Bank of Ireland Group (LON:BIRG) used its annual general meeting to highlight what Chairman Akshaya Bhargava described as a strong conclusion to the bank’s three-year strategy, while also setting out plans through 2028 amid geopolitical uncertainty, evolving customer expectations and rapid technological change.
Bhargava said the bank plays an important role for more than 4 million customers and remains integral to the Irish economy and society. He credited the group’s 11,000 employees, Group Chief Executive Myles O’Grady and the senior executive team for growing the balance sheet, maintaining lending discipline, managing costs and delivering returns for shareholders during 2025.
2025 Performance and Shareholder Returns
O’Grady said 2025 marked the successful conclusion of the group’s three-year strategy and left Bank of Ireland in an “unrivaled position as Ireland’s national champion Bank.” He said customer numbers rose to more than 4 million, while the bank held leading positions in mortgages, wealth management and SME lending.
For the year, O’Grady said Bank of Ireland reported profit before tax of EUR 1.4 billion. The loan book ended the year at EUR 82.5 billion, reflecting 6% growth in the Irish loan book, partly offset by planned international deleveraging and foreign exchange effects. Deposits grew 4%, while wealth assets increased 9%.
Total income was EUR 4.2 billion, including 7% growth in fee income, which O’Grady said was led by the wealth management business. Operating expenses rose 3%, in line with expectations. The group’s net impairment charge was EUR 193 million, including EUR 40 million set aside for the potential impact of geopolitical risks.
O’Grady said the group delivered an adjusted return on tangible equity of 13.9% and ended the year with a CET1 ratio of 15.1%.
Bhargava said distributions remain an important part of the investment case for shareholders. The group paid an interim dividend of EUR 0.25 per share in November and is asking shareholders to approve a final dividend of EUR 0.45 per share, bringing the total dividend for the year to EUR 0.70 per share. He said that represents an 11% increase from EUR 0.63 in 2024 and would mark the fifth consecutive year of increased full-year dividend payout.
The chairman also said the group repurchased 5% of its shares during 2025 at a cost of EUR 590 million and announced a further EUR 530 million buyback in March.
Strategy Through 2028
Bhargava said the new strategy announced in March will focus on the bank’s existing businesses, making them more efficient and growing them where possible. He said the strategy was shaped by uncertainty in the global economy and by opportunities from technological change.
O’Grady said the strategy has three priorities:
- Driving growth in Ireland by enhancing the mortgage, wealth and insurance, and everyday banking franchises.
- Optimizing capital and leveraging core group strengths for disciplined growth in the U.K. and international businesses.
- Investing in future capabilities, including digital, cyber protection, operational resilience, artificial intelligence, data, people and culture.
O’Grady said the group is targeting average annual loan book growth of 6%, deposit book growth of 4% and wealth asset growth of 10%. He said Bank of Ireland aims to reduce its cost-income ratio to the mid-40% range by 2028 and deliver a sustainable return on tangible equity of greater than 16% by 2028.
The bank entered 2026 with momentum, O’Grady said, citing loan growth, strong deposits and net inflows to wealth assets in the first quarter. He said asset quality remains strong, but added that geopolitical risks, including the Middle East crisis, could affect inflation and growth.
Technology, Housing and Wealth Initiatives
Bhargava said artificial intelligence is a strategic priority, not only for efficiency and customer service but also for product innovation and new revenue opportunities. O’Grady said AI-driven fraud detection assessed about 1 billion card transactions in 2025 and prevented EUR 10 million in customer losses. He also said AI helped reduce call transfers in contact centers by more than 40%.
O’Grady also highlighted the bank’s role in housing. He said Bank of Ireland has made EUR 2.5 billion available for new housing, including EUR 1 billion for social and affordable projects, and was supporting construction of about 26,000 homes across Ireland at the end of 2025. The group also committed an additional EUR 100 million of equity capital in support of the Ireland Strategic Investment Fund to deliver new homes.
Bhargava said Bank of Ireland supports the Irish government’s plans for a savings and investment program similar to the U.K.’s ISA program. He said the initiative could support wealth creation in Ireland and align with the bank’s wealth and insurance strategy, which includes New Ireland and Davy.
Shareholder Questions and Pension Concerns
A significant portion of the meeting addressed shareholder concerns, including pension matters, repossession practices, deposit rates, Davy platform fees and U.K. motor finance redress.
Bhargava acknowledged former colleagues and pension scheme members who gathered outside the meeting. He said the defined benefit pension fund, known as the BSPF or DSPF in the discussion, has about 16,300 members and was closed to new members in 2006. He said the financial crisis created a significant deficit, after which members took cuts and the bank contributed EUR 1 billion. The fund is now in surplus, though he described the surplus as “very, very small,” and said the bank must ensure the fund can meet obligations over the next 60 years.
Shareholders and pensioners pressed the board on pension increases and what one shareholder called a 1% clawback. Bhargava said the board reviews the matter regularly, including through an independent third-party review last year, but said no further action is currently warranted.
In response to a shareholder question about Bank of Ireland’s treatment of borrowers in home repossession cases, Bhargava said he was sorry to hear the experience described and asked O’Grady and General Counsel Ann Lalor to meet with the speaker after the meeting.
On a question about whether Bank of Ireland had interest in PTSB as an add-on to the group, O’Grady said the addition of PTSB would not be viewed as an appropriate strategic fit and that Bank of Ireland did not engage in that transaction.
Delisting Proposal and Odd Lot Offer
Bhargava said shareholders were being asked to consider a proposal to cancel the group’s listing of ordinary shares on the London Stock Exchange while retaining the listing on Euronext Dublin. He said trading volume in London has been negligible compared with overall trading and that maintaining the listing is no longer in the interest of the company and shareholders. If approved, the shares would be delisted from the London Stock Exchange on June 29.
The meeting also included resolutions for an odd lot offer. Bhargava said Bank of Ireland has about 75,500 registered shareholders, including roughly 26,000 who hold 30 shares or fewer. The proposed mechanism would allow eligible small shareholders to sell shares at a 5% premium to the weighted average share price on Euronext Dublin over the preceding five days, without brokerage fees, while shareholders could choose to retain their holdings.
Sarah McLaughlin, Group Company Secretary, said the AGM included 18 resolutions covering 27 decisions, with results to be published on the group’s website and released to stock exchanges after the meeting.
About Bank of Ireland Group (LON:BIRG)
Bank of Ireland Group is one of the largest financial services groups in Ireland, with total assets of €162 billion at 30 June 2025. We provide a broad range of banking and other financial services. We are organised into four trading segments (Retail Ireland; Wealth & Insurance; Retail UK; and Corporate & Commercial) and one support division (Group Centre) to effectively serve our customers.
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