AIB Group plc
Annual Financial Report
For the year ended 31 December 2025
Annual
Report
AIB Group plc is the holding company
for Allied Irish Banks, p.l.c. (AIB).
AIB is a financial services group operating
predominantly in Ireland and the United Kingdom.
We provide a range of services to personal, business
and corporate customers, with market-leading
positions in key segments in our domestic market.
With 3.4 million customers, our purpose is
empowering people to build a sustainable future.
Our reporting suite
Annual Financial Results Presentation
Sustainability Disclosures Tables
Social Impact Report 2024-2025
Our Annual Financial Results presentation
provides a summary of AIB’s performance,
while delivering key highlights for our
shareholders and broader stakeholder groups.
Our Sustainability Disclosures Tables
provide supplementary information that
is required by certain stakeholders.
Our Social Impact Report outlines what we
are doing to make a positive difference to
communities, to the lives of our customers
and colleagues, and to climate and nature
every day.
View online
View online
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On our cover
In 2025, we launched our new AIB brand campaign ‘For the life
you’re after’, celebrating the small, determined and decisive actions
that help people achieve the life they’re after.
This copy of the statutory annual report of AIB Group plc for the year ended 31 December 2025 is not presented in the ESEF-format as specified
in the Regulatory Technical Standards on ESEF (Delegated Regulation (EU) 2019/815). The ESEF annual report will also be published on:
https://aib.ie/investorrelations/financial-information/results-centre/2025-financial-results
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AIB Group plc
Annual Financial Report 2025
01
What’s inside this report
Governance and
Oversight Report
117
Performance, purpose
and momentum
Annual Review
02
Business Performance
04
AIB Group at a Glance
06
Chair’s Statement
08
Chief Executive’s Review
12
Economic Overview
14
Our Strategic Progress
16
Risk Summary
17
Principal Risks
19
Evolving and Emerging Risks
Business Review
22
Operating and Financial Review
38
Capital
Climate, community
and impact
Sustainability Reporting
42
Sustainability Statement
42
Our Approach to Sustainability
55
Climate & Environmental Action
75
Societal & Workforce Progress
92
Governance & Responsible Business
114
Task Force on Climate-related
Financial Disclosures (TCFD)
Effective governance
and accountability
in practice
Governance Report
118
Governance in Action
120
Chair's Introduction
120
Corporate Governance Headlines at a Glance
121
Corporate Governance Framework
122
Our Board of Directors
126
Our Executive Leadership Team
128
Board Leadership, Purpose and
Governance
134
Board Activities
136
Stakeholder Engagement
140
Report of the Board Audit Committee
143
Report of the Board Risk Committee
146
Report of the Nomination and Corporate
Governance Committee
148
Board Composition and Succession
152
Report of the Remuneration Committee
155
Corporate Governance
Remuneration Statement
164
Report of the Sustainable Business
Advisory Committee
165
Report of the Technology and
Data Advisory Committee
166
Internal Controls
168
Viability Statement
169
Directors’ Report
172
Schedule to the Directors’ Report
174
Other Governance Information
175
Supervision and Regulation
Risk Management
178
Risk Management Approach
Financial Statements
242
Statement of Directors’ Responsibilities
243
Independent Auditors’ Report
253
Consolidated Financial Statements
259
Notes to the Consolidated
Financial Statements
331
AIB Group plc Company
Financial Statements
333
Notes to AIB Group plc
Country by Country Report
338
Basis of preparation
339
Parent company and principal subsidiaries
339
Turnover, Profit before taxation,
Taxation and Employees
340
Independent Auditors’ Report
General Information
344
EU Taxonomy Disclosure Tables
381
Shareholder Information
382
Forward Looking Statement
383
Principal Addresses
Delivering growth, efficiency
and customer value
Financial Performance
Profit After Tax
Net Interest Income
Net Credit Impairment Charge
€2,139m
€3,748m
€172m
Resilient profit after tax of €2.1bn
Operating profit1 €2.4bn, operating income
down 8% reflecting lower interest rates with
operating expenses up 1%, an impairment
charge of €172m and a gain on exceptional
items of €156m
Impacted by lower interest rates
Down 9%, in line with expectations, due to
lower interest rates and higher interest
expense on customer deposits partially
offset by balance sheet growth.
Net interest margin (NIM) of 2.73%
Asset quality has remained stable
Impairment charge of €172m, representing
24bps of average customer loans.
ECL balance sheet cover of 1.6%
NPE ratio 2.2%
Non-performing exposures2 (NPEs) down
20% to €1.6bn
New Lending
Gross Loans
Customer Deposits3
€14.7bn
€72.3bn
€117.2bn
New lending up 2%
Growth in property and personal lending
partially offset by lower mortgage lending
Gross loans increased €1.1bn or 2%
Underlying growth of €2.4bn or 3% excluding
adverse foreign exchange movements and
loan disposals
Customer deposits up 7%
Strong growth of €7.4bn, ahead of
expectations, driven by growth in personal
and SME
1. Operating profit before impairment losses and exceptional items.
2. NPEs refers to non-performing loans (NPLs) and excludes €155m of off-balance sheet commitments.
3. Customer deposits excludes cash collateral from derivative counterparties.
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Annual Financial Report 2025
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Business Performance
2025 Results
€2,351m
€2,139m
2024
2025
€14.5bn
€14.7bn
2024
2025
4
4
€4,129m
€3,748m
2024
2025
€71.2bn
€72.3bn
2024
2025
€55m
€172m
2024
2025
€109.8bn
€117.2bn
2024
2025
Medium-term Financial Targets (2026)
Return on Tangible Equity1
A measure of how well capital is deployed to
generate sustainable earnings
CET1 Ratio (fully loaded)
A measure of our ability to withstand financial
stress and remain solvent
Absolute Cost Base2
Cost of running the business
Target: 15%
Target: >14%
Target: <€2.0bn
25.0%
16.2%
€1,992m
Return on tangible equity substantially ahead
of medium-term target
Strong capital position, well in excess of
regulatory requirements.
Distributions of €2.25bn - interim dividend
€263m, buyback of €1.0bn to be initiated and
proposed final dividend of €988m
Cost income ratio2 44%. Costs up 1%
reflecting strong cost discipline.
Staff numbers down 3% to 10,207
Sustainability Performance3
Greening our Business
Helping Customers
to Buy their First Home
Universal Inclusion
Target: €30bn by 2030
Target: >€6bn by 2026
Target: Gender balanced6
€22.9bn
€5.4bn
42%
Amount of cumulative new green and
transition4 lending since 2019
Continued growth in new green and transition
lending in 2025, up 38% on 2024. Delivered
by strong performance in energy-efficient
residential and commercial buildings,
renewable energy and transition financing.
76% of €30bn target achieved
Amount of cumulative new lending to
first-time buyers since 2024
Strong performance in new lending to first-time
buyers in 2025, which accounted for 61% of AIB
Group new mortgage lending in the Republic of
Ireland. Since 2024 we have supported c.19k
customers5 to buy their first home
Women as % of ELT and management7
Gender balance maintained across
management levels. Targeted programmes
on leadership development and career
progressions strategy have been implemented
to ensure that our female workforce has the
resources and opportunities needed to
succeed and thrive within AIB
1. Return on Tangible Equity (RoTE) is based on the target CET1 capital on a fully loaded basis. For definition and basis of calculation, see pages 36 and 40.
2. Before exceptional items, bank levies and regulatory fees. For exceptional items, see pages 26 and 36.
3. Our approach continues to evolve which may result in variations in methodologies and reported outcomes over time.
4. In 2025 Transition Finance was incorporated into our green and transition lending reporting and has been applied to all relevant new lending activity from 1st January 2025. Our green and transition
lending definition is aligned to our Sustainable Lending Framework (SLF), which outlines the key parameters on which a transaction can be classified as green or transition.
5. Customer is defined at account level, as such two buyers for the one property are only counted as one customer.
6. The Equileap annual Gender Equality Global Report & Ranking equates ‘gender balanced’ with between 40% and 60% women.
7. Within AIB’s career structure management is defined as those in Level 4-6 positions including the Executive Leadership Team (ELT) & Goodbody. Goodbody was not included in the prior years figure and
has not been restated, because the differing career structures in AIB and Goodbody did not allow for a consolidated Group level metric. Payzone, contractors, AIB staff on career break or unpaid leave
and Board members are excluded from the figure.
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AIB Group plc
Annual Financial Report 2025
03
26.7%
25.0%
2024
2025
€16.6bn
€22.9bn
2024
2025
15.1%
16.2%
2024
2025
€2.8bn
€5.4bn
2024
2025
€1,971m
€1,992m
2024
2025
43%
42%
2024
2025
Our purpose is
empowering people to
build a sustainable future
Our business lines1
Retail Banking (incl. AIB UK)
Climate & Infrastructure Capital
3.18m Active customers
Relationship and transaction-driven model
Retail Banking supports our personal and business
customers with a range of banking and financial
services. In Ireland, AIB offers retail banking services
through branch, phone and digital channels with an
expanded reach via EBS, Haven, AIB life, Payzone
and Nifti. In Northern Ireland, AIB offers full-service
retail banking. And in Great Britain, we support our
corporate customers with sector-specific expertise.
Climate & Infrastructure Capital specialises in
lending to large scale renewable and infrastructure
projects, which are key drivers for sustainable
economic growth, across Ireland, the UK, Europe
and North America.
Capital Markets
Our brands
Relationship-driven model
Capital Markets, which includes Goodbody, serves
the Group’s large and medium-sized business
customers as well as our private banking customers,
taking a partnership approach and providing deep
sector expertise combined with our comprehensive
product offering.
1 In July 2025, the Group announced the simplification of its management structure and the integration of the UK into Retail Banking enabling the Group to focus on three business lines: Retail Banking,
Capital Markets, and Climate & Infrastructure Capital.
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Annual Financial Report 2025
04
Introduction
AIB Group at a Glance
Operating Contribution by business line1
€1.5bn
€0.6bn
€39m
FY2025
Total
€2.2bn2
See Operating and Financial Review: p.30 to 35
Loan Book by business line1
€48.7bn
€17.2bn
€6.3bn
FY2025
Total
€72.3bn2
See Operating and Financial Review: p.30 to 35
Retail Banking
(incl. AIB UK)
Capital
Markets
Climate &
Infrastructure Capital
1 In July 2025, the Group announced the simplification of its management structure and the integration of the UK into Retail Banking enabling the Group to focus on three business lines: Retail Banking,
Capital Markets, and Climate & Infrastructure Capital.
2. Includes Group Segment.
Investment thesis
Earnings resilience and
strong growth outlook
Revenue diversification
& wealth opportunity
Focused on operational
efficiency and resilience
Strong capital generation
and shareholder returns
Underpinned by
Supportive
domestic macro
backdrop
Conservative
credit
management
Robust balance
sheet
Leading ESG
strategy and
credentials
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AIB Group plc
Annual Financial Report 2025
05
I would like to thank our 3.4 million customers
for their loyalty and trust in us. We will continue
to put them at the forefront of our decision-
making as we empower them to build
a sustainable future.
Jim Pettigrew
Chair
2025 - AIB’s watershed year
By any measure, 2025 will be remembered as a watershed
year for AIB as the Group returned to full private ownership,
the Irish State was repaid its investment in the Group
dating back to the global financial crisis and the obligations
under the Relationship Framework Agreement with the
Minister for Finance were retired. These events conclude
what was a very regrettable period for the Group when it
had to rely on the State for support. AIB owes an immense
debt of gratitude to Irish taxpayers for the support provided
throughout that challenging time.
2025 was also a further year of strong performance and profitability, which
saw the Group generate net interest income of €3,748m despite falling
interest rates in the eurozone in particular. Profit after tax amounted to
€2,139m (2024: €2,351m) resulting in earnings per share of 93.3 cent
(2024: 92.5 cent). I encourage you to read our Chief Executive’s review of
performance on pages 8 to 11 for further detail.
Capital, dividend and other distributions
We understand the importance, for many of our stakeholders, of
generating and maintaining strong levels of capital. Our medium-term
target is to maintain our level of CET1 capital above 14%. While we
commenced the year with 15.1%, our business generated organically, a
further c. 370 bps of CET1 during 2025, which supported the following
distributions.
I was delighted when the Board agreed in July to reinstate the interim
dividend for the first time since 2008, when we declared an interim
payment of 12.328 cent per share, amounting to €263m. Reflecting the
strong performance achieved in 2025 and the robust capital position of
the Group as we entered the year, the Board has resolved to distribute all
of the after-tax profits generated. Subject to approval of shareholders at
the Annual General Meeting on 30 April 2026, a final ordinary cash
dividend of 46.257 cent per share, amounting to €988m, will be paid on
8 May 2026 to shareholders on the register at the close of business on
27 March 2026. When combined with the interim dividend of 12.328 cent,
the total dividend for the year will amount to 58.585 cent, a 58% increase
over the cash dividend declared for 2024, of 36.984 cent per share.
Your Board has also resolved to distribute €1bn by way of an on-market
share buyback programme to commence immediately, and we intend to
launch a follow on Odd-Lot Offer to smaller shareholders in response to
requests from shareholders at the 2025 Annual General Meeting. The
necessary pre-approval for these two reductions in capital has been
received from the European Central Bank.
Taking account of the capital generated in 2025 together with the
distributions described above, the Group has finished the year with
a CET1 ratio of 16.2%, well above the Group’s medium-term target.
State shareholding
Following receipt of shareholder approval at the 2025 Annual General
Meeting, the Group successfully concluded an off-market purchase of
191,671,857 ordinary shares from the Minister for Finance on 7 May 2025,
for a total consideration of €1.2bn. This represented 8.2% of
the issued share capital, and the shares were cancelled on settlement.
The Minister continued with a programme of selling down the Irish State’s
holding in the Group during 2025, through a combination of placings and
a daily share trading programme and, on 17 June 2025, announced the
complete divestment of the State’s holding following a placing of the final
2.06% held prior to that date.
On 31 October 2025, AIB announced the agreement with the Minister for
Finance for the cancellation of warrants over 271,166,685 shares held by
the Minister on the payment of €390m. This ended the involvement of the
Irish State’s direct economic interest in the Group, and brought the total
proceeds repaid to the State by AIB to c. €21bn, including levies of
c. €650m and other fees.
On behalf of the Board, I welcome our new shareholders and I thank
you and our other longer-standing investors for your support and your
confidence in the Board and management of the Group, together with
the strategy we are pursuing.
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Chair’s Statement
The right strategy for long-term success
Corporate governance
Your Board’s commitment to the highest standards of corporate
governance is resolute and I invite you to review the section of this Annual
Report setting out Governance in Action at AIB. This is set out on pages
118 to 175.
Stakeholder engagement
Shareholders will appreciate, as the Board does, that there are additional
stakeholders who are important to the long-term sustainable success of
the Group. These include our customers, employees, suppliers, debt
investors, regulators, and the communities we serve. We have set out
elsewhere in this Annual Report our key points of engagement with these
stakeholder groups, and I encourage you to invest some time in reading
those sections.
Executive remuneration
The remuneration restrictions introduced by the Irish government in 2009
presented, in recent years, a material talent retention risk, placing AIB at a
significant disadvantage to our domestic competitors in the retention and
attraction of talent. I have highlighted here my ongoing engagement with
successive Ministers for Finance since 2023 with a view to having these
restrictions removed, following the reduction in the Irish State’s
shareholding in the Group below 50% in June of that year. Following the
return of AIB to full private ownership and the retiring of most of the
provisions of the Relationship Framework Agreement with the Minister for
Finance, the cap on salaries of €500,000 was eventually removed in July
2025. We welcomed the Minister making clear his view
in the Oireachtas that “decisions regarding remuneration are the sole
responsibility of the board and management of the banks which must be
run on an independent and commercial basis”. That said, the remaining
remuneration restrictions, which effectively prohibit payment of variable
remuneration above €20,000, given the punitive tax rules applying,
perpetuate the uneven playing field for the Group in competing for
experienced executives within and outside of the banking sector. This also
prevents the Board from more closely aligning the interests of its Executive
Directors and senior management with those of shareholders, which is a
central plank of good, effective governance.
I will continue my engagement with the Minister for Finance and advocate
for change, until such time as this critical impediment to rewarding top
performance and effective risk management in banking is removed. We
are very fortunate to have successfully retained the talented executives we
have in recent years.
Board changes
The following Board changes were recorded during the year.
Helen Normoyle, a non-executive Director since 2015, resigned at
the 2025 Annual General Meeting having served nine years on the Board.
In her period on the Board, she served on the Nomination and Corporate
Governance Committee, the Technology and Data Advisory Committee
and she led the Sustainable Business Advisory Committee as chair since
its establishment, making a huge contribution to AIB over this time. She
was also Senior Independent Director, a role Elaine MacLean assumed on
Helen’s retirement.
Ann O’Brien and Raj Singh resigned from the Board with effect from 31
December 2025, having served more than six years as independent non-
executive Directors, following their appointment to the Board on the
nomination of the Minister for Finance. Ann served on the Audit and
Remuneration Committees and chaired the Technology and Data Advisory
Committee since its establishment in 2021. Raj brought his considerable
experience to bear on the Risk Committee and also on the Sustainable
Business Advisory Committee.
I wish to record the appreciation of the entire Board to Helen, Ann and Raj
for their considerable contribution to the Group and to the Board, and to
wish each of them well for the future.
I was very pleased to announce the appointment of Anne Sheehan
as an independent non-executive Director on 1 September 2025. Anne,
who is General Manager of Enterprise Commercial for Europe North at
Microsoft, also joined the Technology and Data Advisory Committee and
we look forward greatly to hearing her experience and contribution in the
years ahead.
In conclusion
I would like to thank our employees for their commitment to the Group
and, on your behalf, I would like to thank our 3.4 million customers for
their loyalty and trust in us. We will continue to put them at the forefront of
our decision-making as we empower them to build a sustainable future.
Finally, I want to thank you, our shareholders, for your continued support.
I am confident that, as we enter the final year of our three-year strategic
cycle, we are pursuing the right strategy for the long-term success of the
Group for our shareholders and for our other stakeholders.
Thank you for your trust in us.
Jim Pettigrew
Chair
3 March 2026
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AIB Group plc
Annual Financial Report 2025
07
AIB aims to be the bank of choice in Ireland,
building trust and demonstrating reliability,
capability and adaptability while also providing
savings, investment and protection choice, in a
modern, digital-first way.
Colin Hunt
Chief Executive Officer
I am pleased to present another strong set of financial
results for 2025, as AIB executed its strategy in an
environment marked by evolving geopolitical dynamics,
stabilising interest rates and rapid technological
advancement.
Our expanding customer base, the strength of our balance sheet and the
momentum across our business delivered a robust financial performance
for the year. Profit after tax was €2.1bn, return on tangible equity (RoTE)
exceeded our target at 25% and our CET1 ratio of 16.2% remained well
above regulatory requirements.
This strong capital position supported by ample funding provides
significant strategic flexibility for the Group. It enables us to continue to
serve our customers, supporting the Irish economy, investing in our
business, and delivering attractive returns to shareholders. Subject to
shareholder approval, we will pay a final ordinary cash dividend for the
year of 46.257c per share, equating to c. €988m, and launch a €1bn share
buyback programme.
Our market leading franchise remains a clear differentiator. Operating in a
resilient and open domestic economy, we serve 3.4 million customers,
maintain the country’s largest branch network, and benefit from a highly
recognised and trusted brand. Customer deposits for the year grew by 7%
to €117.2bn at the end of 2025, gross loans increased by 3% on an
underlying basis and reached €72.3bn, and new lending was €14.7bn. As
interest rates stabilised during the year, our net interest income was over
€3.7bn with a net interest margin of 2.7%.
We further strengthened our balance sheet by reducing our non-
performing exposures (NPEs) by 20% during the year to €1.6bn, resulting
in an NPE ratio of 2.2%.
Other income for the year was €756m with fee and commission income at
€692m, up 4% and reflecting in some part the sustained progress of our
savings, investments and protection offerings. Having re-introduced core
wealth capability to the Group in recent years, our Goodbody and
AIB life businesses provide a platform for long-term growth in fee-based
income and revenue diversification while adding customer choice and
value. Assets under management for the Group in 2025 amounted to
€18.3bn (€16.8bn in 2024).
Costs for the year amounted to €1.99bn, an increase of 1% on the
previous year and beating expectations. Our cost income ratio was 44% in
2025. We will maintain our laser focus on cost discipline as a core driver
of sustainable performance.
Customer first
AIB aims to be the bank of choice in Ireland, building trust and
demonstrating reliability, capability and adaptability, while also providing
savings, investment and protection choice, in a modern, digital-first and
easy-to-use way, that provides security for the future, conveniently. We
are also here to support infrastructure and housing development to
accommodate a growing population, with an emphasis on large-scale
renewable energy and social infrastructure projects.
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Annual Financial Report 2025
08
Chief Executive’s Review
Progress with purpose
Our journey timeline
2010
2017
2025
State support
IPO
Full private ownership
Following the financial crisis, the Irish
State recapitalised AIB to safeguard
customers and the economy; we
simplified the business and reduced risk.
AIB returned to public markets, marking a
milestone in recovery and beginning the State’s
orderly sell-down.
On 17 June 2025 the State completed its
exit.
2017-2025
Staged sell-downs
Consistent implementation of our strategy and stronger capital generation supported successive
share placements and buybacks, progressively reducing the State’s shareholding.
Built for the future
A new, next generation
app in 2026
True innovation means enabling customers to bank when and
where they want to, simply, efficiently and securely. Our mobile app
sits at the heart of this. To ensure our app evolves along with our
customers’ needs, we are investing significantly to deliver a new,
next-generation app in the second half of 2026, built for the future
with modern cloud architecture, enhanced security and modular
design. Our new app will empower customers with their own data
and personalised insights to help them with their day-to-day
banking, supporting them to make financial decisions, with AIB as a
trusted partner.
2.2 million
of our customers choose this channel
In 2025, our continued efforts to improve efficiency through automation
and simplification led directly to an enhanced customer service
experience. Key examples of this are in our Customer Engagement Centre
(CEC). Our digital assistant Abi has used artificial intelligence (AI) to
support over 1.33 million customers since its initial roll out in December
2024, and is now active on 66 customer journeys (56 at year end 2025; 8
at year end 2024), facilitating an average of c. 5,200 calls a day.
Importantly, when informed that they will be dealing with a digital
assistant, 79.5% of customers chose to continue to engage Abi. We also
rolled out AI-powered speech analytics that gives us detailed insights into
the types of calls being received, which allows us to address customer
needs with targeted initiatives.
Our digital offerings continue to be the preferred channel for both personal
and business customers to engage with us – particularly our mobile apps.
During 2025, personal customers interacted via the app an average of
3.14 million times per day, while 88% of loan applications were made
online. We materially completed the delivery of SEPA Instant in October,
meeting demand for speed and convenience while aligning with European
regulatory standards.
Ongoing investment in our branch network as part of the Greener
Branches Refurbishment Programme is a key element of our ambition to
decarbonise our own operations and ensure that our physical footprint
remains progressive, energy-efficient and welcoming to our customers
and the communities we serve. The €40m programme of investment
announced in 2024 included upgrades to 127 AIB branches, with 35
undergoing full refurbishments (including 26 in 2025 alone), delivering
modern banking halls, clear interaction spaces, increased accessibility for
the visually impaired and enhanced privacy for customers.
In a highly competitive mortgage market, the Group retains an overall
market share of 30% and is the primary direct-to-consumer mortgage
provider in Ireland, with a 46% share of that market. Total mortgage
lending across our brands in Ireland was €4.3bn for the year. Our
commitment to supporting Ireland’s housing needs is steadfast. In 2025,
we provided €0.9bn to fund significant residential developments,
including social and affordable homes, helping to increase the number of
units being built. We are ready and willing to provide even more financing
and bolster much needed housing supply for all, as outlined in the
Government’s housing plan, ‘Delivering Homes, Building Communities’.
We continue to see growth across our savings, investments and
protection businesses – Goodbody and AIB life – reflecting customers’
increasing confidence in the value, clarity and choice we provide to help
them plan for the future and for the unexpected. Goodbody’s wealth
business saw steady growth in 2025 and AIB life continues to gain market
share. Our network of 130 Financial Advisors guided over 34,000
customers to consider their financial wellbeing and goals during the year,
while AIB life policy holders amounted to c. 56,000 at year end.
Underlying all of these initiatives is our ongoing customer segmentation
work, aimed at improving our customer data and analytics so that we can
know every element of our customer base better, understand them and
anticipate their needs. This customer segmentation programme allows us
to provide more tailored support by way of propositions, services, and
communications, building resilience into our market share across key
segments and, importantly, building trust with our customers. It is also a
key enabler of our digitalisation strategy.
These efforts contributed to another year of excellent customer advocacy,
with continued strength in our Net Promoter Score (NPS) performance.
Of our six key customer journeys, five saw further improvement in 2025
(Personal (41), Channel (62), SME Aggregated (69), NI Transactional (55),
Retail SME (29)) and the sixth held steady on an already record-breaking
score (Homes NPS (66)). These numbers evidence the trust customers
place in AIB every day.
Greening our business
I continue to believe – and the Group continues to demonstrate – that we
can do well while doing good. At year end 2025, we had provided a total of
€22.9bn in green and transition finance, tracking ahead of target. In the
year alone, we provided €6.3bn in green and transition finance, a 23%
increase on 2024 and representing 43% of all new lending.
The most encouraging element of this lending is green mortgages, where
energy-efficient houses and apartments are attractive to both build and to
buy. AIB is a trusted green mortgage provider, with 62% of all new
mortgage lending going to energy-efficient homes in 2025 – 60% when
including the UK – meaning thousands more people are living in warmer,
healthier and cost-effective homes.
Helping customers purchase their first home is a strategic priority from a
societal perspective. €2.6bn of new lending went to first-time buyers in
2025, supporting c. 9,000 customers. This brings our lending to first-time
buyers over the past two years to €5.4bn in total, progressing well towards
our goal to provide €6bn by the end of 2026.
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Sustainable economic growth
Financing renewable energy
and community impact
Our Climate & Infrastructure Capital division continues to actively
support customers financing the transition to a greener future.
€46.7m, of a €140m total term loan, was provided to Derrinlough
Wind Farm in 2025, with AIB acting as both Agent and Account
Bank. This wind farm, located in Co. Offaly, is a flagship renewable
energy project developed by BnM. The project provides an installed
capacity of 126 MW, sufficient to supply clean electricity to
approximately 68,000 homes annually.
Derrinlough Wind Farm DAC makes annual contributions of €2/MWh
(per Loss-Adjusted Metered Generation) into the Community Benefit
Fund which supports local community groups, non-profit
organisations, and social enterprises.
€54.7m
Total facilities committed
For SMEs, farmers, charities and community organisations, we launched the
Business Sustainability Loan in July. Over 50% of applications to date have
come from the agricultural sector, showing its relevance and flexibility.
In our own business, we continue to make progress towards our 2030
ambition to decarbonise our own operations. Additionally, 92% of our own
electrical energy needs is now sourced through our VPPA from two solar
farms in Co. Wexford. We continue to embed sustainable practices,
attitudes and governance in our operations and culture.
Importantly, we are empowering large-scale, infrastructural change
around the world. While 2025 was an unpredictable year in terms of global
development and political sentiment towards climate action, our Climate
& Infrastructure Capital loan book nevertheless grew, and opportunities in
our key markets remain strong.
We also issued three green bonds in 2025, amounting to €1.8bn.
Our Green Bond Framework covers projects in renewable energy,
green buildings, clean transportation, the circular economy and waste
management. Since 2020, we have issued nine green bonds, raising
€6.45bn – increasing to €8.2bn in ESG bonds when social bonds are
included too.
In terms of social value, our branch network allows us to reach
communities the length and breadth of the island of Ireland. This is
particularly evident in our support of the GOAL Mile at Christmas, which
continues to grow in popularity and presence in towns and
neighbourhoods nationwide, helped in no small way by our own branch
managers who run GOAL Miles in their localities. In wider community
initiatives, our continued sponsorship of the GAA places us at the beating
heart of Ireland, while the AIB Community Meals programme, run by our
long-standing Charity Partner FoodCloud, provided 52,100 meals to those
who need it, rescuing 2,672 tonnes of surplus food in 2025.
Operational efficiency & resilience
Our focus on operational efficiency and resilience continued to produce
transformative and enduring results for the Group in 2025. During the
year, we accelerated the adoption of AI and automation across core
processes and further reinforced our resilience and business continuity
frameworks while also progressing a more dynamic approach to
workforce planning.
We continue to invest in our technology architecture, reflecting the critical
role that secure and scalable systems play in enabling AIB’s long-term
success. This investment allows us to accelerate the modernisation of our
technology estate, strengthen our cyber and operational resilience, and
deploy advanced digital capabilities that improve service reliability and
customer experience.
The Group is laying the groundwork for AI integration, with early
investments in data infrastructure and governance frameworks. This will
be essential in addressing the emergence of new technology, which is
extraordinarily fast paced. In the short term, I see AI very quickly helping us
to eliminate complexity and enable colleagues to focus on what matters
most for our customers.
During 2025 we invested in our cloud architecture as part of our scalable
backbone to enable secure banking. We established a third data centre in
the cloud for on-demand capacity and faster provisioning, accelerating
development and testing, boosting delivery speed and reliability. At the
same time, we also reduced our physical data centre footprint by 20%.
We closed 2025 with 99.99% service availability for mission critical
services – the highest in the Group’s history and achieved in the most
demanding operating environment we have faced during the busiest
year in terms of change delivery. Building on last year’s strong outcome
(99.98%), this included our most successful December on record.
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Chief Executive’s Review continued
Dynamic Workforce Planning
Shaping our workforce
for the future
Dynamic Workforce Planning (DWP), is a transformative enterprise-
wide programme designed to ensure our organisation has the right
capability, in the right places, at the right times, by introducing a
future-focused and data-driven approach to workforce planning. It
enables leaders to anticipate organisational needs, identify skill
gaps early, and plan for the workforce of the future by combining
predictive analytics, strategic planning frameworks, and people
insights.
Through ongoing business area roll outs in 2025, 67% of our
workforce are covered by models and scenarios, aligning workforce
planning with business strategy.
Covers
67%
of our workforce
We have a very sharp focus on resilience in terms of anticipating, preparing
for, and protecting the bank and our customers, against an increasingly
complex threat landscape. In 2025, we brought previously separate
resilience capabilities into a single, unified model; the establishment of a
new Resilience Fusion Centre accelerates this transformation, enabling a
more predictive, intelligence-led approach to integrated resilience. I am
looking forward to reporting further on this area, in which AIB aims to be
world class.
Empowering all of this technological infrastructure is, of course, our
people, along with our culture and our values.
The AIB brand and our strong Employee Value Proposition (EVP) continue
to attract quality talent. Using dynamic workforce planning, we are
aligning skills, capacity and organisational design with the evolving needs
of our business and customers. Our 3,000 people leaders play a vital role
in steering the organisation, and in 2025 we engaged and inspired this
group via our New Era Leadership training, including a day-long, in-person
Leadership Summit in September.
Outlook
A transforming world has transforming needs. While focusing on delivering
our current strategy in the year ahead, we are also mindful of our long-
term external context, ensuring we can adapt to the emerging trends that
will affect our business. In this regard, there are three dynamics – or
‘mega-trends’ – that we are most alert to.
Firstly, ageing demographics. Ireland is currently experiencing sustained
population growth, underpinned by net inward migration meaning the
country benefits from a younger, expanding and more dynamic workforce.
However, the old-age dependency ratio – a demographic indicator that
shows how many older people (typically aged 65+) are supported by the
working-age population – is projected to rise from 23% in 2023 to 55% by
2065.1 This will add strain on our workforce, public finances, healthcare,
and pensions, while increasing the potential for the Group’s savings and
investment propositions.
In that respect, we continue to see extraordinary potential in the second
trend: the green transition and associated electrification. Investment in
global energy transition has exceeded $2tn, more than doubling since
2020,2 and sustainable finance is now well and truly mainstream. The
future of infrastructure is green.
The third trend is digitalisation, which has seen a surge in recent years and
creates great opportunity for our sector. It is anticipated that Generative AI
will drive significant additional value to global banking. While AI’s full scale
and implications can not be determined at this stage, it is at least poised
to boost productivity in customer service, risk, compliance, and
automation.
Against this dynamic backdrop, we are focused on completing the final
year of this strategic cycle and planning for the future with confidence.
Our next generation app, launching in 2026, will play its part. It will
empower customers with their own data and insights to help them with
their day-to-day banking and support them to make financial decisions.
While the roll out of this app will take place in second half of the year,
customers will shortly benefit from the launch of Zippay, the industry-wide
peer-to-peer payments solution.
2026 will also mark AIB’s 60th anniversary, and we intend to commemorate
our journey so far by sharing the stories, values, and moments that have
shaped our lasting impact on Irish society, our customers, and our
colleagues, bringing our heritage to life in a meaningful and accessible way.
As we honour this important milestone, we remain firmly focused on
building a simpler, smarter and more sustainable bank for our customers
and the communities and economies we support. With a strong
foundation, clear strategic ambition, and a deep sense of purpose, we will
continue to support our customers and generate value for all our
stakeholders – helping them succeed in the years ahead as we empower
people to build a sustainable future.
Colin Hunt
Chief Executive Officer
3 March 2026
1. Source: Central Statistics Office
2. Source: Bloomberg New Energy Finance (NEF)
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In 2025, changes in global trade influenced both the international and Irish economies. Yet, despite
heightened levels of uncertainty, Ireland saw solid growth, while the labour market remained robust.
Global growth amid heightened uncertainty
In 2025, the global economy continued to grow at a decent pace,
despite the heightened uncertainty related to US trade policy and wider
geopolitical risk. While the downside risks to the economic outlook
remain, some of the potentially severe tail risks diminished throughout
the year. In particular, the US and EU concluded a framework trade deal,
with most EU goods now facing a 15% US tariff. This is a materially better
outcome than was mooted in early 2025 by the US Administration. It is
also likely that Ireland’s effective rate for its exports will be lower than
the headline 15% rate, given the exemptions at lower rates for some
pharmaceuticals, aircraft parts and other sectors.
Inflation (%)
Source: CSO, EuroStat, ONS
New dwelling completions
(Total, 4 Qrt Mov Avg)
Source: CSO
Against this backdrop, the global economy continued to expand at a
moderate pace in 2025. In the main advanced economies, US growth
slowed from the exceptional out-turns of 2023/24 but remained robust.
With the US labour market and consumption weaker, the economy has
been underpinned by a surge in investment in AI technology. European
economies have continued to lag, with Germany and the UK seeing a
weakening growth trajectory throughout the year. The IMF estimates that
the world economy grew by 3.3% in 2025. However, growth has
remained uneven, with US GDP expanding by 2.1% last year, compared
to 1.4% in both the UK and the Eurozone.
3.3%
1.5%
Estimated global
economic growth in 2025
GDP growth in the
Eurozone in 2025
Irish unemployment rate (%)
Source: CSO
Irish private sector deposits and household savings ratio
(€bn)
Source: CSO, CBI
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Economic Overview
Our Operating Context
Jan
2022
Jan
2023
Jan
2024
Jan
2025
Jan
2026
4.0
4.5
5.0
5.5
Ireland
EU
UK
Jan
2022
Jan
2023
Jan
2024
Jan
2025
Jan
2026
-2
-1
0
1
2
3
4
5
6
7
8
9
10
11
12
Q4
2018
Q4
2019
Q4
2020
Q4
2021
Q4
2022
Q4
2023
Q4
2024
Q4
2025
15,000
18,000
21,000
24,000
27,000
30,000
33,000
36,000
39,000
(%)
Private sector deposits
Household savings
Jun
2021
Dec
2021
Jun
2022
Dec
2022
Jun
2023
Dec
2023
Jun
2024
Dec
2024
Jun
2025
Dec
2025
160
180
200
220
240
260
280
300
320
12.0
18.0
24.0
Irish domestic economy remains in good shape
Following a modest rise in GDP in 2024, growth accelerated sharply in
2025, mostly due to developments in the export sector. According to the
CSO flash estimate, GDP expanded by 12.6% in 2025, up from 2.6% in
2024. While tariff frontrunning has been a factor in the surge in exports in
2025, the emergence of weight-loss drug production in Ireland was also
prominent. Indeed, a specific product related to this sector accounted
for a third of all Irish pharma exports in 2025. Furthermore, the domestic
economy has continued to grow at a solid pace, with the available data
indicating modified domestic demand expanded by 4% year-on-year
between Q1-Q3.
Growth in the domestic economy was driven by consumer spending and
business investment, which continued to perform strongly in 2025.
Despite heightened geopolitical uncertainty, the IDA announced a strong
year for FDI, with 323 new investments and FDI employment up 1.5% to
312,400. Jobs growth was evident across the economy, albeit at a more
moderate pace than 2024. The number of people in employment rose by
c. 57,000 people during 2025, to over 2.8 million people. Meanwhile, the
unemployment rate averaged 4.7% for the year. Inflation rose somewhat
throughout 2025, with the annual HICP rising from 1.7% in January to
2.7% in December, largely due to base effects, but also some modest
inflationary pressures in the domestic economy. Overall, HICP inflation
averaged 2.1% in 2025.
House price inflation eases, but supply constraints remain
House price inflation moderated slightly in 2025. The latest CSO data
shows prices were up by 7% year-on-year in December 2025, compared
to 8.9% at end-2024. In terms of supply, housing completions totalled
36,300 in 2025, compared to 30,200 in 2024, and 32,500 in 2023.
Meanwhile, official government data shows housing commencements
slowed to 16,400 in 2025, following a surge in 2024 of c. 69,000 which
reflected the expiration of Government policy incentives in that year.
However, the main factor influencing house prices remained the
mismatch between supply and demand. Despite increases in housing
supply during the year, the number of new units built per annum to meet
pent-up demand needs to be higher.
Policy changes by the Government to boost construction, including the
National Development Plan and Infrastructure Taskforce, were also
announced throughout 2025. In this regard, the latest forecast from the
Central Bank of Ireland indicates that housing completions could amount
to 37,000 in 2026 and 40,500 in 2027. At the same time, household
savings were maintained at a very high level in 2025. This manifested itself
in a further rise in levels of Irish household deposits. These stood at
€170bn in December, up from €159bn in December 2024. Real income
growth and high levels of savings contributed to the robust rise in
residential property prices in 2025.
4.7%
€170bn
Average unemployment
rate in Ireland during 2025
Irish household deposits
in December
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Outlook for 2026
All the main international forecasters are projecting another year of
modest growth for the global economy in 2026. World output is forecast
to expand by 3.3% this year according to the IMF. However, there are
significant downside risks to the outlook amid elevated levels of
uncertainty, most notably owing to current geopolitical tensions and the
potential for further volatility in US trade and economic policy. In the US,
growth is projected to remain robust, amid a continued growth cycle in
AI investment and a relatively tight labour market. Growth in Europe is
expected to be in line with recent years, as falling inflation and interest
rates support activity, alongside a boost from government spending.
From an Irish perspective, growth is expected to continue at a robust
pace, albeit with risks tilted to the downside. GDP is forecast to grow
solidly, underpinned by the continued uptick in exports seen in 2025.
Furthermore, the domestic economy is set to continue to grow at a decent
pace, aided by ongoing employment growth and a continued rise in real
wages. The public finances are in strong shape, allowing fiscal policy to
remain supportive of activity also. Meanwhile, private sector balance
sheets are characterised by low debt and high savings. Thus, most
forecasts are for Irish modified domestic demand to grow by around
2-3% in 2026.
Our Group strategy remains centred on an informed view of our customers’ needs, anchored in a
sustainable agenda and underpinned by a commitment to operational efficiency and resilience.
Customer
first
Greening
our business
Operational efficiency
& resilience
Building trust and long-term
relationships with our
customers by providing more
connected financial solutions.
Ensuring sustainable finance
and responsible business
practices to build our
shared future.
Ensuring we have the
appropriate capability,
capacity and resilience
to support the Group’s
strategic ambition.
Customers at the
heart of what we do
I have been extremely satisfied
with AIB’s customer service and
overall banking experience. The
online and mobile platforms are
user-friendly and reliable, making
it easy to manage my accounts
and transactions. Overall, AIB has
made my banking straightforward
and convenient, which is why
I would confidently recommend
it to others.
A greener, more
sustainable future
I have told a good few farmers
now about it. I thought it was very
straightforward and simple and
the rate is very good. It was a
great chance to buy machinery.
I was very satisfied with it.
Strengthening
our operations
AIB customer support
member was incredibly helpful
and efficient to deal with. At the
time, I was distraught as there
had been fraudulent activity on
my card but his swift response
and decisive action put my mind
at rest and gave me confidence
in your systems.
Relationship Journey Customer
Business Sustainability Loan Customer
Card Replacement Customer
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Our Strategic Progress
Progress Towards our Strategic Goals
Customer first
Greening our business
Operational efficiency
& resilience
2025 outcomes
• Customer experience performance,
measured by Net Promoter Score (NPS), was
highly positive in 2025 demonstrating our
unwavering customer focus. Of our six key
customer journeys – including Channel,
Homes and Retail SME – five saw noteworthy
growth in 2025 with the sixth holding steady
on an already record-breaking result.
• Completed upgrades in 127 of our 170 AIB
branches, including 35 full refurbishments
and the roll out of 60 Cash and Cheque
Lodgement (CCL) machines, as part of a
€40m investment programme.
• In March, AIB became the first bank in Ireland
to achieve Autism Friendly Accreditation
from AsIAm for all 170 branches.
• Abi, our AI-powered digital assistant, helped
1.33 million customers across 56 journeys,
with 79.5% of customers choosing to
proceed once informed she is a virtual
assistant.
• Launched the AIB Life Hub, a new regular
savings investment platform from AIB life, on
our mobile app.
• Seamlessly delivered SEPA Instant Payments
in October, ahead of the regulatory deadline.
• Provided a total of €22.9bn in green and
transition finance since 2019, including
€6.3bn in 2025. 43% of all new lending was
green or transition in 2025.
• 60% of all Group mortgage drawdowns in
2025 were for energy-efficient homes.
• Issued three green bonds, bringing the total
amount raised in ESG bonds since 2020 to
€8.2bn.
• Launched the Business Sustainability Loan,
complimenting the suite of sustainable
finance products available to our personal
and business customers.
• 92% of the Group’s electrical energy needs
was sourced through our VPPA from two
solar farms in County Wexford.
• Published our Climate Transition Plan, using
what we’ve done so far to develop a strong
blueprint for action for the coming years. We
also launched our first Social Impact Report,
highlighting the real difference we are making
to communities.
• Rolled out Microsoft Copilot to all staff,
embedding AI into workflows with
Responsible AI controls and EU AI Act
compliance.
• Industry-leading 99.99%+ availability across
critical services and recorded zero critical
cyber incidents.
• Continued simplification: retired 56 legacy
applications decommissioned across the
strategic cycle.
• Rolled out Dynamic Workforce Planning
(DWP) programme to 67% of our workforce,
transforming how we plan for a future-ready
talent by adopting a data-led and enterprise-
wide approach.
• Continued enhancement of our employee
proposition, including updated compassion
leave and family leave options, to cover
foster care leave and paid neonatal leave.
• Launched our New Era Leadership
programme to train, engage and inspire our
3,000+ people leaders across the Group.
79.5% of customers choose to engage Abi;
highlighting the effectiveness of
our AI-powered digital assistant
92% equivalent of the Group’s electrical
energy needs was sourced from solar farms;
on track to decarbonise our operations
by 2030
Industry-leading 99.99% availability
across mission critical services;
customer impacting events remain
at a minimum
Looking ahead to 2026
2026 will see the continuation of our
digital channel evolution with the
launch of a new industry payments
process through Zippay and,
importantly, the roll out of our own
next generation mobile app later in the
year. More broadly, we will continue to
deliver market-leading products and
propositions, with a focus on younger
customers, and prioritise a seamless,
customer-focused experience with
integrated journeys across all
touchpoints.
Through our Climate & Infrastructure
Capital function, we are well
positioned to finance transformative
renewable energy projects as well as
green buildings, clean transportation,
circular economy and waste
management, supporting key social
infrastructure. In addition, we will
continue to deliver best-in-class
transition propositions for all of our
customers across our brands, while
driving credibility based on expert
research, analysis and business
insight tools.
We will continue to increase the
volume of sales and servicing carried
out digitally, with continued
automation of branch processes to
make things even more convenient
for our customers. In addition, we will
harness technology to transform
our mortgage enterprise and simplify
our credit suite, speeding up loan
processes and SME loan decisioning.
We will continue to invest in talent
while harnessing both AI and the cloud
so that we are positioned to remain
resilient, competitive and future-ready.
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92%
79.5%
99.99%
Our prudent approach to risk management is fundamental for
the Group to achieve its strategic objectives.
Our Risk Management Framework (RMF) sets out the governance, principles, arrangements, roles and responsibilities in place for the Group to manage
its risks. The Group’s risk management principles are:
Risk Governance and Oversight
1
The Group Board is ultimately accountable for all risk-taking activity in the Group.
2
The Group has a clearly defined risk framework and policy architecture.
3
All risks are managed in accordance with the risk management lifecycle.
4
Appropriate arrangements are in place to manage risks in the Group’s subsidiaries and joint ventures.
Identification and Assessment
5
Risks are identified and assessed using top-down and bottom-up approaches, and where possible models are used to measure risk.
6
The Group actively takes risk in pursuit of its strategic objectives.
Management, Monitoring and Reporting
7
Risks are managed within an agreed risk appetite.
8
Risk monitoring and reporting support risk decision-making.
Risk Culture
9
Risk culture is an integral part of our RMF.
Control Environment
10
The Risk function provides independent challenge and assurance to all key strategic decisions.
11
The Group adopts a Three Lines of Defence (3LOD) approach to risk management.
We operate an enterprise-wide RMF, which is centred around
the embedding of a strong risk culture and ensures the governance
and capabilities are in place to facilitate a consistent approach to risk
management across the Group. The risk management approach is set
out in more detail on pages 177 to 239. The RMF aligns our risk approach
to our overall strategic objectives.
The RMF is designed and maintained by the Risk function, and is subject
to annual review and approval by the Board.
The RMF governs the way in which we identify and manage the
Group’s risks.
We identified 11 Principal Risks which are described on pages 17 to 18.
Evolving and Emerging Risks are set out on page 19.
On an annual basis, the Board sets out the maximum amount of risk the
Group is willing to accept within our Risk Appetite Statement (RAS). The
approved risk thresholds are monitored and reported on an ongoing basis
to the Board Risk Committee to ensure the Group remains within our risk
appetite. RAS metrics are also reported to the Board as part of the
escalation process for RAS breaches.
We test the resilience of our strategy across each of the Principal Risks
through scenario analysis and stress testing. The scenarios used are
informed by the key emerging risks and are used to assess the Internal
Capital Adequacy Assessment Process (ICAAP), the Internal Liquidity
Adequacy Assessment Process (ILAAP) and the three-year financial plan.
The Risk Management section, from pages 177 to 239, gives more
detail on how risk is managed within the Group, detailing the
approach to risk governance including the 3LOD Committee
structures, risk appetite and stress testing.
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Risk Summary
Our Approach to Risk
Key developments in 2025
Management and mitigation
Key Risk Indicators
Credit Risk
See: p. 188 - 222
The credit quality of the lending portfolio has remained stable
during the year as the Irish economy continued to show
resilience despite a challenging international backdrop.
New lending activity remained in line with targeted quality
levels, with 43% of total new lending relating to green and
transition lending, consistent with the Group’s ongoing strategy
to support sustainable finance. Expected Credit Losses (ECLs)
continue to reflect the Group’s proactive stance on emerging
risks while maintaining a comprehensive and forward-looking
approach to assessing the credit environment, ensuring that
the level of ECL stock remains appropriate.
• The Group Credit Risk Framework is the overarching
Board-approved document which sets out the
principles of how the Group identifies, assesses,
approves, monitors and reports credit risk to ensure
that robust credit risk management is in place.
• The material risk assessment process identifies the
impact, likelihood and control effectiveness of the three
credit risk sub categories – credit default risk,
concentration risk and country risk. This in turn informs
the Board-approved risk appetite. These risks are
further mitigated through the concentration and country
risk frameworks and approved RAS limits.
• Asset class
concentration risk
metrics
• Country concentration
risk metrics
• Non-performing
exposures (NPEs) as a
% of customer loans
• Expected credit loss
(ECL) cover rates
Market & Equity Risk
See: p. 223- 226
The Credit Spread Risk in the Banking Book (CSRBB)
perimeter was expanded to include Hold to Collect (HTC)
Bonds, which are classified for accounting purposes with
the intention to hold until maturity. Previously, only Hold
to Collect and Sell (HTCS) Bonds were captured within
this perimeter.
