AIB saw a 16 per cent decline in profit after tax (€927m) during the first half of the year as it returned to private ownership.

The bank announced a €263m interim ordinary dividend worth 12.33 cent per share after the state sold its remaining shares in June.

Net interest income declined to €1,874m as interest rates continued to decline ith net interest margin down from 3.24 per cent to 2.78 per cent. The bank brought in €358m in other income and €340m from fees and commissions.

For the full year, AIB expects to make net interest income of more than €3.6bn based on average ECB interest rates of 1.75 per cent, and other income of €750m.

Total income decreased ten per cent year-on-year while costs rose three per cent to €979m in line with guidance, resulting in a cost income ratio of 44 per cent.

Gross loans increased one per cent to €71.6bn, and new lending rose nine per cent to €6.9bn. AIB's share of the mortgage market now stands at 32 per cent.

Non-performing loans were unchanged at €2bn or 2.8 per cent of gross loans, and green lending of €2.5bn accounted for more than a third (36 per cent) of new lending.

The value of customer accounts rose two per cent to €112.5bn.

“AIB Group delivered another strong performance with a profit after tax of €927m for the first half of the year. The group continues to perform well in a resilient Irish economy against a backdrop of macroeconomic and geopolitical uncertainty," said Colin Hunt, chief executive of AIB.

"New lending was up €600m to €6.9bn, due to growth in mortgages, corporate and personal lending. Our return on tangible equity was 21.4 per cent and with our robust capital position, today we are pleased to announce an interim ordinary dividend
payment of €263m.

"June 2025 marked the milestone of AIB returning to full private ownership and we remain committed to delivering for our shareholders. We also remain committed to supporting the Irish economy and society as we continue to implement our strategy at pace through our strategic priorities of putting our 3.35m customers first, further greening our business and achieving greater operational efficiency and resilience.”

Employee numbers declined two per cent to 10,375, a reduction of around 240 from this time last year.

Bank levies and regulatory fees, meanwhile, decreased €20m to €108m, and the bank made a €96m net gain from exceptional items with the sale of its minority stake in AIB Merchant Services.

Looking ahead, AIB said it is confident in the strong fundamentals of its business and its ability to play a positive role in the Irish economy despite the global economic outlook being "clouded by elevated levels of uncertainty".

Photo: AIB chief financial officer Donal Galvin and chief executive Colin Hunt. (Pic Fintan Clarke, Coalesce)