Lender now expects its net interest income to top €3.75 billion, some €150 million higher than its previous guidance
AIB hiked its full-year net interest income forecast on Wednesday, as savers have been slower than expected to move from low-rate accounts into its more attractive products.
It sees its net interest margin – the difference between the average rates at which a bank funds itself and lends on to customers – coming in higher than 3 per cent, up from its previous forecast for a figure in excess of 2.9 per cent.Sherry Fitz doing business, falling energy bills, and being wary of online influencers‘Anyone who says money isn’t important to them is telling a porky pie!’
AIB’s €29.5 billion of excess customer deposits that are resting in the Central Bank are currently earning a rate of 4 per cent, up from zero in July last year, before the ECB started to increase its rates in an effort to fight inflation. Meanwhile, AIB said it expects its other business income to amount to €850 million this year, up from previous guidance of €780 million, as fee-based income has proven to be stronger than expected so far this year.
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