(Alliance News) - Bank of Ireland Group PLC on Thursday upped net interest income guidance for the second half, in light of rising European Central Bank interest rates.
The lender said its performance in the first nine months of 2023 benefitted from the "rate environment", acquisition, and rising lending in Ireland.
"We had a strong business and financial performance in the period. This performance supports our purpose to deliver more for our customers, colleagues, shareholders and society," Chief Executive Officer Myles O'Grady said.
"In Q3 2023, we continue to successfully deliver, with further Irish lending growth, particularly in mortgages."
It now expects net interest income for the second half to rise around 5% from the EUR1.80 billion achieved in the first. It had previously only expected a modest increase.
O'Grady added: "While asset quality remains robust, we are mindful of the challenges facing our customers from the higher interest rate environment and continue to support them through a balanced approach to pricing. Our commercial actions and strategic execution are delivering continued strong organic capital generation and give us confidence in the outlook for the group for the remainder of 2023 and beyond."
It left cost guidance unchanged, predicting operating expenses of around EUR1.85 billion for 2023. It said it continues to "maintain tight control" over its cost base.
In addition, Bank of Ireland said it expects to pay an Irish bank levy of around EUR90 million for 2024, rising markedly from EUR25 million this year.
Shares in the company were 1.8% higher at EUR8.79 each in London on Thursday morning.
By Eric Cunha, Alliance News news editor
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Bank Of Ireland (BIRG)