(Alliance News) - Bank of Ireland Group PLC on Tuesday reported a "strong first quarter" and lifted its net interest income guidance on the back of the high-for-longer interest rate environments in the US, eurozone and UK.
The Dublin-based lender said net interest income in the first-quarter was in line with expectations and similar to the fourth quarter's level.
"This reflects positive lending momentum combined with continued strong commercial pricing discipline, partially offset by lower deposit volumes and modestly higher deposit funding costs," it added.
Bank of Ireland's fully loaded common equity tier 1 ratio improved to 14.7% at the end of March from 14.3% at the end of December. The CET1 ratio compares a bank's capital against its risk assets, with a higher ratio being more financially sound.
Looking ahead, it noted market expectations for interest rates have picked up. The lender now expects interest rates to be on average 25 basis points higher in the US, the eurozone and the UK compared to what it predicted in its full-year results at the end of February.
As a result, Bank of Ireland now expects net interest income for the year to fall between 3% and 4%, its guidance lifted from a previously forecast 5% to 6% decline.
It added: "Operating expenses have progressed in-line with expectations in Q1 2024. The group continues to maintain tight control over its cost base while absorbing inflation and continuing to invest in strategic growth and simplification opportunities."
Bank of Ireland shares were 1.3% lower at EUR10.15 each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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Bank Of Ireland (BIRG)