Solid Irish Banks H1 2024 Results, But Mixed Underlying Profitability; Improved Asset Quality

Morningstar DBRS has released a commentary discussing the H1 2024 results of the three largest Irish banks (AIB, BOI and PTSBG). Summary highlights from the commentary include:

-- Irish banks' profitability remained solid in H1 2024 on the back of growing lending, positive evolution of fees and commissions and reduced cost of risk.
-- Irish banks exhibited improved asset quality driven by active management, although individual bank performance was mixed.

"Building on H1 2024 results, we expect FY24 profitability to remain strong supported by continuous credit growth, solid fees and commissions performance and low cost of risk on the back of a strong domestic economy", notes Maria Parra, Vice President, Global Financial Institutions Group at Morningstar DBRS. "We also expect asset quality to remain stable or slightly improve in H2 2024 on the back of the improved Irish macroeconomic projections and the expected additional decline in interest rates in H2 2024"