• Market Risk, Equity Risk and Pension Risk are managed
within the overall Group RMF and their respective risk
frameworks supported by policies and procedures
including the MRA and RAS processes. Other key
elements include: defined Market Risk, Equity Risk and
Pension Risk Strategies; periodic reporting to ALCo,
GRC and Board; second line of defence (2LOD) review
and challenge of Market Risk, Equity Risk and Pension
Risk activities; and Stress Testing, including ICAAP.
• Earnings sensitivity
• Interest rate capital at risk
• Credit spread capital at risk
• Pension capital at risk
• Equity nominal investment
• Equity Risk Weighted
Assets (RWA) %
Liquidity & Funding Risk
See: p. 227 - 232
The Group maintained a strong liquidity and funding
position with liquid assets continuing to exceed the
regulatory minimum and internal risk appetite.
Customer deposits have continued to grow, reflecting a
strong and resilient Irish economy.
• The Internal Liquidity Adequacy Assessment Process
(ILAAP) Framework sets out the approach to manage
the Group’s Liquidity Risk, funding concentrations and
compliance with the Board’s risk appetite.
• A suite of tools is used to monitor, limit and stress test
the liquidity and funding risks on the balance sheet.
Liquidity key risk indicators are monitored daily.
• Performance is reported to the Group Asset and
Liability Committee (ALCo) on a regular basis.
• Liquidity coverage ratio
(LCR)
• Survival period
• Net stable funding ratio
(NSFR)
Capital Adequacy Risk
See: p. 233
A strong capital position was maintained throughout
2025 with buffers to regulatory requirements for Fully
Loaded Common Equity Tier 1 (CET1) and Total Capital
ratios. Stress testing activities demonstrated robustness
of the capital position including in the annual ICAAP. The
Group also conducted a second Significant Risk Transfer
(SRT) in December 2025, which benefited the CET1 ratio
by c. 25 bps.
• The Capital Adequacy Framework outlines the
processes for identifying, assessing and managing the
risks related to Capital Adequacy, through the ICAAP,
with Capital and Stress Testing Policies also
embedded. ICAAP results and internal stress testing,
are reviewed by 2LOD. Sensitivity analysis and capital
buffers provide protection against measurement and
forecasting errors. Oversight is via CRO, CFO reports,
ALCO, and Board reporting, with robust controls
including RAS and RAROC thresholds.
• Fully loaded CET1 ratio
• Fully loaded Total
Capital Ratio
• Aggregate Group
RAROC on new
business
Information Security (including Cyber) Risk - New
See: p. 233
From 1 January 2025 Information Security (including
Cyber) risk was deemed a principal risk for the Group.
The Information Security (including Cyber) Risk
Framework and updated policy introduced new Cyber
Risk principles, defined sub risks and was overseen by
Operational Risk leadership.
• The Group manages risk through integrated controls,
regular staff training, data security measures, and
thorough incident response planning within the RMF.
• Compliance with internal standards like Digital
Operational Resilience Act (DORA) and New York State
Department of Financial Services (NYDFS) supports
continual risk monitoring and improvement.
• Time to detect Cyber
Incidents
• Reportable Cyber
Incidents
• Phishing simulations
involving High Risk
Users
Business Model Risk
See: p. 234
The Group returned to private ownership in 2025 as the
Irish Government exited its remaining ownership position.
The Group continues to progress our 2024-2026 Strategy
expanding green lending, launching instant payment
transfers and maintaining a strong deposit base.
• The Business Model Risk Framework sets principles,
responsibilities, and governance for overseeing
Business Model Risk.
• Performance is monitored via the CFO report, strategic
proof points and risk appetite metrics are reported in the
CRO report. This ensures timely escalation of key issues.
• Operating profit %
variance to plan
• Return on Tangible
Equity (RoTE)
• Net Interest Margin (NIM)
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Principal Risks
Key developments in 2025
Management and mitigation
Key Risk Indicators
Operational & Resilience Risk
See: p. 235
Following the approval of the 2025 Material Risk
Assessment, Operational Risk has been expanded to
Operational & Resilience Risk. This has been driven
primarily by industry and regulatory trends.
Transaction Execution & Delivery Risk has been
introduced as a new sub risk within Operational &
Resilience Risk.
• The Operational Risk Management (ORM) Framework
sets out the principles, supporting policies, roles and
responsibilities, governance arrangements and processes
for operational risk management across the Group.
• The sub risks are owned and actively monitored under
the ORM Framework and underlying policies to ensure
material operational risks are managed effectively
within the Group RAS limits.
• The ORM Framework and policies set out the process
for risk and control assessments, identification of the
key non-financial risks arising from business processes
and activities. It also includes the process for
escalation of the relevant RAS metric limit and watch-
trigger breaches.
• Cumulative operational
risk losses
• Number of Tier 1 & Tier 2
Third Party providers
with a poor Vendor
Security rating
• The availability of
Critical Information
Systems to enable
business operations
Climate & Environmental (C&E) Risk
See: p. 236
C&E Policy was updated in 2025 to ensure alignment with
regulatory requirements, including the EBA Guidelines on the
management of ESG risks. A new overarching qualitative RAS
statement was introduced, with three new RAS metrics, two
of which are forward looking. Market & Equity risk was newly
identified as having a primary impact in the 2025
Transmission Channel analysis, credit and operational risks
were unchanged. Management of C&E Risks remains a
regulatory focus, in particular managing greenwashing risks
and ESG disclosures.
• The C&E Risk Framework sets out the principles, roles
and responsibilities, governance arrangements and
processes for C&E Risk across the Group.
• The CRO report provides an update on the risk profile,
and monitoring C&E metrics and other risk metrics
which identify the impact from C&E Risk.
• The Sustainability dashboard provides a quarterly
update on key performance metrics, including new
green and transition lending and financed emission
target metrics.
• Physical risk data
capture
• % of new lending
non-green or transition
• Environmental Risk -
Sector Breaches
Model & AI Risk
See: p. 237
In 2025, AI Risk was integrated into the Model Risk
taxonomy. A single solution was implemented to manage
end-to-end model lifecycle. The Group has made tangible
progress on the Internal Rating Based (IRB) repair phase
and has also commenced the work on the rollout phase,
extending advanced risk models across key portfolios in
line with regulatory requirements. The IRB approach is a
regulatory framework that allows banks to use their own
risk models to estimate credit risk and determine capital
requirements, subject to supervisory approval.
• The Group Model & AI Risk management suite of
documents sets out the Group’s approach to
management, measurement and reporting of Model &
AI Risk.
• In addition, dedicated committees, forums and teams
ensure the risk is appropriately identified and managed
within each stage of the Model & AI Risk management
lifecycle.
• Quarterly risk score
of live and approved
models in use
Culture Risk & Conduct Risk
See: p. 237
The revised definitions for Culture Risk and Conduct Risk are
now embedded in an updated Culture Risk and Conduct Risk
Framework and Group Conduct Risk Policy. New and
enhanced culture metrics have been introduced, and will be
reported through the CRO and Compliance Insights reports.
The integrated culture tracker was enhanced to include
metrics covering people, customer, and risk dimensions,
providing a unified view of cultural progress, enabling effective
oversight at Board level. Both qualitative and quantitative RAS
have been updated, reflecting the growing importance of
Culture Risk & Conduct Risk.
• Embedding and monitoring new Culture Risk & Conduct
Risk metrics to identify emerging risks and ensure
alignment with Group values.
• Maintain oversight of mandatory training across the
Group.
• Ongoing monitoring of updated qualitative and
quantitative RAS.
• Completion of mandatory
training courses
• Critical & high customer
impacting conduct issues
• Culture metric
(composite of three
culture risk measures)
Regulatory Compliance Risk
See: p. 239
The level of regulatory change remained high in 2025 as
the regulatory landscape for the banking sector continued
to evolve. Key regulatory programmes supported across
2025 include the revised Consumer Protection Code, the
EU AML Reform Package and the new EBA Guidelines
on ESG Risk Management. Basel IV was successfully
implemented in January 2025, resulting in a significant
increase for CET 1. The Prudential Regulation Authority (PRA)
announced their decision to delay the implementation of
Basel 3.1 rulebook until January 2027.
• A Regulatory Compliance Risk Management Framework
is in place and is supported by a suite of policies.
• Board accountability with regular reporting to Group Risk
Committee (GRC) and Board Risk Committee (BRC).
• A number of risk assessments are in place within the
Compliance function for the identification, assessment,
management, monitoring and reporting of risks, as well
as controls to mitigate the risks.
• A process is in place for the management of
regulatory change.
• Staff education and awareness of regulatory
compliance obligations.
• Regulatory breaches
• Impact assessment
for delayed delivery
of regulatory directive
change initiatives
• Number of data
protection incidents
that resulted in a
significant personal
data breach
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Principal Risks continued
The Group identifies evolving and emerging risks as part of the MRA process.
Evolving and Emerging Risks are developing risk drivers that may increase in significance for the Group over time. These risks may have a high level of
uncertainty with respect to outcome and timing but could potentially have a material impact on the Group’s strategy, operations and on our customers.
The evolving and emerging risks identified are:
How we responded during 2025
Geopolitical Risk
The risk that geopolitical
developments and tensions could
escalate and could negatively
impact the Group’s operations
or result in other financial or
macroeconomic impacts.
• In 2025, Geopolitical Risk remained a prominent feature of the global economic environment. While global
conflicts persisted, trade uncertainty dominated as the new US administration pursued its tariff agenda amid
elevated FDI and supply-chain risks.
• The Group established a standing Geopolitical Working Group (GWG) to strengthen horizon-scanning and
structured escalation. The Group reported monthly via the CRO Report to the GRC and BRC.
• The Group developed a structured geopolitical risk heatmap and associated indicator framework to identify
emerging vulnerabilities with potential macroeconomic implications. These outputs were incorporated into
governance processes and used to inform scenario design and calibration as well as ECL scenario weightings.
• Geopolitical scenarios were integrated into the business plan, ICAAP, ILAAP and ECL frameworks. This
included the development of a dedicated Trade and FDI scenario.
• The Group convened dedicated Geopolitical Group Credit Committees and undertook targeted portfolio and
case-level reviews across sectors and borrowers with heightened exposure, particularly in manufacturing and
export-reliant segments. Monitoring frequency was increased and underwriting standards were tightened in
sensitive areas.
• GWG outputs were integrated into information security processes, reflecting the observed increase in
geopolitical related cyber-activity. The Group activated an external intelligence capability to provide
bank-specific geopolitical and cyber intelligence, thereby strengthening threat-level reporting and escalation
protocols.
• The Group conducted a comprehensive geopolitical transmission-channel assessment, capturing shocks
through the ECB’s three defined transmission channels, including the Financial Market channel, and impacts
across the Real Economy and Safety and Security channels and developed a material risk heatmap that
directly informed scenario design.
• The Group continued to apply sanctions requirements in various jurisdictions as applicable.
Digital Competitor
Risk
The risk posed by financial service
providers operating outside the
traditional banking model, such
as fintechs, digital-first platforms,
stablecoin issuers, and other
emerging digital currency
ecosystems whose
technology-driven offerings can
erode the Group’s market share,
disrupt customer relationships,
and challenge the relevance of
traditional products and services.
• Competition from non-traditional banks, fintechs and big tech players continued to rapidly evolve in 2025 with
these entities offering tailored, technology-driven solutions to emerging customer segments. Furthermore, the
increased prominence of stablecoin and the prospect of Central Bank Digital Currencies (CBDCs) have the
potential to disrupt financial systems, increase operational risks, challenge the Group’s intermediary role and
business model.
• The Group has responded through major digital upgrades such as the ongoing development of the next
generation mobile app, SEPA Instant payments, preparation for Zippay’s launch in 2026, the scaling of
AI-enabled service as well as scaled enterprise AI adoption, modernised data foundations and strengthened
its Customer First engagement.
• The Group accelerated digital onboarding, SME and retail journey redesign; grew our set of secure partner
connections; and targeted propositions where the Group have distinctive data and underwriting advantages.
• The Group strengthened personalisation, segmentation, insights and Customer First programmes to deepen
engagement and reduce attrition. The detailed customer segmentation analysis is a key enabler of future
personalisation capability particularly via our enhanced mobile app.
• The Group continued to closely monitor developments in crypto-asset regulation, tokenised deposits and
CBDCs and advanced its assessment of strategic opportunities for digital-asset participation.
Technology
Evolution Risk
The risk that rapid advances in
technologies alongside evolving
cyber threats, cloud
concentration and expanding data
volumes and obligations, lead to
operational disruption, model
misuse, regulatory non-
compliance or customer
detriment.
• The global risk landscape in 2025 was marked by rapid AI adoption, the growing use of AI by threat actors,
increasing cloud dependency and expanding volumes of sensitive data. These developments intensified
operational and conduct risk exposures, increased cloud concentration and exit risk, and added complexity
through evolving data protection and data sovereignty regulation.
• In response to the evolving global risk environment, the Group continued to recalibrate risk frameworks with
cyber security elevated as a principal risk, model risk expanded to explicitly encompass AI, and operational
risk was reframed to place greater emphasis on resilience and service continuity.
• Operating models for cyber security and operational resilience continued to mature in response to a more
complex threat environment. Improvements in leadership oversight, threat intelligence, detection and
response capability enhanced threat and detection effectiveness, supporting service stability and resilience,
with critical services delivering 99.99% availability and no critical cyber incidents reported.
• Enterprise approaches to AI risk management matured significantly. The Group advanced AI strategies and
model governance frameworks, including systematic identification of AI use cases and the enhancement of
associated controls. Dedicated AI oversight and centre of excellence models supported stronger compliance
and detection metrics across AI systems and model lifecycle management.
• Data and third party risk controls were further uplifted to reflect increasing regulatory and resilience
expectations. Improvements in data quality and lineage, encryption and access management, alongside more
rigorous third party oversight and exit planning, strengthened compliance and reduced concentration and
dependency risks.
• Targeted investment in workforce training and customer communications reinforced risk culture. Focused
initiatives on AI use, fraud prevention, cyber hygiene and data handling improved awareness metrics and are
expected to contribute to lower frequency and impact of technology-enabled loss events over time.
f
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Evolving and Emerging Risks
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Highlight
Supporting young talent
Running alongside the annual AIB Portrait Prize, the AIB Young Portrait
Prize is an inclusive art competition with the aim of fostering and
supporting creativity, originality, and self-expression in children and
young people. The AIB Portrait Prize exhibition, featuring 26 shortlisted
works, and the AIB Young Portrait Prize exhibition, showcasing 20
portraits, are open at the National Gallery of Ireland until 15 March,
and will continue their journey together to the Regional Cultural
Centre, Letterkenny, and to the Waterford Gallery of Art later in 2026.
On the left: overall winner of the AIB Young Portrait Prize, Guorui Sui
(age 11) “My Own World of Fantasy, 2025”. Guorui says: "This self-
portrait captures me in my happy place - surrounded by my favourite
toys, away from the real world where not everything goes your way. I’m
11, nearing those ‘teenage years’ everyone talks about. I know the
‘grown-up’ world is coming, with its complexities and worries. So I’m
soaking up every last bit of being a kid. Maybe I’m a ‘late bloomer’ or
just refusing to leave the era of pure innocence. I’m happy to be its
king for a little longer.”
The AIB Portrait Prize and AIB Young Portrait Prize capture a moment in
time in Irish society and reflect our people, our stories and our history.
We are proud to sponsor these important competitions which present
the diversity of Ireland today.
Photo © Niamh Barry
Background photograph features the National Gallery of Ireland Shaw Room Photo © NGI Photographer Roy Hewson.
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In this section
Operating and Financial Review
22
Capital
38
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Basis of presentation
The operating and financial review is prepared using IFRS and non-IFRS
measures to analyse the Group’s performance, providing comparability
year-on-year. These performance measures are consistent with those
presented to the Board and Executive Leadership Team. Non-IFRS
measures include management performance measures which are
considered Alternative Performance Measures (APMs). APMs arise where
the basis of calculation is derived from non-IFRS measures. A description
of the Group’s APMs and their calculation is set out on page 36. These
measures should be considered in conjunction with IFRS measures
as set out in the consolidated financial statements from page 253.
A reconciliation between the IFRS and management performance
summary income statements is set out on page 37.
Figures presented in the operating and financial review may be subject to
rounding and thereby differ to the Risk Management section and the
consolidated financial statements.
Basis of calculation
Percentages are calculated on exact numbers and therefore may differ
from the percentages based on rounded numbers.
The impact of currency movements is calculated by comparing the results
for the current reporting period to results for the comparative reporting
period retranslated at exchange rates for the current reporting period.
2025
2024
change
Management performance - Summary income statement
€ m
€ m
%
Net interest income
3,748
4,129
-9
Other income1
756
779
-3
Total operating income1
4,504
4,908
-8
Personnel expenses1
(966)
(980)
-1
General and administrative expenses1
(735)
(690)
6
Depreciation, impairment and amortisation
(291)
(301)
-3
Total operating expenses1
(1,992)
(1,971)
1
Bank levies and regulatory fees1
(114)
(138) —
-18
Operating profit before impairment losses and exceptional items1
2,398
2,799
-14
Net credit impairment charge
(172)
(55)
Operating profit before exceptional items1
2,226
2,744
-19
Income from equity accounted investments1
17
26
-32
Loss on disposal of business
—
(2)
Profit before exceptional items1
2,243
2,768
-19
Exceptional items1
156
(66)
Profit before taxation
2,399
2,702
-11
Income tax charge
(260)
(351)
-26
Profit for the year
2,139
2,351
-9
1. Performance has been adjusted to exclude items viewed as exceptional by management and which management view as distorting comparability of performance year-on-year. The adjusted
performance measure is considered an APM.
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Business Review
1. Operating and Financial Review
Net interest income
2025
2024
change
€ m
€ m
%
Interest income
4,929
5,374
-8
Interest expense
(1,181)
(1,245)
-5
Net interest income
3,748
4,129
-9
Average interest earning assets
137,359
130,190
6
%
%
change
Net interest margin (NIM)
2.73
3.16
-0.43
Net interest income €3,748m
Net interest income decreased by €381 million or 9% compared to 2024.
The reduction primarily reflected lower average interest rates in 2025
compared to 2024 and an increase in interest expense on customer deposits
partially offset by higher average interest earning assets.
Interest income of €4,929 million in 2025 decreased by €445 million or
8% compared to 2024 primarily due to:
• Reduced asset yields driven by lower average Euro, Sterling and
US Dollar interest rates reflecting the graduated reduction in official
interest rates by central banks over the last 18 months, with the impact
mitigated through the Group’s structural hedging programme (SHP)1
and partially offset by:
• Higher average customer loan volumes primarily driven by an increase
in new lending and the completion of loan acquisitions from Ulster
Bank in the second half of 2024.
• Increase in loans and advances to banks and investment security
volumes.
Interest expense of €1,181 million in 2025 decreased by €64 million or
5% compared to 2024. The decrease in funding costs was primarily due to:
• Lower other debt issued and subordinated liabilities funding costs
due to the impact of lower interest rates and credit spreads, partially
offset by:
• Higher interest expense on customer deposits as customers avail
of higher yielding term products.
Net interest margin 2.73%
NIM decreased by 43 basis points to 2.73% in 2025 compared to 3.16% in
2024 primarily driven by the impact of lower interest rates, partially
mitigated by SHP.
Average interest earning assets of €137.4 billion in 2025 were €7.2 billion
or 6% higher compared to 2024 underpinned by growth in customer
deposits and other debt issued.
Year ended
Year ended
Average balance sheet
31 December 2025
31 December 2024
Average
Interest
Average
Average
Interest
Average
balance
rate
balance
rate
Assets
€ m
€ m
%
€ m
€ m
%
Loans and advances to customers1
71,131
3,129
4.40
68,300
2,817
4.11
Investment securities
20,035
632
3.15
18,011
841
4.66
Cash, loans and advances to banks2
46,193
1,168
2.53
43,879
1,716
3.90
Average interest earning assets
137,359
4,929
3.59
130,190
5,374
4.12
Non-interest earning assets
7,689
7,816
Total average assets
145,048
4,929
138,006
5,374
Liabilities & equity
Deposits by banks2
1,548
45
2.93
1,328
60
4.50
Deposits and advances from customers1
54,032
523
0.97
49,242
468
0.95
Other debt issued
9,039
439
4.86
8,563
539
6.29
Subordinated liabilities
1,738
88
5.04
1,645
112
6.80
Lease liabilities
248
10
3.87
268
9
3.30
Average interest earning liabilities
66,605
1,105
1.66
61,046
1,188
1.94
Non-trading derivatives (economic hedges)
76
57
Non-interest earning liabilities
63,185
62,010
Equity
15,258
14,950
Total average liabilities & equity
145,048
1,181
138,006
1,245
Net interest income
3,748
2.73
4,129
3.16
1. The Group’s structural hedging programme resulted in a negative impact of €82m on income from Loans and advances to customers in 2025 (2024: €618m), and a positive impact of €70m on income
from Deposits and advances from customers (2024: €37m), arising from cash flow and portfolio fair value hedges. See notes 4 and 5 to the consolidated financial statements.
2. Cash, loans and advances to banks and Deposits by banks include Securities financing.
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Other income1
2025
2024
change
€ m
€ m
%
Net fee and commission income*
692
666
4
Net trading income
9
50
-82
Net gain on financial assets measured at FVTPL
48
82
-41
Other income/(expense)
7
(19)
Total other income
756
779
-3
2025
2024
change
*Net fee and commission income
€ m
€ m
%
Customer accounts and payment services
264
268
-1
Card income
165
148
11
Customer related foreign exchange
87
91
-5
Wealth and insurance
84
79
7
Lending related fees
58
56
3
Investment banking
31
18
77
Other fees and commissions
3
6
-51
Total net fee and commission income
692
666
4
1. Other income before exceptional items. A gain of €7m on exceptional items in 2025 comprises: a net gain of €7m on disposal of loan portfolios. A gain of €20m on exceptional items in 2024 comprises:
net fee and commission income of €15m, other operating income of €4m and €1m net gain on disposal of loan portfolios.
Other income €756m
Other income decreased by €23 million or 3% compared to 2024 as higher
fee and commission income was more than offset by lower equity
investment gains and other items.
Net trading income of €9 million decreased by €41 million compared
to 2024, primarily reflecting the non-recurrence of income from loan
acquisition forward contracts in the current year and lower income on
non-customer foreign exchange contracts.
Net gain on financial assets measured at fair value of €48 million in 2025
decreased by €34 million compared to 2024 driven by a lower gain on
equity investments.
Other income of €7 million in 2025 increased by €26 million compared to
an other expense of €19 million in 2024, primarily due to a lower loss on
disposal of investment securities in the current year.
Net fee and commission income €692m
Net fee and commission income increased by €26 million or 4%
compared to 2024 primarily reflecting higher card, investment banking
and wealth & insurance income partially offset by lower customer related
foreign exchange income.
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Business Review
1. Operating and Financial Review continued
Operating expenses1
2025
2024
change
€ m
€ m
%
Personnel expenses
966
980
-1
General and administrative expenses
735
690
6
Depreciation, impairment and amortisation
291
301
-3
Total operating expenses
1,992
1,971
1
Staff numbers2
Staff numbers at period end
10,207
10,469
-3
Average staff numbers
10,347
10,655
-3
Cost income ratio
%
%
change
Cost income ratio1
44
40
4
Cost income ratio (IFRS basis)
47
45
2
Bank levies and regulatory fees
2025
2024
change
€ m
€ m
%
Irish bank levy
94
94
Deposit Guarantee Scheme Fees
(11)
11
Other regulatory levies and charges
31
33
Total bank levies and regulatory fees
114
138
-18
1. Before bank levies and regulatory fees and exceptional items. The cost of exceptional items of €8m in 2025 (2024: €86m) comprised: personnel expenses €16m (2024: €4m) and a general and
administrative expenses writeback of €8m (2024: €82m expense).
2. Staff numbers are on a full time equivalent (FTE) basis.
Net credit impairment charge
2025
2024
change
€ m
€ m
%
Non-property business
(95)
(14)
Personal
(68)
(80)
-15
Property and construction
(40)
1
Residential mortgage
33
36
-8
Loans and advances to customers3
(170)
(57)
Investment securities and securities financing
(2)
2
Total net credit impairment charge
(172)
(55)
3. The 2025 impairment outcome included a €178m charge on loans and advances to customers (2024: €60m), partially offset by an €8m writeback on off-balance sheet exposures (2024: €3m
writeback).
Total operating expenses €1,992m
Operating expenses increased by €21 million or 1% compared to 2024.
Personnel expenses decreased by €14 million compared to 2024 primarily
due to a decrease in the allowance for variable pay, lower severance costs
and a reduction in average staff numbers partially offset by salary inflation.
General and administrative expenses increased by €45 million compared
to 2024 primarily driven by the impact of inflation, higher business
volumes and higher operating expense-related investment spend.
Depreciation, impairment and amortisation decreased by €10 million
compared to 2024 primarily due to lower impairments in the current year.
Cost income ratio 44%
Costs of €1,992 million and income of €4,504 million resulted in a cost
income ratio of 44% in 2025 compared to 40% in 2024.
Bank levies and regulatory fees €114m
Total bank levies and regulatory fees reduced by €24 million compared to
2024. The decrease was driven by the Deposit Guarantee Scheme (DGS),
following confirmation that no payment was required to the DGS
Contribution Fund for 2024 or 2025, alongside the release of a related
prior-year accrual.
Net credit impairment charge €172m
There was a net credit impairment charge of €172 million in 2025,
compared to €55 million in 2024, with the prior year having benefited from
writebacks in a small number of exposures in the leisure and property
sectors.
For further information see pages 182 to 222 in the Risk Management
section.
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Exceptional items
2025
2024
€ m
€ m
Gain on disposal of equity accounted investments
157
—
Customer redress and legal claims
8
(46)
Gain on disposal of loan portfolios
7
1
Restructuring costs
(16)
(4)
Inorganic transaction costs
—
(32)
Other
—
15
Total exceptional items
156
(66)
Income tax
2025
2024
Income tax charge €m
260
351
Effective tax rate %
11
13
Exceptional items €156m
These gains/(costs) were viewed as exceptional by management.
Gain on disposal of equity accounted investments reflects a gain on
the sale of the Group’s minority shareholding in AIB Merchant Services.
Customer redress and legal claims reflect a net writeback/(charge) to
provisions for remediation payments to customers and associated costs
in respect of legacy matters.
Gain on disposal of loan portfolios relates to the disposal of non-
performing loan portfolios completed in prior years.
Restructuring costs reflect termination benefit costs resulting from the
implementation of the Group’s strategy.
Inorganic transaction costs included costs associated with the
acquisition and migration of a portfolio of Ulster Bank tracker (and linked)
mortgages in 2024.
Other included a fee receivable on the exit of a servicing agreement for a
non-core legacy business in 2024.
Income tax charge €260m
The income tax charge was €260 million in 2025, representing an effective
tax rate of 11% compared to a tax charge of €351 million in 2024 (effective
tax rate 13%). The reduction in the effective tax rate in 2025 primarily
reflected the tax-exempt income earned during the year and the
recognition of deferred tax assets in respect of unutilised tax losses
incurred in prior years.
For further information see note 13 and note 25 to the consolidated
financial statements.
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Business Review
1. Operating and Financial Review continued
31 Dec
31 Dec
Assets
2025
2024
change
€ bn
€ bn
%
Gross loans
72.3
71.2
2
ECL allowance
(1.1)
(1.3)
-15
Net loans to customers
71.2
69.9
2
Investment securities
21.5
18.7
15
Cash, loans and advances to banks
41.2
38.6
7
Securities financing
7.3
6.6
10
Other assets
7.0
7.5
-7
of which:
Deferred tax assets
2.1
2.3
-10
Derivatives financial instruments
1.6
2.1
-22
Remaining assets
3.3
3.1
6
Total assets
148.2
141.3
5
Performing
Non-performing
Loans to
Summary of movement in loans to customers
loans
loans
customers
€ bn
€ bn
€ bn
Gross loans (opening balance 1 January 2025)
69.2
2.0
71.2
New lending
14.7
—
14.7
Redemptions
(11.7)
(0.6)
(12.3)
Portfolio disposals
(0.1)
(0.3)
(0.4)
Net movement to non-performing
(0.6)
0.6
—
Write-offs and restructures
—
(0.1)
(0.1)
Foreign exchange and other movements
(0.8)
—
(0.8)
Gross loans (closing balance 31 December 2025)
70.7
1.6
72.3
ECL allowance
(0.6)
(0.5)
(1.1)
Net loans (closing balance 31 December 2025)
70.1
1.1
71.2
Gross loans €72.3bn
Gross loans increased by €1.1 billion or 2% compared to 31 December
2024 driven by underlying growth of €2.4 billion or 3%, as new lending
exceeded redemptions, partially offset by adverse foreign exchange
movements of €0.9 billion and portfolio disposals of €0.4 billion.
New lending €14.7bn
New lending was €0.2 billion or 2% higher compared to 2024. New lending
comprises €13.3 billion of term lending (2024: €13.0 billion) and €1.4
billion of transaction lending (2024: €1.5 billion).
Irish mortgage lending of €4.3 billion, representing a market share of 30%
(2024: 36%), was 5% lower compared to 2024 reflecting heightened
market competition.
Personal lending was up 4% to €1.4 billion.
Non-property lending of €6.8 billion was in line with 2024 as higher corporate
lending was offset by lower Climate & Infrastructure Capital lending.
Property related lending was 25% higher at €2.0 billion reflecting some
recovery in real estate lending from a subdued prior year.
Investment securities €21.5bn
Investment securities, primarily held for liquidity purposes, increased by
€2.8 billion or 15% from 31 December 2024 due to increased holdings
in government and supranational securities.
Cash, loans and advances to banks €41.2bn
Cash, loans and advances to banks, including €40.6 billion of cash and
balances at central banks, were €2.6 billion higher than 31 December
2024 as the growth in customer deposits outpaced the growth in
customer loans, investment securities and securities financing.
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27
Credit profile of loan portfolio
The table below summarise the credit profile of the loan portfolio by asset class and includes a range of credit metrics that the Group uses in managing
the portfolio. Further information on the Group’s risk profile and non-performing loans is available in the Risk Management section on pages 182 to 222.
31 December 2025
31 December 2024
Loans to customers
at amortised cost
Residential
mortgages
€ bn
Other
personal
€ bn
Property and
construction
€ bn
Non-
property
business
€ bn
Total
€ bn
Residential
mortgages
€ bn
Other
personal
€ bn
Property and
construction
€ bn
Non-
property
business
€ bn
Total
€ bn
Gross loans to customers
37.5
3.4
8.4
22.9
72.2
37.0
3.3
8.7
22.2
71.2
of which: Stage 2
1.8
0.5
2.4
3.1
7.8
1.9
0.6
2.7
2.8
8.0
Non-performing loans
0.7
0.1
0.3
0.5
1.6
0.9
0.1
0.5
0.5
2.0
Total ECL allowance
0.2
0.1
0.4
0.4
1.1
0.3
0.1
0.4
0.5
1.3
Total ECL allowance cover
0.5 %
3.8 %
5.2 %
1.8 %
1.6 %
0.7 %
4.2 %
5.3 %
2.1 %
1.9 %
of which: Stage 2
2.7 %
8.9 %
9.0 %
6.1 %
6.4 %
2.8 %
8.4 %
8.3 %
7.0 %
6.6 %
Non-performing loans
17.9 %
70.5 %
40.8 %
31.9 %
30.1 %
24.1 %
66.0 %
33.2 %
39.2 %
32.4 %
Non-performing loans as a
percentage of gross loans
1.8 %
2.5 %
4.0 %
2.2 %
2.2 %
2.4 %
3.1 %
6.1 %
2.2 %
2.8 %
Non-performing loans ratio 2.2%
Non-performing loans as a percentage of gross loans to customers was
2.2% at 31 December 2025 compared to 2.8% at 31 December 2024.
The decrease reflected a reduction in non-performing loan volumes by
€0.4 billion or 20% to €1.6 billion at 31 December 2025 driven by disposal
and restructuring activity during the year.
ECL cover 1.6%
The expected credit loss balance sheet cover was 1.6% at 31 December
2025 compared to 1.9% at 31 December 2024. The movement reflected a
decrease in the ECL allowance by €0.2 billion to €1.1 billion at 31
December 2025 driven by the reduction in non-performing loan volumes.
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Business Review
1. Operating and Financial Review continued
31 Dec
31 Dec
Liabilities & equity
2025
2024
change
€ bn
€ bn
%
Customer deposits
117.2
109.8
7
Cash collateral advanced from customers1
0.4
0.1
Deposits by banks
0.2
0.8
-81
Debt securities in issue
8.2
8.8
-7
Subordinated liabilities
2.6
1.6
61
Other liabilities
4.9
4.8
3
of which:
Derivative financial instruments
1.4
1.8
-22
Securities financing
0.7
0.2
Remaining liabilities
2.8
2.8
3
Total liabilities
133.5
125.9
6
Equity
14.7
15.4
-5
Total liabilities & equity
148.2
141.3
5
Movement in equity
€ bn
€ bn
Opening balance (1 January 2025)
15.4
15.1
Profit for the year
2.1
2.4
Distributions paid
(2.4)
(2.3)
Cancellation of warrants
(0.4)
—
Other
—
0.2
Closing balance (31 December 2025)
14.7
15.4
%
%
change
Loan to deposit ratio
61
64
-3
1. Relates to cash collateral received from derivative counterparties.
Customer deposits €117.2bn
Customer deposits increased by €7.4 billion or 7% compared to 31
December 2024 driven by an increase in personal and SME balances.
Interest bearing customer deposits of €56.3 billion at 31 December 2025
increased by €4.9 billion or 10% compared to 31 December 2024 driven
by an increase in term deposits. The mix between current and interest
bearing customer deposits remained in line with 31 December 2024.
Loan to deposit ratio 61%
The loan to deposit ratio was 61% at 31 December 2025 compared to 64%
at 31 December 2024.
Debt securities in issue €8.2bn
Debt securities decreased by €0.6 billion from 31 December 2024 driven
by a decrease in MREL volumes.
Subordinated liabilities €2.6bn
Subordinated liabilities increased by €1.0 billion compared to 31
December 2024 due to a green Tier 2 capital issuance.
Equity €14.7bn
Equity decreased by €0.7 billion to €14.7 billion compared to €15.4 billion
at 31 December 2024 as profit for the year was more than offset by
distributions paid and the cancellation of warrants.
Distributions paid in the year included the buyback of ordinary shares of
€1.2 billion, a final dividend payment for 2024 of €861 million and an
interim dividend payment for 2025 of €263 million.
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Segment overview
In July 2025, the Group announced a change in its management structure
and the integration of AIB UK into the Retail Banking business line. The
Group’s performance for the 12 months to 31 December 2025 was
managed and reported, in the management accounts, across Retail
Banking, AIB Capital Markets (Capital Markets), Climate & Infrastructure
Capital (C&IC), AIB UK and Group segments and therefore the
announcement did not impact the Group’s disclosure of its reportable
segments.
Under the Group's cost allocation methodology, substantially all of the
costs of the Group's control, support and Treasury functions are allocated
to Retail Banking, Capital Markets, Climate & Infrastructure Capital and
AIB UK. In addition, certain Bank levies and regulatory fees, such as the
Irish bank levy, are allocated to the Retail Banking, Capital Markets and
Climate & Infrastructure Capital segments.
Funding and liquidity income/charges are based on each segment’s
funding requirements and the Group’s funding cost profile, which
is informed by wholesale and retail funding costs. Income attributable
to capital is allocated to segments based on each segment’s
capital requirement.
Retail
Banking
Capital
Markets
Climate
& Infrastructure Capital
The Group’s leading Irish retail franchise
which provides a comprehensive range of
products and services through branch,
digital, and phone banking channels. The
aim is to provide our customers with a
seamless and transparent experience
across all channels, while supporting the
development of sustainable businesses
within their local communities.
Provides institutional, corporate, business
banking services and specialised products
to the Group’s larger customers and
customers requiring specific sector or
product expertise. Goodbody offers further
capabilities in wealth management, asset
management and investment banking.
Serves the Irish, UK, European and North
American markets, specialising in lending
to large-scale renewable energy and
infrastructure projects, which are key
drivers for sustainable economic growth.
AIB UK
Group
Provides lending, treasury, trade facilities,
asset finance and invoice discounting
services to large corporates in Great Britain
and Northern Ireland and operates a full-
service retail franchise in Northern Ireland
with a focus on everyday banking,
mortgage and business banking.
Comprises wholesale treasury activities as
well as Group control and support
functions. Treasury manages the Group’s
liquidity and funding positions and
provides customer treasury services and
economic research while the control and
support functions oversee the Group’s
strategy, establish clear governance and
control frameworks and provide
management services to the Group.
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Business Review
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Retail Banking
Contribution statement
2025
2024
change
€ m
€ m
%
Net interest income
2,380
2,633
-10
Other income
493
509
-3
Total operating income
2,873
3,142
-9
Operating expenses
(1,356)
(1,353)
—
Bank levies and regulatory fees
(104)
(104)
—
Operating contribution before impairments and exceptional items
1,413
1,685
-16
Net credit impairment charge
(47)
(28)
68
Operating contribution before exceptional items
1,366
1,657
-18
Income from equity accounted investments
14
21
-33
Contribution before exceptional items
1,380
1,678
-18
31 Dec
31 Dec
2025
2024
change
Balance sheet metrics
€ bn
€ bn
%
Mortgages
4.2
4.5
Personal
1.4
1.3
Property
0.1
0.1
Non-property business
0.9
0.9
New lending
6.6
6.8
-3
Mortgages
36.0
35.5
Personal
3.3
3.1
Property
0.4
0.4
Non-property business
2.9
3.1
Gross loans
42.6
42.1
1
ECL allowance
(0.4)
(0.5)
-19
Net loans
42.2
41.6
1
Current accounts
49.0
47.0
4
Demand and time deposits
40.9
37.2
10
Customer deposits
89.9
84.2
7
Net interest income €2,380m
Net interest income reduced by €253 million compared to 2024 primarily
driven by the impact of lower interest rates and higher interest expense on
customer deposits partially offset by an increase in average loan volumes.
Other income €493m
Other income decreased by €16 million compared to 2024. Net fee and
commission income increased compared to the prior year, primarily due
to higher card and wealth income, partially offset by lower customer
foreign exchange income. This increase was more than offset by the non-
recurrence of income on loan acquisition forward contracts in the current
year.
Operating expenses €1,356m
Operating expenses were in line with 2024 as higher general and
administrative expenses were offset by lower personnel expenses
and a reduced charge for depreciation, impairment and amortisation.
Income from equity accounted investments €14m
Income from equity accounted investments decreased by €7 million
compared to 2024 following the sale of the Group’s minority shareholding
in AIB Merchant Services in the second half of 2025.
Net credit impairment charge €47m
There was a net credit impairment charge of €47 million in 2025 (2024:
€28 million). This comprised a charge on personal lending of €72 million
and non-property business of €12 million partially offset by writebacks on
mortgages of €29 million and property of €8 million.
New lending €6.6bn
New lending was €0.2 billion or 3% lower in 2025 due to a decrease in
mortgage lending, reflecting heightened market competition, partially
offset by higher personal lending.
Gross loans €42.6bn
Gross loans increased by €0.5 billion or 1% as new lending exceeded
redemptions partially offset by the disposal of non-performing loans.
Customer deposits €89.9bn
Customer deposits increased by €5.7 billion compared to 31 December
2024 driven by higher personal and SME balances.
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Capital Markets
Contribution statement
2025
2024
change
€ m
€ m
%
Net interest income
787
906
-13
Other income
209
223
-6
Total operating income
996
1,129
-12
Operating expenses
(380)
(375)
1
Bank levies and regulatory fees
(16)
(19)
-16
Operating contribution before impairments and exceptional items
600
735
-18
Net credit impairment (charge)/writeback
(12)
83
Contribution before exceptional items
588
818
-28
31 Dec
31 Dec
Balance sheet metrics
2025
2024
change
€ bn
€ bn
%
Mortgages
0.1
0.1
Property
1.0
0.9
Non-property business
3.5
3.4
New lending
4.6
4.4
5
Mortgages
0.5
0.5
Personal
0.1
0.1
Property
5.3
5.9
Non-property business
11.3
11.1
Gross loans
17.2
17.6
-2
ECL allowance
(0.6)
(0.6)
-10
Net loans
16.6
17.0
-3
Investment securities
2.8
2.5
12
Current accounts
10.9
10.4
4
Demand and time deposits
6.7
5.2
29
Customer deposits
17.6
15.6
13
Net interest income €787m
Net interest income reduced by €119 million compared to 2024 primarily
driven by the impact of lower interest rates and some loan margin
compression reflecting changes in portfolio mix and market conditions.
Other income €209m
Other income decreased by €14 million compared to 2024. While net fee
and commission income increased compared to the prior year, primarily
driven by higher investment banking and wealth income, this was more
than offset by lower gains on equity investments and loan disposals.
Operating expenses €380m
Operating expenses increased by €5 million compared to 2024 primarily
due to higher general and administrative expenses.
Net credit impairment charge €12m
There was a net credit impairment charge of €12 million in 2025 (2024: net
credit impairment writeback €83 million) driven by a charge on property of
€28 million partially offset by a writeback on non-property business of €15
million. The prior year benefited from writebacks on a small number of
exposures in the leisure and property sectors.
New lending €4.6bn
New lending was €0.2 billion or 5% higher than 2024 driven by selective
growth in syndicated lending and an increase in property lending partially
offset by lower corporate lending in Ireland.
Gross loans €17.2bn
Gross loans decreased by €0.4 billion driven by the adverse impact of
foreign exchange movements.
Customer deposits €17.6bn
Customer deposits increased by €2.0 billion compared to 31 December
2024 driven by higher Corporate and SME balances.
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Business Review
1. Operating and Financial Review continued
Climate & Infrastructure Capital
Contribution statement
2025
2024
change
€ m
€ m
%
Net interest income
140
110
27
Other income
17
21
-19
Total operating income
157
131
20
Operating expenses
(46)
(47)
-2
Bank levies and regulatory fees
(1)
(2)
-50
Operating contribution before impairments and exceptional items
110
82
34
Net credit impairment charge
(71)
(22)
Contribution before exceptional items
39
60
-35
31 Dec
31 Dec
Balance sheet metrics
2025
2024
change
€ bn
€ bn
%
New lending
1.6
1.9
-16
Gross loans
6.3
5.5
15
ECL allowance
(0.1)
0.0
Net loans
6.2
5.5
13
Current accounts
0.2
0.2
24
Demand and time deposits
0.1
0.2
-72
Customer deposits
0.3
0.4
-24
Net interest income €140m
Net interest income increased by €30 million compared to 2024 primarily
driven by higher average loan volumes.
Other income €17m
Other income decreased by €4 million compared to 2024.
Operating expenses €46m
Operating expenses were broadly in line with 2024.
Net credit impairment charge €71m
There was a net credit impairment charge of €71 million in 2025 compared
to €22 million in 2024.
The increase in the impairment charge in 2025 primarily reflected the
identification of elevated credit risks and emerging performance
weaknesses across a small number of borrowers involved in the build and
roll out of fibre and broadband to customers. The Group has maintained a
cautious risk appetite for this sector for a number of years.
New lending €1.6bn
New lending of €1.6 billion, of which 65% was in Europe and the UK. We
continue to finance the transition to renewable energy and social
infrastructure.
Gross loans €6.3bn
Gross loans increased by €0.8 billion or 14% driven by new lending
exceeding redemptions.
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AIB UK (£)
2025
2024
change
Contribution statement
£ m
£ m
%
Net interest income
292
321
-9
Other income
28
22
29
Total operating income
320
343
-7
Operating expenses
(166)
(154)
8
Bank levies and regulatory fees
(1)
(2)
-49
Operating contribution before impairments and exceptional items
153
187
-18
Net credit impairment charge
(36)
(76)
-53
Operating contribution before exceptional items
117
111
6
Income from equity accounted investments
3
5
-49
Contribution before exceptional items
120
116
4
Contribution before exceptional items €m
140
137
2
31 Dec
31 Dec
2025
2024
change
Balance sheet metrics
£ bn
£ bn
%
AIB GB Corporate
1.4
1.0
AIB NI Retail
0.3
0.2
New lending
1.7
1.2
40
AIB GB Corporate
4.1
3.8
AIB NI Retail
1.2
1.2
Gross loans
5.3
5.0
6
ECL allowance
(0.1)
(0.1)
-45
Net loans
5.2
4.9
7
Current accounts
3.7
3.7
—
Demand and time deposits
3.7
3.4
8
Customer deposits
7.4
7.1
4
Net interest income £292m
Net interest income reduced by £29 million compared to 2024 primarily
driven by the impact of lower interest rates and higher interest expense on
customer deposits.
Other income £28m
Other income increased by £6 million compared to 2024 driven by higher
net fee and commission income and a lower loss on loan disposals.
Operating expenses £166m
Operating expenses increased by £12 million compared to 2024 driven by
higher personnel and general & administrative expenses.
Income from equity accounted investments £3m
Income from equity accounted investments decreased by £2 million
compared to 2024 driven by the sale of the Group’s minority shareholding
in AIB Merchant Services.
Net credit impairment charge £36m
There was a net credit impairment charge of £36 million in 2025 (2024:
£76 million) driven by a charge of £19 million on non-property business
and £18 million on property.
New lending £1.7bn
New lending increased by £0.5 billion or 40% compared to 2024 driven by
strong growth in property and non-property business, as we continue to
focus on our chosen market sectors such as residential investment.
Gross loans £5.3bn
Gross loans increased by £0.3 billion or 6% driven by strong new lending
partially offset by redemptions and the disposal of legacy loans.
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Business Review
1. Operating and Financial Review continued
Group
2025
2024
change
Contribution statement
€ m
€ m
%
Net interest income
101
101
—
Other income
4
—
Total operating income
105
101
4
Operating expenses
(17)
(14)
21
Bank levies and regulatory fees
8
(11)
Operating contribution before impairments and exceptional items
96
76
26
Net credit impairment writeback
—
2
Operating contribution before exceptional items
96
78
23
Loss on equity accounted investments
—
(1)
Loss on disposal of business
—
(2)
Contribution before exceptional items
96
75
28
31 Dec
31 Dec
2025
2024
change
Balance sheet metrics
€ bn
€ bn
%
Investment securities
18.7
16.1
16
Securities financing
7.3
6.6
11
Customer deposits
1.0
1.1
-7
Total operating income €105m
Total operating income increased by €4 million compared to 2024,
primarily due to a lower loss on the disposal of investment securities,
which was largely offset by lower net trading income and a lower gain on
equity investments.
Bank levies and regulatory fees €8m
Bank levies and regulatory fees decreased by €19 million compared to
2024. The decrease was driven by the Deposit Guarantee Scheme (DGS),
following confirmation that no payment was required to the DGS
Contribution Fund for 2024 or 2025, alongside the release of a related
prior-year accrual.
Investment securities €18.7bn
Investment securities primarily held for liquidity purposes, increased by
€2.6 billion from 31 December 2024 due to increased holdings in
government and supranational securities.
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Alternative performance measures
The following is a list, together with a description, of APMs used in analysing the Group’s performance, provided in accordance with the European
Securities and Markets Authority (ESMA) guidelines.
Average rate
Interest income/expense for balance sheet categories divided by the corresponding average balance.
Average balance
Average balances for interest-earning assets are based on daily balances for all categories. Average balances
for interest-earning liabilities are based on a combination of daily/monthly balances, with the exception of
deposits and advances from customers which are based on daily balances.
Absolute cost base
Total operating expenses excluding exceptional items, bank levies and regulatory fees.
Cost income ratio
Total operating expenses excluding exceptional items, bank levies and regulatory fees divided by total operating
income excluding exceptional items.
Cost income ratio (IFRS basis)
Total operating expenses divided by total operating income.
Exceptional items
Performance measures have been adjusted to exclude items viewed as exceptional by management and which
management views as distorting the comparability of performance year-on-year. The adjusted performance
measure is considered an APM. A reconciliation between the IFRS and management performance summary
income statements is set out on page 37. Exceptional items include:
• Gain on disposal of equity accounted investments reflects a gain on sale of the Group’s minority
shareholding in AIB Merchant Services.
• Customer redress and legal claims reflect a net writeback/(charge) to provisions for remediation payments
to customers and associated costs in respect of legacy matters.
• Gain on disposal of loan portfolios relates to the disposal of non-performing loan portfolios.
