AIB chief executive Colin Hunt and chairman Jim Pettigrew at the bank's annual general meeting this week. Photograph: Shane O'Neill/Coalesce.. The bank raised full-year forecasts this week on the back of a “very strong first-quarter performance” driven in large part by rising central bank rates.
Net interest income is now expected to come in more than 50 per cent higher in 2023 than last year at a whopping €3.3 billion. In the first quarter it was 93 per cent up on the same period last year and 16 per cent ahead of the previous three months. The bank’s total income in those first three months was 70 per cent.
The key factor behind that is rising central bank interest rates. Rates in Europe have jumped by 3.75 percentage points. In the UK the jump has been even bigger, at 4.15 percentage points. AIB has close to €35 billion on deposit with central banks here and in the UK, earning returns its deposit customers could only dream of.
At its annual general meeting on Thursday, the bank offered those savers vague platitudes, saying higher interest rates for depositors were “on the agenda” but offering no details.
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