (CoR) expected to be within the range of 20-30bps

·    Bank levies and regulatory fees are expected to be c. €140m

·    No material exceptional items expected

·    Customer loans are expected to grow by c. 5%

·    Customer deposits are expected to grow by c. 3% (previously 2-3%)

·    RoTE is expected to be > 20%

Medium-term targets (2024-2026):

·    RoTE of 15%

·    CET1 > 14% with a buffer over MDA of at least 250bps

·    Absolute cost < €2bn with a CIR of < 50%

Medium-term targets continue to guide the business and will be refreshed for Strategy 2030 with FY 2026 results in March 2027.

Strategic highlights: Continued progress across our three strategic priorities

·    Customer first: developing more enduring relationships with our c. 3.5 million customers

o  Along with Zippay we launched our new mobile app, designed to provide customers with a more personalised experience, improved personal finance insights for financial planning and enhanced security

·    Greening our business: mobilising capital to support climate action

o  €26bn or 87% of our €30bn Climate Action target has been deployed since 2019

·    Operational efficiency and resilience: investing in capabilities, capacity & resilient platforms

o  AIB Fusion Centre established as the centre of defence against fraud, cybercrime and operational threats, unifying specialist teams and partnerships, advanced technology and real time intelligence, enabling us to identify, assess and respond quickly and effectively

·    Goodbody acquisition of Legacy Wealth Management, a Belfast-based private advisory firm with £700m AUM as we expand our wealth management business through targeted acquisitions. The transaction is subject to regulatory approval and is expected to complete in H2.

FINANCIAL PERFORMANCE

Underpinned by resilient income, the Group delivered a strong performance with profit after tax of €939m, EPS of 42.2c and RoTE of 23.2%.

Net interest income of €1,871m (H1 2025: €1,874m) was stable as lower interest rates were offset by an increase in average volumes. Net interest margin (NIM) was 2.68% (H1 2025: 2.78%) and the deposit beta was c. 20%. Q2 2026 exit NIM was 2.71% up from 2.65% at Q1 2026. For 2026 we expect NII to be > €3.8bn based on rate assumptions of an ECB deposit rate of 2.5% and a BOE rate of 4.00% at December 2026.

Other income of €411m (H1 2025: €358m) increased by 15% driven by higher gains on loan disposals, investment securities disposals and equity investments. Net fee and commission income decreased by 3% to €328m (H1 2025: €340m) with higher wealth and insurance income offset by lower customer accounts and card income as the prior year benefitted from one-off items. On an organic basis AUM grew by 6% to €19.4bn (Dec 2025: €18.3bn) and related revenue grew by 7% as we continue to enhance our wealth proposition.

Operating costs were €1,001m (H1 2025: €979m), up 2% in line with guidance impacted by salary inflation and increased variable pay partially offset by lower average staff numbers.  FTEs reduced 2% to 10,144 at June 2026 (H1 2025: 10,375). The cost income ratio remained stable at 44% (H1 2025: 44%).

Overall credit quality remained robust. There was a net credit impairment charge of €91m representing 25bps cost of risk (H1 2025: €85m charge; 24bps CoR). Our approach remains conservative, comprehensive and forward-looking and is reflected in an unchanged ECL coverage rate of 1.6%.

Bank levies and regulatory fees of €109m were in line with prior year (H1 2025: €108m) including recognition of the Irish bank levy.

Exceptional items were €2m of costs (H1 2025: €4m cost).

CUSTOMER LOANS

Gross loans of €74.5bn increased by €2.2bn or 3% (Dec 2025: €72.3bn) driven by new lending of €7.5bn partially offset by redemptions. 

Total new lending increased by 10% to €7.5bn (H1 2025: €6.9bn).