• Restructuring costs primarily reflect termination benefit costs resulting from the implementation of the
Group’s strategy.
• Inorganic transaction costs included costs associated with the acquisition and migration of a portfolio of
Ulster Bank tracker (and linked) mortgages.
• Other included a fee receivable on the exit of a servicing agreement for a non-core legacy business.
Loan to deposit ratio
Net loans and advances to customers divided by customer deposits.
Net interest margin
Net interest income divided by average interest-earning assets.
Non-performing exposures
Non-performing exposures as defined by the European Banking Authority, include loans and advances
to customers (non-performing loans) and off-balance sheet exposures such as loan commitments and
financial guarantee contracts.
Non-performing loans cover
ECL allowance on non-performing loans at amortised cost as a percentage of non-performing loans at
amortised cost.
Non-performing loans ratio
Non-performing loans as a percentage of total gross loans.
Return on Tangible Equity (RoTE)
Profit after tax less AT1 coupons paid, divided by targeted CET1 capital on a fully loaded basis. Details of the
Group’s RoTE is set out in the Capital section on page 40.
Management performance –
summary income statement
The following line items in the management performance summary income statement are considered APMs:
• Total other income
• Total operating income
• Personnel expenses
• General and administrative expenses
• Total operating expenses
• Bank levies and regulatory fees
• Operating profit before impairment losses and
exceptional items
• Income from equity accounted investments
• Operating profit before exceptional items
• Profit before exceptional items
• Exceptional items
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Business Review
1. Operating and Financial Review continued
Reconciliation between IFRS and management performance summary income statements
Performance has been adjusted to exclude items viewed as exceptional by management and which management view as distorting comparability of
performance year-on-year. The adjusted performance measure is considered an APM. A reconciliation of management performance measures to the
directly related IFRS measures, providing their impact in respect of specific line items and the overall summary income statement, is set out below.
2025
2024
Adjustments
Adjustments
Summary income statement
IFRS
Income
Statement
€ m
Exceptional
items
€ m
Other
€ m
Management
performance1
€ m
IFRS
Income
Statement
€ m
Exceptional
items
€ m
Other
€ m
Management
performance1
€ m
Net interest income
3,748
3,748
4,129
4,129
Other income
763
(7)
756
799
(20)
779
Total operating income
4,511
(7)
4,504
4,928
(20)
4,908
Operating expenses
(2,114)
8
114
(1,992)
(2,195)
86
138
(1,971)
Bank levies and regulatory fees
—
(114)
(114)
—
(138)
(138)
Operating profit before impairment losses
2,397
1
2,398
2,733
66
2,799
Net credit impairment charge
(172)
(172)
(55)
(55)
Operating profit
2,225
1
2,226
2,678
2,744
Income from equity accounted investments
174
(157)
17
26
26
Loss on disposal of business
—
—
(2)
(2)
Profit before taxation/Profit before
exceptional items
2,399
(156)
2,243
2,702
66
2,768
Exceptional items
—
156
156
—
(66)
(66)
Profit before taxation
2,399
2,399
2,702
2,702
Income tax charge
(260)
(260)
(351)
(351)
Profit for the year
2,139
2,139
2,351
2,351
1. Performance has been adjusted to exclude items viewed as exceptional by management and which management view as distorting comparability of performance year-on-year. The adjusted
performance measure is considered an APM.
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Objectives
The objectives of the Group’s capital management policy are to at all times comply with regulatory capital requirements and to ensure that the Group
has sufficient capital to cover the current and future risk inherent in its business and to support its future development. Detail on the management of
capital and capital adequacy risk can be found in ‘Risk management 2.4’ on page 233.
Regulatory capital and capital ratios1
Transitional
Fully loaded4
Fully loaded
31 December
2025
31 December
2025
31 December
2024
€ m
€ m
€ m
Equity
14,696
14,696
15,437
Less: Additional tier 1 Securities
(1,314)
(1,314)
(1,239)
Proposed ordinary dividend2
(988)
(988)
(861)
On-market share buyback
(1,000)
(1,000)
(1,201)
Regulatory adjustments:
Deferred tax
(1,932)
(1,932)
(2,153)
Intangible assets and goodwill
(626)
(626)
(548)
Cash flow hedging reserves
321
321
121
Pension
(17)
(17)
(26)
Other adjustments3
(197)
(197)
(154)
(2,451)
(2,451)
(2,760)
Total common equity tier 1 capital
8,943
8,943
9,376
Additional tier 1 capital
Additional tier 1 issuance
1,314
1,314
1,239
Regulatory adjustments
(5)
(5)
(3)
Total additional tier 1 capital
1,309
1,309
1,236
Total tier 1 capital
10,252
10,252
10,612
Tier 2 capital
Subordinated debt
1,681
1,681
1,661
Regulatory adjustments
(5)
(5)
8
Total tier 2 capital
1,676
1,676
1,669
Total capital
11,928
11,928
12,281
Risk-weighted assets
Credit risk
46,597
47,776
53,806
Market risk
426
426
730
Operational risk
7,084
7,084
7,434
Credit valuation adjustment and settlement risk
71
71
60
Total risk-weighted assets
54,178
55,357
62,030
%
%
%
Common equity tier 1 ratio
16.5
16.2
15.1
Tier 1 ratio
18.9
18.5
17.1
Total capital ratio
22.0
21.5
19.8
1. Prepared under the regulatory scope of consolidation.
2. An ordinary dividend has been included as a foreseeable distribution, in line with EBA Q&A 2023_6887.
3. Other primarily includes calendar provisioning, prudential valuation adjustment and IRB shortfall of credit risk adjustments to expected losses.
4. Fully loaded RWA refers to the total risk-weighted assets calculated without applying any transitional or phase-in measures, reflecting the CRR3 requirements (including the output floor) once
fully effective.
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Business Review
2. Capital
Key Points
• The Group is reporting a fully loaded CET1 of 16.2% at 31 December
2025 against a regulatory requirement of 11.29%.
• Distributions of €2.25 billion - interim dividend €263 million, buyback of
€1.0 billion to be initiated and proposed final dividend of €988 million.
• The Pillar 2 requirement (P2R) remains unchanged at 2.4% for 2026.
• A CET1 target of greater than 14.0%.
Capital Requirements
The table below sets out the capital requirements at 31 December 2025.
Regulatory Capital Requirements
Actual
31 Dec 2025
CET1 Requirements
Pillar 1
4.50 %
Pillar 2 requirement (P2R)
1.35 %
Capital Conservation Buffer (CCB)
2.50 %
Other Systemically Important Institutions
Buffer (O-SII)
1.50 %
Countercyclical buffer (CCyB) Impact
1.44 %
CET1 Requirement
11.29 %
AT1
1.95 %
Tier 2
2.60 %
Total Capital Requirement
15.84 %
Under Article 104a any shortfall in AT1 and Tier 2 must be held as CET1.
There is currently no shortfall. The table does not include Pillar 2 Guidance
(P2G) which is not publicly disclosed.
The CCyB for Irish exposures is 1.5% at 31 December 2025 (equating to
an estimated 1.04% Group requirement). The CCyB for UK exposures
remains at 2% (equating to an estimated 0.30% Group requirement).
Other jurisdictional exposures equate to a 0.10% Group requirement.
Capital Ratios at 31 December 2025
The fully loaded CET1 ratio increased to 16.2% at 31 December 2025 from
15.1% at 31 December 2024.
Profit for the year attributable to equity holders of the parent (+3.7%),
DTA utilisation (+0.4%), was offset by the proposed ordinary dividend
(-1.7%), interim dividend (-0.5%), share buyback (-1.7%), warrant
cancellation (-0.7%) and other capital movements (-0.2%).
In addition, Risk Weighted Assets (RWAs) reduced as a result of the
implementation of the Capital Requirements Regulation 3 (CRR3)
(+1.2%), completion of a second significant risk transfer (SRT) on a
portfolio of residential mortgage (+0.2%) and other RWA movements
(+0.4%).
The Transitional CET1 and Total Capital ratios are 16.5% and 22.0% at 31
December 2025.
The Fully Loaded Total Capital ratio is 21.5% at 31 December 2025
(19.8% at 31 December 2024).
Basel IV capital regulations were enacted in EU legislation through the
CRR3, which came into effect on 1 January 2025. The day 1 impact was a
reduction in RWA (Fully Loaded). The key drivers of the reduction were a
combination of reduced LGD input factors on certain Foundation IRB
exposure classes, the removal of the IRB risk weight scalar of 1.06, new
risk weightings for exposures secured by immovable property under the
standardised basis and the Operational Risk calculation.
Capital Actions
In January 2025, the Group issued a perpetual €700 million Additional
Tier 1 instrument (first call date 14 July 2031), with a discretionary coupon
of 6.00%. The issuance supported the redemption of the €625 million AT1
which was called in June 2025.
On 9 May 2025, following receipt of approval from shareholders at the
Annual General Meeting, the Group completed an off-market purchase of
191,671,857 ordinary shares of €0.625 each in the capital of AIB Group
plc from the Minister for Finance for the total consideration of €1.2 billion.
On 30 October 2025, the Group agreed with the Minister for Finance to
cancel the 271,166,685 warrants held by the Minister for a cash payment
to the State of €390 million.
In December 2025, the Group issued a €1 billion Green Tier 2 instrument
(first call date 2 December 2031), carrying a coupon of 3.75%. This
issuance was to pre-fund the €1 billion Tier 2 with a call date in May 2026.
Significant Risk Transfer (SRT)
In December 2025, the Group successfully completed its second SRT on a
portfolio of mortgage assets totalling c. €2 billion. This transaction forms
part of the Group’s multi-year, multi-asset SRT programme and follows
the inaugural SRT transaction completed in November 2024. The
completion of this SRT delivers an initial positive CET1 impact of c. 25bps
driven by a reduction in RWAs of c. €0.8 billion. The SRT planned for 2026
is likely to include Project Finance loans.
Distributions
Distribution Policy
The Group has a sustainable ordinary cash dividend policy with 40-60%
payout. Interim dividends are set at one third of the prior year’s ordinary
dividend per share. Above policy payouts are subject to annual review and
necessary approvals, with the optionality to utilise share buybacks,
special dividends or a combination of both for additional payouts.
Ordinary Dividend
In respect of the financial year 2025, the Board has recommended a final
ordinary dividend of 46.257 cents per share, which, together with the
interim ordinary dividend of 12.328 cents per share (which was paid to
shareholders on 11 November 2025) totals 58.585 cents per share. This
represents a total ordinary dividend for 2025 of €1,252 million. The final
dividend amount is based of the numbers of shares in issue as at 31
December 2025.
Additional Distribution
The Board has also announced its intention to implement a share buyback
of up to €1 billion, which will commence as soon as is practicable and
is expected to be completed by 31 December 2026. The Group has
received regulatory approval to undertake the buyback.
Model Development
A new Project Finance IRB model was implemented in September 2025
which assesses exposures under the slotting approach. This has resulted in
a € 0.4 billion reduction in RWA as at 31 December 2025. A revised bank
exposure model was implemented in April 2025 which also reduced RWA.
As further exposures transition from the standardised approach to IRB
as part of a planned further rollout of IRB there is the potential for RWA
to change, reflecting differences in risk sensitivity and model-driven
parameters.
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Leverage Ratio
The fully loaded leverage ratio is 6.7% at 31 December 2025 (7.3% at
31 December 2024).
2025
2024
Leverage Ratio Metrics (Fully Loaded)
€ m
€ m
Total Exposure
152,781
145,609
Tier 1 Capital
10,252
10,612
Leverage Ratio
6.7 %
7.3 %
Minimum Requirement for Own Funds and Eligible Liabilities (MREL)
At 31 December 2025 the Group has a MREL ratio of 35.2% of RWA
(31.7% at 31 December 2024).
The Group’s MREL ratio is in excess of the target for 2025 indicating that
the Group has sufficient loss absorption and re-capitalisation capability.
In the 12 months to 31 December 2025, the Group issued €1.4 billion
MREL bonds.
The Group’s January 2026 MREL requirement is 28.5% of RWA including
the combined buffer requirement.
The Group continues to monitor developments in the Single Resolution
Board’s (SRB) MREL policy which has the potential to impact the Group’s
MREL requirements.
Ratings
AIB Group plc and Allied Irish Banks, p.l.c. are rated at investment grade
with Moody’s and S&P Global.
AIB Group plc
On 11 September 2025, Moody’s upgraded the Group’s credit rating by
one notch to A2 and revised the outlook to Stable from Positive. This
upgrade reflects Moody’s assessment of the Group’s reduced and
contained asset risk, robust capitalisation, significantly improved core
profitability, a predominantly deposit-based funding profile, and strong
liquidity levels.
On 6 November 2025, S&P Global upgraded the Group’s credit rating by
one notch to BBB+ and revised the outlook to Stable from Positive. This
upgrade reflects S&P Global’s expectation that the Group’s risk-adjusted
profitability will remain solid, supported by a sound risk profile, a healthy
balance sheet, enhanced operational efficiency, and revenue
diversification.
Long term Ratings
31 December 2025
Moody’s
S&P Global
Long term
A2
BBB+
Outlook
Stable
Stable
Investment grade
√
√
Long term Ratings
31 December 2024
Moody’s
S&P Global
Long term
A3
BBB
Outlook
Positive
Positive
Investment grade
√
√
Return on Shareholder Equity (RoE) and Return on Tangible Equity
(RoTE)
2025
2024
€ m
€ m
Profit after tax
2,139
2,351
AT1 coupons paid
(85)
(80)
Attributable earnings
2,054
2,271
Average Shareholder Equity
13,792
14,078
Return on Shareholder Equity (RoE)
14.9%
16.1%
Average RWA
58,693
60,747
RWA * 14% CET1 target1
8,217
8,505
Return on Tangible Equity (RoTE)
25.0%
26.7%
1. The Group’s CET1 target for 2025 is greater than 14%.
Note: RoTE is considered an Alternative Performance Measure
The Group has a financial target for RoTE of 15%.
Return on Assets
The Return on Assets (RoA) at 31 December 2025 is 1.4% (2024: 1.6%).
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Business Review
2. Capital continued
Sustainability
Reporting
In this section
Sustainability Reporting
41
Our Approach to Sustainability
42
Basis of Preparation
43
Our Sustainability Strategy
44
Our Value Chain
46
Creating Value through Our Business Model
47
Our Stakeholder Engagement
48
Our Approach to the Double Materiality Assessment
49
Our Material Impacts, Risks and Opportunities
51
Climate & Environmental Action
55
Climate Change
56
Our Decarbonisation Journey
57
Decarbonising Our Own Operations
58
Decarbonising Our Loan Book
60
GHG Emissions
66
Climate & Environmental Risk
69
EU Taxonomy
71
Societal & Workforce Progress
75
Financial Wellbeing
77
Housing
80
Own Workforce (Equal Treatment & Opportunities for All)
82
Human Rights Commitment
88
Channels for Stakeholders to Raise Concerns
89
Governance & Responsible Business
92
Our Sustainability Governance
93
Corporate Governance, Ethics & Accountability
96
Management of Our Supplier Relationships
99
Culture & Reputation
101
Cyber Security & Data Protection
103
Appendices
107
Statement of Directors’ Responsibilities
for the Sustainability Statement
110
Limited Assurance Opinion
111
Task Force on Climate-related Financial
Disclosures (TCFD)
114
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We are pleased to present our second
Sustainability Statement, prepared in
accordance with the Corporate Sustainability
Reporting Directive (CSRD). This builds on our
strong foundation of transparent sustainability
disclosures. With evidence-based reporting,
we are measuring, supporting and enabling the
integration of sustainable practices right across
our business, empowering more people to build
a sustainable future.
Mary Whitelaw
Chief Strategy and Sustainability Officer
Greening our business is one of AIB’s three strategic priorities,
and sustainability is at the heart of everything we do.
We integrate Environmental, Social and Governance (ESG) factors into all
of our decision-making to promote sustainable development, meeting the
needs of the present without compromising the ability of future
generations to meet their own needs.
As a more sustainable organisation, we believe we will not only thrive
economically, we will contribute positively to society and reduce our
impact on the environment, helping to build a better future for everyone.
We do this in four key ways: growing our green and transition lending;
leading the transition as a financial institution through decarbonising our
own operations; embedding sustainable practices across every part of
our business; and supporting cutting-edge research and innovation that
identifies and develops solutions to the climate and biodiversity crises.
We are committed to complying with regulatory requirements and
providing our stakeholders with a fair and balanced view of our material
sustainability matters, practices and results for the 2025 financial year,
reflecting our belief that open disclosure and accountability promote trust
and confidence.
We have prepared our Sustainability Statement for FY2025 in line with
the European Sustainability Reporting Standards (ESRS) to comply with
the CSRD.
We have included a content index from page 114 detailing our progress
against the Task Force on Climate-related Financial Disclosures (TCFD)
recommendations. In addition to this Sustainability Statement, you can
find our disclosures with reference to the Global Reporting Initiative (GRI)
framework, United Nations Environment Programme Finance Initiative
Principles for Responsible Banking (UNEP FI PRB) and the Equator
Principles on our website.
Companies in scope of the CSRD are required to report on a double
materiality basis. This means disclosing both the risks and the
opportunities they face from a changing climate and other ESG matters
(financial materiality), as well as the impacts they have or may have on
people and the environment (impact materiality).
In line with this requirement, we have carried out a detailed Double
Materiality Assessment (DMA) to identify our material topics across the
value chain. This process is outlined in Our Approach to the Double
Materiality Assessment from page 49. Our value chain encompasses a
range of activities and relationships with stakeholders across upstream,
own operations and downstream components.
As a result of the DMA process, we have identified our seven material
topics, which we disclose in this Sustainability Statement.
AIB Group Material Topics
Climate Change
ESRS E1
Financial Wellbeing
ESRS S4
Housing
ESRS S3
ESRS S4
Own Workforce (Equal Treatment &
Opportunities for All)
ESRS S1
Corporate Governance, Ethics & Accountability
ESRS G1
Culture & Reputation
ESRS G1
Cyber Security & Data Protection
ESRS S1
ESRS S4
How to read the Sustainability Statement
In line with the ESRS 1 general requirements, our Sustainability Statement
is a standalone section of the management report, structured in four
parts. The first part includes mandatory information as required by the
general disclosures of ESRS 2, including the outcome of the DMA. The
other three parts are topical – Climate & Environmental Action, Societal &
Workforce Progress and Governance & Responsible Business. Please
note that the ESRS 2 requirements in relation to GOV-1, GOV-2, GOV-3,
GOV-4 and GOV-5 disclosures can be found in the Governance &
Responsible Business section from page 93.
In line with the ESRS, the topical sections include information on our
seven material topics. We have included material information with
respect to the policies, actions, metrics and targets we have adopted to
manage the corresponding impacts, risks and opportunities (IROs) of
each material topic. You will find details of our material topics throughout
the topical sections, within the Our policies, Our actions and
Our performance measures categories, including key metrics that
we have highlighted for your reference.
Key performance measures/metrics are indicated
by this icon:
Some of the required information is incorporated by way of reference to
other sections of this report, including the Annual Review, Governance
Report, and Risk Management, as we believe this information is best read
in conjunction with the financial information and overview of our other
activities. We have indicated clearly where this is the case.
Additionally, given that the ESRS are sector-agnostic, we have included
entity-specific metrics to disclose material information for the reader.
The index tables in Appendix 1 summarise where the ESRS Disclosure
Requirements (DR) can be found in this report.
We have utilised visuals and diagrams to facilitate understandability of
information, and, where applicable, have included a reference to the
corresponding DR within the text.
Throughout this report, ‘sustainability matters’ and ‘sustainability topics’
are used interchangeably.
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Our Approach to Sustainability
BP-2
We have prepared our Sustainability Statement on a consolidated basis and the
scope of consolidation aligns with that of the Group’s consolidated financial
statements, available from page 241 of this report.
General basis of preparation
Within AIB Group plc, the material subsidiaries as of 31 December 2025
are:
• Allied Irish Banks, p.l.c.;
• AIB Mortgage Bank Unlimited Company;
• EBS d.a.c.; and
• AIB Group (UK), p.l.c.
Page 314 of this report lists our principal businesses and their locations.
Further detail on our subsidiaries is available in the financial statements.
Our Sustainability Statement covers our upstream, own operations
and downstream value chain, to the extent required to enable an
understanding of our material sustainability matters. The Sustainability
Statement is prepared in accordance with Part 28 of the Companies Act
2014 and in compliance with the ESRS requirements. In accordance with
Article 19a(9) and 20a(8) of Directive 2013/34/EU (as amended by the
Corporate Sustainability Reporting Directive), Allied Irish Banks, p.l.c. is
exempt from producing an individual sustainability statement.
Sustainability information for the Group is included in the consolidated
management report of AIB Group plc.
Our materiality assessment has considered IROs that arise through
direct and indirect business relationships across the value chain. When
reporting on policies, actions and targets, we have covered value chain
stakeholders where applicable. We report on metrics associated with
our value chain using relevant qualitative and quantitative data and
information collected across the business or directly from customers.
For certain environmental metrics related to value chain information,
we use proxy information as detailed under estimations. The Group has
prepared a policy document outlining the principles, specific measures
and methods for collection of all relevant sustainability data and
information. Data collection is based on relevant data sources, and the
information is aligned with the material data points defined in the ESRS.
We have not omitted any specific information on the basis of intellectual
property, know-how, or innovation results, or the basis of negotiation. In
line with ESRS 1, Appendix C, we have taken advantage of certain phase-in
provisions applicable to AIB, as extended by the July 2025 ‘quick-fix’
Delegated Act,1 as set out in the Appendix index table on page 107.
Where applicable, a reference to the financial statements indicating direct
connectivity is included alongside monetary amounts.
Disclosures for specific circumstances
Time horizons
For the purposes of this statement, our time horizons are defined as follows:
• Short term: up to 1 year,
• Medium term: 1 – 5 years, and
• Long term: > 5 years.
We deviate from these time horizons when reporting climate-related
physical and transition risks, see page 69: short (1 – 3 years) and medium
(4 – 10 years). In line with the Regulatory Guidance from the European
Banking Authority (EBA), we define long term as >10 years.
Estimations
We report certain value chain and quantitative metrics using data that
comes indirectly from third party providers or industry averages. These
figures may involve estimation factors, which can significantly influence
the reported results. The Group does not control the assumptions or
methods used by these third party providers.
As real data becomes available and calculation methods develop, the
quality of data will improve.
This means that figures in the Sustainability Statement may change over the
coming years, and there may also be changes in figures from previous ESG
reports. New guidance, industry standards and scientific research are
anticipated, and we reserve the right to periodically review and update targets,
methodologies and approaches and to restate baselines as necessary.
Limited assurance
In accordance with section 1613 of the Companies Act 2014, this
Sustainability Statement, set out on pages 42 to 109, has been subject
to limited assurance by PricewaterhouseCoopers. The elements of this
report outside of the Sustainability Statement that are covered by their
limited assurance procedures are clearly indicated by the specific
‘(limited assurance)’ reference. Their limited assurance procedures do not
extend to links or references to material outside of the Annual Financial
Report (AFR) nor to other sections of the AFR unless clearly otherwise
indicated to the contrary. Our reported metrics are subject to limited
assurance procedures by our assurance provider and are not further
validated by another external body unless specifically identified. Their
limited assurance report is included from page 111 of the AFR and should
be read in conjunction with this Sustainability Statement.
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Basis of Preparation
BP-1, BP-2
1. Please refer to the Delegated Regulation 2025/4812 on the European Commission website.
We remain committed to advancing a more sustainable future – strengthening
long-term resilience for our business, customers, economy and society.
SBM-1
Empowering people to build a sustainable future
Customer first
Greening our business
Operational efficiency and
resilience
Building trust and long-term relationships
with our customers by providing more
connected financial solutions.
Ensuring sustainable finance and
responsible business practices to build
our shared future.
Ensuring we have the appropriate
capability, capacity and resilience to
support the Group’s strategic ambition.
Greening our business is one of AIB’s three strategic priorities, along with
putting our customers first and making our operations more efficient
and resilient. They are all connected and interdependent.
As a financial institution, we have a pivotal role to play in enabling the
transition to a more sustainable economy, given the scale of investment
required. Government cannot make the transition alone, and we can
support the realisation of national and international targets through
our lending and investment activities and by supporting and advising
our customers as a sustainability thought leader.
Our ambition is to decarbonise our own operations by 2030 and
our lending portfolio by 2050. To achieve this, we have refined our
ESG principles across three pillars, as illustrated below.
We acknowledge the challenges of implementing this strategy – shaped
by an evolving policy landscape, stringent regulatory requirements, limited
ESG data, and the global effort to stay aligned with the 1.5°C climate target.
External and regulatory trends, including new sustainability standards and
climate-related DRs, directly influence our strategic priorities and require
continuous adaptation to maintain compliance and leadership in
responsible banking.
We are now in the final year of our current 2024-2026 three-year strategic
cycle as we continue to deliver across our three strategic priorities. Our
strategy is supported by our three business lines: Retail Banking, Capital
Markets and Climate & Infrastructure Capital (C&IC), with operations
primarily in the Republic of Ireland (ROI), the UK, and the USA. In July
2025, the Group announced the simplification of its management
structure and the integration of the UK into Retail Banking enabling the
Group to focus on the three business lines. Further details on these
business lines, including significant groups of products and services, can
be found on pages 2 to 20 of the Annual Review section. Number of
employees by geographical area is reported on page 86 of this statement.
Information on how our material IROs correlate to our strategy and
business model is on page 51 of this section.
Our Sustainability Strategy
ESG Strategy
pillars
Climate &
Environmental Action
Societal &
Workforce Progress
Governance &
Responsible Business
Guided by
our ESG
principles
by providing responsible green finance,
investments and advice to drive
structural change and support the
transition to a low-carbon future
by maximising positive outcomes for
customers and colleagues helping
build a brighter and prosperous
future for all
by acting responsibly with integrity and
transparency, while embedding ESG
capabilities and measures Group-wide
Our material
sustainability
matters
Climate Change
Financial Wellbeing
Corporate Governance, Ethics &
Accountability
Housing
Culture & Reputation
Own Workforce (Equal Treatment &
Opportunities for All)
Cyber Security & Data Protection
ESRS E1 – Climate Change
ESRS S1 – Own Workforce
ESRS S3 – Affected Communities
ESRS S4 – Consumers and end-users
ESRS G1 – Business Conduct
Alignment
with UN
SDGs1
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Our Sustainability Strategy
1. While AIB supports all 17 United Nations Sustainable Development Goals (SDGs), we believe we can make a most sustained and scalable impact in those listed above.
Climate &
Environmental
Action
Areas of focus for 2024-2026
• Lend responsibly and decarbonise our
lending portfolios towards our long-term
ambition of 2050.
• Continue to decarbonise our own
operations.
• Mature our understanding
and management of Climate &
Environmental Risks.
• Contribute to protecting nature and
safeguarding natural ecosystems/habitats.
Our Climate Transition Plan (CTP) charts how
we plan to achieve our decarbonisation
ambitions by 2050, by bringing together all
elements of our climate journey.
In the decarbonisation of our own operations,
we have undertaken a branch refurbishment
programme and are aiming to source 100%
certified renewable electrical energy by 2030.
Sustainable practices are being embedded
across every part of our business, from
providing dedicated educational resources
designed to support our customers to internal
sustainability training for our colleagues.
We offer a range of products and services to
deliver on our sustainability ambitions, such
as lower-cost green mortgage products across
the AIB, EBS and Haven brands, business
sustainability loans and green personal loans.
In 2025, 62% of new mortgage lending in ROI
was to energy efficient homes.
AIB’s C&IC segment has continued to evolve
as it looks to further increase our capability to
be a driving force in the transition to a
sustainable future and will help deploy AIB’s
green and transition lending fund.
We also continued to monitor the Science
Based Targets initiative (SBTi) financed
emissions reduction targets previously set for
our most material sectors (based on a 2021
baseline) – Residential Mortgages,
Commercial Real Estate (CRE) and Electricity
Generation – as well as our Corporate Portfolio
Coverage engagement target.
Climate & Environmental (C&E) Risks are
integrated into our credit risk management
policies and processes, with improved data
capture and analysis supporting management
of such risks by not lending to companies that
are not aligned with our decarbonisation
targets. We will continue to further develop our
approach to nature and to include such
considerations in both our business strategy
and risk management approach.
Read more in Climate &
Environmental Action on p.55 – 73.
Societal &
Workforce
Progress
Areas of focus for 2024-2026
• Put our customers first, always treating
them fairly and with respect.
• Continue to proactively contribute to
a robust and sustainable economy
and society.
• Empower our workforce and foster a safe,
inclusive and supportive work environment.
• Support our communities and local
initiatives in a sustainable way.
At AIB, our purpose is to empower people
to build a sustainable future by putting
our customers first and fostering a
people-first culture.
Our commitment to diversity, inclusion and
skill development is reflected in our workforce
policies, actions and in the AIB Sustainability
Academy which is a hub for all ESG learning,
sustainability resources and education
opportunities. We engage with staff and
product owners when developing new green
and transition products.
We develop tailored financial products that
meet our customers’ needs, promote financial
wellbeing, and ensure accessible, equitable
services for all. Our financial literacy
initiatives, together with dedicated support for
vulnerable customers, help safeguard our
customers’ interests. Our fraud awareness
campaigns help protect customers from
potential scams and emerging threats.
We provide sustainability advice through
in-house research, sector innovation and by
leveraging partners like Goodbody Clearstream.
We continue to fund new residential
developments and support social and
affordable housing programmes to improve
housing availability and affordability for our
customers and the wider community.
Stakeholder awareness drives our strategic
ambitions, supported by academic and
scientific research, innovation, and our annual
Sustainability Conference, which brings
together exceptional international and Irish
leaders to accelerate the global transition to a
more sustainable future.
We continued with our contribution to the
wider community and society through the
annual AIB Community €1 Million Fund,
part of our €12 million Community Investment
(FY2024: €11.3 million).
Read more in Societal &
Workforce Progress on p.75 – 90.
Governance &
Responsible
Business
Areas of focus for 2024-2026
• Facilitate a culture that promotes
our values and fosters engagement.
• Ensure that the Board, management and
all employees work to the highest standards
to deliver long-term value.
• Operate responsibly at all levels, while
managing cyber security, data security
and operational resilience risks.
Our governance framework ensures oversight
and ownership of the Group’s sustainability
strategy and management of IROs at Board
and Executive levels.
We foster accountability through our Code
of Conduct, corporate governance rules,
compliance monitoring and dedicated
training across the organisation.
Our policies protect against threats like
insider trading, corruption, bribery, and
money laundering, while upholding our
principal values of integrity, transparency
and accountability.
We act sustainably throughout our business,
including our supply chain. Suppliers are
expected to meet the standards set in our
Responsible Supplier Code by applying their
own policies and practices.
Safeguarding data and maintaining cyber
resilience is essential. We continually
enhance cyber, artificial intelligence (AI) and
data security to protect customers, our
colleagues and the Group.
We maintain a proactive and adaptive cyber
defence posture, leveraging real-time threat
intelligence, automation, and advanced
analytics. Our controls are regularly tested
and enhanced in line with international
standards, including the NIST Cybersecurity
Framework. We conduct annual business
continuity and incident response exercises,
including cyber simulations, to ensure
preparedness for extreme scenarios. Our
approach is dynamic, enabling us to anticipate
and respond to emerging threats and maintain
the security of critical services.
International recognition of our sustainability
leadership is strengthened by our range of
international commitments, partnerships and
ratings record from agencies like Morningstar
Sustainalytics, MSCI, Carbon Disclosure
Project (CDP) and S&P.
Read more in Governance &
Responsible Business on p.92 – 106.
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Our ability to create long-term value is deeply interconnected with our value chain
and our stakeholders.
SBM-1
Our value chain encompasses a range of activities and stakeholder
relationships, which we rely on to provide banking products and services.
We have identified our key stakeholder groups along the upstream, own
operations and downstream activities of our value chain, and, in line with
the ESRS, we group them into:
• Affected stakeholders, who are individuals or groups whose interests are
affected, or could be affected, by our activities, either directly through
contractual relationships (e.g. employees and customers) or indirectly
through our value chain (e.g. community and society).
• Users of the Sustainability Statement, who are primary users of general-
purpose financial reporting and other users (e.g. investors and regulators).
The nature of our business means that we have a complex value chain.
It extends beyond direct contractual business relationships. Our business
customers have their own value chains, through which we may be
associated with impacts on the wider society and the environment. As an
employer, we have a direct relationship with our own workforce, who are
part of our own operations. As a regulated business, funded by debt and
equity, and as a procurer of goods and services, we are connected to
stakeholders in our upstream value chain.
For each of our roles we perform due diligence processes. The diagram
below is a high-level depiction of our intricate value chain and our
relationships with our key stakeholder groups.
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Our Value Chain
Our Investors
Our investors refer to our
shareholders, including
capital providers, both
debt and equity.
Our Suppliers
Our suppliers refer to vendors,
contractors, consultants,
agents, and other providers of
goods and services who do, or
seek to do, business with AIB
Group.1
Regulators
Regulators refer to regulatory
bodies, governments and policy-
makers responsible for creating
rules and regulations which
supervise or moderate AIB’s
functioning business.
Upstream
Own Operations
Downstream
Own Workforce
Our own workforce refers to our colleagues.
It includes employees who are in an employment
relationship with AIB Group, and non-employees,
including our subsidiaries.
Our
personal
customers
Society & Community
Community refers to different groups with whom we are
connected, both directly and indirectly. These include industry
groups and associations, schools and universities, and groups
established to represent the interests of the wider community
and the environment.
1. This definition does not include individual contractors, agents, or intermediaries.
Our seven material topics are represented in our value chain above with the below icons:
Climate Change
Corporate Governance,
Ethics & Accountability
Financial Wellbeing
Culture & Reputation
Housing
Cyber Security & Data Protection
Own Workforce
Material Topics
Material Topics
Material Topics
Suppliers
of our
clients
Our
business
customers
Clients
of our
clients
Our value creation model
SBM-1
We are committed to creating value for our stakeholders through a robust
and dynamic Group business model. In 2025, AIB Group operated three
business lines, Retail Banking, Capital Markets and C&IC, predominantly
in the ROI, the UK, and the USA, as described on pages 4 and 5. Our
ambition as a Group is to be at the heart of our customers' financial lives.
Our value creation model depends on inputs across our three strategic
priorities, including key intangible resources such as brand reputation,
employee expertise, intellectual property, and technology innovation.
These key intangible resources drive strong relationships with our
customers and other stakeholders. By leveraging these resources, we strive
to empower people to build a sustainable future, while driving our
business growth and competitive advantage. The diagram below includes
a non-exhaustive list of the key inputs that we rely on to deliver value for
our stakeholders, in the form of outputs and outcomes.
Guided by our ESG strategic pillars
Climate & Environmental
Action
Societal & Workforce
Progress
Governance & Responsible
Business
With three strategic priorities
Customer
first
Greening our
business
Operational efficiency
and resilience
Inputs include the resources and relationships that we rely on to operate our business and deliver value for our stakeholders
€117bn
Customer deposits
236
170 AIB branches and 66 EBS offices in ROI1
€8.2bn
Green and Social Bonds issued since 2020
92%
Of our own electrical energy needs sourced
through our renewable energy VPPA
10,207
Employees (Actual Full Time Equivalent)
99.99%
IT service availability
Our business model includes the activities, products and services through which we deliver value for our stakeholders
Our purpose
Empowering people to build
a sustainable future
Our values
• Put customers first
• Be one team
• Show respect
• Own the outcome
• Drive progress
• Eliminate complexity
Our business lines
• Retail Banking
• Capital Markets
• Climate & Infrastructure
Capital
Our material topics
• Climate Change
• Own Workforce
(Equal Treatment &
Opportunities for All)
• Housing
• Financial Wellbeing
• Corporate Governance,
Ethics & Accountability
• Culture & Reputation
• Cyber Security &
Data Protection
Supported by our
relationships with
key stakeholders
across the value chain
• Our Investors
• Our Suppliers
• Regulators
• Own Workforce
• Society & Community
• Our Customers
Outputs include the results that our business activities create for our stakeholders
€14.7bn
New lending
€22.9bn
Cumulative new green and transition lending
since 2019
13,693
Employee survey responses in 20252
2.35m
Digitally active customers
100%
We are reducing our own carbon footprint with an
ambition to source our own electrical energy needs
through certified renewable energy by 2030
€4.5bn
Total operating income
Outcomes include longer-lasting impacts and benefits for our stakeholders
Developing deeper, more enduring relationships
with our customers by better serving their
financial needs through integrated propositions.
Know our customers
Respond to their needs
Deliver service excellence
Educate and innovate
Mobilising capital to support climate action,
be a catalyst for positive change and continue
to build on our sustainability leadership.
Grow green
Support transition
Enable sustainable practices
Invest for the future
Ensuring the appropriate capability, capacity
and resilient platform are in place to support
the Group’s strategic ambition.
Resource efficiency
Process efficiency
Measure and manage
Harness new technology
1. Personal and business banking services are available in our network of 7 AIB NI branches, and in the ROI An Post, and NI and GB Post Office networks.
2. Employee survey responses are the total of two online engage surveys issued during 2025.
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Creating Value through Our Business Model
Effective, systematic, and continuous stakeholder engagement is a key focus of our
approach to sustainability.
SBM-2
Stakeholders’ views, interests and expectations are integral to our
strategy and business model, and are considered by the Board in all its
deliberations. To understand our stakeholders’ views, we engage with
them through a range of regular engagement channels, including our due
diligence processes and industry representative groups.
The way the Board engages with its stakeholders varies and ranges from
direct engagement to receiving management reports and updates on
relevant stakeholders matters, which assist the Board in understanding the
impacts of the Group’s operations on its key stakeholders. Information on
the key engagement outcomes and how they informed the Group’s
strategic decisions are included from page 136 in the Governance Report.
When engaging with stakeholders, we pay particular attention to human
rights and promote a culture of accountability and inclusivity. We
conduct appropriate checks as part of our due diligence and onboarding
processes, and ensure that we have channels for all of our stakeholders to
raise any concerns.
We have a Whistleblowing Policy in place with the sole purpose of
facilitating the reporting and effective management of Protected
Disclosures. Further details on this policy are included on page 96 of this
statement. Our respect for human rights is embedded in our Human
Rights Commitment and it is shaped by the UN Guiding Principles on
Business and Human Rights. It operates alongside AIB’s Code of Conduct
and Responsible Supplier Code. Further details on our Human Rights
Commitment are included on page 88 of this statement.
As part of the DMA process, we engaged with our key stakeholders,
the outcome of which was communicated to the respective Executive
Leadership Team (ELT) and Board Committees. This process is outlined
in Our Approach to the Double Materiality Assessment from page 49.
We will continue our annual stakeholder engagement process in a
responsible manner to build strong relationships and continuously
inform our strategy, while delivering long-standing outcomes.
The Sustainability Statement highlights, along with a link to the full report,
are shared with all of our colleagues following publication. Senior leaders
are also provided with key messages for their teams to further ensure
channels of communication are available to raise any questions.
We are members of and actively participate in:
• Banking and Payment Federation Ireland (BPFI)
• Business in the Community Ireland
• European Banking Federation
• Financial Services Union
• Irish Business and Employers' Confederation (IBEC)1
• Irish Banking Culture Board
• Irish Paper Clearing Company
• Irish Payments Council
• Institute of Bankers (IOB)1
• Cyber Defence Alliance1
• UNEP-FI
1. AIB holds a governance position with these organisations.
Our engagement approach extends beyond
customers, communities, and employees to
include our suppliers, who play a critical role in
delivering on our sustainability commitments.
As part of our material topic on Corporate Governance, Ethics &
Accountability, we recognise that responsible and sustainable
business practices across our supply chain and investments, and
responsible tax engagement are essential to managing IROs. Later in
this report, under Management of Our Supplier Relationships on page
99, we outline how we work with suppliers to uphold these principles
and drive positive environmental and social outcomes throughout our
value chain.
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Our Stakeholder Engagement
Colin Hunt, AIB CEO, speaking at 2025 Climate
Finance Week Ireland.
Double Materiality Assessment process
IRO-1 (E1-E5, G1)
The DMA is the starting point for preparing our Sustainability Statement.
We define impacts as the positive or negative effects we have or could
have on people and the environment, connected with our own operations
and our upstream and downstream value chains across time horizons.
From a financial materiality perspective, we define risks and
opportunities as the financial effects that affect, or could reasonably be
expected to affect, our financial position, financial performance, cash
flows, access to finance or cost of capital across time horizons.
Collectively, the impacts, risks and opportunities are referred to
as IROs.
The DMA process was first carried out in 2023. We conducted an annual
review in 2024 for FY2024 CSRD reporting and, in 2025, our second
annual review concluded that the foundational work from 2023 continues
to provide a reliable basis for our sustainability reporting on these material
topics, and strategic decision-making processes. Seven material topics
were identified through our DMA process as per page 51 to 54.
The DMA process is inherently dynamic, reflecting the evolving landscape
of sustainability and stakeholder expectations. This approach ensures
that the DMA remains a living process, reviewed each year, that not only
supports compliance but also informs strategic decision-making.
The 2025 DMA annual review was conducted on the same basis as our
2023 and 2024 assessments and in line with the ESRS which were first
published in November 2022. The Group continues to use the most up-to-
date ESRS (July 2023), and European Financial Reporting Advisory Group
(EFRAG) guidance. This five-step process is detailed on page 50 below.
We noted no material changes to the organisational and operational
structure of AIB, and no material changes in the external factors that
would generate any changes to AIB’s material IROs other than the
additional AI risk referenced in the paragraph below. Please refer to page
46 for an overview of our value chain analysis which remains unchanged
from FY2024. Several IROs were merged and streamlined in our FY2025
CSRD reporting to reduce duplication and improve clarity. These updates
are editorial in nature and result in no changes to the underlying intent,
scope or context of the disclosures.
We have examined Principal Risks of AIB Group, and evolving and
emerging risks identified through the Group’s Material Risk Assessment
(MRA) as detailed on page 17 to 19. Our analysis concluded with the
identification of an additional risk regarding AI. Please refer to page 54 for
details. We will continue to monitor these emerging risks through the next
full DMA assessment in 2026.
Methodologies and assumptions
Scope of the assessment
We conducted the DMA process for AIB Group plc. Given that the Bank’s
operations are based in developed markets, mainly Ireland, the UK, and
the USA, where the socio-economic and environmental factors do not
vary materially, disaggregation was not deemed necessary. This was
confirmed throughout the process with our colleagues across the Group.
Stakeholder engagement methodology
The internal engagement process required the bank-wide involvement of
our colleagues, including the highest level of governance – the Board and
ELT. They were involved in identifying, assessing and validating the results
of the DMA, based on impact and financial materiality parameters.
In our initial DMA process, the external engagement process was carried
out through an online survey and focus group discussions through a
sample population of customers, investors and suppliers.
We also engaged through working sessions with representatives of
industry associations and non-governmental organisations in relation to
the interests and views of the wider community and the environment.
These included the Climate Change Advisory Council, Open Doors
Initiative, International Financial Services Centre of Excellence, IBEC,
BPFI, and Sustainability Works. These organisations were also involved in
validating the DMA results.
Affected stakeholders provided input from an impact materiality
perspective, while users of the Sustainability Statement provided input
from both impact and financial materiality perspectives.
Scoring and thresholds
For detail on scoring methodology, please see Steps 3 and 4. We set
our materiality threshold to include topics ranked from the high-end
of important up to critical. IROs scoring above this threshold and the
associated topics are deemed to be material. Please see below for the
validation process as per Step 5.
DMA and MRA connectivity
IRO-1 (E1-E5)
We carry out an annual MRA where risks such as C&E Risks are identified
and assessed. The MRA is an annual top-down process, identifying the
Group’s material risks in line with the Risk Management Framework (RMF).
It is a key input into the risk management processes, including the Risk
Appetite Statement (RAS). Please see further detail from page 178 of the
Risk Management Report.
The outcomes of risk management processes are an important input
factor in the DMA process, informing the alignment and calibration of
results. The Group is continuously working on integrating the DMA
process, including the identification of risks and opportunities, into the
overall planning, risk management and internal controls as applicable.
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Our Approach to the
Double Materiality Assessment
Step 1
Business context
We analysed our strategy and business model to inform the context for
the DMA, including the key markets in which we operate and the sector
exposures associated with our financial products and services. We mapped
our value chain by considering the direct and indirect business relationships
that we depend on and identified key internal and external stakeholders. In
line with the ESRS guidance, we categorised them as affected stakeholders
or users of the Sustainability Statement. No changes were noted to our
business context for the 2025 annual review.
Step 2
Identification of the list of
sustainability matters
The ESRS provides a list of sector-agnostic sustainability matters to
consider. To ensure a comprehensive assessment that took the nature
of our business into account, we examined additional inputs to identify
potential sector and entity-specific topics across different categories.
These inputs were:
01
Peers and competitors
02
ESG-focused regulations relevant for AIB
03
ESG frameworks
04
Industry publications and media
05
Company documents
For each category, we scored topics based on their frequency and relevance
to our business. This resulted in a list of 24 preliminary material sustainability
topics across our ESG pillars, which were challenged and reviewed by senior
leadership. No changes were noted to our list of material sustainability
topics in the 2025 annual review.
Steps 3 & 4
Assessing impact and financial materiality
Through desktop research, we identified the IROs for each of the 24 topics
identified in Step 2.
Identifying impacts
We categorised all identified impacts as positive or negative, actual or
potential in relation to ESG matters. To understand how environmental
impacts relate to our business activities, sector exposures and
geographical locations, we consulted company documents and publicly
available databases. We also consulted representatives of non-
governmental organisations representing the views of affected
stakeholders, and those regarding nature.
Impacts related to business conduct were considered in relation to our
own operations and associated impacts for stakeholders along the value
chain. They were mainly informed by the regulatory framework in place.
The correlation between negative impacts and their potential to trigger
regulatory and reputational risks was considered.
Identifying risks and opportunities
After identifying impacts across the ESG pillars, we considered risks and
opportunities, including factors that could trigger them, such as impacts,
or dependencies on business relationships and natural resources.
Opportunities were mainly informed by desktop research and strategic
documentation. The outcomes of the DMA, including opportunities
identified, inform the strategic orientation for the Group.
Risks were considered in relation to physical and transition channels related
to our operations and value chain. To ensure overall alignment, the existing
risk management processes were an important input factor to the DMA. We
conducted the analysis through desktop research, including analysis of the
MRA framework, Annual Reports, Pillar 3 disclosures and credit rating
reports.
Materiality of impacts, risks and opportunities
After the IROs were identified, our colleagues from across different areas,
including subsidiaries and entities, assessed them based on the impact
and financial materiality parameters prescribed by the ESRS. The
assessment methodology was defined on a scale of 0 – 5, ranging from
not material to critical, including a time horizon lens of short, medium and
long term.
In line with impact materiality parameters, impacts were assessed based on:
• Scale: We assessed how grave the negative impact is, or how
beneficial the positive impact is, for people or for the environment.
• Scope: We assessed how widespread the negative or positive impacts
are. For environmental impacts, the scope may be understood as the
extent of environmental damage or a geographical perimeter. For
impacts on people, the scope may be understood as the number of
people affected.
• Irremediable character of the impact: For negative impacts, we
assessed whether, and to what extent, we could remediate the impacts
by restoring the environment or affected people to their prior state.
• Likelihood: For potential impacts, we assessed how likely the impact
is to occur.
In line with financial materiality parameters, risks and opportunities were
assessed based on:
• Magnitude of the financial effect: The potential current or anticipated
financial effect of the risks and opportunities.
• Likelihood: How likely a risk or opportunity is to occur.
Assessing human rights impacts
For human rights impacts, the severity of the impact takes precedence
over its likelihood. While we identified certain potential negative impacts,
their severity scored below our materiality threshold. Severity comprises
scale, scope, and the irremediable character of the impact. The right to
privacy is recognised by the Universal Declaration of Human Rights and
falls within ‘Cyber Security & Data Protection’, which is a material topic for
AIB. Our Human Rights Commitment also compels us to safeguard our
customers’ right to privacy. More information on our commitment to
protecting human rights can be found on page 88.
Consolidation of results
To arrive at a prioritised list of material topics, the input received by our
colleagues and by our stakeholders was consolidated and validated
through a series of working sessions. We prioritised material topics, and
their corresponding IROs, based on their final score and materiality
threshold.
Step 5
Validation and sign-off
In terms of the decision-making process and related internal controls
procedures, the overall process is reviewed by senior leadership and
overseen by our senior management through the Group Sustainability
Committee (GSC) and the Group Disclosure Committee (GDC). The
outcome is ultimately discussed at the Sustainability Board Advisory
Committee (SBAC) and approved by the Board Audit Committee (BAC).
