DUBLIN, May 4 (Reuters) - Irish bank AIB revised its full year guidance upwards across the board on
Thursday after its total income jumped 70% year-on-year in the
first quarter due to record increases in official interest
rates.
Ireland's largest mortgage lender said it expects net
interest income of 3.3 billion euros this year versus the 3
billion guided in March, increased its net interest margin
forecast to above 2.70% from 2.40% and forecast 2023 return on
tangible equity (ROTE) to be in the high-teens.
The majority state-owned bank said in December that it
expected to reach a more than 13% ROTE by 2024, allowing it to
supplement increased dividend payments with share buybacks over
that time.
The bank's net interest margin, a key metric showing the
profitability of its lending, rose to 2.78% in the first quarter
versus 1.45% a year ago when the bank was still operating in a
negative interest rate environment.
The European Central Bank is expected to raise interest
rates for the seventh meeting in a row later on Thursday, with
only the size of the move still open to debate.
"Notwithstanding the overseas financial market volatility,
AIB remains in a position of strength with a robust balance
sheet, stable deposit base and growing loan book enabling us to
support our customers and the wider economy," AIB Chief
Executive Colin Hunt said in a statement.
(Reporting by Padraic Halpin; Editing by Susan Fenton)
Messaging: padraic.halpin.thomsonreuters.com@reuters.net))
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