AIB's new mortgage lending in Ireland was €2.0bn (H1 2025: €1.9bn) resulting in a mortgage market share of 30% ⁽³⁾. Personal lending in Ireland of €0.7bn was broadly in line with prior year reflecting our market-leading digital proposition with 89% of personal loan applications completed online. New lending to SMEs in Ireland of €0.9bn improved compared to the prior year with 76% of small business loans originated on our new online business loan platform.

In Capital Markets, new lending was up 4% to €2.2bn. The growth in new lending was primarily driven by corporate and property lending.

Climate & Infrastructure Capital delivered strong new lending of €1.2bn, an increase of €0.6bn following lower activity in the prior year, with 70% of new lending in Europe and the UK. This strong performance reflects the Group's continued commitment to funding the transition to renewable energy and social infrastructure.

UK new lending of £0.8bn (H1 2025: £0.8bn) was driven by strong corporate lending partially offset by lower property lending.

Green and transition lending of €3.1bn accounted for 41% of new lending with €26bn deployed since 2019 as we continue to support our customers transition to a more sustainable future. Green mortgages represented 60% of new mortgage lending (H1 2025: 58%).

NPEs were €1.75bn or 2.35% of gross loans (Dec 25: €1.6bn or 2.2% of gross loans). Asset quality remains resilient and we continue to carefully manage the loan book.

FUNDING & CAPITAL

Strong funding and capital ensure AIB is well-positioned for sustainable growth. Customer deposits increased by €1.6bn or 1.3% to €118.8bn with 93% of accounts ROI-based (Dec 25: 93%). The Group continues to have strong funding and liquidity ratios with LDR of 62%, LCR of 187% and NSFR of 158% at June 2026 (Dec 25: LDR 61%, LCR 204% and NSFR 163%).

Our MREL ratio at June 2026 was 34.9% of RWAs, well in excess of our requirement of 28.5%. Total proceeds raised from ESG bonds to date stand at €8.2bn.

Capital remains robust and comfortably ahead of minimum regulatory requirements. The CET1 ratio at June 2026 was 16.1% (Dec 25: 16.2%) and primarily reflects an increase in RWAs due to strong balance sheet growth. Profit in the first half generated c. 170bps of CET1 and is not included in the CET1 ratio pending a final decision on payout at year end. Strong organic capital generation supports the interim dividend and capacity for further distributions. There are other factors expected to impact capital including IRB model adoption and expansion of our SRT programme.

Shareholder distributions: The Group has a sustainable ordinary dividend policy of 40-60% payout. For H1 2026 we will pay an interim ordinary cash dividend of 19.528c per share amounting to €406m⁽⁵⁾. The interim dividend is equivalent to one third of the prior year's ordinary dividend (FY25: 58.585c per share). Subject to annual review, the Group has capacity for additional distributions above our ordinary dividend policy range. We will maintain optionality regarding share buybacks and/or special dividends as we move towards our CET 1 target of > 14%.

The €1bn share buyback programme announced on 4 March 2026 is progressing as planned with €410m completed to June. As at 29 July 2026, c. 52m shares have been repurchased for a total consideration of c. €510m at a volume weighted average price of € 9.79 per share.

SUSTAINABILITY

In AIB we are empowering people to build a sustainable future. Greening our business is a strategic priority for AIB as well as playing our part to deliver positive socio-economic impact for our stakeholders. Some of the highlights of the first half of 2026 were:

•    Continue to lead the green transition with the financing of renewable energy and infrastructure

•    Supported c. 23,000 customers to buy their first home with €6.6bn of new lending to first-time buyers since 2024, meeting our > €6bn target by 2026

•    Provided finance to Irish housebuilders for residential development in H1 2026 supporting the construction of over 10,000 homes

•    Since launching in 2022, the AIB Community €1 Million Fund has helped almost 300 charities, enabling vital services, local initiatives and community-led projects across Ireland

•    We are actively engaged with the Irish Government and the relevant industry bodies on the development of a Personal Investment Account for Irish residents consistently advocating for simplicity and accessibility. The proposed initiative provides an opportunity to foster a culture of investment, improve customers' overall financial resilience while supporting economic growth

•    Following receipt of approval from shareholders at the AGM on 30 April 2026, the Group completed an odd-lot purchase of ordinary shares

From a governance perspective, at Board level, on 30 April Brendan McDonagh stepped down from the Board as non-executive Director and Deputy Chair while Basil Geoghegan was appointed Deputy Chair. James Emmett joined the Board in May, bringing over 30 years' international experience in banking and financial services to the Group. CFO selection process is underway following the announcement on 27 May that Donal Galvin, CFO, is to leave the Group to pursue other business opportunities.