Our seven material topics – outcome of the DMA
process
As a result of the DMA process, we have identified seven material topics:
• Climate Change and Own Workforce (Equal Treatment & Opportunities
for All) are material from both impact and financial (risk and
opportunity) perspectives.
• Cyber Security & Data Protection is material from both impact and
financial (risk) perspectives.
• Culture & Reputation is material from a financial perspective only (risk).
• Financial Wellbeing, Housing, and Corporate Governance, Ethics &
Accountability are material from an impact perspective only.
Details on the corresponding material IROs for each topic are included in
Our Material Impacts, Risks and Opportunities on pages 51 to 54.
Materiality of information
Once the material topics were determined, they were mapped to the
corresponding ESRS. A materiality of information process was carried out
to identify material DRs and data points to be included in the Sustainability
Statement. Please see Appendix 1 from page 107 for further information.
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Our Approach to Double Materiality Assessment continued
Our materiality assessment identified the sustainability matters that we believe have
the most impact for our stakeholders, including the risks and opportunities arising
from our strategy and business model.
SBM-3
This section provides an overview of our seven material topics and their
corresponding IROs. It discusses the effects on people and the planet,
and how we can best manage and monitor these effects, including any
effects on our business.
This section discusses how our material IROs relate to our strategy and
business model, which is designed to be resilient in addressing impacts
and risks, while leveraging opportunities.
Impacts
We operate predominantly in Ireland, the UK, and the USA, financing a
large part of the economy through retail and corporate lending.
Our main impacts originate from these activities, particularly in supporting
customers’ financial wellbeing through responsible lending and inclusive
banking practices. Housing is a strategic priority with lending to first-time
buyers and social housing financing helping to enhance financial stability
and quality of life for our customers and communities.
We also support corporate clients, including those in sectors impacting
society and the environment, by offering green and transition lending and
financing energy efficient infrastructure to support climate change
mitigation and adaptation solutions. Recognising our financed emissions,
we are committed to decarbonising our loan book, setting financed
emission targets and integrating ESG criteria into our lending and
investment strategies.
Internally, our most material impacts relate to our own workforce, where
we focus on inclusion, diversity, and development to improve employee
satisfaction, engagement and retention. From a time horizon perspective,
actual impacts generally occur during the reporting period. Many impacts
(both positive and negative) may also be expected to continue in the
medium to long term. Potential impacts tend to have a medium to long
term time horizon, while some potential impacts could occur at any time,
such as those related to Cyber Security & Data Protection.
Risks
The Group’s RMF ensures effective governance of our strategy and
operations, as well as mitigation of related material risks. Enhanced
management of climate, environmental and wider ESG risks is central to
our sustainability strategy. C&E Risk has been identified as a Principal
Risk, with robust processes in place to manage physical climate risks,
transitional climate risks, and C&E-related liability risk.
We handle significant amounts of sensitive personal and financial data,
making strong data protection and secure technology infrastructure
(including AI systems) critical. Cyber security and data protection remain
central to AIB’s strategy and operational resilience.
Building on the AIB Technology Strategy 2024-2026, approved by the
Board in December 2023, we are executing a refreshed Group Cyber
Strategy 2025-2026 anchored to our ‘Secure Future Ready’ vision that was
approved by the Board in February 2025. This multi-year programme,
aligned to NIST Cyber Security Framework 2.0 and industry benchmarks,
addresses evolving threats through enhanced identity, protection,
detection, and response capabilities. We also monitor risks associated
with AI adoption as digitalisation advances.
Our approach helps maintain customer trust, regulatory compliance, and
digital security while preventing cyber and data privacy risks. Oversight by
the Technology and Data Advisory Committee (TDAC) ensures alignment
of cyber security strategy and monitoring of key operational metrics.
Our strategic success relies on equal treatment and opportunities for our
own workforce, with talent attraction and retention as a key risk. By
prioritising sustainability, employee development and inclusion, we align
our people strategy with our business goals for long-term resilience.
In terms of our strategic resilience, we use scenario analysis and stress
testing to assess the resilience of our strategy across each of our Principal
Risks, including C&E Risk. The scenarios we use are informed by a number
of risk identification and assessment activities including the identification
of ESG risk drivers and form part of the Internal Capital Adequacy
Assessment Process (ICAAP) and the assessment of our three-year
financial plan. See C&E Risk from page 69 for more details on the
methodology applied.
Opportunities
Aligned with our strategy, our material opportunities centre on financing
the transition to a sustainable future. We remain focused on attracting
and retaining skilled talent to achieve our strategic goals.
Our accountable, open culture and strong governance underpin our
business model and strategy, helping us manage our impacts and risks,
and capitalise on opportunities.
More information can be found in the relevant topical sections, where we
report on our material IROs in line with the ESRS DRs.
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Our Material Impacts,
Risks and Opportunities
Donal Whelton, Head of Agri, Food and Fisheries, Orlaith Ryan, CCO and Colin Hunt, AIB CEO, at the
National Ploughing Championships 2025 with Denis Drennan, President of the Irish Creamery Milk
Suppliers’ Association, and Pat O’Brien, Chairperson of the ICMSA Farm Business Committee.
A description of our material IROs
SBM-3
The following tables list the sustainability-related IROs that we have identified and assessed as material as a result of our DMA process.
A topic can be material because of the actual impacts that we have or may have on people or the planet (impact materiality), because of the financial
effects of sustainability factors, in terms of risks or opportunities, on AIB (financial materiality), or both. An impact may also be positive, or negative,
actual, or potential. Impact and financial materiality assessments are closely related. Over time, positive impacts could translate into opportunities and
negative impacts into risks, reflecting their interdependencies.
The tables also identify in which part of our value chain the matter originates. Where material risks and opportunities were identified through the DMA
process, further analysis was conducted to determine whether they resulted in current financial effects. Where applicable, a summary has been
provided to explain further.
Climate Change
ESRS E1
IRO
Description
Positive/
negative
Type of
impact
Value chain
Impacts
• Efficiency measures in our own operations and prioritising renewable
energy finance and investment support the sustainable use of resources
and mitigating climate change.
+
Actual
Own operations,
Downstream
• C&IC lends to large-scale renewable and infrastructure projects,
which are key drivers for sustainable growth across our markets.
+
Actual
• Financed emissions from certain lending activities contribute to
climate change.
–
Actual
• Our responsible lending policies support climate change mitigation
activities and contribute to environmental protection. This includes
our green mortgage products to support sustainable housing.
+
Actual
Risks
• Physical climate-related risks, which can arise from extreme events
and from progressive shifts can have a negative financial impact on
the Group.
n/a
n/a
Upstream,
Downstream
• Transitioning to a more environmentally sustainable economy can
have a negative financial impact on the Group.1
n/a
n/a
Opportunities
• As the global economy seeks to decarbonise and invest in green
infrastructure, there is an opportunity for growth through green and
transition financing.
n/a
n/a
Upstream,
Downstream
For further information on Climate & Environmental Action: See p.55 – 73.
Current financial effects
The following provides a summary in relation to the current financial effects of the risks and opportunities related to climate change, a topic that was
deemed material from a financial materiality perspective.
Climate Change
In line with our Group strategic priorities, new green and transition
lending in 2025 was €6.3bn bringing the total drawdown to €22.9bn.
We achieved this through continued growth in green finance,
delivered by renewable energy projects, strong performance in
mortgages to energy efficient homes (Building Energy Rating (BER) A1-
B3/Energy Performance Certificate (EPC) A-B), green mortgage
products and lending for green buildings. We plan to steadily increase
new green and transition lending, to reach our target of 70% of all new
lending being green and transition by 2030 (43% achieved in 2025).
In relation to climate-related risks, we have not identified a material
impact on the Group’s financial reporting judgements and estimates.
There is currently no reasonable and supportable information that
indicates a material impact of climate change on expected credit loss
at a macro-level, going concern and viability, provisions and contingent
liabilities, or impairment of non-financial assets. For more detail,
please refer to note 1 to the consolidated financial statements.
1. We manage these risks through our C&E Risk Framework as detailed in the Climate & Environmental Action section.
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Our Material Impacts, Risks and Opportunities continued
Own Workforce (Equal Treatment & Opportunities for All)
ESRS S1
IRO
Description
Positive/
negative
Type of
impact
Value chain
Impacts
• Our Inclusion & Diversity strategy promotes a strong programme of
engagement, wellbeing, and universal inclusion initiatives.
+
Actual
Own operations
• Variable pay based on performance against specific financial and
non-financial measures rewards employees, encourages skill
development and contributes to enhanced job satisfaction.
+
Actual
• We provide training and skills development for employees to develop
their careers, fostering a culture of growth.
+
Potential
Risks
• Failure to upskill our colleagues, recruit and retain talent to support the
transition of the Group’s loan book could impact our ability to meet
customers’ expectations and deliver our strategic commitments.1
n/a
n/a
Own operations
Opportunities
• Attracting top talent can drive innovation in sustainable finance
products, leading to increased profitability for the Group.1
n/a
n/a
Own operations
Housing
ESRS S3, S4
IRO
Description
Positive/
negative
Type of
impact
Value chain
Impacts
• We contribute to the greater availability of housing stock, including
social and affordable housing – stimulating economic growth,
improving access to housing, and enhancing quality of life for
residents by enabling them to purchase their own homes.
+
Potential
Downstream
Financial Wellbeing
ESRS S4
IRO
Description
Positive/
negative
Type of
impact
Value chain
Impacts
• We provide access to essential financial resources, promoting
financial inclusion and wellbeing by providing tailored financial
products and services.
+
Actual
Downstream
• We deliver lasting, innovative solutions that evolve with our
customers’ banking needs, focusing on addressing their issues and
enhancing their experience through proactive product and service
excellence.
+
Actual
• We empower customers to make informed financial decisions
and improve access to finance through clear, straightforward
communication.
+
Actual
For further information on Societal & Workforce Progress: See p.75 – 90.
1. No material current financial effects are identified for FY2025 in relation to our material topic Own Workforce (Equal Treatment & Opportunities for All).
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Corporate Governance, Ethics & Accountability
ESRS G1
IRO
Description
Positive/
negative
Type of
impact
Value chain
Impacts
• We help to safeguard our customers, the Group and the wider financial
system against financial crime and fraud.
+
Actual
Upstream,
Own operations,
Downstream
• The integration of sustainability criteria into our risk management
processes, policies, and procedures supports responsible and
sustainable business practices, supply chain, and investments.
+
Actual
• Our tax principles contribute positively to society through
transparent, fair, and responsible tax practices.
+
Actual
Culture & Reputation
ESRS G1
IRO
Description
Positive/
negative
Type of
impact
Value chain
Risks
• Misconduct, inappropriate actions or inactions on a systemic scale
can cause poor or unfair customer outcomes, and potential failure to
meet regulatory expectations can negatively impact our market
integrity and reputation.1
n/a
n/a
Own operations
• If the Group’s purpose and values are not shared by all colleagues, it
could result in poor customer and market outcomes.1
n/a
n/a
Cyber Security & Data Protection
ESRS S1, S4
IRO
Description
Positive/
negative
Type of
impact
Value chain
Impacts
• We take steps to safeguard our customers’ information, ensure the
continued resilience of our digital channels, and protect against fraud.
+
Actual
Own operations,
Downstream
• Data security breaches in AIB can compromise employees’ and
customers’ data if proper safeguards are not in place.
–
Potential
Risks
• Cyber attacks can pose a significant operational risk to the Group,
leading to potential financial losses, legal liability, regulatory fines
and reputational damage.
n/a
n/a
Upstream,
Own operations,
Downstream
• Errors in the development, implementation, or use of AI systems can
pose a significant operational risk to the Group, leading to potential
financial losses, legal liability, regulatory fines and reputational
damage.
n/a
n/a
For further information on Governance & Responsible Business: See p.92 – 105.
Current financial effects
The following provides a summary in relation to the current financial effects of the risk related to Cyber Security & Data Protection, a topic that was
deemed material from a financial materiality perspective.
Cyber Security & Data Protection
Cyber risk remained a material and emerging risk for AIB in
2025, reflecting the ongoing evolution, increased frequency, and
sophistication of cyber threats globally. AIB continues to
prioritise investment in cyber security and data protection, ensuring
robust defences and resilience across all operations. Our approach
is informed by the latest threat intelligence, regulatory requirements,
and industry best practices, with a focus on protecting our customers,
employees, and critical business services.
The ‘Cyber security spending’ entity-specific performance measure,2
disclosed in FY2024 as a percentage of overall annual IT spend, will no
longer be reported externally from FY2025 onwards. The measure was
assessed as providing limited decision-useful or comparable
information for users of the Sustainability Statement. The Group
continues to invest in its technology capabilities, which underpin the
resilience of our digital infrastructure and reinforce our capacity to
protect our customers, our data and our operations in an evolving
threat landscape.
1. No material current financial effects are identified for FY2025 in relation to our material topic Culture & Reputation.
2. Cyber security spending is a subset of the Total Operating Expenses and Intangible Assets. For more detail, please refer to notes 10 and 22 to the consolidated financial statements.
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Our Material Impacts, Risks and Opportunities continued
Climate &
Environmental
Action
In this section
Material topics
ESRS
Page
Climate Change
ESRS E1 – Climate Change
56
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At AIB, our ambition is to be a catalyst for positive change, building long-term value for
stakeholders while protecting our environment and contributing to a better society.
This is one of our seven material topics. For each topic, we report in
accordance with the ESRS. We disclose our approach to managing our
material IROs through our policies, actions, and performance measures.
Value chain: Upstream, Own operations, Downstream
Impacts:
• Efficiency measures in our own operations and prioritising renewable
energy finance and investment support the sustainable use of
resources and mitigating climate change.
• C&IC lends to large-scale renewable and infrastructure projects, which
are key drivers for sustainable growth across our markets.
• Financed emissions from certain lending activities contribute to
climate change.
• Our responsible lending policies support climate change mitigation
activities and contribute to environmental protection. This includes our
green mortgage products to support sustainable housing choices.
Risks:
• Physical climate-related risks which can arise from extreme events
and from progressive shifts can have a negative financial impact on
the Group.
• Transitioning to a more environmentally sustainable economy can
have a negative financial impact on the Group.
Opportunity:
• As the global economy seeks to decarbonise and invest in green
infrastructure, there is an opportunity for growth through green and
transition financing.
Guided by our purpose of empowering people to build a sustainable
future, we are focused on building resilience across our business, the
economy, and society. We are committed to supporting our stakeholders
on the journey to a low-carbon future and ensuring transparency around
our decarbonisation ambition.
• Financed emissions targets: In 2020, we committed to decarbonising
our customer lending portfolio by 2050. To guide this transition, our
SBTi-validated targets align with a 1.5°C pathway, consistent with the
Paris Agreement and global best practice. These SBTi-validated targets
for Residential Mortgages, CRE, and Electricity Generation cover, along
with our Corporate Portfolio Coverage target, 75% of our loan book.1
We have also set an SBTi climate-related target for our listed equity and
corporate bond portfolio. Measurement and data collection processes
for this portfolio are being implemented, and progress will be disclosed
once available, in line with the requirements of ESRS E1. As we progress
towards 2050, we will continue to review and examine the scope of our
SBTi coverage.
• Own operations targets: In 2020, we announced an ambition to
decarbonise our own operations by 2030. We measure and report our
Scope 1 and Scope 2 emissions according to the Greenhouse Gas
Protocol.
Targets are embedded into the Group’s formal review and planning
process, including the Annual Business Review, which forms part of
the Strategic, Financial and Investment Planning process. We review and
publicly disclose progress against targets on an annual basis. Open
disclosures and accountability promote trust and confidence among
stakeholders.
We integrate climate and environmental impacts into business and
financial planning to ensure our strategy aligns with a sustainable
economy. Each business area assesses how targets affect revenues,
costs and margins, with progress embedded into planning and reported
regularly to ELT and the Board.
1. As at baseline year of 2021.
For FY2025, this chapter provides enhanced disclosures on AIB Group’s
standalone CTP, available in full on our website. The CTP is designed to
align with CSRD disclosure requirements and is complemented by the
EBA Prudential Transition Plan, effective January 2026, ensuring
consistency between sustainability reporting and prudential regulatory
expectations.
Our CTP sets out our strategic approach, targets and progress in
managing climate-related risks and opportunities. Developed in line with
the Transition Plan Taskforce (TPT) Disclosure Framework, and approved
in the context of our ‘Greening our business’ strategic priority, the CTP
looks to further embed the Group’s 2024-2026 strategic priorities as
overseen by the Board. It reinforces our commitment to transparency and
gives stakeholders a clearer view of how we are aligning our business with
the transition to a low-carbon economy. AIB has <1% lending to non-
financial corporates excluded from EU Paris-aligned benchmarks.
Further embedding our CTP is a priority at all levels of AIB. While progress
towards our decarbonisation ambition continues, we recognise the need
to strengthen transition planning and further integrate sustainable
practices throughout the business.
Our CTP outlines key levers with underlying actions, supported by
enablers that drive reductions in our own operations and financed
emissions. These levers and enablers are highlighted with symbols
(as below) throughout the chapter.
Our CTP is reviewed annually and overseen by GSC to take account of new
materiality assessments of ESG risks, significant developments in portfolios
or counterparties’ activities, new scenarios, additional benchmarks or
sectoral pathways, and impacts of new or upcoming regulation. We provide
updates on progress in implementing the CTP through regular reporting to
the GSC, the SBAC and the Board, and in our annual reporting process.
Our governance approach to sustainability reporting
is aligned with financial reporting and is integrated within our internal
control system.
Levers
Reducing our direct emissions
(Scope 1 and 2 GHG emissions)
See page 58
Providing green and transition
financing to support climate action
See page 61
Offering green products and propositions
to meet customers' needs
See page 61
Reducing the emissions of our value chain
(Scope 3 GHG financed emissions)
See page 63
Enablers
Policies and frameworks
guiding our CTP
See pages 58 and
60
Educating our customers and our
colleagues on their sustainability journeys
See page 62
Collaboration, partnership and thought
leadership to support change
See page 62
Engaging with our
value chain
See page 62
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Material Topic:
Climate Change
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Our Decarbonisation Journey
€6.3bn
In new green and transition
lending in 2025, representing
43% of new lending. This
supports our target of 70% of
all new lending to be green
and transition by 2030.
Launch of the Strategic Banking
Corporation of Ireland (SBCI)
Energy Efficient Loan Scheme.
Acquired Clearstream to
enable us to further support
our customers in their
transition.
Signed a Virtual Power Purchase
Agreement (VPPA) with NTR plc
allowing the construction of two
solar farms in County Wexford.
Increase of our green and
transition lending fund to
€30bn – initially the fund had
an allocation of €5bn when it
was set up in 2019 with a
subsequent increase in 2021
to €10bn and again in 2023.
SBTi-validated targets for
Residential Mortgages,
Commercial Real Estate,
Electricity Generation and a
Portfolio Coverage Target, which
covered 75% of the lending
portfolio as of 2021.
Established AIB’s
Sustainability
Academy, a hub for
ESG learning, research,
and training support for
all colleagues.
Announced investment
of over €20m in
sustainability education
and research.
VPPA becomes
operational with energy
sourced from two solar
farms in County Wexford.
C&IC segment becomes
fully operational.
Developed our new
Transition Finance
Guidance to enhance
our transition finance
proposition for our
corporate and business
customers.
Ambition to decarbonise
our customer lending
portfolio by 2050
Ambition to decarbonise
our own operations
by 2030
€22.9bn
A total of €22.9bn drawn down in
cumulative new green and
transition lending since
AIB’s green and transition lending
fund was launched in 2019. Our
target is to reach €30bn of such
lending by 2030.
92%
Of our own electrical energy
needs sourced through
our VPPA from the two solar
farms in County Wexford
in 2025, supporting our
target to reach 100% by
2030.
€8.2bn of ESG
Bonds Issued
Since 2020, AIB has issued 9
Green Bonds, totalling €6.45bn
as well as issuing 2 Social
Bonds totalling €1.75bn.
Additionally, the Socially
Responsible Investment Bond
Portfolio reached €3.36bn at
the end of 2025.
Greener
Branches
Continued a strategic investment
programme in our network by
upgrading 35 branches to date
(26 of which were completed in
2025) as part of our Greener
Branches Refurbishment
Programme.
Business
Sustainability Loan
Launched in 2025, our Business
Sustainability Loan looks to provide
a new low-cost green loan to help
businesses, including farmers,
clubs, trusts, and charities,
transition to a low-carbon
economy.
Developing our ‘SME Steps
to Sustainability’, a go-to
resource for SME businesses.
As we help customers transition to a sustainable future, we remain focused on
reducing our own carbon footprint, including entities in our upstream value chain.
Our ambition is to decarbonise our own operations while sourcing 100% of electricity
from certified renewable energy sources by 2030. This section outlines how we
manage material IROs tied to decarbonising our own operations.
Our policies
Climate Transition Plan Enabler:
Policies and frameworks guiding our CTP
While we have many policies that reference sustainability and ESG
factors, there are two primary policies that focus on how we will meet our
responsibility to protect the environment, increase our energy efficiency
and tackle our operational emissions.
• Our Group Energy Policy outlines how we conduct our business
and operations as energy efficiently as possible, striving to achieve
continual improvement in our energy performance and Energy
Management System. This policy is managed and controlled through
the implementation of Energy Management Standard ISO 50001.
• Our Group Environmental Policy aims to support us to meet our
current needs without compromising the ability of future generations
to meet their own needs. This principle of sustainable development
demands that we accept responsibility for the direct impact of our
own operations on the environment. The policy also commits us to
supporting initiatives aimed at mitigating, adapting or responding to
climate change. AIB takes environmental action into account,
in accordance with international standard ISO 14001.
We considered the interests of all AIB stakeholders when setting these
policies. The Chief Operating Officer (COO) is accountable for their
implementation. The policies are publicly available on our website.
Our actions
Climate Transition Plan Lever:
Reducing our direct emissions (Scope 1 and 2 GHG emissions)
Sourcing renewable energy
Overview
In 2022, we entered into a VPPA with NTR plc to create
two new solar farms in County Wexford to replace
electricity previously purchased on green tariffs and
create additional renewable energy for the Irish grid
supporting government targets. The agreement also
ensures that the Group has a sustainable and secure
energy supply at a fixed price for 15 years and will
continue to reduce our operational carbon emissions.
Actions
in FY2025
In 2025, 92% of AIB’s own electrical energy needs were
produced from these solar farms.
Priorities
These solar farms are instrumental for us in meeting our
renewable electricity sourcing target of 100% by 2030 as
validated by SBTi.
Greener Branches Refurbishment Programme
Overview
In relation to our property, we are continuously improving
our building estate to reduce its energy consumption,
carbon footprint and reliance on fossil fuels. We are
upgrading our branch and office buildings to improve their
energy efficiency and, in doing so, remain focused on
improving our in-branch customer experience. In 2024, we
identified a number of branches for development as part of
the investment programme undertaken for the Greener
Branches Refurbishment Programme. This initiative is a
key element of our ambition to decarbonise our own
operations.
Actions
in FY2025
Under the Greener Branches Refurbishment Programme,
35 branches have been upgraded to date (26 of which
were completed in 2025), with €22.4m invested to date.
Key sustainability interventions in 2025 include:
• Heating systems: Replaced 13 fossil fuel boilers (oil
and gas) with energy efficient electrical based
alternatives.
• Building fabric: Enhanced energy efficiency across 26
properties through improved insulation and energy
performance measures.
• Lighting: Reduced electrical consumption by installing
low-energy LED lighting throughout the refurbished
branches.
Priorities
We will continue to review our branch network to identify
further enhancement programmes.
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Decarbonising Our Own Operations
E1-2
E1-3
Our performance measures
Own operations targets
We have an ambition to decarbonise our own operations by 2030 and, in
doing so, we have set an interim target, validated by the SBTi, to reduce
absolute Scope 1 GHG emissions by 34% by 2027. While our detailed
Group absolute emissions inventory is presented on page 66, the SBTi target
boundary includes biogenic emissions and excludes Goodbody due to its
incorporation post SBTi target submission.
Progress therefore against our validated Scope 1 target of a 34% reduction
by 2027 is measured against a baseline of 4,800 tCO2e in 2019. By the end
of 2025, AIB’s emissions were 2,168 tCO2e (2,885 tCO2e in 2024). This
represents a cumulative reduction of 55% in 2025 (compared to a 40%
reduction noted for 2024). See page 66 for further details of progress made
in reducing Scope 1 emissions.
Due to the nature of our business, we have also set an SBTi-validated
target to increase our annual sourcing of renewable electricity needs to
100% by 2030 from a 2019 baseline of 1%. In 2025, 92% of AIB’s own
equivalent electrical energy needs were produced from two solar farms in
Country Wexford (89% in 2024).
The targets set for decarbonising our own operations (Scope 1 and 2) have
used assumptions around the changes within our estate over the period.
As we have reached the midpoint of our target delivery period, we will take
the opportunity to consider future developments and how these will
impact on our target by 2030. When setting these targets stakeholders
across the business were engaged through consultation. Our target is
relative and measured as a percentage reduction in emissions.
Energy consumption and mix
AIB's energy profile offers insights into our progress towards decarbonisation objectives and energy efficiency. The energy consumption and mix table
highlights the total energy use from renewable and non-renewable sources.
2025
2024
Fossil Energy Consumption
Fuel consumption from coal and coal products (MWh)
0
0
Fuel consumption from crude oil and petroleum products (MWh)
3,372
4,712
Fuel consumption from natural gas (MWh)
7,175
9,032
Fuel consumption from other fossil sources (MWh)
0
0
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)
492
1,465
Total fossil energy consumption (MWh)
11,039
15,209
Share of fossil sources in total energy consumption (%)
38%
45%
Nuclear Energy Consumption
Consumption from nuclear sources (MWh)
0
0
Share of consumption from nuclear sources in total energy consumption (%)
0%
0%
Renewable Energy Consumption
Fuel consumption from renewable sources, including biomass (also comprising industrial and municipal waste of
biologic origin, biogas, renewable hydrogen, etc.) (MWh)
97
132
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)
18,246
18,350
– Direct Procurement (VPPA)
17,151
17,319
– Contract with electricity suppliers
1,095
1,031
Consumption of self-generated non-fuel renewable energy (MWh)
0
0
Total renewable energy consumption (MWh)
18,342
18,482
Share of renewable sources in total energy consumption (%)
62%
55%
Total energy consumption (MWh)
29,381
33,691
Total energy consumption (MWh) reported on Net Calorific Value (NCV)
28,497
32,553
Figures are rounded.
Disaggregating our energy consumption and mix into distinct categories and sources gives us a detailed understanding of the Group's energy profile,
providing insights into our approach to energy efficiency and our progress towards decarbonisation targets. AIB does not operate within a high climate
impact sector, as defined by ESRS 1,1 and, as such, this has not affected our energy intensity calculations.
Figures included above for 2024 are updated actual figures where available. For details of previously reported data, as well as other supporting notes for
energy consumption and mix, please refer to page 72.
1. High climate impact sectors are those listed in NACE Sections A to H and Section L (as defined in Commission Delegated Regulation (EU) 2022/1288).
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E1-4
E1-5
Lending is a crucial element of our value chain, with financed emissions making up
most of our total emissions. Decarbonising the loan book is key to reducing
climate, environmental, and societal impacts, mitigating C&E risk, and supporting
the broader transition. This section outlines our approach to managing material
IROs related to our financed emissions, responsible lending policies, and financing
large-scale renewable and infrastructure projects.
Our policies
E1-2
Climate Transition Plan Enabler:
Policies and frameworks guiding our CTP
The Group has implemented several policies and frameworks, which are
monitored on an ongoing basis.
The policies and frameworks that facilitate green and transition lending
and support the decarbonisation of our loan book are our Sustainable
Lending Framework (SLF), our Green Bond Framework (GBF) and our
C&E Risk Policy. These policies and frameworks will support us in
reducing the negative impacts related to financed emissions, to increase
our positive impacts and opportunities related to sustainable lending
and renewable energy development, and to mitigate both physical and
transition C&E risks. The key contents of these policies and their
contribution to managing our material climate change mitigation and
adaptation IROs are described below.
Sustainable Lending Framework
The SLF is designed to provide transparent eligibility criteria for classifying
and reporting loans as Green, Transition or Social lending. It is subject to
regular internal, and periodic external, reviews to ensure alignment with
Group strategy, market best practice, evolving regulation and reporting
requirements. It is approved by the GSC, with regular internal reporting
on new green and transition lending to the ELT, the SBAC and the Board.
The SLF is available on the AIB website.
The eligible activities defined in the SLF, to classify new lending as green or
transition lending, aim to be aligned to the greatest extent possible with
the technical criteria outlined in the EU Taxonomy regulation for relevant
activities. There is also an excluded activities list, in place since 2020,
which sets out a range of business activities that do not align with our
Group strategy for new lending. From a sustainability perspective, in 2025
excluded activities include the exploration, extraction and upgrading of oil
sand projects, fracking, deforestation, illegal logging and trading, nuclear
waste transportation, unreported or unregulated fishing, and the
decommissioning and/or final disposal of high-level nuclear waste.
Green Bond Framework
The GBF enables AIB to fund projects that support climate change
mitigation and the transition to a circular economy.
The purpose of the GBF is to support AIB, and its subsidiaries, in the
issuance of Green Bond instruments, which may include covered bonds,
senior bonds (either preferred or non-preferred), subordinated bonds,
medium term notes, and commercial paper, to finance and/or refinance
eligible green loans with a positive environmental benefit.
AIB’s Green Bonds fund eligible projects or assets that mitigate climate
change by reducing emissions, protecting ecosystems, or have a positive
environmental impact. Eligible projects include renewable energy
generation, transmission and storage, green buildings, circular economy
and waste management assets, and clean transportation.
Our GBF is based on the International Capital Market Association (ICMA)
Green Bond Principles of 2021, including the updated Appendix I of June
2022, and defines the portfolio of loans eligible to be funded by the
proceeds of Green Bonds issued by AIB. Our GBF is publicly available on
our website. The GSC approves material changes to the GBF which are
facilitated through work undertaken by a dedicated ESG Bond Forum.
C&E Risk Framework and C&E Risk Policy
The C&E Risk Framework, and the C&E Risk Policy which sits under the
framework, outlines how we identify, assess, manage, monitor and report
on C&E Risk. This includes the setting of risk appetite. The policy outlines
rules and requirements which influence activities and actions, with the
objective to mitigate C&E Risk within agreed thresholds.
The C&E Risk Policy sets out how AIB Group defines, manages, mitigates
and measures C&E Risk (physical and transition) and details the roles and
responsibilities for identifying, assessing, managing, monitoring, reporting
and overseeing C&E Risk. This policy is a component part of the C&E Risk
Framework and has been prepared in line with the Group’s Risk Policy
Governance Framework requirements. The framework and policy are
made available to all staff through the AIB intranet.
In recognising the transverse nature of C&E Risk, the policy refers to other
risks and how they integrate C&E Risk into their risk frameworks and policies.
The framework and policy apply to all staff, contractors, and third parties
providing a service or function across the Three Lines of Defence (3LOD)
approach, including senior management and the Board of Directors, and
in all jurisdictions in which the Group operates. Our C&E Risk Framework
is approved by the Board Risk Committee (BRC) and our C&E Risk Policy is
approved by the Group Risk Committee (GRC).
Our actions
E1-3
To achieve our new green and transition lending target and
decarbonisation ambitions, and manage our material IROs, AIB has taken
actions and allocated resources for implementation.
The following key actions and resources are grouped by the
decarbonisation levers and enablers that best fit with our specific actions.
We expect that these actions will help us to achieve our financed emission
reduction targets, reduce C&E Risk and support the transition to a more
sustainable economy. We want to encourage our customers to go green.
We do this by providing a range of products and services that will enable
our customers to reduce their own carbon emissions and help AIB deliver
its purpose of empowering people to build a sustainable future. AIB does
not have large exposures to carbon-intensive activities, and our focus is
on mobilising capital towards renewable power generation and
sustainable infrastructure.
All actions relate to our lending portfolio and, therefore, our downstream
value chain. The impacts of these actions should be considered within the
context of our 2030 and 2050 ambition.
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Decarbonising Our Loan Book
Climate Transition Plan Lever:
Providing green and transition financing to support climate action
Recognising the importance of climate finance in funding the transition,
AIB has been rapidly growing its green lending portfolio.
Given the growing importance and complexity of infrastructure and energy
requirements in the transition to a low-carbon economy, AIB’s C&IC
segment has continued to evolve as it looks to further increase our
capability to be a driving force in the transition to a sustainable future.
C&IC is a growing part of the bank’s lending book and, with a strong focus
on renewable energy assets that displace fossil fuel-fired generating
assets, will help deploy AIB’s green and transition lending fund and play a
key role in underpinning the Group’s Green Bond offerings. AIB has
focused on making resources available to support the segment, creating a
step change in our ability to finance energy transition and ESG
infrastructure.
AIB continues to fund renewable energy assets and ESG infrastructure,
either on a bilateral or co-funding basis. These assets are located across
ROI, the UK, the EU and North America, and include technologies such as
onshore and offshore wind and solar generation.
Climate Transition Plan Lever:
Offering green products and propositions to meet our
customers’ needs
AIB has a suite of green products and propositions that support our
customers in building a sustainable future. These actions relate to our
responsible lending policies which govern the provision of a range of
products to support climate change mitigation activities and support us in
managing our material IROs.
Green mortgages, with lower interest rates available for energy
efficient homes
Overview We offer green mortgages across AIB, EBS, and Haven,
with lower interest rates available for energy efficient
homes. All three entities provide green mortgages to
homes with a BER of between A1 and B3 to new and
existing mortgage customers, including customers seeking
to switch their mortgage.
Customers who are building their own home can choose
from the full range of mortgage products, including one of
the lowest green rate mortgages in the Irish market (where
compliance with nearly Zero Energy Building (nZEB)
standards is demonstrated).
Actions
in FY2025
Underpinned by our green fixed rate mortgage products,
which reflected a range of green mortgage rate reductions,
2025 has seen continued new mortgage lending to energy
efficient homes. In 2025, 62% of new mortgage lending in
ROI was to energy efficient homes.
In 2025, self-build customers (as well as those
undertaking significant renovations on their home) were
able to choose from the full suite of AIB primary dwelling
home (PDH) mortgage interest rates, from first drawdown,
as long as the home has an energy efficient BER of A2 or
better.
Priorities
We will continue to offer competitive green mortgages to
energy efficient homes.
Participating in the Home Energy Upgrade Loan Scheme (HEULS)
Overview In partnership with the SBCI, the Irish Government
launched the new low-cost HEULS for homeowners in
2024.
Actions
in FY2025
In 2025, AIB continued to participate as a finance provider
for customers to avail of HEULS, with performance for AIB
being in line with other on-lenders who are participating in
the scheme. There has been ongoing engagement with the
SBCI in 2025 to support increasing market take-up.
Priorities
HEULS will be available up to 31 December 2026 or until
the scheme is fully subscribed. Customer campaigns are
planned to engage customers, with ongoing engagement
with the SBCI to drive take-up in 2026.
Business Sustainability Loan
Overview Our low rate green Business Sustainability Loan helps
businesses transition to a low-carbon economy, invest in
sustainability and make important operational savings. It
supports a range of green initiatives including renewable
energy systems, zero emission vehicles, green buildings,
forestry, and circular economy practices.
Actions
in FY2025
We launched the loan in 2025 which now looks to provide
a new low-cost green loan of up to €100k/£100k to help
businesses, including farmers, clubs, trusts, and charities,
transition to a low-carbon economy. It is available to
customers across ROI and Northern Ireland (NI).
Priorities
We will continue to offer our Business Sustainability Loan
to help our customers invest in sustainability measures.
Growth and Sustainability Loan Scheme (GSLS)
Overview Together with the SBCI, we provide the GSLS, a long-term,
low-cost loan scheme for customers in business and
agriculture that comprises two differing loan offers. The
‘Climate Action & Environmental Loan’ is available to
businesses who qualify as a green enterprise or who are
investing in green measures, and the ‘Growth and
Resilience Loan’ allows for long-term investments in the
applicant’s business.
Actions
in FY2025
In Q4 2025, we reached our full allocation under this
scheme and applications are now closed.
Priorities
We continue to work with the SBCI in relation to future
products to further support eligible businesses, including
farmers and fishers, when investing in climate action and
environmental sustainability.
Several products listed above, including green mortgages and HEULS are
associated with housing. Further details on housing can be found in the
Societal & Workforce Progress chapter below, as it is considered a
material topic (see page 80).
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Climate Transition Plan Enabler:
Educating our customers and our colleagues on their
sustainability journeys
We provide dedicated educational resources on our website to support
our customers in their transition journey, including our Sector
Sustainability Guides and the AIB Green Living Hub. In 2025, as part of
our Sustainability Transformation Programme, we saw the continued
operation of our ‘Steps to Sustainability’ resource for our SME customers
(a resource to guide SME businesses to take sustainable action) as well as
our AIB Sustainability Academy, a hub where our staff can access ESG-
related learning. In 2026, the Sustainability Transformation Programme is
expected to continue to support our customers and our staff in their
sustainability journeys.
Internally, our colleagues are required to complete the ‘Sustainability and
AIB’ online course, which is updated every year and this gives both context
and colour to our sustainability strategy while our Sustainability
Transformation Programme continues to oversee our transformation as
we embed sustainable practices across our business and enable our
customers to meet their own decarbonisation ambitions. We also provide
a course on ‘Understanding ESG for Business Customers’, in partnership
with the IOB. This gives an overview of the particular challenges and
opportunities facing businesses.
Climate Transition Plan Enabler:
Collaboration, partnership and thought leadership to support
change
We collaborate with our customers by advising them on their transition
pathway through dedicated sustainability champions, an in-house
Sustainability Research function, customer events and webinars and
an enhanced sustainability advisory services offering, provided via
Goodbody Clearstream.
In 2025, AIB continued to focus on education and research following the
announcement in late 2024 that AIB would undertake a €20m investment
in sustainability education and research. This investment includes the
development of the AIB Trinity Climate Hub in Trinity College Dublin, and
further supports our partnership with Global Innovators Ireland (GII) which
delivers Innovate for Ireland. They oversee preparations for the launch of
Innovate for Ireland’s first National Research Centre, ‘Decarb-AI: AI-
Powered Pathways to Climate Resilience’. The Centre launch is in
partnership with AIB and Research Ireland, and aims to harness the power
of AI to accelerate Ireland’s transition to a climate-resilient low-carbon
future. Our 9th Sustainability Conference was also held during November
2025 with 14,239 in-person and online attendees joining for impactful
discussions with global figures.
We publish reports on our website of research carried out, such as the AIB
Homes Retrofit Report, which highlights retrofit options, generous grants
and competitively priced loans available to consumers wishing to improve
their homes’ energy efficiency.
AIB will continue to support transition efforts that are aligned with our
strategy and decarbonisation ambitions and engage with organisations to
ensure that we can support positive change. To help drive this agenda,
we have joined a multitude of voluntary organisations, including the CDP,
SBTi, UN Global Compact, and the World Business Council for
Sustainable Development (WBCSD).
Climate Transition Plan Enabler:
Engaging with our value chain
We prioritise engagement with our stakeholders. Alongside the
collaboration noted above, we also engage with our value chain through
our financed emissions process (see page 63) as well as our supplier
standards, codes, portal and ESG questionnaire. These are detailed within
the Governance section on page 99.
Our performance measures
E1-4
Green and transition lending targets
The cumulative new green and transition lending drawdown is a
measurement of total cumulative new green and transition lending over
the period of 2019-2030, which adheres to criteria outlined in the SLF. We
provided €16.6bn of green and transition lending between 2019 and 2024,
and in 2025, we provided a further €6.3bn. Cumulative total as at end
2025 is €22.9bn.
New green and transition lending
Target: Cumulative green and transition lending fund of €30bn by 2030
This equates to 43% of total lending in 2025 being classified as green and
transition (from a 2019 baseline of 10%), in accordance with criteria outlined in
the SLF.
% of new lending that is classified as green
and transition
Target: 70% by 2030
Delivering for our customers whilst steering finance towards green and
transition activities is an important way in which we can support the
transition to a more sustainable future. Our SBTi-validated targets set a
trajectory linked to our green and transition lending ambition and science-
based target requirements.
ESG Bonds & Socially Responsible Investment (SRI) Bond Portfolio
We were the first Irish bank to publish a GBF in 2019 and to issue a €1bn
Green Bond in 2020. Since 2020, the Group’s ESG Bond issuance has
totalled €8.2bn,1 of which €6.45bn of these are Green Bonds (across 9
Green Bond issuances) and €1.75bn are Social Bonds (across 2 Social
Bond issuances). In 2025, €1.8bn worth of Green Bonds were issued with
no Social Bonds issued. These proceeds from Green Bonds contribute to
the financing of projects with clear environmental and climate action
benefits, while further strengthening the Bank’s capital position.
Our SRI Bond Portfolio funds domestic and international projects that are
aimed at global sustainability, carbon emissions reduction and social
improvement, all under the overarching themes of ESG. AIB promotes
and supports the transition to a more sustainable global economy and
contributes to positive environmental and social change via investment in
Green, Social and Sustainability bonds. The SRI Bond Portfolio reached
€3.36bn at year end 2025.
In October 2025, our innovative Green and Social Bond Programmes were
recognised as the winner of the prestigious FS Sustainable Investment
Award at the FS Awards 2025. This award celebrates organisations that
lead the way in integrating ESG criteria into financial services, driving
positive change and supporting sustainable development.
Tracking performance measures
Our performance measures are integrated into our Sustainability
Dashboard, our Strategic Outcomes Report, Chief Financial Officer (CFO)
and Chief Risk Officer (CRO) reports and GSC reporting. Progress towards
achieving our targets will also help us mitigate C&E Risks and reach our
decarbonisation ambition. Over time, we will steadily increase our new
sustainable lending activities to reach our 70% green and transition
lending target by 2030.
1. Total cumulative ESG Bond issuances includes instruments which have since been repaid.
Total outstanding ESG Bond Issuance totals €7.45bn.
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Decarbonising Our Loan Book continued
€6.3bn
€5.1bn
FY2025
FY2024
43%
35%
FY2025
FY2024
Climate Transition Plan Lever:
Reducing the emissions of our value chain
(Scope 3 GHG financed emissions)
As a financial institution, the emissions associated with loans we provide,
our financed emissions, represent the largest share of our climate impact
and is a powerful lever for driving real-economy decarbonisation. We have
set ambitious targets to deliver an emissions reduction trajectory aligned
with 1.5°C sector pathways.
In 2023, we set SBTi-validated financed emissions targets for our three
most material sectors, Residential Mortgages, CRE and Electricity
Generation, using a 1.5°C aligned Sectoral Decarbonisation Approach
(SDA). We also established a Corporate Portfolio Coverage Approach
(PCA) engagement target, to drive the adoption of SBTi-validated targets
and emissions reductions across all corporates and sectors. Together
these targets cover 75% of our loan book in our 2021 baseline year.
Factors outside of our control
Our financed emissions reduction targets use a decarbonisation
reference scenario that aims to limit global warming to 1.5°C.
This ambition is considered alongside external interdependencies,
requiring a careful balance between strategic and transition risks.
The world, however, is not on track to limit global warming to 1.5°C,
with the latest UNEP Emissions Gap Report 2025 noting that global
temperatures are likely to exceed 1.5°C above pre-industrial levels
within the next decade, despite hopes this threshold would hold for
decades – staying below 1.5°C is considered critical to avoiding the
worst climate impacts.1 This trajectory gap between global ambition
and reality is also visible in AIB’s year-on-year performance against
certain targets. While it is important to communicate clearly and
transparently to promote stakeholder awareness of this gap, we will
not allow this to inhibit our efforts to reduce our financed emissions
and will continue to support our customers through the transition.
We do not expect to make linear progress towards our targets each
year given our reliance on external levers such as policy, regulation,
market trends and consumer behaviours, a large portion of which are
outside our direct control. For example, the achievement of our CRE
and Residential Mortgages targets relies on the ambition set out in the
Government’s Climate Action Plan regarding building stock shifts from
C+ rated properties to A or B rated properties through obsolescence,
new builds and retrofit. We also rely on the speed at which Ireland’s
electricity grid decarbonises and the resulting decrease in building
energy-related emissions.
Strategic progress against decarbonisation reference scenarios
is tracked and reported through Executive and Board governance
channels. Steps to align our portfolios with our decarbonisation
reference scenarios have been embedded into our strategic,
financial and investment planning process.
1. unep.org/resources/emissions-gap-report-2025
Financed emissions target setting
and measurement
Our SBTi-validated targets use physical emissions intensity and
engagement metrics, ensuring an emissions reduction trajectory
in line with 1.5°C sector pathways. Emissions intensity-based metrics
enables AIB to measure and track the decarbonisation of our customer
activities, reflecting real economy emissions reductions rather than
changes driven by our portfolio size and composition. To date, we have
made significant progress in setting, monitoring and reviewing our targets
and decarbonisation reference scenarios. We measure, track and
disclose progress against our SBTi-validated targets annually, alongside
the absolute financed emissions covered by those targets, as per our SBTi
commitments. As part of our decarbonisation journey, we are committed
to enhancing transparency by disclosing the share of GHG emissions
associated with the loans we provide to our customers. We are continuing
to mature our financed emissions measurement and reporting.
In 2025, we expanded the scope of our financed emissions measurement
and reporting, applying Partnership for Carbon Accounting Financials
(PCAF) methodologies across a number of relevant asset classes. This
represents an important step in providing a more complete and
transparent view of our exposures to climate-related risks, with further
expansion of scope planned in future reporting periods. In doing so, we
have presented our in-scope customer loan book in a format that is
guided by PCAF Asset Class disaggregation which is detailed on page 68.
AIB calculates its financed emissions using the methodology set out in the
industry standard PCAF. The PCAF data hierarchy informs our approach,
and we continue to implement measures to enhance data quality across
our lending portfolio. For our SBTi sectoral targets, we rely on emissions
data sourced from counterparties where available. Given the data-
availability challenges associated with financed emissions calculations,
proxies are used when direct customer data are not available. For
example, in our CRE and residential mortgage portfolios, where a BER
certificate or EPC is not available, a proxy median is assigned based on
publicly available national information reflecting property size, location
and type.
We are continuing to put measures in place to enhance our data across our
lending portfolio. For all our portfolios, we continue to systematically review,
validate and update customer-level data as necessary, accompanied by a
robust quality-assurance process. This ongoing work strengthens our ability
to track emissions, targets and the underlying physical activity data. Over
time, we aim to replace estimates with actual counterparty or asset-level
data and reduce our reliance on proxy information. As more specific data
becomes available, we may need to revise our actual emissions, targets and
underlying assumptions accordingly.
In addition to the factors noted as being outside of our control, our
customer loan book financed emissions are also influenced by a
combination of further factors such as changes in portfolio size and
composition, data quality and methodology developments. As a result,
progress against our emissions targets is not expected to be linear year-
on-year. Nonetheless, we anticipate an overall decline in financed
emissions intensity over time, supporting delivery of our decarbonisation
ambition and our green and transition lending target, while helping to
mitigate climate-related risks. We are prioritising the measurement and
reduction of our financed emissions as far as possible, focusing on real
economy decarbonisation across our portfolios. We plan to develop a
credible strategy to neutralise any remaining residual emissions, in line
with latest industry standards and best practice.
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AIB supports Lotus Homes with their new
energy efficient housing development.
Financed emissions targets
Actual measurements of progress achieved against these targets to date is detailed on page 65.
AIB Group set SBTi-validated targets for Residential Mortgages, CRE, Electricity Generation and Corporate
Portfolio Coverage, which cover 75% of the loan book with a baseline year of 2021.
Corporate Portfolio
Coverage
54%
Residential
Mortgages
58%
Commercial Real
Estate
67%
Electricity
Generation
Maintain
Increase loan volume covered
by emissions targets from 12% to
54% by 20301
Reduction in emissions intensity
required by 20301
Reduction in emissions
intensity required by 20301
To maintain at or
below 21 gCO²e/kWh
1. From a baseline of 2021.
The following are noted as sources of estimation and outcome uncertainty:
Corporate Portfolio Coverage
target performance is calculated
by multiplying the sum of the
exposure to in-scope companies
(i.e. companies with > 500
employees) by the SBTi indicator
(i.e. 1 = SBTi-validated targets, 0
= does not have SBTi-validated
targets) and dividing by
exposures to all in-scope
companies. The data provided to
AIB from external sources is
confirmation of SBTi-validated
companies (Y/N) & >500
employees (Y/N), which is
combined with Exposure (€m)
data.
