AIB Group plc has published its Q3 2026 trading update, reporting continued growth across lending, deposits, and income for the nine months to September 2026. The Irish banking group upgraded its full-year 2026 guidance for net interest income, customer loans, and customer deposits, citing strong new lending momentum and resilient credit quality. With a 17% rise in new lending to €12.3 billion and a CET1 ratio of 15.7%, the update signals robust capital generation ahead of the group's 2026 annual results scheduled for March 2027. Investors will also be watching progress on the ongoing €1 billion share buyback programme, of which €740 million had been completed to September.

Key Points

  • AIB Group plc (AIBG) — Irish banking group serving 3.5 million customers across Ireland, the UK, and Europe
  • FY2026 NII guidance upgraded to above €3.85 billion; customer loan growth guidance raised to 5–6%; deposit growth guidance raised to 3–4%
  • Gross loans rose to €76.3 billion at September 2026, up €4.0 billion from December 2025; return on tangible equity (RoTE) guidance remains above 20%
  • Investors should monitor the CFO appointment process and the group's next strategic cycle update at the March 2027 results

AIB Upgrades NII Guidance to Above €3.85bn as Net Interest Margin Rises to 2.79% Exit Rate in Q3

Net interest income for the nine months to September 2026 reached €2.87 billion, a 2% increase on the equivalent prior year period, driven primarily by higher average volumes. The September year-to-date net interest margin stood at 2.72%, with the Q3 2026 exit NIM improving to 2.79% from a Q2 exit NIM of 2.71%. Full-year NII guidance has been upgraded to above €3.85 billion from the previous guidance of above €3.8 billion, based on rate assumptions of an ECB deposit rate of 2.50% and a Bank of England rate of 4.00% at December 2026, with a deposit beta of approximately 20%.

New Lending Rises 17% to €12.3bn With Green and Transition Finance Accounting for 43% of Total

Total new lending for the nine months to September increased 17% year-on-year to €12.3 billion across Ireland, the UK, and Europe. AIB's mortgage market share in Ireland stood at 28.4% year-to-date, with new Irish mortgage lending up 4% to €3.2 billion, of which green mortgages represented 61% of new originations. Capital Markets new lending rose 16% to €3.8 billion, while Climate and Infrastructure Capital delivered €2.0 billion in new lending, up €0.9 billion year-on-year. Green and transition lending totalled €5.3 billion, with approximately €28 billion deployed in this category since 2019.

CET1 Ratio at 15.7% After Strong Loan Growth, as Third SRT on €2.5bn Portfolio Adds c.30bps Capital

The group's CET1 ratio stood at 15.7% at September 2026, down from 16.1% at June 2026, primarily reflecting higher risk-weighted assets from balance sheet growth. The ratio excludes nine-month profits pending a final payout decision at year end. In October, AIB completed its third significant risk transfer transaction on a project finance portfolio totalling approximately €2.5 billion, delivering an initial CET1 benefit of approximately 30 basis points. The ECB's SREP process resulted in AIB's Pillar 2 Requirement being reduced by 20 basis points to 2.20%, effective from 1 January 2027.

€849m of €1bn Buyback Completed as AIB Plans Next Strategic Cycle Disclosure for March 2027

As at 3 November 2026, AIB had repurchased approximately 82.8 million shares for a total consideration of approximately €849 million at a volume-weighted average price of €10.26 per share, under the €1 billion buyback programme announced in March 2026. The group maintains an ordinary dividend policy with a payout range of 40–60%, with capacity for further distributions above this range subject to annual review. AIB also confirmed its CFO selection process is well advanced. The group will present refreshed medium-term targets for its next strategic cycle to 2030 alongside its full-year 2026 results in March 2027.