(Alliance News) - AIB Group PLC on Thursday hailed a "very strong first quarter", with its top line boosted by rising interest rates.
The Dublin-based bank said total income in the first quarter of 2023 rose 70% on-year, "supported by the higher interest rate environment".
Net interest income alone surged 93% year-on-year, rising 16% on-quarter. Its net interest margin picked up to 2.78%, from 2.18% in the fourth quarter of 2022.
AIB lifted its yearly outlook. It now expects net interest income of over EUR3.3 billion, compared to previous guidance of EUR3.0 billion. It now predicts a net interest margin of 2.70%, up from its previous outlook of 2.40%.
Net interest income amounted to EUR2.16 billion in 2022, so it predicts growth of at least 53%. Its net interest margin last year was 1.74%.
"Asset quality remains resilient. However, we are ever vigilant with careful management of the loan book as we monitor the impact of inflation and rising interest rates," AIB added.
"Following a strong first quarter and with a resilient balance sheet and favourable domestic economic backdrop we are confident for the remainder of the year."
AIB shares traded 0.6% higher at EUR343.63 each in London on Thursday afternoon.
By Eric Cunha, Alliance News news editor
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Aib Group (AIBG)