AIB Group Residential Mortgages
Financed Emissions Intensity
target performance is calculated
by taking the sum of (Estimated
CO2 emissions of property divided
by Floor Area of the Property)
multiplied by the Current Loan
Outstanding/Original Property
Value.
The calculation proxy information is:
i) Property value: If the property
value given is less than €20,000,
AIB assigns the median value of all
Residential Mortgages properties
greater than €20,000.
ii) Floor area: When the property
floor area is unknown regarding the
minimum threshold of 20 m2 or
above the cap of 500 m2, apply the
property area at the property sub-
type level, calculated from the data
provided by the Central Statistics
Office (CSO). If the property sub-
type level is unknown, blank, or if
property sub-type cannot be
mapped to CSO property
categories, then, apply the overall
property average size.
iii) CO2 emissions (BER/EPC):
When EPC is not known, assign
median of kWh/m2 and KGCO2m2
of properties by building type.
When no other information is
available, the 75th percentile of
KGCO2/m2 is assigned to the
Residential Sustainable Energy
Authority of Ireland (SEAI) BER
table. BER/EPC is assigned based
on the kWh/m2 ratio vs notional
building (methodology used by
SEAI).
AIB Group Commercial Real Estate
Financed Emission Intensity target
performance is calculated by
taking the sum of (Estimated CO2
emissions of property divided by
Floor Area of the Property)
multiplied by the Current Loan
Outstanding/Original Property
Value.
The calculation proxy information is:
i) If the property value is unknown,
AIB assigns average property value
by property type and sub-type.
ii) Floor area: A cap of 88,156 m2
and a minimum threshold of 30 m2
are applied to the property floor
area, based on the maximum and
minimum property size registered
in the SEAI database for non-
residential buildings. Where CO2
emissions (BER/EPC) are not
known, AIB assigns median of
kWh/m2 and KGCO2/m2 of
properties by dwelling type. When
these data are unknown, AIB
assigns the 75th percentile of
KGCO2/m2 from the SEAI
database.
Electricity Generation Financed
Emissions Intensity Maintenance
target performance is calculated
by dividing our counterparty’s
reported absolute emissions by
counterparty’s electricity
generation data and then
multiplied by an attribution factor
(outstanding investment/total
equity & debt). Absolute emissions
data and electricity production
generation data is based on data
sourced directly from AIB
counterparties.
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Decarbonising Our Loan Book continued
3
Financed emissions progress
Progress against our financed emissions reduction targets is tracking in the right direction versus the 2021 baseline:
Residential Mortgages:
Emissions Intensity kgCO2e/m2
Commercial Real Estate:
Emissions Intensity kgCO2e/m2
In 2021, we established a baseline physical emissions intensity of 40 kgCO²e/
m² for our Residential Mortgages portfolio, utilising the International Energy
Agency (IEA) 2021 NZE2050 1.5°C SDA Scenario to reduce our mortgage
portfolio GHG emissions 58% per m2 by 2030 from a 2021 base year. The
scope of our target reflects the total lending within our Residential Mortgages
portfolio, which was €29.4bn in 2021, representing 50% of the Group’s total
lending at that time. By 2025, our Residential Mortgages portfolio had
increased to 51% of the Group’s total lending, with a total of €37.0bn.
In 2025, the physical emissions intensity of our residential mortgages portfolio
decreased by approximately 14%, compared with our 2021 baseline. As
previously noted, progress against targets is not expected to be linear on a
year-on-year basis given reliance on external factors such as policy,
regulation, market trends and consumer behaviours. AIB remains committed
to investing in residential mortgage products and propositions to support the
achievement of our targets.
In 2021, we established a baseline physical emissions intensity of 135
kgCO²e/m², utilising the IEA 2021 NZE2050 1.5°C SDA Scenario to reduce
GHG emissions from the CRE sector within its corporate loan portfolio 67%
per m2 by 2030 from a 2021 base year. The scope of our target reflects the
total lending within our CRE portfolio of €5.6bn in 2021, 10% of the Group’s
total lending. Additionally, in 2024 we also undertook a process to enhance
the quality of our data alongside our decarbonisation models and
methodologies which resulted in a revised 2021 baseline from 135
kgCO²e/m² to 116 kgCO²e/m², while maintaining our current IEA pathway.
This adjustment allows us to present a more accurate representation of
our progress, while retaining our emissions reduction target of 67% by
2030. In 2025, our CRE portfolio accounted for 8% of the Group’s total
lending, with total lending at €5.5bn. In 2025, the physical emissions
intensity of our CRE portfolio reduced by approximately 13% compared
with our 2021 restated baseline.
Electricity Generation:
Emissions Intensity gCO2e/kWh
Corporate Portfolio Coverage:
% of corporate portfolio aligning with SBTi
AIB’s Electricity Generation portfolio has a significantly low emissions intensity
relative to the global average for electricity generation (432 gCO2e/kWh in
2025)1, given the high share of renewable energy assets such as onshore and
offshore wind energy. In 2021, we established our baseline maintenance
target to maintain the emissions intensity of our Electricity Generation Project
Finance portfolio at or below 21 gCO²e/kWh from 2021 through 2030 and only
finance 1.5°C aligned electricity generation projects. The scope of our baseline
and target reflects the total lending within our Electricity Generation portfolio
of €1.6bn in 2021, comprising 3% of the Group’s total lending. Since setting
our maintenance target, waste to energy has been excluded from the
Electricity Generation target scope, following bilateral guidance received from
the SBTi. This is primarily due to the fact that waste-to-energy facilities are not
based on fossil fuels, and electricity generation is not their main purpose or
revenue source. Consequently, the baseline emissions intensity decreased
significantly from 21 gCO²e/kWh to 0.01 gCO2e/kWh. Note that, financed
emissions related to waste to energy will continue to be tracked against our
maintenance target internally.
In 2025, the portfolio was 6% of total lending at €4.2bn with an emissions
intensity of 1.14gCO2e/kWh. We are committed to maintaining the emissions
intensity level of the Electricity Generation portfolio below 21 gCO²e/kWh
through 2030 by keeping the portfolio focused on renewable electricity
generation projects. In addition, we intend to grow AIB’s business in renewable
energy infrastructure to support the broader transition to a sustainable future.
1. iea.org/reports/electricity-mid-year-update-2025/emissions-power-generation-co2-emissions-
are-plateauing
Our Corporate Portfolio Coverage target considers large corporations with
>500 employees that have SBTi-validated targets. In 2021, we established a
target to increase our corporate portfolio loan volumes covered by emission
targets from 12% to 54% by 2030 from a 2021 baseline.
In 2025, we increased our Corporate Portfolio Coverage to 41%.
The percentage of customers with SBTi-validated targets set is expected
to increase in the coming years, as new regulations around transition plan
disclosures come into force. Key sectors should decarbonise in line with
the Government’s Climate Action Plan, and corporate customers
with >500 employees are expected to set their own emissions targets in the
medium term.
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AIB – projected – IEA 2021 NZE2050 (1.5°)
Actual
2021
2026
2031
2036
2041
2046
2050
0
10
20
30
40
50
AIB – projected – IEA 2021 NZE2050 (1.5°)
Actual
2021
2026
2031
2036
2041
2046
2050
0
25
50
75
100
125
150
AIB Maintenance Target
Actual
Global – projected – IEA 2024 WEO (1.5°)
2021
2024
2027
2030
0
100
200
300
400
500
Corporate Loan Portfolio – Projected
Corporate Loan Portfolio – Actual
2021
2024
2027
2030
0
20
40
60
80
100
Our Residential Mortgages and Commercial Real Estate targets
utilise IEA 2021 NZE2050 1.5C SDA scenarios and the associated
graphs therefore extend to 2050. Electricity Generation emissions
intensity is already well below IEA pathways, so our maintenance
target, and the associated graph, extend to 2030. The Portfolio
Coverage graph extends to 2030 in line with its target.
Scope 1, 2 & 3 GHG emissions
We generate GHG emissions primarily through our loan book and own operations.
Our GHG emissions can be broken down into a number of scopes and categories, as
shown below.
Breakdown of AIB Group Scope 1, 2 & 3 and total GHG emissions
2025
20241
Change %
Baseline
2019/20212
Milestones and target years
Scope 1 GHG emissions
Scope 1 Gross GHG emissions (tCO2e)
2,201
2,945
(25)%
4,784
Reduce absolute Scope
1 GHG emissions by 34%
by 2027 from a 2019
base year.3
Percentage of Scope 1 GHG emissions from regulated emission
trading schemes (%)
n/a
n/a
n/a
n/a
Scope 2 GHG emissions
Scope 2 Gross GHG emissions,
location-based (tCO2e)
3,078
4,440
(31)%
10,025
Increase annual sourcing
of renewable electricity
from 1% (2019) to 100%
in 2030.
Scope 2 Gross GHG emissions,
market-based (tCO2e)
157
511
(69)%
64
Total Scope 1 & 2 GHG emissions (location-based) (tCO2e)
5,279
7,385
(29)%
14,808
Decarbonise our own
operations by 2030.
Total Scope 1 & 2 GHG emissions (market- based) (tCO2e)
2,358
3,456
(32)%
4,848
Scope 3 Significant GHG emissions
Category 15 – Investments
SBTi-validated Financed Emissions Targets (tCO2e)4
962,476
1,067,519
(10)%
2,570,000
Decarbonise our
customer lending
portfolio by 2050.
Category 15 – Investments
Other emissions per in-scope customer loan book reporting (tCO2e)5
6,543,900
5,852,380
12%
n/a
Total gross indirect (Scope 3) GHG emissions (tCO2e)
7,506,376 6
6,919,899
8%
n/a
Total Scope 1, 2 & 3 GHG emissions (location-based) (tCO2e)
7,511,654
6,927,284
8%
n/a
Total Scope 1, 2 & 3 GHG emissions (market-based) (tCO2e)
7,508,734
6,923,355
8%
n/a
1. Scope 1 and 2 emissions data for 2024 are updated to actual figures where available. Please see ESG Supporting Notes on page 72 for more
details.
2. Base year for Scope 1 & Scope 2 is 2019 while base year for Scope 3 Financed Emissions is 2021. Please refer to ESG Supporting Notes on page
72, for calculations, judgements and estimates for more details.
3. We have set an interim target, validated by the SBTi, to reduce absolute Scope 1 GHG emissions by 34% by 2027, against a baseline of 4,800
tCO2e in 2019 (including biogenic emissions). Please see ESG Supporting Notes on page 72 for more details.
4. In 2023, we set SBTi-validated financed emissions targets for our three most material sectors, Residential Mortgages, Commercial Real Estate,
and Electricity Generation, using a 1.5°C aligned SDA. The figure included here is a reflection of the absolute emissions for these sectors.
5. For FY2025 reporting, we are progressing beyond reporting on our SBTi-validated emissions targets for our most material sectors and are now
including absolute emissions data for the remainder of our full in-scope customer loan book.
6. Figures are rounded. A further breakdown of our full customer loan book is detailed in the Disaggregation by PCAF Asset Class table on page 68.
Year-on-year movements in financed emissions reflect a range of factors, including changes in portfolio size and composition, as well as ongoing
enhancements to data quality and methodology.
GHG intensity based on net revenue
GHG emissions intensity based on net revenue is calculated in the table below. It is calculated as per ESRS requirements by taking the two totals shown
above for our GHG Emissions (7,511,654 tCO2e location-based and 7,508,734 tCO2e market-based). These totals are then divided by total operating
income for AIB Group for FY25 (€ 4,511m).
The FY2025 emissions intensity does not differ in any material respect between the location-based and market-based methodologies, due to the
immaterial variance in the underlying GHG totals for 2025.
2025
2024
Change from 2024 to 2025
Total GHG emissions (location-based) per net revenue (tCO2e/Monetary unit)
1,665.2
1,405.7
18%
Total GHG emissions (market-based) per net revenue (tCO2e/Monetary unit)
1,664.5
1,404.9
18%
Figures for 2024 are revised figures where available as in-scope full book emissions are included in the total. Please see ESG Supporting Notes on
page 72 for more details.
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GHG Emissions
E1-6
Disaggregation of Scope 1 & 2 GHG emissions data by country
Total
Ireland
UK
USA
(tCO2e)
2025
2025
2024
2019
2025
2024
2019
2025
2024
2019
Scope 1 Gross GHG emissions
2,201
2,048
2,748
4,481
150
181
282
3
15
21
Scope 2 Gross GHG emissions,
location-based
3,078
2,796
4,097
9,366
256
280
564
26
63
94
Scope 2 Gross GHG emissions,
market-based
157
0
308
0
131
140
0
26
63
64
Total Scope 1 & 2 GHG emissions
(location-based)
5,279
4,844
6,846
13,847
406
461
846
29
78
115
Total Scope 1 & 2 GHG emissions
(market-based)
2,358
2,048
3,056
4,481
281
321
282
29
78
85
Scope 1 and 2 emissions data for 2024 are updated to actuals where available. Please see ESG Supporting Notes on page 72 for more details.
Contractual instrument procurement type breakdown
Bundled instrument (2025)
Unbundled Instrument (2025)
Total 2025
Total 2024
Procurement type
% of total consumption
% of total consumption
% of total electrical
consumption
% of total electrical
consumption
Self-generation / On-site generation
n/a
n/a
0%
0%
Direct procurement (contract with generator
– VPPA)
0%
92%
92%
87%
Contract with electricity supplier
(supplier-specific emission rate)
7%
0%
7%
8%
Energy Attribute Certificates (EACs)
0%
0%
0%
0%
Passive procurement (residual mix)
0%
1%
1%
4%
Passive procurement (other grid-average
emissions factors)
0%
0%
0%
1%
Total
7%
93%
100%
100%
Data for 2024 is updated to actuals where available. Please see ESG Supporting Notes on page 72 for more details.
Biogenic emissions
2025
2024
2019
Not included in Scope 1 emissions (tCO2e)
23
27
16
Not included in Scope 2 emissions (tCO2e)
—
—
—
Not included in Scope 3 Significant GHG emissions (tCO2e)
See notes
See notes
See notes
Total biogenic emissions
23
27
16
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David O’Donnell, Commercial Director at Cool Runnings Events with AIB’s business
adviser for Cork, David Cotter, as its ZipIt Forest Adventures, Farran Wood.
Disaggregation of in-scope customer loan book financed emissions
As outlined in the financed emissions target setting and measurement section on page 63, AIB continues to advance our GHG emissions reporting for
Scope 3, category 15 investments. In addition to the disclosure of absolute emissions for our three most material sectors with SBTi-validated targets,
consistent with prior year reporting, we are presenting for the first time absolute emissions associated with our full in-scope customer loan book for
FY2025.
This expanded disclosure is presented in the table below which shows our in-scope customer loan book disaggregated by PCAF Asset Classes. The four
primary PCAF Asset Classes designated for banking institutions and most material to AIB Group are Project finance, Commercial real estate, Mortgages,
as well as Business loans and other classified lending. The scope may be expanded to include additional asset classes over time. In accordance with
the PCAF standard, emissions in the table below are disclosed based on the customer emission scope classification.
Customer loan book disaggregated by PCAF Asset Class
2025 Customer Loan Book (Full Book)
2024 Customer Loan Book (Full Book)
PCAF Asset Class
Exposure
(€, bn)
Scope 1 & 2
(CO2e, kt)
Scope 3
(CO2e, kt)
Total
(CO2e, kt)
Exposure
(€, bn)
Scope 1 & 2
(CO2e, kt)
Scope 3
(CO2e, kt)
Total
(CO2e, kt)
Project finance (Electricity Generation)
4.16
9.85
n/a
9.85
3.61
6.64
n/a
6.64
Commercial real estate
5.46
414.12
n/a
414.12
5.65
469.48
n/a
469.48
Mortgages
37.01
538.50
n/a
538.50
36.29
591.49
n/a
591.49
Business loans and other classified lending1
21.89
1,713.25
4,830.65
6,543.90
21.92
1,534.53
4,317.85
5,852.38
Total 4
68.522
2,675.73
4,830.653
7,506.38
67.462
2,602.14
4,317.853
6,919.99
1. ‘Business loans’ comprise all on-balance sheet lending and lines of credit provided to listed and unlisted businesses, nonprofits, and other organisational structures for general corporate purposes.
‘Other classified lending’ refers to remaining lending activities that fall within the scope of financed emissions calculations but sit outside the project finance, commercial real estate, and mortgage
asset classes.
2. ‘Total Exposure’ does not include a balance of €3.82bn of loans and advances to customers within AIB’s total gross loan figure for the financial year (€3.77bn for FY2024). It is out of scope for
emissions calculations, as it relates to general consumer finance not linked to a specific use of proceeds (e.g., credit cards or personal loans) as per PCAF guidance.
3. Scope 3 emissions of our customers are not included for ‘Project finance’, ‘Commercial real estate’ or ‘Mortgage’ asset classes, in accordance with the financed emissions PCAF standard.
4. Figures are rounded.
The table above presents the in-scope customer loan portfolio, including associated exposures and financed emissions. Year-on-year movements in
financed emissions reflect a range of factors, including changes in portfolio size and composition, as well as ongoing enhancements to data quality and
methodology. While a downward trend in financed emissions intensity is anticipated over time, this trajectory is not expected to be linear across all
sectors. We continue to prioritise the measurement and, where possible, the reduction of financed emissions, with a focus on supporting real-economy
decarbonisation across its portfolios.
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GHG Emissions continued
David O’Donnell, Commercial Director at Cool Runnings Events with AIB’s business adviser
for Cork, David Cotter, at its ZipIt Forest Adventure, Farran Wood.
As part of the overarching risk management process described in the Risk
Management section of our Annual Report from page 177, Climate & Environmental
Risk is recognised as a principal risk for the group. Its underlying drivers are actively
monitored through the Group’s Top & Emerging Risk Survey.
SBM-3, IRO-1
Climate Change is identified as a material topic through our DMA process,
from both an impact and a financial materiality perspective. Our Material
Impacts, Risks and Opportunities section from page 51 outlines the
material IROs across our value chain, as well as their interaction with
our strategy and business model. In addition to the DMA process, C&E
Risk is identified as a Principal Risk for the Group through the MRA risk
management processes, as detailed further in the Risk Management
Report on page 179.
C&E Risk is defined as any potential negative financial or non-financial
(e.g. reputational) impact on the Group stemming from climate and
environmental change and the transition to a sustainable economy.
• Climate risk is defined as potential negative impacts due to climate
change on the Group. This includes risks posed by direct exposure
to climate change and indirect exposure through customers and
suppliers. Climate risk includes the impacts that the Group, its
customers, and suppliers have on climate, and the impact from
climate on the Group, its customers, and suppliers.
• Environmental risk is defined as potential negative impacts of the
activities or actions of the Group, its customers or suppliers, either
directly or indirectly, on the naturally occurring living and non-living
components of the Earth which together constitute the biophysical
environment. Changes in the state of nature (quality or quantity)
may act as drivers on the Group’s financial performance through
risk events and could result in changes to the capacity of nature to
fulfil social and economic functions.
The following details some of the analysis exercises undertaken regarding
C&E Risks. Further details regarding the identification and management of
climate-related physical and transition risks are also included in the Risk
Management section of this AFR on page 236.
Transmission Channel Analysis
Transmission Channel Analysis, conducted annually, examines how C&E
Risk drivers transmit through micro and macroeconomic factors to impact
the Group’s Principal Risks. It considers how risk drivers such as the
Group’s geographic footprint – credit, market, third party providers,
sectors, and asset classes – are overlaid with insights from the Business
Environment Scan (BES), heatmaps, and internal research and how these
impact across each material risk. For each driver, transmission channels
and first- and second-order impacts are assessed. The Group’s Materiality
Matrix (GMM) determines the impact’s materiality across risk types,
factoring in reputational, regulatory, financial, and business objectives.
The 2025 assessment considered nine drivers over the short (1 – 3 years),
medium (4 – 10 years) and long term (>10 years) to recognise the changing
impacts of C&E Risk drivers over different time horizons. These drivers are
broken down into the following categories:
Climate
(Physical Risk)
Includes climate change patterns and extreme
weather events.
Environmental
(Physical Risk)
Includes biodiversity loss and degradation,
water stress and management, raw material
shortage as well as air pollution.
Climate
(Transition Risk)
Includes consumer and investor sentiment,
climate policy and regulation as well as
technological change.
Environmental
(Transition Risk)
Includes environmental policy and regulation.
In mapping these risk drivers against the Group’s Principal Risks, the
Transmission Channel Analysis identifies controls in place which mitigate
impacts identified and provides insight into how C&E Risk can
be managed within AIB.
Business Environment Scan
BES provides a strategic, macro-level view of how the business
environment evolves under C&E Risks. It tracks government policy,
climate targets, carbon pricing narratives, regulation, key technologies,
demographic and social trends, competitive dynamics, and priority sector
developments. The latest climate science is monitored to assess how new
insights on physical impacts may shift risk perceptions across geographies
where the Group operates. Identified risk drivers feed into the Transmission
Channel Analysis to evaluate their effect on material risks.
C&E Risk heatmap tools
Using external studies, global tools, regulatory guidelines and internal
knowledge, three heatmaps, covering physical, transition and
environmental risks, were developed to identify prevalent C&E Risks and
where they may crystallise. These are key tools for understanding our C&E
Risk profile.
Deep dive on sectors – ‘house view’
Granular research is periodically conducted on sectors material to the
Group’s balance sheet, producing ‘house views’ on how sustainability
factors affect key sectors. This helps identify IROs, and informs customer
engagement. At a national level, input from climate scientists, academics,
and customers shapes expert views on sector pathways, while local
business areas with sector specialists contribute to research and debate
on current and future developments. Sectoral research outputs guide
internal debate and strategy, while key insights may be adapted into
customer-focused materials to broaden stakeholder engagement and
help customers understand transition pathways.
Protecting nature and biodiversity
Nature and biodiversity are essential for planetary health, providing
resources like wood, minerals, and food, and services such as
pollination, water purification, and climate regulation. Yet they are in
crisis, with scientists warning that seven of nine planetary boundaries
may be breached. Nature’s services contribute an estimated $44 trillion
annually, over half of global GDP (World Economic Forum).
At AIB, we recognise nature as everyone’s responsibility and the need
for collective action to halt biodiversity loss. Banks play a key role by
financing businesses that invest in nature-positive actions and reducing
flows that harm nature. We integrate biodiversity into credit
assessments to encourage positive outcomes for communities and
environments. Through our SLF, we consider environmental factors and
funding with Green Bonds supporting projects that enhance biodiversity.
As outlined above, we have several tools that support annual and ad-
hoc analyses, some of which also address nature-related risks. In 2025,
we developed heatmaps for physical, transition, and environmental risks
as core tools to understand, track, and respond to our C&E Risk profile.
These heatmaps incorporate nature and will help target nature-related
elements in future work. Also, our annual BES identifies areas where AIB
and customers most impact nature and depend on ecosystem services
(e.g., freshwater, soil quality). One C&E Risk driver assessed through this
process is biodiversity loss and soil degradation. We have also carried
out detailed mapping exercises to identify any of our own premises
located in areas of biodiversity sensitivity.
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Climate & Environmental Risk
Climate stress testing
C&E Risk is integrated into the Group’s stress testing framework through
scenario analyses assessing potential impacts on credit, treasury
portfolios, operations, and overall financial position. These tests capture
interconnected risks, including physical and transition risks from market
shifts, investor sentiment, and regulation.
C&E stress testing has been embedded in ICAAP for a number of years,
with annual enhancements such as adding Environmental Risk. The
Business Model, Capital Adequacy Framework and the Stress Testing
Policy embed C&E Risks into the Group’s stress testing operations. The
Group’s Stress Testing Policy outlines processes for stress testing,
including C&E Risk impacts. The climate stress testing approach and
models assess physical and transition risks across scenarios for the
Group’s credit exposures.
The initial scope of climate stress testing activities and climate modelling
in the Group is primarily focused on the credit risk implications for the
loan portfolio, via both transition and physical risk. This is where the most
material impact of C&E stresses impact the Group, with the approach
covering all customer loans and advances on the balance sheet.
The impacts of climate risk under various climate scenarios are not
expected to manifest in the short term and therefore there is no
requirement to make any related adjustments to the financial statements.
Aside from the indirect macro-impact stemming from the climate
scenarios (e.g., interest rate trajectories), direct transmission channels
or direct upstream impacts are excluded from these stress scenarios.
Flood risk modelling
Flooding is the Group’s most material physical risk. In recent years AIB
has advanced its enhanced flood risk model, first introduced in 2023,
delivering greater granularity and flexibility.
The new model maps individual properties against river, coastal,
and surface water flood maps for multiple return periods (e.g., 1-in-20 or
1-in-1000 years) to calibrate probabilities. It estimates damage by flood
and building type, applying rebuild costs to calculate repair expenses.
Using this approach, the model quantifies flood-damage impacts across
varying severities and calculates ‘Expected Annual Damage’ as the
probability-weighted average of costs. It can reflect current climate
conditions or apply Intergovernmental Panel on Climate Change (IPCC)
scenarios for projected conditions.
The scenarios currently available are Representative Concentration
Pathway (RCP) 2.6, 4.5, 6.0 and 8.5 at 5-year intervals until 2100. RCP
8.5 assumes by far the greatest CO2 concentration and temperature
anomalies, whereas RCP 2.6 assumes a far lower amount. RCPs work
intuitively; the greater the RCP value, the stronger the physical risk signal
will be for the scenario. Some RCPs map closely to the Network for
Greening of the Financial System (NGFS) scenarios being used by the
regulators for climate stress testing.
The model quantifies flood risk under multiple climate scenarios,
including high-emission pathways to 2055. It supports ICAAP and
broader stress testing, informing short-, medium-, and long-term flood
risk materiality so timely mitigation can be implemented. It also
estimates flood probabilities for individual properties but cannot
calculate joint probabilities across multiple properties. This limitation
is addressed by stressing individual property risks within a plausible,
geographically-based scenario.
The flood risk model’s layered approach enables analysis of key drivers
and their relevance to Group exposure, breaking acute impacts down
by flood type, building type, customer type, and location.
Climate scenario analysis
C&E risk scenarios focus on macroeconomic drivers used in stress testing
to produce a climate-focused three-year ICAAP forecast. Three scenarios
assess physical and transition risks in the short to medium term.
• The physical risk scenarios, Tipping Points, features the Earth
breaching multiple climate tipping points, accelerating global warming
and chronic physical risks. Extreme weather events increasingly
damage economic productivity, while weak policy responses lead to
severe, persistent disruption in the real economy.
• The first transition risk scenario, Paris-aligned, assumes that
governments pursue incentives to reduce carbon emissions. They
do this in a carefully structured way, with incentives geared towards
a reduction that is systematically implemented.
• In the second transition risk scenario, Sudden Realisation,
it is assumed that a limited number of actions have taken place,
with the ‘shock’ coming from an unstructured and significant
implementation of carbon-reduction levies and taxes. The resultant
volatility is caused by the sudden implementation of climate-positive
policies to ‘make up’ for time when they weren’t in place.
In these scenarios, forecasts of those factors that drive increased risk
in the Group’s credit portfolios have been made. These factors are
implemented in the ICAAP credit stress testing engine and are applied to
the Group’s balance sheet, with business plans integrated into growth
forecasts in credit exposures and the existing International Financial
Reporting Standards (IFRS) 9 risk parameters.
Both ‘stressed’ climate transition risk scenarios model impacts of
hypothetical carbon emissions charges driven by market changes and
government policies or incentives.
For the retail model, this tax would affect the disposable incomes of
customers, which may present challenges for customers and the Group,
depending on how unexpected they are and how punitive the taxes.
The stress test output is an analysis of the potential impacts of this
scenario on the mortgage book, where charges are applied based on
the carbon emissions of homes, which leverages data on property BER.
For business customers (corporates and SMEs), the model reflects the
borrower’s affordability by reducing profits and increasing costs. Charges
are applied in this model based on the scope of the carbon emissions of
the NACE sector in which the borrower operates.1 The stress test output
provides an analysis of the potential impacts of this scenario on the Non-
Retail borrowers.
The stress tests described above were included in the ICAAP process,
which provided assurance that the Group had adequate capital to
withstand these risks.
1. NACE is a pan-European classification system that groups organisations according to their
business activities.
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Climate & Environmental Risk continued
AIB Group has been reporting EU Taxonomy disclosures since their introduction
and remains committed to providing clear and transparent information on our
Taxonomy-eligible and Taxonomy-aligned activities. Our FY2025 reporting reflects
the evolving requirements under Article 8 of the EU Taxonomy Regulation and the
latest interpretative guidance issued by the European Commission, with our Green
Asset Ratio (GAR) presented on a consistent basis with prior years.
For FY2025, AIB has applied the transitional option permitted under Article
4, third subparagraph, of Commission Delegated Regulation (EU) 2026/73
(Omnibus Delegated Act), thereby continuing to report in accordance with
the Disclosure Delegated Act as it applied until 31 December 2025. In line
with Article 10(5) of the Disclosures Delegated Act, as amended by Article
1(8) of the Omnibus Delegated Act, AIB will not report the Trading Book KPI
or the Fees and Commission KPI (Sections 1.2.3 and 1.2.4 of Annex V)
until their revised application date of 1 January 2028.
The preparation of the EU Taxonomy reporting is based on prudential
consolidation of AIB Group plc. The prudential consolidation is in
accordance with the supervisory reporting of financial institutions as
defined in Regulation (EU) No 575/2013. Supervisory reporting data
prepared in accordance with Commission Implementing Regulation (EU)
2024/3117 (FINREP) is used as a primary data source for the calculation
of the Taxonomy key performance indicators.
The EU Taxonomy is a sustainability classification system that translates
the EU’s climate and environmental objectives into criteria for
categorising specific economic activities for investment purposes.
It aims to redirect capital flows to support the transition and help generate
sustainable and inclusive growth.
The EU Taxonomy Regulation (Regulation (EU) 2020/852) specifies that
financial undertakings must disclose how and to what extent their activities
are associated with economic activities that qualify as environmentally
sustainable. To qualify as EU Taxonomy-aligned, an economic activity
must substantially contribute to one or more of the six EU environmental
objectives under the technical screening criteria, while doing no significant
harm (DNSH) to the other five objectives and complying with minimum
safeguards. The six EU environmental objectives are:
1. climate change mitigation (CCM);
2. climate change adaption (CCA);
3. sustainable use and protection of water and marine resources (WTR);
4. transition to a circular economy (CE);
5. pollution prevention and control (PPC); and
6. protection and restoration of biodiversity and ecosystems (BIO).
Our SLF, detailed on page 60, provides transparency on the types of
activities we consider to be green, transition or social activities. EU
Taxonomy-aligned lending is a subset of the green lending category
determined by the SLF.
As at 31 December 2025, the GAR is 4.5% (2024: 4.3%) which equates
to total taxonomy aligned exposure of €4.4bn (2024: €4.1bn) over total
covered assets of €98.7bn (2024: €97.2bn). The GAR has increased since
December 2024 as a result of the Group implementing changes in data
collection and data remediation activities.
The EU Taxonomy criteria are strict and exclude many lending activities
that contribute to the transition to a greener economy. For AIB, EU
Taxonomy-aligned exposure mostly comprises residential mortgages,
where the underlying assets meet the technical screening criteria for
Climate Change Mitigation, including an assessment of DNSH to Climate
Change Adaptation. Lending to counterparties subject to the CSRD is also
EU Taxonomy-aligned but is a small portion of the total lending activity, at
c. 1%.
In determining alignment for residential mortgages, we have utilised the
property’s BER or EPC to identify those assets contained in the top 15% of
national stock (constructed pre-2020) or those with energy performance
that is at least 10% lower than the national threshold set for the nZEB
requirements (constructed post-2020).
In applying the EU Taxonomy requirements for FY2025, AIB has adopted
the CSRD scope for identifying in-scope counterparties. Certain template
references continue to use historical Non-financial Reporting Directive
(NFRD) terminology; this reflects the wording in the delegated templates
rather than the applicable reporting framework. A screening exercise was
performed to identify counterparties subject to CSRD using the most
recent published annual financial reports. The EU Taxonomy regulation is
subject to ongoing updates and refinements in taxonomy criteria that may
influence the calculation of the GAR over time.
The flow methodology has been revised in line with the clarification
provided in the Third Commission Notice (C/2024/6691), ensuring that the
flow GAR captures only the gross carrying amount of exposures newly
incurred within the year, with no offset for repayments or disposals. This
includes newly originated loans and advances, debt securities, and equity
instruments.
We acknowledge the importance of ESG data to inform reporting,
support decision-making and enhance product development. Our data
continues to evolve in line with industry developments, AIB policies and
internal data strategy.
The Group does not lend to nuclear energy related activities in accordance
with the Group exclusion policy and has no exposure to activities outlined
under sections 4.26, 4.27 and 4.28 of Annexes I and II to Delegated
Regulation 2021/2139. The Group has an exposure related to facilities that
produce electricity using fossil gaseous fuel under section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139 and have been
disclosed in accordance with Annex XII of the Delegated Act.
Please refer to our supporting tables from page 344 in General Information
for the full disclosure templates required under EU Taxonomy specifications.
Green Asset Ratio
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EU Taxonomy
4.5%
4.3%
FY2025
FY2024
Calculations, judgements and estimates
Supporting notes for Energy consumption and mix
• Estimations are used where the Group does not hold the energy supply
contract, for example at service charge locations. Additionally, FY2025
data includes nine months of actual data from January to September,
while Key Performance Indicators (KPIs) are then used to estimate the
final three months of data from October to December. FY2024 data has
been updated to incorporate 12 months of actual data where available.
• The energy consumption and mix table figures have been prepared in
alignment with the organisational and operational boundaries used for
Scope 1 and Scope 2 reporting.
• All quantitative energy-related information is shown in megawatt-hours
(MWh). Under NCV totals, ‘Fuel consumption from crude oil and
petroleum’, ‘Fuel consumption for renewable sources’ and, ‘Natural
Gas’ usage is converted from Gross Calorific Value (GCV) to NCV using
published country-specific conversion factors.
• All quantitative energy-related information are final energy consumption
figures, and refer to the amount of energy that AIB actually consumes.
• AIB does not receive any steam, heat or cooling as ‘waste energy’
from a third party’s industrial processes.
• The split of electricity, heat, steam or cooling between renewable and
non-renewable sources aligns with market-based Scope 2 GHG
emissions calculations.
• AIB has entered into a VPPA, which, from 2024, has enabled us to
report fully traceable renewable electricity for Direct Procurement.
• Figures are rounded.
Supporting notes for AIB’s GHG emissions
• A GHG source is any physical unit or process that releases GHG into the
atmosphere:
• Scope 1 (Direct) GHG emissions are from sources that are owned or
controlled by AIB. AIB's Scope 1 (Direct) emissions include combustion of
stationary and mobile sources and fugitive emissions.
• Scope 2 emissions are indirect GHG emissions associated with the
purchase of electricity, steam, heat or cooling. AIB Scope 2 emissions
include the consumption of purchased electricity and heat.
• Scope 3 includes category 15 emissions. No other Scope 3 categories are
deemed to be significant under CSRD for FY 2025. Other Scope 3
categories relevant to our business activities account for less than 1% of
our total Scope 3 emissions and as such are not deemed significant in
accordance with ESRS E1 paragraph 51. We will continue to monitor and
report these emissions internally. Emissions tied to these categories (1, 2,
3, 5, 6, 7 and 13) will be reported as part of our CDP disclosure.
• The methodologies used for calculating this data are aligned with the
Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting
Standard (revised edition) and the ISO 14064-3:2019 standard.
Emission factors were sourced from recognised national and
international databases, applicable to the reporting years. Market-
based emissions sourced from supplier-specific factors, contractual
instruments (VPPA) and residual mix factors where applicable.
• For Scope 1 & Scope 2 data where the Group does not hold the energy
supply contract, consumption is estimated for service charge locations.
• For Scope 1 & Scope 2 FY2025 data represents nine months of actual
data (January – September). The remaining three months (October –
December) are estimated using relevant KPIs.
• FY2024 data has been updated to incorporate 12 months of actual data
where available. This exercise was completed in accordance with the
GHG Protocol guidance.
• Verification statements are publicly available at aib.ie/sustainability.
• Scope 3 category 15 GHG emissions include our three most material
sectors namely: Residential Mortgages, CRE, and Electricity Generation
where AIB have SBTi-validated financed emissions reduction targets
based on a 2021 baseline. The accounting and reporting of category 15
emissions associated with lending is described in PCAF Part A
Standards on financed emissions from lending and investment
activities.
• We are applying a phase-in provision for Scope 3 category 15 absolute
value emissions, while we focus on adopting transitional measures for
value chain information.
• In line with the GHG Protocol, our emissions are presented in tonnes of
carbon dioxide equivalent units (tCO2e) and cover seven greenhouse
gases when available: CO2, CH4, N2O, hydrofluorocarbons (HFC),
perfluorocarbons (PFC), sulphur hexafluoride (SF6) and
nitrogen trifluoride (NF)3.
• The Global Warming Potentials (GWPs) used in the calculation of CO2e
are based on the IPCC Assessment Reports over a 100-year period.
• These Group figures reflect gross location-based absolute emissions,
unless flagged otherwise.
• We do not currently purchase carbon credits. We also do not have an
internal carbon pricing mechanism in place
• Figures are rounded.
Supporting notes for Contractual instruments
• The disaggregation of information is in accordance with the
Greenhouse Gas Protocol and RE100 guidance on the use of
contractual instruments for market-based Scope 2 reporting.
• Progress towards our SBTi renewable sourcing target is derived from
annual electricity data (partially estimated), with progress assessed by
comparing the volume of eligible Guarantee of Origin certificates
cancelled to date against the corresponding annual electricity
consumption.
• There are two types of contractual instruments: ‘Bundled’, which refers
to renewable energy and any associated certificates that are purchased
together under the same contract, and ‘Unbundled’, which refers to the
separate purchase of energy and renewable certificates.
• Total electrical consumption used to determine the VPPA percentage
comprises purchased electricity for Group Estate and the EV fleet. This
is measured relative to the generation from the VPPA, taking into
account the geographical market in which the PPA is located.
• FY2024 data has been updated to incorporate 12 months of actual data
where available.
Supporting notes for Biogenic emissions
• Biogenic emissions are CO2 emissions from the combustion,
processing and distribution phase of bioenergy.
• Biogenic emissions from combustion or biodegradation within the value
chain are excluded from the financed emissions table due to data
constraints.
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ESG Supporting Notes
E1-5
E1-6
E1-6
E1-6
Calculations, judgements and estimates continued
Supporting notes for progress against milestones
and targets
• For the interim target we have set, which has been validated by the SBTi, to
reduce absolute Scope 1 GHG emissions by 34% by 2027, this was set
against a baseline of 4,800 tCO2e in 2019. This baseline figure of 4,800
tCO2e includes biogenic emissions as these emissions were included
during the validation process. These emissions however are excluded
from the Breakdown of AIB Group Scope 1, 2 & 3 and total GHG emissions
table as they are instead captured in the biogenic emissions table. Since
Goodbody was only consolidated for the final four months of 2021, it was
not included within the target boundary and its data was excluded from
the GHG inventory submitted to SBTi.
• For our target to Increase annual sourcing of renewable electricity from
1% (2019) to 100% in 2030. The electricity usage of Goodbody falls
outside the defined boundary of this SBTi target. In 2025 AIB’s annual
sourcing of renewable electricity increased to 92% (excluding Goodbody).
When rounded, the figure for the full AIB Group also comes to 92%. In
2025 annual sourcing of renewable electricity was updated to actual 89%
from 85% stated in FY2024.
Supporting notes for in-scope customer loan book
financed emissions
• Our in-scope customer book financed emissions are influenced by a
combination of factors, including changes in portfolio size and
composition, data quality and methodology developments.
• Where relevant proxies are used given the data-availability challenges
associated with financed emissions calculations, such proxies are
used when direct customer data are not available.
• Emissions for our Electricity Generation portfolio are based on actual
data sourced from customers.
• Where actuals are not available, third-party data provider economic
emissions intensity factors provide an estimate of the emissions profile
(Scope 1, 2 and 3) of activities by NACE code.
• Over time, we aim to replace estimates with actual counterparty or
asset-level data and reduce our reliance on proxy information. As more
specific data becomes available, we will need to revise our actual
emissions, targets and underlying assumptions accordingly.
• The majority of reported financed GHG emissions (outside of our SBTi-
validated portfolios) are estimated using sector-based economic
emissions intensity factors sourced from a third party provider. These
factors are applied at the most granular NACE Level 4 classification to
ensure that emissions estimates accurately reflect the underlying
economic activity of each borrower. Applying emissions factors at this
level enhances the specificity and robustness of calculated financed
emissions by aligning each exposure to its closest available sectoral
emissions profile.
• Figures are rounded.
Supporting notes for revised comparative year figures
• Total fossil energy consumption for FY2024 actual value was
15,209MWh (FY24 estimated data: 16,491MWh) which accounts for
45% of total energy consumption (FY24 estimated data: 50%).
• Total renewable energy consumption for FY2024 actual value was
18,482MWh (FY24 estimated data: 16,537MWh) which accounts for
55% of total energy consumption (FY24 estimated data: 50%).
• Total energy consumption for FY24 actual value was 33,691MWh (FY24
estimated data: 33,028MWh) and total energy consumption reported
on NCV was 32,553MWh (FY24 estimated data: 32,209MWh).
• 2024 actual values for Scope 1 & 2 emissions were as follows:
• Gross Scope 1 GHG emissions were 2,945tCO2e (FY24 estimated
data: 2,875tCO2e)
• Gross location-based Scope 2 GHG emissions were 4,440tCO2e
(FY24 estimated data: 4,391tCO2e) and gross market-based Scope 2
GHG emissions were 511tCO2e (FY24 estimated data: 813tCO2e)
• Total actual FY2024 GHG location-based emissions from Ireland
were 6,846tCO2e (FY24 estimated data: 6,712tCO2e) and total
actual GHG market-based emissions were 3,056tCO2e (FY24
estimated data: 3,213tCO2e).
• Total actual FY2024 GHG location-based emissions from the UK
were 461tCO2e (FY24 estimated data: 470tCO2e) and total actual
GHG market-based emissions were 321tCO2e (FY24 estimated
data: 390tCO2e).
• Total actual FY2024 GHG location-based and market-based
emissions from the USA were 78tCO2e each (FY24 estimated data:
85tCO2e).
• 2024 actual values for Contractual Instruments for Direct procurement
(contract with generator – VPPA) were 87% (FY24 estimated data: 84%),
for contract with electricity supplier 8% (FY24 estimated data: 9%) and
for passive procurement (residual mix) 4% (FY24 estimated data: 7%).
FY24 estimated data remained at 1% for passive procurement (other
grid-average emissions factors).
• 2024 actual values for GHG intensity based on net revenue were
1,405.7 for location-based intensity (FY24 estimated data: 218) and
1,404.9 for market-based intensity (FY24 estimated data: 217). Figures
for 2024 have been revised as in-scope full book emissions figures are
now included in the total emissions.
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E1-6
E1-6
E1-6
E1-5
31
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Societal &
Workforce
Progress
In this section
Material topics
ESRS
Page
Financial Wellbeing
ESRS S4 – Consumers and end-users
77
Housing
ESRS S3 – Affected communities
ESRS S4 – Consumers and end-users
80
Equal Treatment &
Opportunities for All
ESRS S1 – Own Workforce
82
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We are committed to playing a positive role in society, and contributing meaningfully
to the economy. We work hard to ensure our colleagues feel supported and
empowered, enabling us to deliver on our customer commitments
and strengthen our impact in the communities we serve.
SBM-3
Three material topics from our DMA are the primary focus of this
section:
Financial Wellbeing
Housing
Own Workforce
(Equal Treatment & Opportunities for All)
This section details our approach to managing the corresponding
material IROs in terms of policies, actions and performance measures.
Alongside our Human Rights Commitment, we address other ESRS social
pillar requirements, detailing impacted stakeholders, our engagement
with them, and our processes for raising and remediating concerns. Our
DMA and our stakeholder engagement channels help us consider aspects
such as gender, diversity, and vulnerability, focusing on our customers,
colleagues, and the wider community.
The first of our material topics, Financial Wellbeing, is explored through
three themes: tailored financial products, innovative solutions and
informed financial decisions.
We support and empower our customers, who are at the heart of
everything we do, to manage their personal finances with confidence,
with additional supports for customers in vulnerable circumstances.
We serve consumers, SMEs, and large corporates through tailored
products, solutions, and partnerships, adapting our services to meet
changing needs.
Our approach supports improving access to financial services, including
updated design solutions, providing financial education and enhancing
the customer experience through simplicity, agility, safety, and self-
service. Strong customer relationship management is central to
maintaining trust and satisfaction.
As part of our commitment to being a Customer first organisation, in 2025
we completed an exercise to segment our AIB ROI consumer base, using
customer data and market research insights. The ambition was to
categorise our customer segments, deepen our understanding of who
they are, and align our proposition planning to ensure we are meeting
and anticipating customer needs. Building on this, we are planning to
undertake a similar exercise for Business Markets and AIB NI in Q1 2026,
further enhancing our ability to adapt our services and propositions to
evolving customer expectations.
At AIB, our ambition is to help customers achieve the life
they’re after by meeting their needs at every life stage.
AIB supports a substantial customer base, and we are
constantly working to improve their experience with us by
deepening our understanding of their ever-evolving needs.
Housing is also one of our material topics, vital for community resilience,
wider society and future generations.
As a leading mortgage provider, we offer lower-cost green
mortgages for energy efficient homes and lower-cost loans
for retrofitting, which are detailed in the Climate &
Environmental Action section above.
We support social and affordable housing programmes, which impact
affected communities in our downstream value chain and viewing housing
through both customer and affected communities’ perspectives.
Our social pillar also prioritises our colleagues. Investing in our workforce
ensures it has the skills and support needed to deliver the best outcomes
for our customers.
Our third material topic in this section is Own Workforce (Equal
Treatment & Opportunities for All). We foster an inclusive workplace
where everyone feels empowered, promoting gender equality, training
and development initiatives, inclusion of people with disabilities, anti-
harrassment measures, and diversity among colleagues. We support
work-life balance, variable pay, and career development, all of which
positively impact colleagues.
Recruiting and retaining skilled people – and providing ongoing
development – are essential to our sustainability commitments and
customer service. A strong sustainability approach (as detailed in Climate
& Environmental Action) helps attract and retain a talented workforce,
supporting our strategy for operational efficiency and resilience. See
pages 44 to 45 for details.
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Societal & Workforce Progress
In line with our strategy, we put customers first and their financial wellbeing is at the
heart of what we do. We aim to continually adapt our service and product offerings to
meet the needs of our customers, throughout their life stages, while always being
fair, transparent, and accessible, and consistently delivering the best value we can
offer.
This is one of our seven material topics. For each topic, we report in
accordance with the ESRS. We disclose our approach to managing our
material IROs through our policies, actions and performance measures.
Value chain: Downstream
Impacts:
• We provide access to essential financial resources, promoting
financial inclusion and wellbeing by providing tailored financial
products and services.
• We deliver lasting, innovative solutions that evolve with our customers’
banking needs, focusing on addressing their issues and enhancing their
experience through proactive product and service excellence.
• We empower customers to make informed financial decisions and
improve access to finance through clear, straightforward
communication.
Our policies
S4-1
The policies described below apply to all employees, contractors,
consultants, agents and third parties throughout the Group, in all
jurisdictions who have direct or indirect access to our information or
systems. They are applicable to all legal entities and subsidiaries in AIB
Group, including Goodbody and, where relevant, our suppliers within our
value chain. Payzone is not covered by these policies as it maintains its
own suite of policies.
Tailored financial products and Innovative solutions
We support customers at every financial and life stage, from education to
planning for and entering into retirement. This section details initiatives
related to tailored financial products for different life stages, which
include our investment, pension products, initiatives to support women
and student lending products.
In supporting our customers, we aim to continually improve their banking
experience with us by delivering innovative design offerings that keep pace
with our customers’ financial requirements, and we track the
effectiveness of this with our Customer Experience surveys. We also
undertake substantial customer research with the design of new products
and propositions to ensure that we take into account customers’ needs
when delivering on those products.
Product and Propositions Risk Policy
This policy outlines our approach to managing and mitigating risks in
developing products, propositions, services and customer solutions,
aligning with our Group Risk strategy and RAS.
