AIB income up 18% on the back of higher interest rates [Video]

AIB has reported 18% growth in total income for the first quarter as it reaped the benefits of higher interest rates.

The bank saw net interest income increase 27% year-on-year as it passed on European Central Bank rates hikes to customers and its net interest margin, the difference between the rates at which it borrows and lends money, rose to 3.25%.

Other income fell 14% due to non-recurrence of forward contract income, and income from fees and commissions increased 8%.

The bank’s costs were up 7% in line with guidance while its cost-income ration was 38%. The lender also absorbed a small net credit impairment charge in Q1.

Gross loans increased €1bn from December to €68bn with new lending of €2.8bn, 34% of which was green lending, and AIB’s mortgage market share for the year to date stands at 35.4%. While personal lending rose 14%, SME lending was broadly in line with Q1 2023.

Customer deposits …