AIB Group PLC on Thursday said total income and net interest income were both strongly up in the first quarter, supported by the higher interest rate environment.

The financial services company said total income rose 18% in the first quarter of 2024 from a year earlier, with net interest income up 27% on an increase in average loan volumes and slower-than-anticipated pace of deposit migration. First quarter net interest margin stood at 3.25%.

Other income was down 14% due to non-recurrence of forward contract income, while fee and commission income was up 8%. Costs were up 7%, in line with guidance.

AIB said gross loans gross at March 31 rose by around €1 billion to €68.0 billion since December 31, with new lending of around €2.8 billion.

It said the Irish mortgage market performed well in the first quarter of 2024, with new mortgage lending in Ireland around €800 million in the quarter and which resulted in a market share of 35.4%.

Looking ahead, it said it remains confident in the remainder of the year after a ‘very strong’ first quarter.

Net interest income in 2024 is expected to exceed €3.65 billion, down from €3.84 billion in 2023.

‘I am pleased to announce that the group had a very strong first quarter performance and, with continued momentum across our business and the embedding of our strategic priorities, we are confident in our outlook for 2024,’ said Chief Executive Officer Colin Hunt.

‘AIB continues to be 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. We are well on track to deliver sustainable returns for our shareholders guided by our medium-term target of a RoTE of 15%.’

AIB said it will announce its half-year results on August 2.

Shares in AIB were up 2.0% to 421.31 pence each in London on Thursday morning.

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