The policy covers consumer and wholesale products, customer solutions
and product fees or charges and is owned by the Head of Operational Risk
and sponsored by the CRO. The policy ensures products are designed
with a target market in mind and that customers’ needs are considered
throughout the product development and management stages. The policy
should be read in conjunction with the AIB Group Culture Risk and
Conduct Risk Framework and is available to all of our colleagues
internally. Goodbody has a separate product governance model in place
in line with its business model.
Informed financial decisions
We are committed to helping all customers make better-informed
financial decisions. We do this by ensuring that our communication is
clear and straightforward, through education initiatives, and we also
recognise that some customers require additional care, support or
protection to meet their banking needs.
Group Conduct Risk Policy
We believe that all forms of customer communications, including our
advertising, should be clear, fair, accurate, and not misleading, in line
with our Group Conduct Risk Policy. The policy sets out our approach to
identifying and managing conduct risks, ensuring customer impacts and
fair customer outcomes are central to management of these risks. Our
Group Conduct Risk Policy encompasses both Retail and Wholesale
Market Conduct Risk and aligns to the Group’s Risk Strategy and risk
appetite. It is owned by the Group Chief Compliance Officer, sponsored
by the CRO and available to all of our colleagues internally on our intranet.
Under our Conduct Risk Policy, each ELT member is responsible for the
effective implementation of Customer Vulnerability processes in their
business and for monitoring their effectiveness.
Customer Vulnerability Guidelines
We understand that vulnerability can affect anyone during periods of
stress or difficulty, impacting a person’s ability to manage our finances
and make decisions. We consider a customer to be in vulnerable
circumstances when they require additional care or support to prevent
poor or unfair customer outcomes. This can include customers with an
accessibility need, a language barrier, customers facing a time of stress
and difficulty, or our younger customers.
Our Customer Vulnerability Guidelines help manage conduct risk for
customers in vulnerable circumstances and support the Group Conduct
Risk Policy, for both personal and business customers. Customers who
are experiencing vulnerable circumstances may be less able to represent
their own interests and more likely to suffer harm; therefore they require
additional support.
The guidelines apply to all customers, are owned by the Head of Customer
Vulnerability, and sponsored by the Head of Customer Care. Going
forward, we will consider developing a specific policy to manage our
impact in relation to financial literacy.
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Material Topic:
Financial Wellbeing
Adam Harris, CEO of AsIAm, with Geraldine
Casey, Managing Director of Retail Banking.
Our actions
S4-4
Tailored financial products
We provide comprehensive support to customers across a range of
financial needs. This section outlines initiatives offering tailored products
and services, including our savings, investments and pension products,
initiatives supporting women and student lending solutions.
Savings, investments and pension products
AIB life offers protection, investment, and pension solutions to help
customers achieve financial security, supported by our financial planning
service where dedicated financial advisers offer personalised consultations
to assess individual circumstances and recommend appropriate strategies
for protection, investment, and retirement planning.
Sustainability is embedded in our Investment Fund Range, which includes
Article 8 and Article 9 funds under the Sustainable Finance Disclosure
Regulation (SFDR). These funds prioritise investments in climate,
environmental, health, and societal initiatives while excluding companies
that negatively impact environmental objectives.
The AIB life hub (on the AIB mobile app) provides access to policy
documents, fund performance, investment and retirement calculators,
and educational content on financial planning topics.
Complementing our life and investment offerings, AIB provides a range of
savings accounts accessible via our mobile app or through our branch
network, each of which has a Savings and Deposits Adviser to support
customers in creating tailored savings plans.
We held our first National Savings Week across the branch network in
May 2025. This included new supports and training to frontline teams to
improve our service and inform savings conversations with customers.
We recently launched digital investment advice through the AIB mobile
app, enabling customers to assess the suitability of a regular saver
investment to their unique needs, and to begin investing with an amount
that suits their financial capacity and risk appetite. The customer can opt
to speak with an adviser for additional support at any point.
Tailored initiatives to support women
We promote financial inclusion by sponsoring the AIB Mentoring Access
Initiative for Women in SMEs, offering 20 places in a year-long mentoring
programme as part of the IMI/30% Club Ireland, targeting diverse women
leaders. For the second consecutive year, we were the title sponsor of the
Women in Business All-Island Female Entrepreneurs Conference, with the
2025 theme being ‘You’ve Got This’ which focused on the skills and
support required to grow a thriving business.
We continued our partnership with AwakenHub, a female
entrepreneurship body that has a community of female-led businesses,
and as official partner of Network Ireland in 2025, an organisation focused
on advancing the professional and personal development of women in
business. Key highlights included the International Women’s Day event in
Croke Park, and the annual National Conference.
We continue to empower women in business, through partnership
between Goodbody and ‘THE GLOSS’ with the new ‘Invest in You’ section
on thegloss.ie, which provides free financial education including an
‘Introduction to Investing Masterclass’, profiling senior women, and
facilitating conversations on finance.
In 2025, the partnership hosted the ‘In Women We Trust’ series, including
a panel in Kilkenny in October, where guests explored the future of women
in leadership, the evolving role of AI, and strategies for personal and
professional investment. Earlier in May, guests attended a panel on
leadership in publicly listed companies at the historic Irish Stock Exchange.
Supporting education
In 2025, we continued to support access to education through student loans
at discounted rates for full-time third-level students with a Student Plus
account, including tailored loans to cover fees.
In 2025, we introduced a Standard Care Account for customers who are
16 or 17 years old and who are unable to make decisions in relation to
their finances and require support from a carer (parent or legal guardian)
to open and operate the account on their behalf.
Innovative solutions
We focus on innovative solutions that enhance customer experience.
• In 2025, our Customer Credit Transformation Programme (CCTP)
expanded to give Business customers faster, more transparent
access to credit in a secure digital environment. These changes
mean quicker cash availability and same-day fund transfers.
• In accordance with regulatory requirements, we also introduced
SEPA instant payments, enabling Euro transfers within ten seconds,
24/7 across the SEPA zone, improving speed and convenience.
Additionally, Verification of Payee strengthens security by reducing
fraud and misdirected payments. Customers can now both receive
and send SEPA instant payments to other banks.
• In 2025, we introduced Abi, our new Digital Assistant, as part of our
ongoing commitment to enhance customer service. Abi is supporting
our customers with regular service-related queries and needs.
• Our savings calculator helps customers to estimate interest they can
earn and compare savings account options. We’ve also introduced
dynamic interest rate displays across savings product pages on the
website, so our customers can more easily view the rate that applies
to the product.
• A significant enhancement to our mobile platform, launching in
2026, will support personal customers. This will change how we
deliver our digital services by consistently evolving to meet our
customers’ needs. The new mobile platform will include a personal
financial management tool, offering customers key insights to
manage their daily spending. The ‘Zippay’ solution, a fast and secure
way to make payments, will be integrated into AIB’s existing app at
launch.
Our design improvements in 2025 were influenced by external market
research, ‘Voice of the Customer’ programme (see page 90 for more
details), app store ratings and the analysis of customer calls.
Informed financial decisions
We help customers make confident financial choices and enhance
access to finance through clear, simple communication, and pay
particular attention to customers who require additional care or support.
Clear, simple, accessible communication
We aim to empower all our customers to make confident financial
decisions. In 2025, we reviewed our new communications in line with the
European Accessibility Act to make sure they are accessible to all. We
have also reviewed our brand’s tone of voice guidelines, and we are
preparing to meet stricter regulations on clear language, coming into force
in 2026, so that we communicate with our customers more effectively
across emails, letters, webpages, and apps. To ensure the effective
implementation of our communications principles, we have created
a customer base management team who will centralise our direct
communications to ensure we interact with customers at the best time
for them with a message that makes sense.
We use social media to promote financial wellbeing and fraud awareness.
In 2025, AIB expanded its ‘Wait a Sec, Double Check’ campaign, urging
customers to pause and review for fraud, and ran a LinkedIn campaign
educating SMEs on cyber crime. Influencer activity highlighted new scams
and ways to spot fraud, while content for young people focused on risks
around concerts, Black Friday and Cyber Monday.
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Financial Wellbeing continued
AIB partnered with Junior
Achievement Ireland in 2025.
In April and November 2025, AIB in collaboration with MABS (Money
Advice and Budgeting Service), NALA (National Adult Literacy Agency), ALL
(Adult Literacy for Life), Cork Education and Training Board and Ludgate (a
social enterprise and co-working hub), hosted a number of community
events focused on money management and fraud prevention. Local
banking professionals and community representatives provided guidance
on budgeting, preparing for financial emergencies and recognising scams.
The CX Pod Club podcast was expanded in 2025 to include both branches
and Customer Engagement Centres. This podcast was created with
behavioural psychologist Pádraig Walsh and supports staff in building
empathetic, meaningful customer connections and is accessible to all
AIB employees.
Promoting financial literacy
In 2025, Goodbody published a series of guides on its website to help
inform customers on financial planning for the future:
• The Investment Tax Guide, prepared in partnership with Chartered
Accountants Ireland, is a go-to resource for a clearer understanding of
the tax implications of specific investments.
• The Inheritance and Estate Planning guide is a comprehensive resource
to help people manage the efficient transfer of wealth to the next
generation, with advice relating to estate planning around gift and
inheritance tax, business succession planning, family governance, and
the changing nature of families in an inheritance plan.
• The Retirement Playbook looks to demystify retirement planning,
offering clear, tailored advice for a wide range of individuals including
private and public sector workers, the self-employed, divorcees, and
those retiring abroad or facing health challenges. It highlights common
pitfalls and provides actionable strategies to help people prepare for a
financially secure retirement.
With a view to improving financial literacy, we have emailed customers
directly with our ‘Top five savings habits’. There has been continued focus
in 2025 to remove the barriers to savings for customers and in developing
savings plans and achieving a return on customer savings.
Customers in vulnerable circumstances
We provide dedicated support for customers in vulnerable circumstances
where everyone can take control of their financial wellbeing:
• A dedicated additional support helpline which supported customers
and carers via 18,096 (2024: 10,331) calls and an additional support
flag system for assistance to customers in need.
• A dedicated internal vulnerable customer support team.
• ATM accessibility with voice-guided functionality enabled on all our ATMs,
and cash and cheque lodgement machines.
• A full annual training and awareness programme (including four new
courses introduced in 2025) for colleagues supporting customers in
vulnerable circumstances, with 66,028 hours of training completed
(2024: 42,334). In 2025, a new mandatory training course was
introduced, ‘Additional Support for our Customers’, which empowers
our colleagues to support customers in vulnerable circumstances.
• Customers with a hearing impairment can contact us via sign language
interpretation services: IRIS in Ireland and Convo in the UK.
Furthermore, in the UK, customers who are deaf, hard of hearing or
have a speech impairment can contact us using the Relay UK Service.
• We provide bank statements in braille and large print in Ireland and
the UK. In the UK, we are expanding the service with a partnership
with the Royal National Institute of Blind People (RNIB) to include
audio. In Ireland, we expanded the braille service via the partnership
with The Big Word.
• A language translation and interpretation service is now available for
customers in our 170 branches network across the country in over
120 languages.
• We continue to be JAM-Card Friendly in Ireland and the UK, and we
partner with Dementia Inclusive in Ireland and Alzheimer’s Society in NI.
• We partnered with AsIAm, becoming the first Irish Bank to receive
Autism Friendly Accreditation for all its branches and EBS offices.
The enhancements include the provision of sensory maps for each
location, quiet areas and sensory kits as well as support training for
frontline colleagues.
• AIB UK provides supports to customers and staff experiencing
domestic abuse. In 2025, AIB NI continued to partner with Hestia
and the Say No More UK charity to make all NI branches Safe
Spaces. This provides a private room to an individual who is
experiencing domestic abuse for the support they require. The room
can be used by anyone who wishes to use it.
• In line with the European Accessibility Act (EAA), Payzone terminals
offer sight impaired functionality, making it easier for customers with
sight impairment to go about their daily purchases more easily.
• Payzone and St. Vincent de Paul partner to support people struggling
with their energy bills, leveraging Payzone payment technology in
order to support energy vouchers.
• In 2025, AIB continued to support TU Dublin’s pioneering programme
to empower people with a disability to start their own business
through a free 12-week course delivered by the Continuing
Professional Development programme, with the support of the Open
Doors initiative.
Support for customers in financial difficulty
We have a strong history of supporting customers experiencing
financial difficulty. Our resolution process considers each customer’s
ability to repay, considering their assets and sustainable income
levels, and is guided by a robust governance and policy framework.
Using early warning indicators, we proactively identify and contact
those customers most at risk of going into arrears each month across
AIB mortgages, personal and SME, as well as EBS mortgages. We have
a dedicated ‘Worried about Payments’ section across our ROI
websites which offers simpler navigation, a webchat function for
mortgages and enhanced sections on repayment options and support.
We regularly review our forbearance solutions to ensure they remain
appropriate to customers’ circumstances, fair, consistent, and
compliant. In 2025, we reviewed our household expenditure
guidelines, to reflect macroeconomic factors so that our solutions
remain sustainable for our customers.
Our performance measures
S4-5
Tailored financial products
In 2025, qualified advisers carried out 34,100 financial planning
consultations, and this is measured against an internal target. All financial
planning consultations are recorded on a dashboard, with a four-eye
review performed. No judgements or estimates are applied.
We continue to track customer service progress and finance volumes, and
are exploring ways to better measure our impact on customers’ financial
wellbeing, especially for those needing extra support. Our goal is to
introduce new initiatives to help customers make informed, responsible
financial decisions.
Financial planning consultations undertaken by
AIB financial advisers
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34,100
31,808
FY2025
FY2024
As an Irish mortgage provider, we are attuned to the unique complexities facing the
Irish housing sector and the needs of our customers.
This is one of our seven material topics. For each topic, we report in
accordance with the ESRS. We disclose our approach to managing our
material IROs through our policies, actions and performance measures.
Value chain: Downstream
Impact:
• We contribute to the greater availability of housing stock, including
social and affordable housing – stimulating economic growth,
improving access to housing, and enhancing quality of life for
residents by enabling them to purchase their own homes.
A home is one of life’s most basic and essential needs. Secure housing
underpins better health and education outcomes and provides people
with a safe place to build their lives and families. Beyond individual
wellbeing, housing is a cornerstone of social cohesion and economic
resilience. Adequate supply supports labour mobility, attracts investment,
and enables sustainable urban development.
Through our Customer first strategic pillar in particular, our housing
strategy contributes to a robust and sustainable economy and society.
Our policies
S3-1, S4-1
This section outlines our main policies governing our provision of
finance for residential mortgages and residential developments, including
Build-to-Rent (BTR), Private Rented Sector (PRS) and social housing
developments. The policies cover all our customers in Ireland and the UK,
and excludes Goodbody and Payzone. We review each policy periodically,
so that we can continue to meet our customers’ housing needs and
support government-led initiatives. These reviews also incorporate key
stakeholders’ interests and feedback from across the organisation.
The Chief Credit Officer owns these internal policies, which are available
for our colleagues on our intranet.
ROI and UK Residential Mortgage Policy
Our ROI and UK Residential Mortgage policies set out rules for all residential
mortgage-related lending we perform in both our key markets, including
lending to first-time home buyers.
Group Residential Development Policy
The Group Residential Development Policy governs lending for residential
development in the ROI and the UK. This includes funding the development
phase of BTR, PRS and residential developments, and the development phase
of social housing.
Group Commercial Investment Policy
Our Group Commercial Investment Policy covers all lending for commercial
property investment in ROI and the UK. This includes funding for both
commercial investment property and residential investment property, with
repayment based on the net cashflows from rental income generated by the
underlying properties.
Group Social Housing Policy
Our Group Social Housing Policy sets out the relevant lending rules
that are applicable in both ROI and the UK. It supports lending to our
customers for social housing and helps manage and mitigate the
associated risks. This includes lending for the purpose of acquiring and
refurbishing units for social housing, or debt funding for social housing
providers and approved housing bodies. It can include mortgage-to-rent
(MTR), affordable housing, sheltered housing and housing for the elderly.
Social Bond Framework
Some of the funding that we provide to Approved Housing Bodies (AHBs),
authorised scheme providers under the MTR scheme, and to borrowers
under the First Home Scheme (FHS) and Local Authority Affordable
Purchase Scheme (LAAPS), is included in our social bond pool. This
financing is subject to the voluntary transparency requirements detailed in
our Social Bond Framework, including annual allocation and impact
reporting. Our lending due diligence takes into account AIB’s excluded
activities list. The Framework is based on the ICMA Social Bond Principles
2023 and is available on our website.
The GSC approves material Social Bond Framework updates, as well as
social bond allocation and impact reports.
Advancing Greener Housing
AIB Group is committed to enabling a more sustainable housing
market in Ireland and to supporting a just transition that benefits
communities and future generations. At the end of 2025, 62% of new
residential mortgages in ROI issued by AIB were for energy efficient
homes. Alongside mortgages, we help accelerate retrofitting and
refurbishment through associated products and partnerships, such as
our role as a preferred finance provider to Electric Ireland Superhomes
and participation in the HEULS, giving homeowners practical, low-cost
routes to improve BER ratings and comfort while lowering emissions.
These efforts underscore the opportunity for AIB to mobilise capital
towards greener housing, strengthening community resilience and
advancing Ireland’s transition to a low-carbon economy. To read more
on this and other ‘greening our business initiatives’, please see the
Climate & Environmental Action chapter from page 55.
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Material Topic:
Housing
Irish TV Presenter Brendan Courtney hosted the ‘My First
Home with AIB’ event series in The Dean, Cork City.
Our actions
S3-4, S4-4
National Housing Agenda
In 2025, we continued to participate in the Irish Government’s FHS and
LAAPS. The FHS supports middle- to lower-income buyers by bridging the
gap between the home price, their deposit and their mortgage, with the
number of supported applicants tracked by the scheme. The LAAPS
enables customers to buy a home at a discounted market price, helping
those who might not otherwise afford a home.
While the pace of inflation has eased, cost-of-living pressures still remain
a factor for our customers. Throughout the year, we took a considered
approach to changes in monetary policy and interest rates, when monitoring
the European Central Bank and Bank of England interest rate trends.
We reduced mortgage interest rates in 2025, in AIB, EBS and Haven.
Increasing housing stock in societies in which we operate
Ireland has experienced profound demographic and economic shifts in
recent years, with population growth reaching its highest rate in modern
times. While this signals a vibrant and evolving nation, it has placed
significant strain on the existing housing system. The supply of homes has
consistently fallen short of rising demand.
In Ireland, our Real Estate Finance team within our Capital Markets
segment is a specialist lending unit. In 2025, the Real Estate Finance team
provided funding for large corporates who build houses, small regional
developers, homes for rent and for sale and social and affordable housing.
Assisting customers in vulnerable circumstances
In 2025, AIB continued to support customers affected by the Defective
Concrete Blocks (DCB) issue through a dedicated team that works
directly with customers, the BPFI and owner representative bodies,
providing tailored support and representation with industry stakeholders
and government departments.
For customers facing financial pressures, our dedicated teams offer
solutions based on ability to repay, including interest-only periods, fixed
repayments, term extensions and arrears capitalisations. The ‘Worried
about Payments’ section across ROI Group websites outlines supports
such as cost-of-living information and links to MABS and the Insolvency
Service of Ireland (ISI).
In 2025, we introduced AIB mobile app push notifications alerting
customers when funds are insufficient for their mortgage direct debit,
reducing missed payments among those who opted in.
AIB supports the Government’s MTR scheme, enabling eligible
customers to sell their home to an MTR Provider and rent it back at an
affordable rate. Customers access this through AIB, EBS and Haven. In
2025, we funded iCare’s purchase of MTR properties.
Our performance measures
S3-5, S4-5
We track the measures below and will continue to assess how best to
measure our performance across Ireland’s housing value chain.
First-time buyers1
We have made a commitment to deliver more than €6bn of cumulative
new lending to first-time buyers in ROI by 2026. Our Housing target is
guided by our internal target-setting process. Our management teams
consider results from scenario analysis models, which are approved by
senior leadership, ensuring alignment with our broader Group and
sustainability strategy. In 2025, we continued to make progress by
providing €2.61bn in new lending to first-time buyers in ROI.
New lending extended to first-time buyers in ROI
Cumulative €5.4bn as of end-2025, against >€6bn target for 2026
1. Guidance on the definition of first-time buyers can be found on the AIB website.
Supporting residential development
AIB continued to support residential property development throughout
2025 in ROI and the UK. In our FY2024 CSRD statement, we reported the
performance measure ‘New lending to fund residential developments’,
reflecting €366m in total facilities to support new homes in Ireland and the
UK. For FY2025, we are transitioning to a new metric, ‘Funding for new
residential developments’, to reflect the scale of AIB’s support for the Irish
residential property market.
The previous new lending metric, which reported only the value of new
loan facilities drawn in the year, under-represented the total level of
funding advanced to developers. In practice, residential development
funding is often drawn down through a combination of term loans and
revolving credit facilities (RCFs) over multiple phases of the construction
project. As a result, new facility approvals do not fully capture the actual
capital deployed into residential construction during the year.
The FY2025 performance measure captures all term and cumulative
revolving lending drawdowns during the year for qualifying residential
projects in ROI.
It is considered a more accurate indicator of our contribution to Ireland’s
residential development pipeline and we will continue to report this figure
annually to support stakeholder understanding of our impact, while also
considering the establishment of external targets for future performance.
Residential development funding includes the amounts advanced for
development of all forms of residential homes, including houses, first
home scheme, apartments for rent or sale and ROI government-
supported social and affordable homes.
Funding for new residential developments
Social and affordable housing
AIB supports the national housing agenda directly through various
government-led initiatives and support for social housing through AHBs
and private developers delivering social and affordable homes in Ireland,
and registered providers of social housing in ROI and the UK.
The measure for social and affordable housing includes the development
sub-set referred to above, together with investment funding and general
corporate lending. As such the FY2025 metric for social and affordable
housing in ROI has been similarly updated (2024 performance measure
was €135m). While we do not have specific targets related to funding
social and affordable housing in ROI, or funding social housing in the UK,
we use the performance measures as noted here to track the
effectiveness of our actions.
Funding for social and affordable housing in ROI
Funding for social housing in the UK
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€139m
€147m
FY2025
FY2024
£174m
£112m
FY2025
FY2024
€2.61bn
€2.79bn
FY2025
FY2024
€959m
€978m
FY2025
FY2024
This is one of our seven material topics. For each topic, we report in
accordance with the ESRS. We disclose our approach to managing our
material IROs through our policies, actions and performance measures.
Value chain: Own operations
Impacts:
• Our Inclusion & Diversity strategy promotes a strong programme of
engagement, wellbeing and universal inclusion initiatives.
• Variable pay based on performance against specific financial and non-
financial measures rewards employees, encourages skills development
and contributes to enhanced job satisfaction.
• We provide training and skills development for employees to develop
their careers fostering a culture of growth.
Risk:
• Failure to upskill our colleagues, recruit and retain talent to support the
transition of the Group’s loan book, could impact our ability to meet
customers' expectations and deliver our strategic commitments.
Opportunity:
• Attracting top talent can drive innovation in sustainable finance
products, leading to increased profitability for the Group.
Operational efficiency and resilience is one of our three strategic
priorities, and we define it as enabling our colleagues to deliver for our
customers by investing in their capabilities and capacity.
Own Workforce (Equal Treatment & Opportunities for All), within the ESRS
categorisation of ESRS S1 Own Workforce, is a material topic for the
Group. While ‘Own Workforce’ spans a variety of sub-topics as per ESRS
S1, we identified two through our DMA process as detailed on page 49:
creating a culture of Inclusion & Diversity (I&D), and creating a culture of
learning and development. We use the terms ‘own workforce’ and ‘our
colleagues’ interchangeably.
The following policies relate to own workforce and apply to everyone who
is directly employed by AIB in ROI and UK, unless otherwise stated. AIB
USA staff refer to Group Policies where applicable, however, in many
cases they are governed by their own local policies aligned to USA laws
and regulations. Goodbody and Payzone are governed by their own
subsidiary policies, and have been omitted from various performance
measures due to different operating models; these will be considered for
inclusion, where appropriate, in future reporting.
Our policies
S1-1
Our colleagues – Inclusion & Diversity
Inclusion & Diversity Code
Our I&D Code recognises that we should respect, develop and harness the
uniqueness of our colleagues, as well as embracing and celebrating our
differences, in order to promote equal treatment and opportunities for all.
The Code sets out the principles that we live by and underpins our related
policies, handbooks, and a year-round employee engagement calendar of
awareness and educational events. Governance is overseen by our I&D
Council.
The Code specifically covers the following grounds of discrimination: race
(including colour, nationality and ethnic and national origin), religion or
belief, age, disability, gender and gender identity, sexual orientation,
marriage or civil partnership, pregnancy or maternity, family status and
membership of the Travelling Community. We do not have specific
monitoring in place, but our Raising Other Concerns portal option and our
Grievance procedures allow colleagues to report behaviours contrary to the
Code, which we then manage through the processes outlined on page 90.
The Chief People Officer (CPO) is ultimately responsible for implementing
the I&D Code. It is reviewed periodically via our HR Policy team’s central
review schedule of all HR policies, and includes engaging with key
stakeholders across the organisation. The I&D Code is available on
our website.
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Material Topic:
Own Workforce (Equal Treatment & Opportunities for All)
Family Leave Handbook and Carer’s Policy
To foster an inclusive culture, we support our colleagues as they navigate
critical life stages, including having a family and caring for a family
member. Family is central to our culture and these policies aim to offer
the best support we can, in a fair and truly inclusive way.
Our Family Leave Handbook details available leave – paid or unpaid –
for all parents directly employed by the Group. It covers our maternity,
adoptive, surrogacy and paternity leave policies, our paid and unpaid
parent’s leave policies, our UK shared parental leave policy, our fertility
and neonatal leave policy, and our foster leave policy. These are important
for supporting all of our working parents in achieving a sustainable work-
life balance during critical life stages.
Our Carer's Policy outlines our leave entitlements and conditions with
respect to:
• Critical Caring Leave (AIB ROI and UK employees);
• Leave for Significant Care/Medical Support (AIB ROI and UK
employees); and
• Carer’s Leave (AIB ROI employees only).
The CPO is ultimately responsible for implementing these policies. Direct
employees of subsidiaries are subject to their subsidiaries’ respective
policies and are not within the scope of the policies above. The policy is
published internally on our intranet.
Anti-bullying and Harassment Policy
Everyone working in AIB has the right to be treated with dignity and
respect, and should be protected from bullying or harassment in the
workplace. They should never feel intimidated, victimised or humiliated,
or suffer hostility within the workplace.
This policy reflects our commitment to providing a workplace that
supports our people to be at their best and make a positive contribution to
what we do. It relates to any unwelcome behaviour, whether it happens in
the workplace or at a work-related event or social events organised by the
Group whether on-site or off-site.
The grounds of discrimination and characteristics are as those defined in
both the Irish and UK Equality Acts. The CPO is ultimately responsible for
the implementation of the policy.
Further details on AIB’s grievance mechanisms are on page 101. The
policy is available on our website.
Our actions
S1-4
Universal inclusion
We cultivated a culture of universal inclusion in 2025, through the
continued implementation of our I&D strategy.
• We successfully retained our Gold Investors in Diversity accreditation,
the highest standard awarded by Irish Centre for Diversity. In 2022, AIB
was the first bank in Ireland to achieve the Gold standard and is one of
only 14 organisations in Ireland to have achieved reaccreditation as of
31 December 2025. Maintaining the Gold standard affirms our
commitment to embedding I&D in our culture and reflects progress
made over the past two years through our Universal Inclusion
campaigns and initiatives.
• We held our fourth annual Universal Inclusion Campaign, to promote
an inclusive workplace, one where diversity is embraced and everyone
can reach their full potential. This included an interview with advocate
and disability leader Sinéad Burke and our Managing Director of Retail
Banking, Geraldine Casey, on the subject of the European Accessibility
Act and AIB’s work towards compliance. It also included a
NeuroInclusion Team Talk which more than 2,000 of our colleagues
took part in. As part of the campaign, we introduced the opportunity for
our employees to voluntarily update their HR profile with diversity data.
• AIB has an I&D Council, made up of leaders from across the
organisation and chaired by an ELT member. It helps coordinate and
implement I&D efforts and deliver on our commitment to a culture
where all employees can perform at their best and reach their potential.
In 2025, our Council met regularly and welcomed the CRO as our new
Council Chair.
• In 2025, we have launched a long-term Women in Leadership project
and working group to tackle career progression challenges facing
women in the workplace.
Employee Resource Groups
Our ERGs (Inclusion Networks) celebrate the diversity of our colleagues and
play an important role in fostering an inclusive workplace by promoting
awareness, support, and collaboration among employees throughout 2025.
• With the support of our Women’s+ Network, we have targeted
programmes to empower women at all levels in AIB. The programmes
focus on developing leadership, technical skills and career progression
strategies. For example, our Mentor Her programme helps mentees to
better command their own career path through their mentor's support
and contacts across the broader mentee group. Our 2025 programme
featured 186 mentors and mentees (2024: 194).
• Our Origins+ Network raises awareness of the experiences of people
from ethnic minority groups and celebrates all our employees’ heritage
throughout the year. They also celebrated a ‘Connecting Culture Week’
using the theme of cuisine to bring our people together and ignite curiosity.
• Our Pride+ Network organised a variety of events for our colleagues,
including a multi-location Pride brunch and representation in Pride
Parades around the island of Ireland, and sponsorship of Dublin Pride
Run. We held an event to mark ‘World Coming Out Day’ with a panel
discussion which included members of the Pride+ Network talking
about their lived experiences.
• Our Abilities+ Network raised awareness around several global
initiatives such as World Autism Day, World Sign Language Day and
International Day of Persons with Disabilities in December.
• Our Life & Family+ Network partnered with Family Carers Ireland to
provide a support package to our working carers, including one-to-one
access to expert guidance and support. Our Network also organised a
webinar on helping parents create the best family structure they can
using practical easy-to-use techniques. This included discussion of
topics such as family balance for working parents, and back to school.
Family leave
In April 2025, we continued to build on the enhancements made to our
family leave policies in 2024. Our policies became Day 1 entitlements
meaning that all colleagues can avail of benefits from the first day of
employment. We also introduced foster leave allowing up to 10 days paid
leave for any colleague going through the Foster Care journey. The UK
Government introduced neonatal leave and pay, and AIB decided to top
up this payment while also extending this fully to colleagues in ROI. Once
eligible, employees can take this leave in blocks of a week, for each week
their baby is receiving neonatal care, up to a maximum of 12 weeks.
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Our performance measures
S1-5, S1-9
Gender diversity
One area of our I&D Code relates to gender. Having been an early
signatory of Ireland’s first Women in Finance Charter, we aim to have a
gender-balanced ELT, management and the Board each year. Specifically,
we target between 40% and 60% female representation in ELT and
management, which is underpinned by the Equileap annual Gender
Equality Global Report and Ranking’s definition of ‘gender balance’.
AIB has an ongoing target for the Board of a minimum of 40% female
representation. These targets have been reviewed by the Board. We have
maintained a gender-balanced ELT and management in 2025. However,
female representation on the Board decreased to 38% as at 31 December
2025, falling below the stated target. The Board remains committed to this
gender diversity target, and the selection process for future appointments
will take it into consideration to restore compliance with the policy.
HR monitors our performance against our gender diversity target across
all management (including ELT) and reports quarterly to senior
management and per the Board cycle. The Nomination and Corporate
Governance Committee (NomCo) monitors the Board’s gender diversity
target as part of its overall governance and oversight responsibilities.
We prepare various gender diversity performance measures for internal
and external reporting purposes; please find these below. AIB’s ELT is its
‘Top Management’ level (for the purposes of addressing S1-9
requirements). The gender diversity figures also do not include employees
noted as Other/Not reported (per page 86). The Board figure refers to the
AIB Group Board.
Gender diversity
Women as % of ELT and Management
Target: 40%
Women as % of the Board
Target: 40%
AIB’s ELT gender diversity
2025
2024
Number of females
5
6
Number of males
7
8
% females
42%
43%
% males
58%
57%
AIB’s age diversity – All employees
2025
2024
<30 years old
16%
18%
30 – 50 years old
62%
61%
50+ years old
22%
21%
Gender Pay Gap Report
S1-16
The Gender Pay Gap (GPG) is the difference in the hourly pay of men and
women across the organisation. Our GPG reporting has been completed
in line with the requirements and methodologies in the jurisdictions in
which we operate. We are satisfied that the outcomes are broadly
representative of our profile as at 31 December 2025.
Our annual GPG Report for AIB ROI, based on our snapshot date of 30
June 2025, shows a mean GPG of 17.5%. Since our previous GPG Report
in 2024, there has been a 0.3 percentage point improvement.
We also published a report for AIB UK, based on legislative snapshot date
of 5 April 2025, with a mean GPG of 21.3%. Since our previous report in
2024, there has been a 5.7 percentage point improvement.
Gender Pay Gap
ROI gender pay gap
UK gender pay gap
Similar to last year, the primary reason for our pay gap remains our
organisational shape, with a significantly larger number of females in
lower-level roles, and higher numbers of males in more senior roles.
The highest paid individual in our organisation is our CEO. The median annual
total compensation for all employees (excluding the CEO) for 2025 was
€62,391 (2024: €60,406) and, the ratio of the annual total compensation of our
CEO to the median annual total compensation of all employees (excluding the
CEO) was 12.69 (2024: 10.66). Estimates are used for variable remuneration
that relate to 2025 but are not paid until Q2 2026. We will consider the
feasibility of using actual data in future reporting.
Family leave
S1-15
In 2025, 100% of AIB employees are entitled to take family-related leave,
with 21% doing so (26% of females and 15% of males). In 2024, 19% took
this leave (23% of females and 13% of males).
Family leave
1. FY23 comparatives are not subject to limited assurance.
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Own Workforce (Equal Treatment & Opportunities for All) continued
42%
43%
FY2025
FY2024
38%
40%
FY2025
FY2024
17.5%
17.8%
18.9%
FY2025
FY2024
FY2023
21.3%
27.0%
28.3%
FY2025
FY2024
FY2023
100%
100%
FY2025
FY2024
1
1
Our policies
S1-1
Our colleagues – Training and skills development
Creating a culture of learning and development is part of our commitment
to our colleagues, helping to attract and retain a talented workforce
who share the same values. Providing our staff with training and skills
development empowers them along their career journey, which ultimately
helps us meet our decarbonisation ambitions and put our customers first.
Education Policy
Our Education Policy recognises our role in promoting continuous learning
and development, so colleagues feel supported throughout their career
in AIB and we can fill any identified skills gaps. The policy provides a
framework for employees’ development and gives their People Leaders
financial and non-financial options to support it.
The CPO is the policy’s ELT sponsor. Our HR Policy team reviews our
policy regularly in consultation with stakeholders, addressing regulatory,
legislative, business, management and best-practice requirements, and
any changes to the policy are approved through the agreed governance
pathways. The policy is available for colleagues on our intranet.
People Risk Policy
People Risk is a key aspect of Operational Risk. It refers to the failure to
plan for, acquire, develop and retain the appropriate number of people
with the necessary skills and capability required to achieve the Group’s
strategy, as well as the failure to manage, develop, train and engage them
to optimise their contribution and progression within the Group. Our
People Risk Policy recognises the importance of our people in delivering
our strategic objectives and sets out our approach for managing People
Risk in line with the RAS.
The policy is available on our intranet and applies to all individuals who
work for or provide services to a member of the Group, and who are either:
• direct employees, irrespective of their tenure or working patterns; or
• independent contractors, whether we engage them directly or through
their own service company.
Our CPO is the First Line of Defence (1LOD) ELT sponsor and the CRO is
the Second Line of Defence (2LOD) ELT sponsor for this policy. The Group
Head of Operational Risk reviews this policy annually, in consultation with
stakeholders. This policy applies to Goodbody, but not to Payzone, which
has its own policy in place. Please refer to the Risk Management section
from page 235 for more details.
Our actions
S1-4
AIB supported several initiatives during 2025 in relation to training and
skills development:
• We supported the further education of our employees by covering
eligible fees and study leave as required. This included support for
post-graduate programmes and role-specific qualifications, such as
the Professional Certificate/Diploma in Financial Advice (APA/QFA),
Chartered Banker Institute courses in the UK, and ACCA or CIMA
courses for accountants.
• We continued to offer Continuing Professional Development (CPD)
Certificates accredited by the IOB. In particular, ‘Understanding ESG for
Business Customers’ empowered our client-facing colleagues to take
action and build their ESG knowledge.
• Our colleagues had access to the AIB Sustainability Academy, which
is a hub for all ESG learning, signposting sustainability resources and
education opportunities. It aligns with our purpose to empower
colleagues to build a sustainable future and equips them to more
effectively engage with and support customers and suppliers as they
navigate their sustainability journey.
• In 2025, we updated our Career Structure to better reflect our evolving
organisation and foster a culture of empowerment, performance,
and development. The ‘Invest in You’ initiative focused on helping
employees understand the Career Structure, explore career paths,
and recognise the value of one-to-one conversations in their
development journey.
Our performance measures
S1-5, S1-13
To support our colleagues in improving their sustainability knowledge,
a completion rate of 90% is required each year for the mandatory
‘Sustainability and AIB’ training. The figure of 90% is derived from and
aligned with the limit included in the RAS, which is reviewed annually
by the Risk Compliance team and BRC and approved by the Board.
The ‘Sustainability and AIB’ training course had a 94% completion rate in
2025.
Completion rate of ‘Sustainability and AIB’ training
Average training hours per employee
2025
2024
Female
35
32
Male
35
29
All
35
31
Percentage of employees who participated in regular
performance and career development reviews
2025
2024
Female
95%
95%
Male
95%
94%
All
95%
95%
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94%
94%
FY2025
FY2024
Supplementary performance measures
S1-6, S1-17
Characteristics of AIB’s employees
We provide information in this section on other ESRS S1 Own Workforce
measurement requirements, including the characteristics of AIB’s
employees, remuneration, and incidents, complaints and severe human
rights impacts. AIB is applying a phase-in provision for metrics related to non-
employees (S1-7) and the people with disabilities (S1-12) metric for 2025.
The following section includes three tables that are relevant to S1-6. We
report the number of employees using full time equivalent (FTE) as at year
end, and it is defined as staff in payment only, excluding tied agents, and
AIB staff on career break or other unpaid long-term leave. The total year
end FTE figure is the same as that noted in the financial statements on
page 330. There are no significant variances in employee numbers during
2025, and FTE figures reflect some rounding. The total number of
employees at year end using headcount is 10,467 which is split 5,686
Female, 4,772 Male and 9 Not Reported. Broken down by country this is
9,670 ROI, 763 UK, 34 USA. The total number of employees at year end
using headcount in 2024 was 10,721 which was split 5,886 Female, 4,832
Male and 3 Not Reported; broken down by country this was 9,918 ROI,
768 UK and 35 USA. In relation to our material risks and opportunities for
our own workforce, we do not have specific targets in place for employee
retention, but our related performance measure 'employee turnover
rate' shows progress towards retention of our workforce.
Employees by contract type, broken down by gender
Contract type
Female
Male
Other
Not
reported
2025
Total
Female
Male
Other
Not
reported
2024
Total
Number of employees
5,443
4,755
0
9
10,207
5,647
4,818
0
3
10,469
Number of permanent employees
5,300
4,576
0
7
9,883
5,467
4,608
0
3
10,078
Number of temporary employees
143
179
0
2
324
180
210
0
0
390
Number of non-guaranteed-hours
employees
0
0
0
0
0
0
1
0
0
1
Number of full-time employees
4,909
4,723
0
9
9,641
5,127
4,785
0
3
9,915
Number of part-time employees
534
32
0
0
566
520
34
0
0
554
Employees by contract type, broken down by country
Contract type
ROI
UK
USA
2025 Total
ROI
UK
USA
2024 Total
Number of employees
9,430
743
34
10,207
9,685
749
35
10,469
Number of permanent employees
9,133
716
34
9,883
9,327
717
34
10,078
Number of temporary employees
297
27
0
324
357
32
1
390
Number of non-guaranteed-hours employees
0
0
0
0
1
0
0
1
Number of full-time employees
8,912
696
33
9,641
9,178
703
34
9,915
Number of part-time employees
518
47
1
566
507
46
1
554
Employee turnover data
Employee turnover
2025
2024
Number of employees who have left
1,111
1,265
Rate of employee turnover
11.2%
12.6%
Incidents, complaints and severe human rights impacts metrics
The Bank has several channels for its own workforce to raise concerns.
All concerns are taken seriously, treated confidentially and investigated
with the utmost of professionalism.
In FY2025, a total of one incident of discrimination, including harassment,
was reported. No complaints were filed through the Group’s channels for
its own workforce to raise concerns, in relation to the social, including
human rights, factors or matters as outlined in paragraph 2 of ESRS S1.
No complaints were made to the National Contact Points for Organisation
for Economic Co-operation and Development (OECD) Multinational
Enterprises. The Bank faced no fines, penalties or compensation for
damages as a result of the incident disclosed in the period.
AIB confirms that no severe human rights issues and incidents were
reported with respect to our colleagues in 2025 (2024: 0). See page 88
for more details on human rights impacts metrics.
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Own Workforce (Equal Treatment & Opportunities for All) continued
Calculations, judgements and estimates
Supporting notes for Gender diversity
S1-9
Women as % of ELT and Management includes Goodbody in FY25. It was
not included in the prior year figure and has not been restated because the
differing career structures in AIB and Goodbody did not allow for a
consolidated Group-level metric. Within AIB’s career structure,
management is defined as those in Level 4-6 positions including the
Executive Leadership Team (ELT) & Goodbody.
The gender and age diversity performance measures in the tables on page
84, which relate to S1-9 requirements, are taken at the year end and do
not include Goodbody and Payzone.
Supporting notes for Gender Pay Gap
S1-16
These reports include all employees of AIB ROI and UK on the respective
snapshot dates, who have self-identified as male or female on that date.
The calculations exclude Goodbody, Payzone and any employees who do
not meet the eligibility criteria as defined in the Employment Equality Act
1998 (Section 20A) (Gender Pay Gap Information) Regulations 2022
for Ireland or The Equality Act 2010 (Gender Pay Gap Information)
Regulations 2017 for the UK.
The ratio of the annual compensation of our CEO to the median annual
total compensation of all employees (excluding the CEO) excludes
Goodbody, Payzone, and non-active employees.
Supporting notes for Family leave
S1-15
Employees who took multiple types of family-related leave during
2025 were only counted once. This avoids double-counting but means
that the figures are a conservative view of how much family-related
leave our employees took during 2025. These figures exclude Goodbody
and Payzone.
Supporting notes for Mandatory training
S1-5, S1-13
Group-wide mandatory online training must be completed by all
employees and contractors across AIB Group, including EBS and Haven
and AIB UK. This excludes Goodbody, Payzone and AIB staff on long-term
leave. Training completion rates are monitored and managed by the
respective course owners across the Bank, who are also responsible for
the creation and annual review of training content for each of these
courses. A reduction in completion rate would lead to discussions on
what improvements are required. Completion rates are generated from
Cornerstone, our external learning management system provider.
Supporting notes for Performance reviews
S1-5, S1-13
We track the percentage of employees who have regular performance
reviews. The metric reported here uses 2025 interim data because the
final year end reviews are completed post year end, and validated
completion rates are not available until after the publication of the Annual
Report. We will consider the feasibility of using year end career review
data in future reporting. The data excludes Goodbody, Payzone, and a
senior cohort of AIB ROI and UK employees who currently have different
measurement criteria from other employees. We will consider the
feasibility of including this cohort in future reporting. See page 102 in
Governance & Responsible Business for more details on our Aspire
performance management framework.
Supporting notes for Average training hours
S1-5, S1-13
The figure for average training hours includes virtual instructor-led
training (virtual classroom), instructor-led training (classroom),
web-based training, Session Management Training (AIB internal training),
video, and material provided via iLearn LMS. The figure excludes
Goodbody, Payzone, and AIB staff on long-term leave.
Supporting notes for Supplementary
performance measures
S1-6, S1-17
As of FY2025, AIB is reporting employee gender for each group of ‘Male’,
‘Female’ and ‘Not Reported’, but not for ‘Other’. Work is ongoing to HR
systems to include voluntary anonymised reporting options on gender
diversity (i.e., Other). Goodbody and Payzone are included in these
employees by contract type tables.
Employee turnover rate is calculated based on the total number of
leavers, divided by the number of FTE staff at the start of the year.
Leavers include voluntary attrition, contract expirations, retirements and
voluntary severance, and excludes Goodbody and Payzone employees.
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SBM-3, S1-1, S1-17, S3-1, S3-4, S4-1, S4-4
This section outlines our human rights policy commitments in relation
to our colleagues, our customers and the wider society and community.
AIB is committed to the protection and preservation of human rights.
We respect human rights in accordance with internationally accepted
standards. Our approach to protecting and preserving human rights is
underpinned by our Human Rights Commitment, which is available on our
website. This commitment has been shaped by the United Nations Guiding
Principles on Business and Human Rights and it is fundamental in guiding
our strategic vision, operations and relationships with stakeholders.
Our Human Rights Commitment operates alongside AIB’s Code of
Conduct and AIB’s Responsible Supplier Code, and our commitments are
aligned with those laid out in the laws applicable to the jurisdictions in
which we operate, the European Convention on Human Rights and, for
our business in Ireland, the EU Charter of Fundamental Rights. It was
introduced in 2021, when it was approved by the ELT, and reviewed by the
SBAC and the Board. It was subsequently reviewed and updated in 2023.
In line with our Code of Conduct, we actively avoid causing, financing or
contributing to any business activity that is known to breach human rights
or fair practices, including taking steps to address any situations that
we become aware of where this has occurred. We have due diligence
processes in place to help us identify any material negative impacts or
risks in relation to human rights, and these are an input to the DMA
process. The protection of human rights in our value chain is supported
by customer and supplier questionnaires, adverse media monitoring and
grievance monitoring. We will continue to evolve our approach to human
rights protection in line with our Human Rights Commitment, for our staff,
our value chain workers, our customers and our communities.
When engaging with our stakeholders, we pay attention to respecting their
human rights. This is outlined in Our Stakeholder Engagement on page 48.
Due to the nature of our industry and the markets in which we operate, AIB
has not identified any significant risk of incidents of forced, compulsory
labour or child labour. We are committed to an inclusive, safe and ethical
workplace, as demonstrated within our Code of Conduct and this Human
Rights Commitment.
The health, safety and wellbeing of employees is of paramount
importance to AIB. Safe working is an integral part of our culture, our
purpose and our sustainability and is central to our business plans.
We are committed to ensuring the safety of our employees, customers,
contractors and visitors and our workplaces (including home workplaces).
We are embedding our commitment to human rights in our culture
and values and reflecting this in our policies and actions towards our
customers, employees and suppliers, and in the communities where
we do business.
The Chief Strategy and Sustainability Officer is ultimately responsible for
implementing our Human Rights Commitment, with the Sustainability
Transformation Programme providing support for designing and
improving it.
As part of the DMA process, we did not identify any severe human rights
impacts. We confirm that no severe human rights issues or incidents were
reported with respect to our colleagues, customers and communities in
2025 (2024: 0). Goodbody has a Modern Slavery Statement and Code of
Conduct, and Payzone has a Speak Up Policy, and its Code of Conduct
notes their human rights and its grievance processes. These policies align
with the principles and values of the Group.
Modern Slavery Statement
We report annually on our approach to tackling modern slavery in our
Modern Slavery Statement, which is available online. The statement
explicitly references trafficking in human beings, forced labour and
child labour. See Channels for Stakeholders to Raise Concerns
from page 89 for details of how we engage with our colleagues,
customers and communities and how we remedy negative impacts on
these stakeholder groups. Please refer to Corporate Governance,
Ethics & Accountability in the Governance section from page 96 for
details of how we manage our relationships with suppliers, including
engaging with them, and how we address negative impacts concerning
our suppliers.
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Human Rights Commitment
We communicate with our stakeholders on material topics, and there are
remediation processes and channels for them to raise their concerns.
In line with the specific requirements of ESRS S1, S3 and S4, this section
outlines the processes we have in place to engage with our colleagues,
our customers and the wider society and community regarding material
impacts. It provides a description of the channels we have established for
our stakeholders to raise concerns, along with processes to prevent,
manage and remediate any negative impacts.
Processes for dialogue on material impacts
Our customers
S4-2
We engage with customers daily across branches, by phone and online,
with 41,636 customers visiting branches each day and 56 easy banking
workshops held this year.
Our ‘Voice of the Customer’ programme collects feedback through our
digital channels, and via email and phone, overseen by the Customer
Experience Transformation team and Chief Customer Officer (CCO).
After campaigns, we conduct quantitative review and annual research
on consumers’ understanding of our communications.