OUTLOOK

We enter the second half of the year with confidence, supported by the strength of the Irish economy, the resilience of our customer franchise and our strong capital position. While mindful of ongoing macroeconomic and geopolitical uncertainties, we remain focused on the disciplined execution of our strategy and delivering sustainable value for all stakeholders.

As we close out the final six months of our current strategic cycle, we remain focused on the strategic objectives we set while simultaneously planning for the future. We look forward to updating the market on Strategy 2030 with refreshed medium-term targets at FY 2026 results in March 2027.

Analyst presentation

Colin Hunt, CEO and Donal Galvin, CFO will host a presentation via webcast and conference today at 09.00 IST, details of which are available in our Results centre

Further information is provided in the half-yearly financial report 2026 which can be found on our website at https://www.aib.ie/investorrelations/financial-information/results-centre/2026-financial-results and http://www.rns-pdf.londonstockexchange.com/rns/4574O_1-2026-7-29.pdf and was also submitted to Euronext Dublin and is available for inspection at: Euronext Dublin OAM filings

Interim dividend record and payment dates

·    Record date: 14 August 2026

·    Payment date: 6 October 2026

Glossary:

EPS: Earnings per share; RoTE: Return on tangible equity; FTE: Full-time equivalent

SRT: Significant risk transfer; MDA: Maximum distributable amount

LDR: Loan to deposit ratio; LCR: Liquidity coverage ratio; NSFR: Net stable funding ratio

Notes:

1)        RoTE= (PAT-AT1)/(CET1 @ 14% of RWAs)

2)        Costs before bank levies and regulatory fees and exceptional items

3)        Source: Mortgage drawdowns BPFI for June YTD 2026

4)        The CET1 ratio does not include interim profit for the half-year 2026 pending a final decision on payout at year end

5)        Interim dividend of 19.528c per share is one third of full year 2025 total ordinary dividend of 58.585c per share; €406m is based on the expected number of shares in issue on the record date 

Figures presented above may be subject to rounding and thereby may differ to the 2026 Half-Year Financial Report

- ENDS -

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Forward Looking Statements 

This document contains certain forward looking statements with respect to the financial condition, results of operations and business of AIB Group and certain of the plans and objectives of the Group. These forward looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward looking statements sometimes use words such as 'aim', 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'may', 'could', 'will', 'seek', 'continue', 'should', 'assume', or other words of similar meaning. Examples of forward looking statements include, among others, statements regarding the Group's future financial position, capital structure, income growth, loan losses, business strategy, projected costs, capital ratios, estimates of capital expenditures, and plans and objectives for future operations. Because such statements are inherently subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking information. By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward looking statements. These are set out in the Principal risks on pages 17 to 18 in the 2025 Annual Financial Report and updated on page 30 of the Half-Year Financial Report 2026. In addition to matters relating to the Group's business, future performance will be impacted by the Group's ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively. Future performance could also be impacted by macroeconomic uncertainty, tariffs, geopolitical tensions and global conflict. Any forward looking statements made by or on behalf of the Group speak only as of the date they are made. The Group cautions that the list of important factors on pages 17 to 18 of the 2025 Annual Financial Report and updated on page 30 of the Half-Year Financial Report 2026 is not exhaustive. Investors and others should carefully consider the foregoing factors and other uncertainties and events when making an investment decision based on any forward looking statement.