Banking

AIB sees 27% income boost from higher interest rates

Lender anticipates an overall contraction in net interest income for the financial year, however, due to expected ECB rate cuts

Colin Hunt, chief executive of the bank, said “AIB continues to be in a position of strength with a robust balance sheet”. Picture: Fergal Phillips

AIB continued to benefit from the higher interest rate environment in the first three months of the year with net interest income (NII) up 27 per cent compared to the previous year.

On Thursday the bank said NII, a key banking metric, rose as a result of interest rates and larger loan volumes. It is expecting to have NII of €3.65 billion for the year down from last year’s €3.84 billion.

AIB said this year’s ...