Our colleagues
S1-2
We listen to our people through several initiatives. Twice a year, we
conduct short online AIB Engage surveys with employees and contractors
to gather feedback, overseen by the CPO.
In 2025, our surveys focused on Leadership, Customer, and Culture,
receiving a total of 13,693 employee responses (2024:16,023). These
yielded 25,302 comments (2024: 30,598) and suggestions received from
colleagues on how we can make improvements in these areas. The
resulting insights and suggestions from the surveys have formed the basis
of action plans and areas of focus as we move into 2026.
We also have ERGs, known as Inclusion Networks, that support
colleagues who may be at risk of marginalisation, meeting quarterly
and led by employees with senior management sponsorship. More
details on the ERGs can be found in Inclusion & Diversity on page 83.
To protect our colleagues, we maintain workplace accident prevention
policies; these are our Safety Statement for the ROI and our Safety Policy
for the UK.
Society & community
S3-2
We engage monthly and quarterly with affected communities through
partners such as FoodCloud, GOAL, Junior Achievement Ireland, AsIAm,
Innovate for Ireland and the AIB Trinity Climate Hub. These discussions
inform our Community Framework in Sustainability, Education &
Opportunities, and Digital, Innovation & Financial Inclusion. The Director
of Corporate Affairs, supported by the Communities and Partnerships
team, oversees this engagement.
Our customers, employees and the public were able to nominate charities
for our fourth annual AIB Community €1 Million Fund on our website, and
in addition our employees were able to nominate on an internal online
survey. In 2025, the €1 Million was distributed among 66 charitable
organisations across Ireland and Great Britain were supported by this
process.
Processes and channels for
expressing concerns
Channels for our external stakeholders
S3-3, S4-3
While we strive to always provide the most positive experience for our
customers, we will not always get it right. When this happens, we believe in
accountability. Customers and the community can raise concerns through
our robust complaints management process to ensure customers are heard
and issues addressed. Any dissatisfaction can be logged as a complaint
through multiple channels – branches, phone, post or online. If the
complaint cannot be resolved at the first point of contact, it goes to our
dedicated complaints team for independent investigation and resolution.
We apply root cause analysis to complaints and errors to improve
customer experience and prevent future issues. In line with regulatory
obligations, we review complaint and error patterns to identify isolated
cases or systemic concerns. To strengthen this, we created a Group
Complaints & Errors Committee for greater focus and governance,
helping reduce issues and better protect customers.
Analysis and monitoring of complaints is governed by our Complaints
Management Policy and applies to all staff and contractors in Ireland and
the UK. It is owned by the Head of Customer Care & Outcomes, and is
available internally for AIB staff.
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Channels for Stakeholders
to Raise Concerns
We learn a lot from complaints and errors, which gives us the opportunity
to reflect and make changes. An example of action we took in 2025 to
prevent and manage any potential negative impacts on our customers and
communities was to roll out our new cloud-based complaints and errors
management system across the Group, which is now live in AIB ROI, EBS,
and Haven. This streamlines case handling to boost service quality and
efficiency, while supporting our green goals by reducing paper use through
secure email and less printing. The system also strengthens compliance,
improves customer outcomes, and drives our digital strategy for scalable,
sustainable operations.
We also launched the ‘Understanding Errors’ e-training in 2025. It covers
the full error lifecycle – from identification and logging to resolution,
closure, and root cause analysis – while embedding obligations under
the Consumer Protection Code and AIB’s Errors and Management Policy.
Through interactive modules, real-world scenarios, and knowledge
checks, the course reinforces doing the right thing for customers. This
initiative supports our Customer first strategy and equips staff to manage
errors effectively and compliantly.
Channels for our internal stakeholders
S1-3
Raising concerns
A new Whistleblowing Policy, introduced in January 2025, allows
colleagues to report suspected or actual wrongdoing in the workplace in
line with Protected Disclosures legislation. Please see page 96 for more
details on this policy and the mechanisms for raising concerns.
Staff are also encouraged to raise other concerns, including suspected
breaches of our Code of Conduct or related policies, directly with their
People Leader, senior management, or via the ‘Raise Other Concerns’
portal option.
Grievance mechanisms
Those directly employed by AIB can raise personal grievances,
employment-related concerns, bullying, harassment or customer
complaints through appropriate channels, namely, the Grievance Policy,
the Anti-bullying and Harassment Policy, with the Customer Care team,
or with their People Leader. The CPO oversees the Grievance Policy,
which is available on AIB’s website.
Our Raising Concerns team monitors formal grievances and regularly
reviews the Grievance Policy alongside the HR Policy team and
in consultation with stakeholders to ensure compliance with regulations
and codes of practice in Ireland, Great Britain and Northern Ireland.
To facilitate the effectiveness of the grievance process, we take the
following steps:
1. Formal grievances are recorded on a personal case register.
2. A dedicated Grievance & Disciplinary decision-maker panel facilitates
the independence and effectiveness of the channel, and appeals are
heard by either the CEO or an appointed nominee.
3. The investigator is assigned a dedicated case manager, who oversees
fairness and correct procedure.
All AIB employees and contractors in Ireland and the UK must complete
annual Code of Conduct training, which outlines expected behaviours.
The Group Accountability & Performance team issues reminders, and
People Leaders reinforce the importance of compliance with the Code
of Conduct.
Data protection: Governance, transparency
& reporting channels
In the Governance & Responsible Business section, we discuss our impacts
on customers and colleagues regarding cyber security and data protection,
and the processes in place to manage these.
Local Data Protection Officers (DPOs) in Ireland and the UK advise the
Group on data protection and ePrivacy obligations, raising staff
awareness and providing training, and guiding risk management and
personal data breach handling. Our DPOs set our Data Protection Policy,
oversee its implementation, and serve as contacts for staff and customer
data queries or complaints.
We have channels in place for our stakeholders to raise concerns and
processes to prevent, mitigate and remediate potential negative impacts.
As required by the General Data Protection Regulation (GDPR), our Data
Protection Notices (DPNs) provide contact details for queries on
personal data processing. The customer DPNs are publicly available, and
the employee DPNs are shared with them during onboarding.
The DPNs outline how we use, share, and retain customer and employee
information, with employees informed during onboarding.
Customers are directed to our website’s Complaints section for data
protection-related complaints. Details of our complaints management
process, including whistleblowing and grievance processes available to our
employees, are detailed from page 89.
Our personal data breach assessment matrix determines when to notify the
Data Protection Commission (DPC) and affected individuals regarding a
personal data breach, aligned with GDPR obligations. We keep the matrix
under review, using personal data breach data to refine the criteria and
enhance its effectiveness. We record all breaches of the Data Protection
and ePrivacy policies, as well as personal data breaches, in our internal risk
management system, SHIELD. This system enhances the effectiveness of
the DPO’s personal data breach processes, and also provides the real-time
monitoring and centralisation of information on breaches. The system
facilitates awareness and the tracking of breaches, supporting the efficient
management of breaches towards resolution.
See Cyber Security & Data Protection: p.103.
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Channels for Stakeholders to Raise Concerns continued
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Governance
& Responsible
Business
In this section
Material topics
ESRS
Page
Corporate Governance,
Ethics & Accountability
ESRS G1 – Business Conduct
96
Culture & Reputation
ESRS G1 – Business Conduct
101
Cyber Security & Data
Protection
ESRS S1 – Own Workforce
ESRS S4 – Consumers and end-users
103
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Governance of our sustainability strategy is guided by the principle of transparency,
which is fundamental to promoting trust and confidence among our stakeholders.
We pride ourselves on acting responsibly, and with integrity and transparency, while
embedding ESG capabilities and measures at the heart of our business.
Three material topics from our DMA are the primary focus of
this section:
Corporate Governance, Ethics & Accountability
Culture & Reputation
Cyber Security & Data Protection
This section details our approach to managing the corresponding
material IROs in terms of policies, actions and performance measures.
We address other ESRS social pillar requirements, detailing our policies,
actions, and performance measures, alongside the material DR of ESRS G1.
Strong corporate and ESG governance is vital to our operations.
Corporate Governance, Ethics & Accountability is embedded
throughout every level of the Group.
Our sustainability efforts are driven by our Sustainability Transformation
Programme and initiatives outlined in our Climate & Environmental Action.
We will also provide an overview of Our Sustainability Governance in this
section, including governance structure, oversight of material matters,
sustainability-related skills and expertise and governance of sustainability
reporting. You can find more details in our Governance Report in the
Annual Report from page 117, with active management of supplier-related
impacts to support a sustainable supply chain on page 99.
We meet stakeholder responsibilities by adhering to regulations,
preventing financial crime, maintaining tax transparency, and managing
lobbying activities.
Our Culture & Reputation aligns business activities with stakeholder
expectations, mitigating risks, and upholding our reputation as a
responsible financial institution.
In a digital environment, robust Cyber Security & Data Protection are
essential to protect customers and employees. We prioritise securing
systems and data, preventing unauthorised access, and safeguarding
customer privacy as our online presence grows. From 1 January 2025,
Information security (including Cyber) risk was also deemed a principal
risk for the Group. This material topic is aligned with the Group’s principal
risk on Information Security (including Cyber) further reflecting the
relevance and importance of this theme for AIB Group.
Our Sustainability Governance
Our strong governance structures are key to delivering our
sustainability commitments. Our governance framework provides
clear oversight and ownership of the Group’s sustainability strategy
and the management of IROs at Board and Executive levels.
This section outlines the responsibilities of the Board and ELT in
relation to sustainability matters and business conduct, and notes
Committees which are key to delivering our sustainability
commitments. The Governance Report further details the overall
roles and responsibilities of the Board and its Committees,
composition and diversity1 as well as representation of employees
(pages 122 to 131 and 148 to 151).
Roles and responsibilities
AIB Group Board
The Board promotes the Group’s long-term sustainable performance
by approving strategy, financial, and investment plans, including
sustainability factors. It approves sustainability targets within
strategic planning and regularly reviews progress against the
sustainability targets, receiving updates on sustainability twice yearly.
The Board is also accountable for overall business conduct
as detailed on page 129 of the Governance Report. Our BAC-
approved Code of Conduct upholds the Group’s values and strategic
purpose. As of 31 December 2025, the Board comprised the Chair,
who was deemed independent on appointment, ten Independent
Non-Executive Directors and two Executive Directors – the CEO and
the CFO.
Board Committees
While the Board retains ultimate responsibility for sustainability, it is
supported by several Board and Advisory Committees. These
Committees oversee and challenge the Group’s sustainability
strategy and performance. BAC monitors financial and non-financial
disclosures, internal controls and whistleblowing mechanisms. BRC
ensures sound risk governance, including ESG-related risks, and
receives updates on the effectiveness of policies and programmes
managing these ESG risks.
SBAC supports the Board in overseeing sustainability matters and
the execution of the sustainable business strategy in accordance
with the Group strategy and financial plan. SBAC receives updates
on sustainability matters including the sustainability strategy,
following review and recommendation from management. TDAC
reviews and challenges technology, data and cyber security strategy
and execution. The NomCo ensures the Board and ELT have the
necessary skills and diversity to effectively guide the Group towards
sustained success. The Remuneration Committee (RemCo)
oversees the Remuneration Policy, including the variable
remuneration scheme. Each Committee operates under Terms of
Reference approved by the Board.
1. In line with ESRS 2, gender diversity is calculated as the average ratio for the year. However, due to Board movements during 2025, this differs to the year end figure presented in the Governance Report
on page 125.
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Governance & Responsible Business
GOV-1
GOV-1
How we define our governance
• Management Body –
the Group Board and Board Committees
• Management Body in its Supervisory Function –
Non-Executive Directors
• Management Body in its Management Function –
Executive Directors
• Senior Management –
ELT and, where delegated by ELT, a sub-committee of ELT
AIB Group Executive Leadership Team
ELT provides input on purpose, strategy, and values, and oversees daily
operations. It is led by the CEO and includes the Managing Directors of
the three business lines. It ensures an effective organisational structure,
manages senior leadership, and executes the Board-approved strategy,
overseeing operational management, compliance and motivation and
performance across the Group.
ELT maintains effective internal governance and control frameworks, risk
management, compliance and audit functions, evaluating the integrity of
financial and sustainability information and the effectiveness of risk controls.
It operates under a defined Terms of Reference, and may delegate
authority to executives or sub-committees. Sub-committee Chairs report
key activities to ELT, which oversees and regularly evaluates their
effectiveness.
Group Sustainability Committee
The GSC, chaired by the Chief Strategy and Sustainability Officer,
oversees the development and execution of the Group’s sustainability
strategy, monitoring progress, reviewing key initiatives, and ensuring
alignment with strategic, regulatory, risk requirements and sustainability-
related performance metrics. The Committee also reviews climate-related
risks, emerging trends and sustainability-related performance metrics
thereby informing strategic planning and risk management.
It also steers stakeholder engagement, approves major sustainability
disclosures, and assesses the appropriateness of sustainability products
to ensure alignment to the Group’s broader sustainability ambitions. It has
specific responsibility for overseeing materiality assessments, including
the DMA process, to identify and prioritise the sustainability issues most
relevant to the Group, informed by stakeholder perspectives. The DMA
outcomes are reported to SBAC and approved at BAC.
Group Risk Committee
GRC is the senior management risk committee, accountable to the ELT
for setting policy and monitoring all risk types across the Group to
enable delivery of the Group’s risk strategy. It receives updates on the
effectiveness of the policies and programmes for identifying, managing
and mitigating ESG risks, including C&E Risk, and ensuring regulatory
compliance. GRC also approves the C&E Policy.
Group Disclosure Committee
GDC oversees material Group disclosures, including recommending
Sustainability Statement disclosures to BAC before Board approval.
It reviews key judgements and estimates applied to sustainability
disclosures, after consideration by GSC, and assesses the clarity
and consistency of the GSC’s responses to new legal and regulatory
requirements impacting Group ESG disclosures. Sustainability disclosures
are also shared with the SBAC for completeness and feedback.
Group Customer and Conduct Committee (GCCC)
GCCC oversees customer-impacting and conduct-related issues in
the Group, promoting and sustaining a customer-centric culture to
demonstrate and evidence consideration of customer outcomes and
ensuring approved products and propositions align with the Group’s Risk
Strategy and risk appetite.
Data, Analytics and Technology Committee (DATC)
DATC oversees all material aspects of the Group’s data and technology
activities, including strategy, data quality, cyber security, ethics and
privacy standards.
AIB Group governance structure
AIB Group Board
Board Audit
Committee
Board Risk
Committee
Remuneration
Committee
Nomination &
Corporate Governance
Committee
Sustainable
Business Advisory
Committee
Technology &
Data Advisory
Committee
AIB Group Executive Leadership Team1
Group Sustainability
Committee
Group Customer and
Conduct
Committee
Group Risk
Committee
Group Disclosure
Committee
Data, Analytics and
Technology Committee
Business lines
Retail Banking
Capital Markets
Climate & Infrastructure Capital
1. The above Committees are key to delivering our sustainability commitments, and is not an exhaustive list of Committees.
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Governance & Responsible Business continued
Oversight of material sustainability matters
GOV-1, GOV-2
Our Board Committees are regularly informed by senior management,
supporting their oversight and management of material IROs. We address
these material IROs across our business lines through dedicated controls,
including policies, actions, metrics and targets. Management and ELT
oversee their effectiveness. Enhanced due diligence further supports
impact monitoring.
Material risks are managed via our RMF and internal controls, following the
3LOD approach. The Board holds ultimate responsibility for risk management
and internal controls, delegating risk governance to various committees.
Further details can be found from page 166 of the Governance Report.
Opportunities are incorporated into strategic, financial, and investment
planning. Progress towards the Board-approved sustainability targets is
tracked quarterly on the Sustainability Dashboard, reported to the GSC
and SBAC. The Group continues integrating IRO monitoring and oversight
processes across the ELT and internal functions.
Due diligence assessment
GOV-2, GOV-4
Alongside policies, actions, metrics and targets for managing material
IROs, we monitor material impacts and risks through enhanced due
diligence processes, detailed below and on page 108.
Our due diligence approach demonstrates our commitment to identifying,
preventing, mitigating, and accounting for ESG-related impacts on people
and the environment. This includes extensive due diligence assessments
of clients and business partners. For example, our ESG Questionnaire is
used as part of the credit assessment process, subject to criteria, for
borrowers operating in sectors which have increased ESG risks.
The ESRS do not impose any conduct requirements in relation to due
diligence or require any modification to our governance. Appendix 1 on
page 108 maps key due diligence elements in our Sustainability Statement
and their practical application.
Key sustainability matters discussed in 2025
GOV-2
The Board and ELT and/or their Committees discussed a broad range of
sustainability matters in 2025, including:
• Sustainability transformation and targets
• Sustainability research updates
• Sustainability strategy updates
• Double Materiality Assessment – Outputs and performance measures
• Pillar 3 ESG Disclosures
• Modern Slavery Statement
• Sustainability Key Performance Indicators
• Social strategy and customer vulnerability updates
• Sustainability proposition updates
• Inclusion & Diversity
• AIB’s environmental footprint
• Regulatory engagement and expectations
• Stakeholder communications and training on sustainability matters
• Sustainability reporting
• Board succession planning, skills, renewals, composition, and diversity
• Whistleblowing and the Code of Conduct
• Climate & Environmental Risk
• Conduct risk and Culture risk
• Cyber risk updates
• Variable remuneration
• Operational efficiency and resilience
• Data & AI
• Collaboration with community partners
• Supply chain management updates
Further details on areas of focus in 2025 for the Board can be found on
page 134 of the Governance Report and in the detailed reports of each
Board Committee.
Sustainability-related skills and expertise
GOV-1
Acquiring and maintaining knowledge on sustainability matters, including
business conduct, is essential to delivering on our commitments.
The Board, Committee, and ELT members are selected through rigorous
processes managed by NomCo and equipped with the necessary skills
and diversity. Both the Board and ELT include members with specialised
sustainability expertise, and the Board members’ skills are regularly
evaluated, including Climate & Environmental (Sustainability) and
Customer & Conduct (including business conduct) areas. The SBAC,
involving ELT members such as the CEO, Chief Strategy and Sustainability
Officer, Chief Customer Officer and Managing Director of C&IC, supports
the Board.
Throughout 2025, several ESG-related training events took place to
advance the Board and Board Committees’ collective knowledge and
skills. The Board has access to an online corporate governance library
and a suite of AIB-specific online training courses.
A professional development and continuous education programme
ensures Directors remain equipped to lead with integrity and oversee
compliance. Further details are available from page 148 of the
Governance Report.
Variable remuneration
GOV-3
AIB operates a short-term Variable Remuneration Scheme (the Scheme).
All employees who participate in the Scheme do so on the same basis.
Measures and performance targets are agreed by the Remuneration
Committee and align with the Group’s ongoing strategy. The Scheme is
comprised of six measures, three financial (60% of the award), and three
non-financial (40%), the latter covering gender balance, customer
satisfaction, and green finance, each weighted equally. The Scheme has a
Group Profit underpin requiring a minimum level of profit that must be
achieved to trigger an award. The underpin was achieved for the 2025
performance year. The scheme does not currently assess performance
against GHG emission reduction targets. Further details are included in the
Governance Report, from page 152.
Governance of our sustainability reporting
GOV-5
Our governance for sustainability reporting aligns with financial reporting,
is part of our internal controls and is governed by the Sustainability
Disclosure Policy for all material Group and in-scope entities’
sustainability disclosures. Annually, the Chief Strategy and Sustainability
Officer recommends the disclosures for review by the GSC, after which
they are reviewed by the GDC, the SBAC and approved by BAC as detailed
above on page 95.
Risks are identified using risk assessment methodologies and internal
controls in line with the 3LOD approach. Key risks include regulatory
compliance, minimised by the Sustainability Disclosure Policy and
managed within the RMF outlined from page 239. Other risks, such as
inaccurate disclosures or lack of regulatory awareness, are mitigated by
our Sustainability Disclosure Policy and our internal control framework
detailed on pages 178 to 181 of the Governance Report. Our control
framework also ensures tightly controlled data origination to support
reporting, with controls expected to further strengthen over time as
processes and systems continue to mature.
Findings from our assessment of the reporting process are reported to
BAC and tracked until closure by First Line Assurance teams. Please see
page 142 of the Governance Report.
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Corporate governance is a material topic for AIB, as expected for a
financial institution.
This is one of our seven material topics. For each topic, we report in
accordance with the ESRS. We disclose our approach to managing our
material IROs through our policies, actions, and performance measures.
Value chain: Upstream, Own operations, Downstream
Impacts:
• We help to safeguard our customers, the Group and the wider financial
system against financial crime and fraud.
• Our tax principles contribute positively to society through transparent,
fair and responsible tax practices.
It is critical that we follow a framework of rules and practices to facilitate
accountability, fairness and transparency. Our approach to corporate
governance is relevant for all stakeholders. Our colleagues are key to our
strong governance structures, and frameworks aim to ensure that everyone
who works for us adheres to high ethical standards.
Our policies
G1-1
The following policies apply directly to employees of AIB, agency staff,
contractors, tied agents, consultants, suppliers, those providing an
outsourced service, and the Board members. This includes AIB Mortgage
Bank, EBS d.a.c. (incl. Haven), AIB UK and Goodbody and Payzone. They
are reviewed annually by internal stakeholders, and our GRC must
approve material changes. Goodbody and Payzone maintain their own
Conflict of Interest (CoI) policies which are aligned to the Group.
Conflicts of Interest Policy
Our CoI Policy outlines how to identify, mitigate, monitor, and manage
any actual, potential, or perceived conflicts of interest to ensure that
employees and Directors always act in the best interests of our customers,
employees, and the Group as an organisation.
Every year, employees complete mandatory online
Conflicts of Interest training.
The policy was set after considering the interests of key stakeholders and
was approved by our Regulatory, Culture and Conduct Risk Committee
(RCCR). Employees must declare any actual, perceived or potential CoIs
on an ongoing basis. This includes receiving prior approval from their
People Leader to give or receive gifts, benefits or hospitality valued at
more than €200/£165/$205, either individually or cumulatively. All
instances above these limits must be recorded on the CoI register.
Each business area has a CoI Business Coordinator who reviews the
CoI register to identify any actual, potential or perceived conflicts or
corruption risks, ensures that the register complies with our policies,
completes quarterly returns to our HR Direct team and reports policy
breaches to the policy owner. HR provides training and support to the
appointed coordinators.
Financial Crime Policy (incorporating ABC)
AIB is committed to safeguarding customers from financial crime,
supporting its prevention and investigation, and acting with honesty and
integrity. Our policies and codes enable us to uphold this commitment.
While effective corporate governance is crucial to mitigate financial crime,
strong cyber security measures also protect against digital threats and
safeguard sensitive financial data. More details on how we manage
financial crime and fraud through our material topic of cyber security
and data protection can be found from page 103.
Financial crime can involve money laundering and terrorist financing,
corruption in the supply of goods and services, staff incidents of bribery or
corruption, breaches of any law or regulation relating to sanctions, and tax
evasion. We manage these through our 3LOD approach, with assurance
teams reporting regularly to senior management and the Board on the
efficacy of our controls.
Our Financial Crime Policy and related standards encompass anti-money
laundering, countering the financing of terrorism, anti-bribery and
corruption (ABC), and sanctions. These are reviewed annually, and are
embedded in operating procedures. Any material updates require Board
approval. We publish documents on roles and responsibilities and
instruction guides on our intranet to help everyone understand these
policies thoroughly.
In setting our Financial Crime Policy, we consider the
interests of key stakeholders.
Whistleblowing Policy
Our Whistleblowing Policy outlines the process for making disclosures of
wrongdoing in the workplace under the Protected Disclosures Act 2014
(ROI) and Public Interest Disclosures Act 1998 (UK). It applies to staff,
subsidiaries (excluding Payzone), and contractors. Disclosures can be
made via the externally hosted Whistleblowing Portal (with an anonymity
option), mailbox, or phoneline.
Staff may also raise non-protected concerns with their People Leader or
senior management, or use the ‘Raise Other Concerns’ option on the
portal. The policy ensures a confidential route to the Whistleblowing team
without fear of victimisation or penalisation for doing so.
Whistleblowing disclosures are treated seriously, confidentially, and
triaged to ensure that they are promptly, objectively, and independently
investigated by HR, business representatives, or Group Internal Audit
(GIA). External investigators may be engaged if necessary. Suspected
fraud is initially investigated by GIA, and we notify regulatory authorities
and the police if necessary.
BAC receives an annual report on whistleblowing issues and approves the
policy, which is sponsored by the CPO. The Chair of BAC, who acts as our
Group Whistleblowers’ Champion, oversees its integrity and
effectiveness. Stakeholder interests are considered in setting the policy.
The policy is available on our website.
Our Whistleblowing Policy, in conjunction with our
Code of Conduct, supports the identification and handling
of potential wrongdoing.
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Material Topic:
Corporate Governance, Ethics & Accountability
Tax Principles
Our Tax Principles, approved by BAC and available on our website, outline
our approach to tax, management of tax affairs, customer-related tax
matters, and associated employee responsibilities. AIB adheres to the
Irish Co-operative Compliance Framework and the UK Code of Practice
on Taxation for Banks.
Our approach to tax has the following objectives:
• Maintaining high standards of integrity and complying with the letter and
the spirit of applicable tax laws, regulations, and any codes of conduct
to which we subscribe in all jurisdictions in which we operate; and
• Acting with professionalism, integrity, honesty, and fairness in dealings
with customers, suppliers, employees, regulatory and tax authorities
and law enforcement agencies.
Our actions
G1-3
Financial crime
In 2025, as in every year, we deployed a series of measures to prevent and
mitigate financial crime, and to ensure that we effectively implement our
Financial Crime and CoI Policies.
The Special Investigations Unit (SIU) independently investigates
allegations of serious wrongdoing by our employees, including bribery and
corruption, and those raised through our whistleblowing channels. The
unit is part of GIA, and derives its authority from the Board, through BAC.
The SIU is independent and separated from any chain of management
involved in a matter that is being investigated. This means that all SIU
investigations are conducted in the same professional, impartial and
objective manner. Each quarter, or as requested, GIA submit a status
report of all investigations to both BAC and GRC.
Financial crime and CoI training
In 2025, we provided our annual bespoke Financial Crime (Anti-Money
Laundering (AML) & Sanctions) and CoI training to all employees and
Directors, which is tailored to the financial crime risks relevant to specific
roles. AIB provided one hour of computer-based training to our
employees, including managers and the ELT, and our contractors,
regarding financial crime (AML, sanctions, and ABC). The training included
the definition of corruption, details of our Financial Crime Policy, the
procedures regarding suspicion/detection, and the key laws and
regulations that place obligations on AIB. In 2025, the Money Laundering
Reporting Officer (MLRO) also delivered in-person Financial Crime training
(incorporating ABC) to our Board.
Whistleblowing training
We placed a sustained emphasis on our Whistleblowing agenda
throughout 2025. This was achieved through a series of communications,
training, and engagement. During 2025, we introduced our Whistleblowing
Advocacy Network, a group of colleagues from across the business, who
are familiar with the Bank’s Whistleblowing arrangements and who can
assure our people in relation to making a disclosure under the policy. We
made enhancements to our portal for raising concerns as detailed in the
policy section on the previous page.
In 2025, through the Whistleblowing process, protected disclosures were
made in line with the policy. All disclosures were addressed by dedicated
case managers.
Responsible tax engagement
We are committed to acting responsibly in relation to tax issues and to
dealing fairly and honestly with the tax authorities in each territory where
we operate. Therefore, we engage regularly with the tax authorities to
discuss material business developments, significant transactions, and
uncertainties in relation to the interpretation of the law.
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AIB welcomed hundreds of guests into the stand at the National Ploughing
Championship 2025, where Agri and Homes advisers assisted customers with queries.
Our performance measures
G1-3
Financial crime and CoI training
The financial crime training was completed by 96% of managers, and
employees (2024: 98%). AIB does not assess workers as being at risk of
bribery or otherwise for the purposes of assigning this training; it is
mandatory for all employees. All employees and business partners
(including advisory partners and contractors) are also required to complete
CoI training annually, with a 94% completion rate in 2025 (2024: 94%).
Whistleblowing training
Everyone working in and for AIB Group is also required to complete
mandatory training on the Whistleblowing Policy annually. In 2025, the
completion rate of this training was 95% (2024: 95%).
For details on our mandatory training calculations and assumptions,
including a note regarding employees on long-term leave, see page 87.
Incidents of corruption or bribery
G1-4
We assess our operations across the Group annually for risks related to
corruption, to identify vulnerable areas, and take preventative actions.
We did not identify any significant risks related to corruption in the risk
assessment during 2025.
There were 0 confirmed incidents in which we dismissed or disciplined our
own workers for corruption or bribery incidents and 0 confirmed incidents
of corruption or bribery violations where we terminated or did not renew
contracts with business partners.
There were no incidents in our value chain where AIB or our employees
were directly involved. Accordingly, no actions have been necessary to
address breaches in our procedures and standards.
The incidents of corruption or bribery data are sourced from our risk
management system, SHIELD. The report is a point-in-time snapshot and
is constantly updated. There are no validation, judgements or estimations
applied, as SHIELD is fully automated.
0 Incidents of corruption or bribery
2024: 0
Responsible tax engagement
In 2025, the total amount of tax paid and collected was €867m.
‘Tax paid’ (€385m) refers to taxes borne by the Group, including corporate
tax, bank levy, employer social insurance and irrecoverable VAT. ‘Tax
collected’ (€482m) comprises taxes collected from employees,
customers and shareholders. See the table below for a breakdown of tax
paid and collected by region.
Details of tax payments are collected from multiple teams across the
Group and collated in a central file. No significant judgements or
estimations are applied.
Political engagement (including lobbying activities)
G1-5
The ESRS for business conduct also includes DRs in relation to lobbying
activities, to create transparency about the ways in which companies look
to influence public policy and their regulatory environments.
Our CoI Policy prohibits us from making political donations. We also have
a Lobbying Policy, which is approved annually by the RCCR and reviewed
annually by the Group Chief Compliance Officer. Lobbying activity in
Ireland is recorded on a lobbying register, where AIB is registered as a
Lobbyist. Lobbyists must submit returns to the register detailing their
activities every four months. In 2025, our lobbying returns focused on
seeking clarification that the obligations imposed under the State’s
Financial Guarantee Legislation were no longer applicable to AIB and a
proposed amendment to the Companies Act to allow directors’ names to
be listed on a company’s website rather than on letterheads.
Under the Group’s CoI Policy, staff are not permitted to make any
political donation on behalf of AIB. We are a member of multiple trade
associations; however, we do not currently have a process in place to
determine which of these are engaged in political activity. We will consider
the feasibility of putting a process in place.
No members of our Board or ELT held a comparable position in public
administration in the two years preceding their appointment at AIB.
AIB is registered on the European Union Transparency Register and its
registration number is 885308748162-21.
Breakdown of tax paid and collected by region
ROI
€ m
UK
€ m
USA
€ m
2025
€ m
ROI
€ m
UK
€ m
USA
€ m
2024
€ m
Tax paid by AIB
349
36
0
385
306
69
1
376
Tax collected by AIB from customers, employees
and shareholders
467
13
2
482
373
12
2
387
Total tax paid and collected
816
49
2
867
679
81
3
763
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Corporate Governance, Ethics & Accountability continued
We want our business to make a positive impact by creating sustainable long-term
shared value for all our stakeholders. This includes advancing responsible business
practices, such as supporting the transition to a low-carbon environment by
choosing suppliers who are aligned with our sustainability strategy.
G1-2
This section outlines our approach to managing a sustainable supply chain
in terms of our policies, actions and performance measures.
Value chain: Upstream
Impact:
• The integration of sustainability criteria into our risk management
processes, policies, and procedures supports responsible and
sustainable business practices, supply chain and investments.
Managing our supplier relationships is a key aspect of our material topic
Corporate Governance, Ethics & Accountability. By implementing
responsible and sustainable business practices across our own
operations and supply chain, we seek to contribute to wider
environmental protection and social wellbeing.
The term ‘suppliers’ refers to suppliers, vendors, contractors, consultants,
agents and other providers of goods and services who do, or seek to do,
business with AIB Group. This definition does not include individual
contractors, agents or intermediaries. We employ a broad range of
suppliers across multiple categories, with 3,924 (2024: 4,003) active
suppliers on our database, and we transacted with 2,478 (2024: 2,528) of
them in 2025. An active supplier is one that is set-up on our system and
currently enabled to receive payment for goods or services provided to AIB
Group. The largest cohort of our suppliers are based in Ireland, i.e. 67%
(2024: 66%). A further 25% (2024: 26%) are based in the UK, and the
remaining 8% (2024: 8%) are in other locations, mostly other European
countries and the USA.
We segment our supplier base into five tiers, based on the risk and
criticality of the service they provide. We then manage them accordingly,
with the closest management accorded to Tier 1 suppliers who provide
critical services to us, while Tier 5 suppliers typically provide low-value
transactional goods and services.
We use market intelligence, specific selection criteria and best-in-class
selection tools to help us choose the most appropriate suppliers. Our due
diligence reflects the nature, value, complexity, and criticality of the
service we are procuring. For high-value/risk services, we perform specific
due diligence checks on the supplier and their proposed service model.
We subject lower-value and/or lower-risk suppliers to routine company
financial and sanction scanning checks.
Our policies
Responsible Supplier Code
The Responsible Supplier Code sets out the minimum standards we
expect, and we encourage all suppliers to go beyond these requirements
regarding human rights, health and safety, supply chains, I&D, and
responsible and sustainable business. The Code uses the term ‘supplier’
per the definition previously stated, as part of our upstream value chain.
In 2025, the number of suppliers who participated in reporting to the CDP
was 106 (2024: 65), which represented 52% (2024: 50%) of the AIB
suppliers invited.
Our suppliers must adhere to all legal obligations in each jurisdiction in
which they operate or provide services, as well as meeting any specific
requirements in our own policies. Specific suppliers must attest annually
that they have complied with our policies (or clauses in them that are
relevant to our supply chain). These policies include our Code of Conduct,
CoI Policy, Financial Crime Policy, Data Protection Policy, Whistleblowing
Policy, and our Human Rights Commitment. The GSC reviews and
approves the Code as needed.
We inform suppliers of the Code at onboarding and at each transaction via
Purchase Order communications. The Code is also an agenda item during
Annual Strategic Reviews and is documented through meeting minutes.
This reinforces the Code’s message and ensures that the supplier is aligned.
We expect our suppliers to maintain similar levels of compliance
throughout their own value chain, including any suppliers or approved
subcontractors that they work with to supply goods and services to us,
and we engage on instances that fall short of requirements.
We require our Accountable Owners and Business Owners to be familiar
with the Code. Business Owners represent us when dealing with the
supplier, while Accountable Owners typically line-manage the Business
Owner and control or authorise the budget.
We expect suppliers to take appropriate measures to secure and protect
all confidential information related to their relationship with us, and to use
it only for the purpose authorised under our contractual agreement with
them.
Our actions
Supplier Relationship Management (SRM) standard
Our SRM standard encapsulates best practice SRM, which promotes
mutually beneficial relationships, coupled with effective risk
management, to deliver the following objectives:
1. A consistent and systematic approach to SRM across AIB Group.
2. A risk-based approach to identifying where to focus SRM resources to
maximise customer outcomes.
3. Ongoing oversight of our third party, performance and risks.
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Management of Our Supplier Relationships
ESG Questionnaire
ESG factors are increasingly important for our own performance, and for
our relationships with suppliers. The ESG Questionnaire covers a broad
range of ESG areas, and requires responses and evidence from suppliers
on their:
• journey to establishing or achieving their decarbonisation targets;
• annual sustainability reports;
• scope 1, 2 and 3 GHG emissions;
• consideration of physical risks from climate change;
• policies on discrimination, I&D, health & safety, modern slavery,
vulnerable persons, greenwashing, and speaking up;
• Code of Conduct and their Responsible Supplier Code for their own
supply chain; and
• commitment to ongoing ESG-related training in their organisation.
By engaging with our suppliers through the ESG Questionnaire during the
selection process, we benefit in the following ways:
1. Aligning Our Values and Expectations
Asking suppliers to complete an ESG Questionnaire communicates our
ESG standards and expectations to them, and ensures that we work with
partners that share our values. This can help to build trust and reputation,
and avoid potential conflicts or controversies.
2. Identifying Risks and Opportunities
The questionnaire helps us to assess the ESG performance and risks of
our suppliers and their supply chains, such as their environmental impact,
social responsibility, human rights, labour practices, ethics, and
governance. This helps us to identify and mitigate ESG risks, such as
regulatory fines, reputational damage, operational disruptions, or legal
liabilities. It also helps us to identify and leverage ESG opportunities, such
as innovation, cost savings, customer loyalty, or market differentiation.
3. Providing a Baseline and a Roadmap
The questionnaire provides a baseline for measuring and monitoring
suppliers’ ESG performance and progress, as well as a roadmap for
improvement. By using a standardised ESG Questionnaire, we can
benchmark and compare our suppliers, and track their ESG performance
over time. It also allows us to provide feedback and guidance to our
suppliers and encourages them to adopt best practices and achieve
continuous improvement.
AIB’s suppliers’ webpage
Our webpage creates transparency by providing information on our
policies, procedures, and our standard terms of purchase, which explains
our payment terms for suppliers.
Our performance measures
G1-6
Another ESRS requirement connected to business conduct and supplier
management concerns payment practices, particularly in relation to
SMEs. Our standard payment terms apply equally for SMEs and non-
SMEs, and are the same across our geographies.
These terms include payment on receipt of invoices that have been
flagged as approved to pay, which account for approximately 81% (2024:
78%) of the invoices received during 2025. The remaining 19% (2024:
22%) of annual invoices are paid once any outstanding elements of the
invoice have been settled and flagged as approved to pay.
This calculation is facilitated through the central collection of invoice
data containing all relevant information, and excludes Payzone. This is
reviewed and signed off by management. No judgements or estimations
are applied.
There are no legal proceedings currently outstanding for late payments
(2024: 0). All Group employees have an obligation to notify the Litigation
and Enforcement legal team of any legal proceedings that are received in
their area, and a reminder email is issued annually. Each year, all legal
proceedings are recorded, including detail of the date on which the legal
proceedings were received, the entity against which they were issued, and
the nature of the claim.
We attempt to prevent late payments by aiming to pay immediately on
receipt of invoices, the ongoing training and education of users, and
monitoring outstanding invoices to business. The average time that AIB
takes to pay an invoice, from the date when the contractual or statutory
term of payment starts to be calculated, is 26 days (2024: 28 days). We
calculate this by taking the average number of days between the invoice
date and the clearing date of the payment made. This calculation is based
on all invoices received and paid up to 31 December 2025.
We are considering developing a target to measure the results of our
supplier management policies and actions to integrate sustainability and
ESG criteria into our procedures, to support responsible business
practices, including a more sustainable supply chain.
Payment practices
Payments aligned with standard payment terms of 30 days
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Management of Our Supplier Relationships continued
81%
78%
FY2025
FY2024
Pat Horgan, Head of Business Banking, speaking at
the Dublin Chamber Annual Dinner, sponsored by AIB.
Our Values & Behaviours
Be One
Team
Own the
Outcome
Drive
Progress
Show
Respect
Eliminate
Complexity
Put Customers
First
Create connections,
Universally include
Seek excellence,
Take accountability
Deliver sustainability,
Embrace innovation
Empower others,
Speak up
Actively simplify,
Be decisive
Apply insights,
Simplify & solve
This is one of our seven material topics. For each topic, we report in
accordance with the ESRS. We disclose our approach to managing our
material IROs through our policies, actions and performance measures.
Value chain: Own operations
Risks:
• Misconduct, inappropriate actions or inactions on a systemic scale
can cause poor or unfair customer outcomes, and potential failure
to meet regulatory expectations can negatively impact our market
integrity and reputation.
• If the Group’s purpose and values are not shared by all colleagues,
it could result in poor customer and market outcomes.
We often talk about the ‘Why’, ‘What’ and ‘How’ of our business. Our ‘Why’
is our purpose. Our ‘What’ is our Group strategy, of which Sustainable
communities is a pillar (for further information, see page 44). Our ‘How’
comprises our values and behaviours – which can make all the difference
to outcomes for our stakeholders.
Our policies
G1-1
The following policies related to corporate culture apply to everyone
who is directly employed by AIB, as well as agency staff, contractors,
and the Board members. This includes AIB Mortgage Bank, EBS d.a.c.
(incl. Haven) and AIB UK. Goodbody and Payzone are governed by their
own policies which are aligned to the principles and values of the Group.
Culture Risk and Conduct Risk Framework
The Group Culture Risk and Conduct Risk Framework sets out how the
Group identifies, assesses, manages and monitors these risks in line
with the Group’s RAS. The framework also applies to the operations
of Goodbody.
The framework sits within the overall Group Risk Architecture and is one
of the Material Risk Frameworks supporting the Group’s RMF.
The framework is underpinned by a number of Group policies and the Code
of Conduct. See the Risk Summary section on pages 16 to 19 of our Annual
Report which provides more detail on how the Group manages risk. The
requirements of the Third Party Risk Management Policy and Third Party
Service Assessment are respected by implementing the Framework.
Each ELT member is responsible for effectively managing the day-to-day
operations of their business segment or function, and for developing and
implementing the Group strategy. The ELT as a whole is responsible for
considering Culture Risk and Conduct Risk in our strategic planning, and
for how the Group formally assesses the conduct risks inherent in the
strategy, including having effective procedures for protecting diverse and
vulnerable customers.
During annual reviews of the framework, we engage stakeholders across
our first and second lines of defence, consider their feedback, and
incorporate it as necessary. The BRC approves the framework, which is
communicated to all employees and published on our intranet site.
Code of Conduct
It is vital that everyone who works in or for the Group understands how
they are expected to behave. Our Code of Conduct (the Code), therefore,
sets out clear expectations of how we behave and how we do business,
and underpins our values and culture. Goodbody and Payzone have their
own Codes of Conduct, which are aligned to the standards required in the
Group Code.
One of the five standards in the Code is that we act in the best interests
of our customers, at all times, and treat them fairly and professionally.
We deliver this in a number of ways, including promoting fair customer
outcomes by always putting their needs first in our advice and
decision-making, designing products and services that are suitable for
our customers, and providing customers with information that is both
accessible and transparent to help them make informed decisions.
All employees must complete a declaration that they have complied
with the Code, as part of the annual Aspire performance management
process. We take failure to comply seriously and any employees who
breach the Code are managed through a disciplinary process, which can
result in sanctions including dismissal. All firms providing outsourced
services to the Group, must also agree to comply with this Code, or must
have an equally suitable proprietary code of their own.
We ensure sufficient senior management focus on our conduct through
our RCCR, which provides oversight of these risks, including within our
subsidiaries.
The Board reviews the Code as needed, and the GCCC and BAC review
it annually. In setting our Code, we considered the interests of key
stakeholders.
The Code is aligned to the Central Bank of Ireland’s (CBI’s) Individual
Accountability Framework and the UK Financial Conduct Authority’s
(FCA’s) Senior Managers and Certification Regime. Further information
can be found on CBI’s website and the FCA website.
Our Code of Conduct can be found publicly on our website.
The BAC receives an annual report on awareness levels of
the Code, aspects for review, and any breaches identified,
including the action taken.
Grievance Policy and customer complaints
The Grievance Policy provides another mechanism for our employees
to raise concerns, if they feel they have been mistreated or subject
to behaviours contrary to our Code of Conduct.
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Material Topic:
Culture & Reputation
We also have a comprehensive customer complaints process, which is
discussed in more detail in Channels for Stakeholders to Raise Concerns
on page 90.
Reputational Risk Framework
Our reputational risk framework sets out the key principles for managing
Reputational Risk across the Group. It reinforces standards for identifying,
assessing, measuring, and managing reputational risk exposures
associated with the Group’s material risks. In setting this framework, we
consider the interests of our key stakeholders. The framework applies to all
employees, contractors, and third parties providing services or functions
across AIB Group and its regulated subsidiaries, including Goodbody. It is
published on our intranet. This framework aligns with the Basel Committee
on Banking Supervision (BCBS) Enhancements to the Basel II Framework
(July 2009) on reputational risk and implicit support. The Board approves
the framework, and reviews and approves any subsequent changes, as
recommended by the ELT.
Our Reputational Risk Framework supports a consistent,
Group-wide approach to safeguarding trust and integrity.
Our actions
Culture and conduct
The Irish Banking Culture Board (IBCB) ‘éist Staff Culture’ survey is
conducted every two to three years, with the latest survey conducted in
February 2026. The survey focuses on exploring employee views on a range
of issues that lie at the heart of banking culture. Our refreshed Culture Plan
focuses on mindset shifts and repositions culture as enterprise-wide. It is
being monitored via metrics in the AIB Engage staff survey. This work,
together with the Group’s focus on reputation management, supports AIB’s
responsible and sustainable business principles.
Two AIB Engage surveys were conducted, with 73% and 58% response
rates, in 2025. Different themes are explored in detail through each AIB
Engage survey, with colleagues able to submit comments and suggestions
on how AIB can improve.
In 2025, AIB launched our fifth annual Employee Values Awards (EVAs), with
4,546 employees nominated across the Group. These awards are an
opportunity to recognise the many outstanding examples of times when our
colleagues have stepped up for each other, our customers and our
communities. All employees have the opportunity to be involved in the
process of identifying these individuals, beginning with an open nominations
process that progresses to a voting system. Finalists are then invited to an
in-person celebration in November and awards are presented to the
winners in each category. The 2025 Awards featured a ‘Spirit of Innovation’
category designed to recognise and encourage innovative changes
implemented by colleagues during the year. We also introduced two new
award categories, ‘Best Leader’ to recognise our leaders who create a
positive working environment by role modelling the AIB values and
encouraging others to do the same, and ‘Community Impact’ in recognition
of the great community work done by colleagues across the Group.
In 2025, our Aspire performance management framework continued to
promote and encourage regular quality one-on-one conversation focused
on employee development and feedback, and it applies to every employee
in AIB. Based on each employee’s annual goals, Aspire enables the equal
recognition of not just what each individual has achieved in the year but
how it was achieved and thereby encourages the ongoing development of
behaviours in line with our values.
Reputational Risk
As part of the Reputational Risk Framework, several related artefacts and
processes support effective reputational risk management. These include:
• Group Risk policies and supporting artefacts – enabling the
identification, assessment, and mitigation of reputational risk
exposures associated with our material risks.
• Reputational Risk advisory process – ensuring that reputational risk is
considered and documented for material change initiatives,
programmes, and other strategic activities.
• Corporate Governance templates – guiding us to evaluate the
reputational impact of our decisions.
Our performance measures
Alongside these actions that AIB Group undertakes to enable us to
operate our business in a responsible way, all our employees are required
to complete our annual mandatory online training curriculum.
The Code of Conduct is a feature of our annual mandatory online training
curriculum, educating employees on the expectations of the Code. In
2025, the completion rate of this training was 95%. For details on our
mandatory training calculations and assumptions, including a note
regarding employees on long-term leave, see page 87.
Code of Conduct training
Conduct Risk and Culture Risk continues to be a primary focus for
the Group, as described in our Principal Risks section from page 17.
We measure our effectiveness through three Key Risk Indicators (KRIs),
which are internally reported:
• Completion of mandatory training courses
• Critical & high customer impacting conduct issues
• Culture metric (composite of three culture risk measures)
Ensuring all our employees are aware of and understand the expectations
of the Code of Conduct through annual mandatory training works to
reduce the number of customer-impacting conduct issues. Our Board
receives regular updates on the progress of our Culture Plan, values
sentiment and employee engagement approach. We will continue to
focus on measures of performance in this area.
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Culture & Reputation continued
95%
95%
FY2025
FY2024
Hayleigh Rochford accepting the EVA for Group
Strategy & Sustainability Colleague of the Year.
Our Cyber Security & Data Protection Framework continues to underpin the reliable
operation of AIB Group, safeguarding our employees, customers, and partners. In
2025, we have further strengthened our foundations to address the evolving threat
landscape, ensuring our systems and data remain resilient against increasingly
sophisticated cyber risks. We remain committed to leading digital enablement in Irish
banking, while prioritising the security and privacy of all stakeholders.
This is one of our seven material topics. For each topic, we report in
accordance with the ESRS. We disclose our approach to managing our
material IROs through our policies, actions and our performance measures.
Value chain: Upstream, Own operations, Downstream
Impacts:
• We take steps to safeguard our customers’ information, ensure the
continued resilience of our digital channels, and protect against fraud.
• Data security breaches in AIB can compromise employees’ and
customers’ data if proper safeguards are not in place.
Risks:
• Cyber attacks can pose a significant operational risk to the Group,
leading to potential financial losses, legal liability, regulatory fines and
reputational damage.
• Errors in the development, implementation, or use of AI systems can
pose a significant operational risk to the Group, leading to potential
financial losses, legal liability, regulatory fines and reputational
damage.
Cyber security and data protection is an entity-specific topic. Given that
the impact is in relation to own workforce and consumers and end-users,
the disclosures of ESRS S1 and ESRS S4 have been applied to disclose
material information. The increasing frequency and complexity of cyber
incidents can have significant and lasting impacts on our operations,
customers, and society. In 2025, we continued to prioritise digital resilience,
privacy, and data protection, ensuring robust safeguards are in place to
protect all individuals and entities potentially affected by cyber threats.
We design and operate our systems to ensure security, resilience, and
agility, enabling us to deliver products and services that meet the evolving
needs of our customers. In 2025, our Enterprise Information Security team
continued to monitor, protect, and modernise our platforms, leveraging
advanced technologies and industry standards. Our commitment to best
practice is demonstrated by our ongoing ISO 20000 certification and
continuous improvement initiatives.
Our DPOs are responsible for engaging with customers and the DPC when
a query is raised regarding our use of personal data. The DPOs are also
responsible for advising everyone in the Group of their obligations under
Data Protection and ePrivacy regulations.
Risks related to cyber security and data privacy are inherent to our
business activities, given the amount of information we handle and the
reliance of our business model on technology services and infrastructure.
If proper safeguards are not in place, individual data incidents, such as
personal data breaches and cyber security breaches, can have a serious
negative impact by compromising both our employees and customers’
right to data privacy.
Effective 1 January 2025, Information Security (including Cyber) Risk is
recognised as a Principal Risk for AIB Group, and is no longer a sub risk of
Operational Risk, reflecting its critical importance to our business and
stakeholders. This is an outcome of the MRA process which considered a
number of factors including the potential impact on the Group’s capital,
historical loss events, external loss events sourced from Operational
Riskdata Exchange Association (ORX), the RCA, the assessment of
emerging risks and consideration of the regulatory horizon.
Our approach ensures that cyber risk receives dedicated oversight and
resources at the highest levels of the organisation. Furthermore, as noted
on page 49, an additional IRO risk was identified in relation to AI. The
Group’s approach to addressing this risk is detailed later in this section.
Our policies
GOV-1, S1-1, S4-1
The policies described below apply to all employees, contractors,
consultants, agents and third parties throughout the Group, in all
jurisdictions, who have direct or indirect access to our information or
systems. They are applicable to all legal entities and subsidiaries in AIB
Group, including Goodbody and, where relevant, our suppliers within our
value chain. Payzone is not covered by these policies as it maintains its
own suite of policies which are aligned to the Group.
Information Security (including Cyber) Risk Framework and Policy
Our Information Security Framework and Policy set out the requirements
for the effective and consistent identification, evaluation, management,
and oversight of Information Security (including Cyber) Risk, across AIB.
The CRO is the policy’s ELT sponsor, and is responsible for ensuring
appropriate engagement with all stakeholders to capture feedback on any
proposed changes to these. To ensure that the framework and policy are
kept up to date, we carry out a review in line with Bank’s policy governance
processes and list the relevant regulations in the latest version of the
framework, which we publish on our intranet.
We have a low appetite for the risk of loss or breach of our confidential
business and customer data. We set this appetite at a level that allows us
to achieve our business goals and objectives in a manner that complies
with the laws and regulations across the jurisdictions in which we operate.
We cannot fully control or mitigate the occurrence of Information Security
(including Cyber) Risk. However, we seek to minimise our risk exposure as
much as possible through controls that extend through all internal
capabilities and third party services, and our focus is on identifying and
protecting our critical systems and information assets, as well as our
ability to detect, respond to and recover from incidents. We also have
quantitative RAS measures in place to mitigate this risk.
The Board is ultimately responsible for the effective management of
Information Security (including Cyber) Risk, and for the Group’s system
of internal controls. The Board monitors our exposure through its regular
risk reporting and by updates on specific cyber-related topics.
Additionally, our CRO regularly reports on the Group’s risk profile and
emerging risk themes to both the GRC and BRC.
Technology Risk Policy
The Technology Risk Policy defines our rules for effectively managing
technology, to ensure that we identify and manage technology risks in line
with our risk appetite. It is published internally on our intranet.
The 2LOD Group Head of Operational Risk reviews both the Information
Security and Technology Risk policies and the guidelines annually to
ensure that they comply with any new laws or regulations and reflect
changes in our organisational structure or new business requirements.
After consultation with internal stakeholders, policy updates are then
approved by the GRC.
As the CRO is the policy’s ELT sponsor, all documented rules governing
our approach to managing technology and information security-related
risks are approved at Board level.
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Material Topic:
Cyber Security & Data Protection
The policy aligns with the requirements of the Digital
Operational Resilience Act (DORA), which applied from
January 2025.
Data Protection & ePrivacy Policies
As a digitally enabled bank, we process large volumes of customer data
on a daily basis. Our customers must be able to trust us to do this
responsibly and ethically, using appropriate data protection and ePrivacy
mechanisms. We therefore prioritise the protection and ethical use of our
customer data, and our Code of Conduct requires all staff to comply with
the spirit and letter of the relevant laws and regulations, including those
related to data protection and ePrivacy. As customers are a crucial part
of our value chain, safeguarding their right to privacy is a key part of our
Human Rights Commitment. For more details on our Human Rights
Commitment, please refer to page 88.
Our Data Protection Policy provides clear rules and principles for
protecting personal data within the Group, including addressing the
identification, assessment, management and/or remediation of data
protection impacts on customers.
The policy is in line with the GDPR, (EU) 2016/679, which outlines the
rules for protecting the fundamental rights and freedoms of natural and
legal persons, reinforces the data protection rights of individuals, and
facilitates the free flow of personal data within the EU and other countries
where an adequate level of data protection has been determined. This
policy is also aligned with the requirements of the Irish Data Protection
Act 2018 and the UK Data Protection Act 2018.
The ePrivacy Policy sets out the rules and principles, roles and
responsibilities for identifying, assessing, managing, reporting, controlling
and overseeing electronic communications. The DPOs reviewed the
ePrivacy Policy in 2025 to ensure its continued effectiveness.
The ePrivacy Policy is in line with the ePrivacy Regulation
(2017/0003(COD)), which outlines the rules for protecting the
fundamental rights and freedoms of natural and legal persons in the
provision and use of electronic communication services and, in particular,
the rights to respect for private life and communications and protections
with regard to the processing of personal data.
The policy is also aligned to the requirements of the UK Privacy and
Electronic Communications Regulations (Privacy and Electronic
Communications (EC Directive) Regulations 2003).
Our DPOs set our Data Protection policy and ePrivacy policies and
oversee their effective communication and implementation across the
organisation. We review the policies annually, and ensure that the views
and interests of key stakeholders are taken into consideration. The RCCR
reviews any material changes to the policies, and also reviews and
approves them every three years. We complete a regulatory gap analysis
when drafting the policies, and during each triennial review, to ensure that
the policies meet regulatory obligations and expectations. Both policies
are aligned with the RAS, and all appropriate qualitative statements and
metrics outlined in the RAS are reflected either directly within the policies,
or in their supporting guidelines and procedures.
As a digitally enabled bank processing large volumes of
customer data, our customers must be able to trust us to
do this responsibly and ethically using appropriate data
protection and ePrivacy mechanisms.
Group Model and AI Risk Management Framework & Policy
The purpose of the Group Model and AI Risk Management Framework is
to ensure that model and AI risk in AIB Group is appropriately identified
and managed within each stage of the model and AI risk management
lifecycle. It sets out how AIB Group defines, manages and measures
model risk and details the roles and responsibilities with regard to the
management, reporting, control and oversight of model risk.
The framework applies to all models in the Group, including those sourced
from a third party. The framework and policy are in line with EU legislative
and regulatory requirements.
The ELT is ultimately responsible for implementing both the framework
and the policy. The framework is on a three-year cycle (triennial) for
approval by the BRC, and the Head of Enterprise Risk, as the framework
owner, is responsible for the annual review and approval of non-material
changes. The framework and policy are published on our intranet.
Our actions
S1-4, S4-4
Ensuring information security
The cyber threat landscape in 2025 continued to evolve, with increasing
sophistication and frequency of attacks targeting the financial sector.
We maintain a proactive and adaptive cyber defence posture, leveraging
real-time threat intelligence, automation, and advanced analytics. Our
controls are regularly tested and enhanced in line with international
standards, including the NIST Cybersecurity Framework. We conduct
annual business continuity and incident response exercises, including
cyber simulations, to ensure preparedness for extreme scenarios. Our
approach is dynamic, enabling us to anticipate and respond to emerging
threats and maintain the security of critical services.
Building on the AIB Technology Strategy 2024-2026, approved by the
Board in December 2023, we are executing a refreshed Group Cyber
Strategy 2025-2026 anchored to our ‘Secure Future Ready’ vision that
was approved by the Board in February 2025. This multi-year programme,
aligned to NIST Cybersecurity Framework 2.0 and industry benchmarks,
addresses evolving threats through enhanced identity, protection,
detection, and response capabilities. Our strategy is anchored to four
interconnected pillars: Secure by Design, Strong Foundation, Cyber Ready
Mindset, and Transition to Resilience.
Preventing and mitigating technology risk
We have implemented a cross-functional DORA programme to ensure
ongoing compliance, enhanced operational resilience, and to address
any identified gaps. This proactive approach positions AIB Group to meet
evolving regulatory expectations and industry standards in cyber security
and technology risk management.
As DORA alignment requires financial entities to have a sound,
comprehensive and well-documented Information and Communication
Technology (ICT) risk management framework, we are also obliged to
conduct annual reviews of adequacy and effectiveness of the Bank’s
technology risk management profile and compliance with the relevant
regulatory requirements. We have completed our 2025 review and the
output, confirmed by external consultants, shows that technology-related
risk remains medium and stable with no material findings, demonstrating
strong risk management maturity. The risk has oversight from Operational
Risk Committee (ORC), GRC and BRC.
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Cyber Security & Data Protection continued
Initiatives to safeguard customers
Protecting our customers from cyber threats and fraud remains a top
priority. In 2025, we continued to deliver targeted awareness campaigns
and timely security alerts through multiple channels, including email, in-
app messaging, across our social media platforms, press releases and
through our community outreach programme. We also support and
collaborate with industry initiatives such as BPFI’s FraudSMART
awareness campaign. Our ongoing engagement empowers customers to
recognise and respond to scams and emerging threats, supporting a safer
digital banking experience.
Ensuring data protection
The DPN delivers on our transparency obligations under GDPR, while
informing our customers about how their personal data is used. We
develop our privacy-related notices, including the DPN, to try to make
sure that they are accessible for all customers, including vulnerable
individuals. We conducted a detailed review of the ROI DPN during 2025
with the best interests of our customers in mind. The focus of this review
centred around the core objective, to provide our customers with greater
detail and additional clarity regarding the use of their personal data within
AIB. This was achieved by providing more detail relating to categories of
information processed, how we collect that information, and the lawful
bases relied upon to use their information. We included additional detail
to explain the lawful basis for sharing information with third parties and to
explain the conditions under which AIB shares information outside the
European Economic Area (EEA). The updated DPN was published on the
AIB ROI website in September 2025, making it available and accessible to
all of our customers.
Following a deep-dive analysis of personal data breaches that occurred
during 2024, the DPOs engaged directly with individual business areas in
2025 to develop action plans to strengthen the control environment
around data protection. Regular updates on breach action plans are
presented at the 2LOD Data Protection and Privacy Forum to ensure the
DPOs have a level of oversight, while also encouraging information sharing
across business areas within the Group. The DPOs also engaged with the
DPC in response to its queries relating to personal data breaches that
were reported to the Regulator.
In addition, the DPOs delivered a comprehensive targeted training programme
in 2025 to 484 colleagues across a range of business areas to raise awareness
of personal data breaches. This approach differs to the broader training
programme delivered across the organisation in 2024. These training sessions
are delivered separately to the mandatory training noted on page 106.
We want all of our customers to benefit from the initiatives outlined above,
which demonstrate our commitment to being transparent with our
customers and protecting their personal data.
Phishing simulations
Phishing simulations remain a key component of our cyber awareness
programme. In 2025, we continued to conduct quarterly phishing
exercises for all employees, using realistic scenarios to educate and test
resilience. Results are shared with senior leadership to inform ongoing
training and awareness initiatives, ensuring a culture of vigilance across
the organisation.
Simulation exercises
2025
2024
All-employee phishing exercises
4
4
Phishing simulation emails sent
59,847
58,309
Complying with the EU AI Act
To aid compliance with the EU AI Act, in 2025, we updated the material
risk taxonomy to explicitly incorporate AI risk with model risk. We also
introduced standards for validation and monitoring of AI systems and
reconfigured the model inventory to accommodate AI-specific fields.
Beyond these enhancements to existing risk management protocols, new
processes to manage AI risk were introduced. Key amongst these was the
creation of the AI Oversight Forum, a multi-disciplinary forum, featuring
representation from across the organisation, including security, legal,
compliance, and risk. The forum is responsible for overseeing the
emerging deployment of AI systems and ensuring alignment with the
Group’s strategic pillars.
In addition to the above, and in order to strengthen AI literacy in AIB, we
are implementing an AI literacy strategy that includes AI training for all
employees, newsletters, and specific training for users of systems such as
M365 Copilot, where comprehensive tailored training spanning face-to-
face sessions, virtual instruction, and on-the-job learning have been
implemented for users.
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Board Members Tanya Horgan, Independent Non-Executive Director, Jim Pettigrew, Chair,
and Anne Sheehan, Independent Non-Executive Director.
Our performance measures
S1-5, S4-5
Our Cyber Security & Data Protection performance measures apply to
AIB Group, excluding Goodbody and Payzone.
Cyber security spending target
The ‘Cyber security spending’ entity-specific performance measure,
disclosed in FY2024 as a percentage of overall annual IT spend, will no
longer be reported externally from FY2025 onwards. The measure was
assessed as providing limited decision-useful or comparable information
for users of the Sustainability Statement. The Group continues to invest in
its technology capabilities, which underpin the resilience of our digital
infrastructure and reinforce our capacity to protect our customers, our
data and our operations in an evolving threat landscape.
We maintain a strong focus on IT service availability as a key risk metric,
ensuring the reliability and resilience of our critical business services.
The IT service availability metric provides a holistic view of the health of
our IT services domain and is monitored continuously throughout the year.
Performance above established thresholds triggers escalation and review
processes, supporting our commitment to operational excellence.
Our approach to monitoring and managing cyber security and IT risk is
underpinned by the RAS process, which is reviewed annually and adjusted
as needed to reflect internal and external developments. Data for this
performance measure is sourced directly from our management
information and incident management systems, ensuring accuracy and
transparency.
The methodology for calculating IT service availability is aligned with
industry standards and is regularly reviewed to ensure ongoing relevance.
We will continue to refine our approach and update our performance
measures as appropriate and to ensure that we consider views and
interests of key stakeholders during an annual review.
IT service availability
Average availability of all level 1 business services
Mandatory training
Information Security and Data Protection training remains a core
component of our mandatory training curriculum. In 2025, we expanded
the roll-out of our new training tool, initially launched to IT staff in late
2024, to all AIB employees. This tool provides enhanced insights into user
security awareness and supports our goal of maintaining a high level of
cyber resilience across the organisation. High-risk users continue to
receive additional targeted training, including increased phishing
simulation frequency, and we regularly review and update our training
content to address emerging threats and regulatory requirements. High-
risk users at AIB are defined as employees or teams whose roles,
behaviours, or elevated access levels make them more susceptible to
phishing attacks or whose compromise would pose a significant risk to the
organisation. This includes the Board members, ELT members, Legal,
Finance & Treasury, Service Desk, Call Centre staff, and Privileged Users
with administrative access to critical systems.
To support our colleagues in improving their sustainability knowledge, a
completion rate of 90% is required each year for the mandatory trainings.
Information security training
The Data Protection training module covers our Data Protection and
ePrivacy policies, and how to report a personal data breach and breach of
the policies. 96% of our employees and contractors completed the
training in 2025.
Data protection training
In addition, our new AI training module introduces key AI concepts and
terminology, and outlines AIB’s responsibilities under emerging AI
regulations. 94% of our employees and contractors completed this AI
literacy training in 2025.
AI training
For details on our mandatory training calculations and assumptions,
including a note regarding employees on long-term leave, see page 87.
Data Protection & ePrivacy
We do not have specific targets related to the number of personal data
breaches. Instead, we work to reduce personal data breaches and
support customers and business areas if they occur, with 2025 showing
an overall reduction in volumes when compared with 2024. We use the
following metric to track the effectiveness of our data protection actions:
Total number of personal data breaches
This metric is extracted directly from the Group’s governance, risk and
compliance system, SHIELD, and no judgements are applied to the
metric. This metric includes Goodbody, and excludes Payzone who
manages and reports its own personal data breaches independently.
The table below presents the number of personal data breaches notified
to the DPC, and the number of complaints from a data protection
perspective. 267 of the 1,385 personal breaches were reported to the data
protection authorities.
In 2025, there was a total of 493,173 data subjects impacted by personal
data breaches. The increase for 2025 is primarily attributable to two
incidents in AIB ROI, affecting 471,658 customers, due to files shared with
an incorrect trusted third party via a secure channel. No customers nor
employees were negatively impacted. These personal data breaches were
assessed by the Data Protection Office as a negligible-risk breach and
therefore did not require notification to the DPC.
Data Protection – Personal Data Breaches & Complaints
2025
2024
Number of substantiated data protection
complaints received from outside parties and
substantiated by the organisation
135
164
Number of substantiated data protection
complaints from regulatory bodies
5
6
Number of personal data breaches reported to
the data protection authorities
267
488
Total number of customers and employees
affected by the Company’s personal
data breaches
493,173
18,816
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Cyber Security & Data Protection continued
99.99%
99.98%
FY2025
FY2024
95%
95%
FY2025
FY2024
96%
95%
FY2025
FY2024
94%
FY2025
1,385
1,747
FY2025
FY2024
List of Disclosure Requirements
IRO-2
Following the completion of the DMA process, we conducted a materiality of information assessment for each ESRS to determine material DR and data points (DPs). In doing
so, we considered the relevance of the reported information and significance for the user of the Sustainability Statement to inform their decision-making. The following table
lists all of the DRs in ESRS 2 and the topical standards, both mandatory and material to AIB.
We have omitted all the DRs in the topical standards E2 (Pollution), E3 (Water and marine resources), E4 (Biodiversity and ecosystems), E5 (Resource use and circular
economy), and S2 (Workers in the value chain), as these topics were below our materiality thresholds, except for the DRs related to IRO-1 in ESRS 2. The index tables help the
reader to navigate information in the Sustainability Statement and we have indicated where information has been incorporated by reference to another section of the AFR
(such as the Governance Report and Annual Review).
We have also indicated where we have deemed a DR to be not material, or we have chosen to avail of the phase-in provisions.
For six of our material topics, with the exception of ‘Own Workforce (Equal Treatment & Opportunities for All)’, entity-specific disclosures in relation to metrics have been
included to support disclosure of material information. These have been introduced as additional DRs or as additional DPs within the ESRS DR.
ESRS 2 – General disclosures
BP-1
Basis of Preparation
43
BP-2
Our Approach to Sustainability, Basis of Preparation
42, 43
GOV-1
Our Sustainability Governance
Governance Report (GOV-1, 21 a - e, 22 c)
Risk Management (GOV-1, 22c)
93 – 95, 125, 178
GOV-2
Our Sustainability Governance
Risk Management (GOV-2, 26 a)
95, 178
GOV-3
Our Sustainability Governance
95
GOV-4
Our Sustainability Governance, Due Diligence Table in Appendix 1
95, 108
GOV-5
Our Sustainability Governance
Governance Report (GOV-5, 36 d - e);
Risk Management (GOV-5, 36 b - c)
95, 178, 239
SBM-1
Our Sustainability Strategy, Our Value Chain, Creating Value through Our Business Model
(Phase-in applied for SBM-1 40 b, 40 c)
Annual Review (SBM-1, 40 a)
44 – 45, 46, 47, 4 – 5
SBM-2
Our Stakeholder Engagement
Governance Report (SBM-2, 45 a, c)
48, 136
SBM-3
Our Material Impacts, Risks, and Opportunities (Phase-in applied for SBM-3 48 e)
51 – 54
IRO-1 (E1, S1, S3, S4, G1)
Our Approach to the Double Materiality Assessment
49 – 50
IRO-2
Appendix 1 and Appendix 2
107 – 109
ESRS E1 – Climate Change
ESRS 2 GOV-3
Our Sustainability Governance
95
E1-1
Material Topic: Climate Change
56
ESRS 2 SBM-3
Our Material Impacts, Risks, and Opportunities, Climate & Environmental Risk
51 – 54, 69 – 70
ESRS 2 IRO-1
Our Approach to the Double Materiality Assessment, Climate & Environmental Risk
49 – 50, 69 –70
E1-2
Our policies
58, 60
E1-3
Our actions
58, 60 – 62
E1-4
Our performance measures, Decarbonising Our Own Operations, Decarbonising Our Loan Book
59, 62 – 66
E1-5
Our performance measures, Energy consumptions and mix
59, 62 – 66
E1-6
Our performance measures, Methodology for Calculating GHG Emissions
59, 62 – 68
E1-7
Not material
NM
E1-8
Not material
NM
E1-9
Phase-in
n/a
ESRS S1 – Own Workforce
ESRS 2 SBM-2
Our Stakeholder Engagement
48
ESRS 2 SBM-3
Our Material Impacts, Risks, and Opportunities, Societal & Workforce Progress, Human
Rights Commitment
51 – 54, 76, 88
S1-1
Our policies, Human Rights Commitment
Governance Report (S1-1, 19)
82 – 83, 85, 88, 103 – 104
S1-2
Channels for Stakeholders to Raise Concerns
89 – 90
S1-3
Channels for Stakeholders to Raise Concerns
89 – 90
S1-4
Our actions
83, 85, 104
S1-5
Our performance measures, Gender diversity, Training and skills development, Cyber Security &
Data Protection
84, 85, 106
S1-6
Supplementary performance measures
86
S1-7
Phase-in
n/a
S1-8
Not material
NM
S1-9
Our performance measures, Gender diversity
84
S1-10
Not material
NM
S1-11
Not material
NM
S1-12
Phase-in
n/a
S1-13
Our performance measures, Training and skills development
85
S1-14
Not material
NM
S1-15
Our performance measures, Family Leave
84
S1-16
Our performance measures, Gender Pay Gap Report
84
S1-17
Supplementary performance measures, Human Rights Commitment
86, 88
DR
Sustainability Reporting
Cross-referencing
Page
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Appendix 1
ESRS S3 – Affected communities
ESRS 2 SBM-2
Our Stakeholder Engagement
48
ESRS 2 SBM-3
Our Material Impacts, Risks, and Opportunities, Societal & Workforce Progress, Human
Rights Commitment
51 – 54, 76, 88
S3-1
Our policies, Human Rights Commitment
80, 88
S3-2
Channels for Stakeholders to Raise Concerns
89
S3-3
Channels for Stakeholders to Raise Concerns
89
S3-4
Our actions, Human Rights Commitment
81, 88
S3-5
Our performance measures, Housing
81
ESRS S4 – Consumers and end-users
ESRS 2 SBM-2
Our Stakeholder Engagement
48
ESRS 2 SBM-3
Our Material Impacts, Risks, and Opportunities, Societal & Workforce Progress, Human
Rights Commitment
51 – 54, 76, 88
S4-1
Our policies, Human Rights Commitment
77, 80, 88, 103 – 104
S4-2
Channels for Stakeholders to Raise Concerns
89, 90
S4-3
Channels for Stakeholders to Raise Concerns
89, 90
S4-4
Our actions, Human Rights Commitment
78 – 79, 81, 88, 104 – 105
S4-5
Our performance measures, Housing, Financial Wellbeing, Cyber Security & Data Protection
79, 81, 106
ESRS G1 – Business conduct
ESRS 2 GOV-1
Our Sustainability Governance
Governance Report (5 a)
93 – 95, 128
ESRS 2 IRO-1
Our Approach to the Double Materiality Assessment
49 – 50
G1-1
Our policies
96 – 97, 101 – 103
G1-2
Management of Our Supplier Relationships
99 – 100
G1-3
Our actions, Our performance measures, Financial crime and CoI training
97, 98
G1-4
Our performance measures, Incidents of corruption or bribery
98
G1-5
Political engagement (including lobbying activities)
98
G1-6
Our performance measures, Management of Our Supplier Relationships
100
DR
Sustainability Reporting
Cross-referencing
Page
Due diligence
GOV-4
The below table provides a mapping to where in our Sustainability Statements we provide information about our due diligence process, including how we apply the main
aspects and steps of our due diligence process.
Due diligence elements
Section
Page
(a)
Embedding due diligence in
governance, strategy and
business model
Our Material Impacts, Risks, and Opportunities, Our Sustainability Governance
51 – 54, 95
(b)
Engaging with affected
stakeholders in all key steps of
the due diligence
Our Stakeholder Engagement, Our Approach to the Double Materiality Assessment, Channels for Stakeholders to Raise Concerns, Our policies,
Our Sustainability Governance (Note: for page references to topical sections, see the DR table above)
48, 49 – 50, 89 – 90, 95
(c)
Identifying and assessing
adverse impacts
Our Approach to the Double Materiality Assessment, Our Material Impacts, Risks, and Opportunities, Channels for Stakeholders to Raise Concerns
49 – 50, 51 – 54, 89 – 90
(d)
Taking actions to address
those adverse impacts
Material Topic: Climate Change, Material Topic: Cyber Security & Data Protection
56 – 73, 103 – 106
(e)
Taking the effectiveness of
these efforts and
communicating
Material Topic: Climate Change, Material Topic: Cyber Security & Data Protection
56 – 73, 103 – 106
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Appendix 1 continued
List of data points deriving from other EU legislation
IRO-2
The table below includes a list of all the DPs that derive from other EU legislation as per Appendix B of ESRS 2, and where they can be located within this report. Certain DPs
are considered not applicable, for example based on EFRAG’s technical explanation (n/a). Some DPs relate to metrics that the corresponding DR is deemed as not material
for AIB (NM) and for others, phase-in provisions are availed of as per Appendix C in ESRS 1.
ESRS 2 – General disclosures
GOV-1, 21 (d)
Board's gender diversity
GR
125
SFDR, BR
GOV-1, 21 (e)
Percentage of Board members who are independent
GR
125
BR
GOV-4, 30
Statement on due diligence
SR
108
SFDR
SBM-1, 40 (d) i
Involvement in activities related to fossil fuel activities paragraph
NM
n/a
SFDR, Pillar 3, BR
SBM-1, 40 (d) ii
Involvement in activities related to chemical production paragraph
NM
n/a
SFDR, BR
SBM-1, 40 (d) iii
Involvement in activities related to controversial weapons
NM
n/a
SFDR, BR
SBM-1, 40 (d) iv
Involvement in activities related to cultivation and production of tobacco paragraph
NM
n/a
BR
ESRS E1 – Climate Change
E1-1, 14
Transition plan to reach climate neutrality by 2050
SR
56
EUCL
E1-1, 16(g)
Undertakings excluded from Paris-aligned Benchmarks
SR
56
Pillar 3, BR
E1-4, 34
GHG emission reduction targets
SR
64
SFDR, Pillar 3, BR
E1-5, 38
Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors)
NM
n/a
SFDR
E1-5, 37
Energy consumption and mix
SR
59
SFDR
E1-5, 40-43
Energy intensity associated with activities in high climate impact sectors
NM
n/a
SFDR
E1-6, 44
Gross Scope 1, 2, 3 and Total GHG emissions
SR
66 – 68
SFDR, Pillar 3, BR
E1-6, 53-55
Gross GHG emissions intensity
SR
66 – 68
SFDR, Pillar 3, BR
E1-7, 56
GHG removals and carbon credits
NM
n/a
EUCL
E1-9, 66
Exposure of the benchmark portfolio to climate-related physical risks
Phase-in
n/a
BR
E1-9, 66 (a)
Disaggregation of monetary amounts by acute and chronic physical risk
Phase-in
n/a
Pillar 3
E1-9, 66 (c)
Location of significant assets at material physical risk
Phase-in
n/a
Pillar 3
E1-9, 67 (c)
Breakdown of the carrying value of its real estate assets by energy-efficiency classes
Phase-in
n/a
Pillar 3
E1-9, 69
Degree of exposure of the portfolio to climate-related opportunities
Phase-in
n/a
BR
ESRS S1 – Own Workforce
SBM-3, 14 (f)
s
Risk of incidents of forced labour
SR
88
SFDR
SBM-3, 14 (g)
s
Risk of incidents of child labour
SR
88
SFDR
S1-1, 20
o
Human Rights Policy Commitment
SR
88
SFDR
S1-1, 21
eDue diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8
SR
88
BR
S1-1, 22
t Processes and measures for preventing trafficking in human beings
SR
88
SFDR
S1-1, 23
Workplace accident prevention policy or management system paragraph
SR
88
SFDR
S1-3, 32 (c)
cGrievance/complaints handling mechanisms paragraph
SR
89 – 90
SFDR
S1-14, 88 (b), (c)
d
Number of fatalities and number and rate of work-related accidents
NM
n/a
SFDR, BR
S1-14, 88 (e)
a
d
Number of days lost to injuries, accidents, fatalities or illness
NM
n/a
SFDR
S1-16, 97 (a)
Unadjusted gender pay gap
SR
84
SFDR, BR
S1-16, 97 (b)
Excessive CEO pay ratio
SR
84
SFDR
S1-17, 103 (a)
Incidents of discrimination
SR
86
SFDR
S1-17, 104 (a)
Non-respect of UNGPs on Business and Human Rights and OECD Guidelines
SR
88
SFDR, BR
ESRS S3 – Affected Communities
S3-1, 16
Human Rights Policy Commitment
SR
88
SFDR
S3-4, 17
Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD Guidelines
SR
88
SFDR, BR
S3-4, 36
Human rights issues and incidents
SR
88
SFDR
ESRS S4 – Consumers and End-users
S4-1, 16
Policies related to consumers and end-users
SR
88
SFDR
S4-1, 17
Non-respect of UNGPs on Business and Human Rights and OECD Guidelines
SR
88
SFDR, BR
S4-4, 35
Human rights issues and incidents
SR
88
SFDR
ESRS G1 – Business Conduct
G1-1, 10 (b)
United Nations Convention against Corruption
SR
96
SFDR
G1-1, 10 (d)
Protection of whistleblowers
SR
96
SFDR
G1-4, 24 (a)
Fines for violation of anti-corruption and anti-bribery laws
SR
98
SFDR, BR
G1-4, 24 (b)
Standards of anti-corruption and anti-bribery
SR
96, 97
SFDR
Reference to DR and related data points
Section
Page
EU law reference
Section reference:
• GR – Governance Report
• SR – Sustainability Reporting
• n/a – Not applicable
• NM – Not material
EU law reference:
• SFDR – Sustainable Finance Disclosure Regulation
• BR – Benchmark Regulation
• Pillar 3 – Disclosure Regulation
• EUCL – EU Climate Law
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Appendix 2
The Directors are responsible for the preparation of the Sustainability Statement in accordance with Part 28 of the Companies Act 2014 and including
the Sustainability Statement in a clearly identifiable dedicated section of the Directors’ Report.
The Directors are also responsible for designing, implementing and maintaining such internal controls that they determine are relevant to enable the
preparation of the Sustainability Statement in accordance with Part 28 of the Companies Act 2014 and that it is free from material misstatement,
whether due to fraud or error.
In preparing the Sustainability Statement, the directors are required to:
• prepare the statement in accordance with the European Sustainability Reporting Standards (ESRS) including the selection and application of
appropriate sustainability reporting methods;
• disclose the double materiality assessment process performed to identify the information required to be reported in the Sustainability Statement;
• prepare the disclosures within the environmental section of the Sustainability Statement, in compliance with Article 8 of EU Regulation 2020/852 (the
‘Taxonomy Regulations’);
• ensure that the Group maintains adequate records for the preparation of the Sustainability Statement;
• make judgements and estimates that are reasonable in the circumstances including the identification and description of any inherent limitations in
the measurement or evaluation of information in the Sustainability Statement;
• prepare forward-looking information, where applicable, on the basis of disclosed assumptions about events that may occur in the future and possible
future actions by the Group.
For and on behalf of the Board
Jim Pettigrew
Chair
Colin Hunt
Chief Executive
Officer
Donal Galvin
Chief Financial
Officer
3 March 2026
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Statement of Directors’ Responsibilities
for the Sustainability Statement
To the Directors of AIB Group plc
Limited assurance report on the consolidated Sustainability Statement
Limited assurance conclusion
We have conducted a limited assurance engagement on the consolidated sustainability statement of AIB Group plc (the ‘Company’), included in pages
42 to 109 (the ‘consolidated Sustainability Statement’), as at 31 December 2025 and for the period from 1 January 2025 to 31 December 2025, prepared
in accordance with Part 28 of the Companies Act 2014.
Certain required disclosures have been presented elsewhere in the Annual Report, rather than in the Sustainability Statement. These are cross
referenced from the Sustainability Statement and are identified as subject to limited assurance.
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the
consolidated Sustainability Statement is not prepared, in all material respects, in accordance with Part 28 of the Companies Act 2014, including:
• compliance of the sustainability reporting with the European Sustainability Reporting Standards (ESRS),
• the process carried out by the Company to identify the information reported pursuant to the sustainability reporting standards, is in accordance with
the description set out in the section ‘Our approach to the Double Materiality Assessment’, and
• compliance of the disclosures in subsection ‘EU Taxonomy’ within the environmental section of the consolidated Sustainability Statement with Article
8 of EU Regulation 2020/852 (the ‘Taxonomy Regulation’).
Basis for conclusion
We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (Ireland) 3000, Assurance
engagements other than audits or reviews of historical financial information - assurance of sustainability reporting in Ireland (ISAE (Ireland) 3000),
issued by the Irish Auditing & Accounting Supervisory Authority (IAASA).The procedures in a limited assurance engagement vary in nature and timing
from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this
standard are further described in the Practitioners’ responsibilities section of our report.
Our independence and quality management
We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including
International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour and the
independence requirements of the Companies Act 2014 and the Code of Ethics issued by Chartered Accountants Ireland that are relevant to our limited
assurance engagement of the consolidated Sustainability Statement in Ireland.
The firm applies International Standard on Quality Management (Ireland) 1, which requires the firm to design, implement and operate a system of quality
management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and
regulatory requirements.
Responsibilities for the consolidated Sustainability Statement
As explained more fully in the Statement of Directors’ Responsibilities for the consolidated Sustainability Statement, the Directors’ of the Company are
responsible for designing and implementing a process to identify the information reported in the consolidated Sustainability Statement in accordance
with the ESRS and for disclosing this Process in note ‘Our approach to the Double Materiality Assessment’ of the consolidated Sustainability Statement.
This responsibility includes:
• understanding the context in which the Company’s activities and business relationships take place and developing an understanding of its affected
stakeholders;
• the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities
that affect, or could reasonably be expected to affect, the Company’s financial position, financial performance, cash flows, access to finance or cost
of capital over the short, medium, or long-term;
• the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying
appropriate thresholds; and
• making assumptions that are reasonable in the circumstances.
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Independent practitioners’ limited assurance report on
AIB Group plc’s consolidated Sustainability Statement
The Directors of the Company are further responsible for the preparation of the consolidated Sustainability Statement, in accordance with Part 28 of the
Companies Act 2014, including:
• compliance with the ESRS;
• preparing the disclosures in ‘EU Taxonomy’ subsection of the consolidated Sustainability Statement, in compliance with the Taxonomy Regulation;
• designing, implementing and maintaining such internal control that the Directors determine is necessary to enable the preparation of the
consolidated Sustainability Statement that is free from material misstatement, whether due to fraud or error; and
• the selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasonable in
the circumstances.
Inherent limitations in preparing the consolidated Sustainability Statement
In reporting forward-looking information in accordance with ESRS, the Directors of the Company are required to prepare the forward-looking information
on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to
be different since anticipated events frequently do not occur as expected.
Practitioners’ responsibilities
Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the consolidated Sustainability
Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence decisions of users taken on the basis of the consolidated Sustainability Statement as a whole.
As part of a limited assurance engagement in accordance with ISAE (Ireland) 3000 we exercise professional judgement and maintain professional
scepticism throughout the engagement. Our responsibilities in respect of the consolidated Sustainability Statement, in relation to the Process, include:
• Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Process, including the
outcome of the Process;
• Considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and
• Designing and performing procedures to evaluate whether the Process is consistent with the Company’s description of its Process set out in
subsection ‘Our approach to the Double Materiality Assessment’.
Our other responsibilities in respect of the consolidated Sustainability Statement include:
• Identifying where material misstatements are likely to arise, whether due to fraud or error; and
• Designing and performing procedures responsive to where material misstatements are likely to arise in the consolidated Sustainability Statement.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Summary of the work performed
A limited assurance engagement involves performing procedures to obtain evidence about the consolidated Sustainability Statement. The procedures
in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently,
the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed.
The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material
misstatements are likely to arise in the consolidated Sustainability Statement, whether due to fraud or error.
In conducting our limited assurance engagement, with respect to the Process, we:
• Obtained an understanding of the Process by performing inquiries to understand the sources of the information used by management
(e.g., stakeholder engagement, business plans and strategy documents) and reviewing the Company’s internal documentation of its Process.
• Evaluated whether the evidence obtained from our procedures with respect to the Process implemented by the Company was consistent with the
description of the Process set out in subsection ‘Our approach to the Double Materiality Assessment’.
In conducting our limited assurance engagement, with respect to the consolidated Sustainability Statement, we:
• Obtained an understanding of the Company’s reporting processes relevant to the preparation of its consolidated Sustainability Statement by
obtaining an understanding of the Company’s control environment, processes and information system relevant to the preparation of the consolidated
Sustainability Statement, but not for the purpose of providing a conclusion on the effectiveness of the Company’s internal control.
• Evaluated whether the information identified by the Process is included in the consolidated Sustainability Statement.
• Evaluated whether the structure and the presentation of the consolidated Sustainability Statement is in accordance with the ESRS.
• Performed substantive assurance procedures on selected information in the consolidated Sustainability Statement.
• Where applicable, compared disclosures in the consolidated Sustainability Statement with the corresponding disclosures in the Financial
Statements and Directors’ Report.
• Evaluated the methods assumptions and data for developing estimates and forward-looking information.
• Obtained an understanding of the Company’s process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding
disclosures in the consolidated Sustainability Statement.
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Independent practitioners’ limited assurance report on
AIB Group plc’s consolidated Sustainability Statement continued
Other Matter – Compliance with the requirement to mark-up the consolidated
Sustainability Statement
Section 1613(3)(c) of the Companies Act 2014 requires us to report on the compliance by the Company with the requirement to mark-up the
consolidated Sustainability Statement in accordance with Section 1600 of that Act. Section 1600 of the Companies Act 2014 requires that the Directors’
Report is prepared in the electronic reporting format specified in Article 3 of Delegated Regulation (EU) 2019/815 and that the directors shall mark-up
the consolidated Sustainability Statement. However, at the time of issuing our limited assurance report, the electronic reporting format has not been
specified nor become effective by Delegated Regulation. Consequently, the Company is not required to mark-up the consolidated Sustainability
Statement. Our conclusion is not modified in respect of this matter.
Other Matter – References to external sources or websites
The references to external sources or websites in the Sustainability Statement are not part of the Sustainability Statement and therefore are not within
the scope of our limited assurance engagement.
Use of this report
Our report is made solely in accordance with Section 1613 of the Companies Act 2014 to the Directors of the Company.
Our assurance work has been undertaken so that we might state to the Directors those matters we are required to state to them in a limited assurance
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company
and its Directors, as a body, for our limited assurance work, for this report, or for the conclusions we have formed.
Ronan Doyle
for and on behalf of PricewaterhouseCoopers
Chartered Accountants and Statutory Audit Firm
Dublin
3 March 2026
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In 2019, AIB was the first Irish bank to become an official supporter of the Task Force
on Climate-related Financial Disclosures (TCFD) to identify and assess our climate
risks and opportunities.
During 2025, we continued to make good progress in aligning with TCFD recommendations across the four key areas of Governance; Strategy; Risk
Management; and Metrics and Targets. In line with our ‘comply or explain’ obligations under the UK’s Financial Conduct Authority’s Listing Rules, the
Group can confirm that it has made its disclosures consistent with the TCFD recommendations and recommended disclosures. The table below
references the sections of this report that detail our progress against the TCFD recommendations.
Pillar
Recommendation
Section
Disclosure Location
Page
Governance
(a) Board’s oversight of climate-related
risks and opportunities.
• Sustainability Statement
• Governance Report
• Our Sustainability Governance
• Material Topic: Climate Change
• Report of the Sustainable
Business Advisory Committee
93 – 95
56
164
(b) Management’s role in assessing and
managing climate-related risks and
opportunities.
• Sustainability Statement
• Governance Report
• Our Sustainability Governance
• Report of the Sustainable
Business Advisory Committee
• Internal Controls
93 – 95
164
166
Strategy
(a) Climate-related risks and opportunities
(short-, medium-, and long- term).
• Sustainability Statement
• Basis of Preparation
• Our Approach to Double
Materiality Assessment
• Climate & Environmental Risk
43
49
69
(b) Impact of climate-related risks and
opportunities on businesses, strategy and
financial planning.
• Sustainability Statement
• Risk Management Report
• Our Sustainability Strategy
• Material Topic: Climate Change
• Our Approach to Double
Materiality Assessment
• Climate & Environmental Risk
44
56
49 – 50
236
(c) Resilience of strategy, taking into
consideration different climate-related
scenarios, including a 2°C or lower
scenario.
• Sustainability Statement
• Our Material Impacts, Risks and
Opportunities
• Climate & Environmental Risk
51 – 54
69
Risk
Management
(a) Processes for identifying and assessing
climate-related risks.
• Sustainability Statement
• Risk Management Report
• Our Approach to Double
Materiality Assessment
• Climate & Environmental Risk
• Climate & Environmental Risk
49 – 50
69
236
(b) Processes for managing climate-related
risks.
• Sustainability Statement
• Risk Management Report
• Decarbonising our Loan Book
• Climate & Environmental Risk
60
236
(c) Integration of processes for identifying,
assessing and managing climate-related
risks into overall risk management.
• Risk Management Report
• Climate & Environmental Risk
236
Metrics and
Targets
(a) Metrics used to assess climate-related
risks and opportunities in line with strategy
and risk management.
• Sustainability Statement
• Decarbonising Our Loan Book
60 – 65
(b) Disclose Scope 1, Scope 2 and, if
appropriate, Scope 3 greenhouse gas
(GHG) emissions and the related risks.
• Sustainability Statement
• GHG Emissions
66
(c) Targets used to manage climate-related
risks and opportunities and performance
against targets.
• Sustainability Statement
• Decarbonising Our Loan Book
60
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Task Force on Climate-related Financial
Disclosures (TCFD)
TCFD Metrics and Targets
In this section we provide details on Transition and Physical Risk which is one of our four key groups of TCFD metrics. For further information on the
remaining groups of metrics:
See Climate & Environmental Action on pages 58 to 69.
Transition and Physical Risk
Physical Risk: We continue to focus on flood risk as the most significant acute and chronic physical risk and have developed initial metrics to better
understand this risk for our property-related exposure. These metrics support the tracking of physical risk for our key property portfolios. Our approach
is subject to further evolution based on industry developments and supervisory and regulatory expectations.
Transition Risk: On the transition risk side, an ESG Questionnaire is required for all new lending over €/£/$1m in high and moderate transition risk
sectors, and for all annual reviews of Borrowers with an exposure over €/£/$10m in high and moderate transition risk sectors. An ESG Questionnaire is
also required for material waiver requests for Borrowers with limits over €/£/$1m in high transition risk sectors.
2025
2024
Exposures sensitive to Flood risk secured on commercial immovable property*
3.7% (€0.34bn)
2.6% (€0.19bn)
Exposures sensitive to Flood risk secured on residential immovable property*
3.2% (€1.24bn)
1.0% (€0.38bn)
% of new lending to sectors with high transition risk – flow
6%
6%
% of lending to sectors with high transition risk – stock
7%
5%
Exclusions/Assets Excluded from EU Paris-aligned Benchmarks (% lending to non-
financial corporates)
<1%
<1%
Notes
• *Physical flood risk shown above is aligned with our CRR449a Pillar 3 disclosure showing ‘sensitivity’ to physical risk for commercial and
residential exposures secured by immovable property under an adverse climate scenario. Adverse climate scenario is defined as: RCP 8.5 to
2035, and a 1:100 risk of a flood event. The threshold of risk for ‘sensitive’ is set at a 1% flooding risk (1:100) and the adverse climate change
scenario to 2035. This approach aligns to the EBA 2021 ESG Risk Management guidance in so far as there is prescriptive guidance. Changes in
sensitivity to flood risk are observed since December 2024 (an increase from 2.6% (€0.19bn) to 3.7% (€0.34bn) for commercial immovable
property and increase from 1.0% (€0.38bn) to 3.2% (€1.24bn) for residential immovable property) due to the sensitivity analysis process being
refined, data quality improvements and assumptions used for inputs to the internal flood model used for the sensitivity analysis being amended.
• New lending to sectors with high transition risk (flow) includes term & revolver lending.
• Lending to sectors with high transition risk (stock) is drawn balances.
• The increase in lending to sectors with high transition risk from 5% to 7% since December 2024 reflects updates to our methodology following the
annual review of the transition risk heatmap.
• Non-Paris Agreement aligned assets relate primarily to non-financial corporate lending to counterparties with revenue from fossil fuel activities.
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Governance
Report
In this section
Governance in action
118
Chair’s introduction
120
Corporate governance headlines at a glance
120
Corporate Governance Framework
121
Our Board of Directors
122
Our Executive Leadership Team
126
Board Leadership, Purpose and Governance
128
Board Activities
134
Stakeholder Engagement
136
Report of the Board Audit Committee
140
Report of the Board Risk Committee
143
Report of the Nomination and Corporate Governance
Committee
146
Board composition and succession
148
Report of the Remuneration Committee
152
Corporate Governance Remuneration Statement
155
Report of the Sustainable Business Advisory Committee
164
Report of the Technology and Data Advisory Committee
165
Internal Controls
166
Viability Statement
168
Directors’ Report
169
Schedule to the Directors’ Report
172
Other Governance Information
174
Supervision and Regulation
175
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Governance in action
The Board is aware of the importance of its role in driving sustainable
value for shareholders in the long term, with due consideration for
all stakeholder groups and is committed to ensuring that the highest
standards of corporate governance are adhered to across the Group.
Governance in action goes beyond formal
structures and policies; it is demonstrated
through the Board’s regular engagement with
management, the quality and candour of its
discussions and the constructive challenge
Directors bring to the decisions made by the
Board. It is also reflected in the Board’s
sustained focus on culture, ensuring that
behaviours and organisational values align with
the Group’s purpose and long-term ambitions.
The Board is committed to maintaining the
highest standards of corporate governance
across the Group and to ensuring these
standards are consistently embedded in day-to-
day operations. Through rigorous oversight,
constructive challenge and ongoing evaluation of
its own effectiveness, the Board seeks to ensure
that governance supports clear accountability,
informed judgement and responsible outcomes
in the delivery of the Group’s strategic priorities.
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Governance in AIB
Board members, Independent Non-Executive Directors
Fergal O’Dwyer, Anik Chaumartin and Brendan McDonagh
During 2025, some key areas of focus for the Board included the
following, each of which required active oversight, informed judgement
and ongoing engagement with stakeholders and management:
Embedding the right culture
In 2025, under effective Board oversight, we strengthened alignment
between our purpose, values and behaviours and embedded a culture
that delivers for stakeholders, enhancing customer-centricity,
empowering colleagues, supporting communities, meeting regulatory
expectations and reinforcing trust and accountability.
Continued oversight of strategy
In 2025, the Board maintained oversight of delivery of the 2024-2026
strategy, approving key decisions such as the sale of a minority stake in
AIB Merchant Services to Fiserv and ensuring that long-term
implications for customers, colleagues, shareholders, regulators,
suppliers and the communities we serve were fully considered.
See pages 128 to 131.
See pages 134 to 135.
Engaging with our stakeholders
Our Board’s stakeholder engagement reflects the UK Corporate
Governance Code 2024’s spirit, ensuring long-term consequences,
stakeholder interests, conduct standards and fairness shape decisions,
supported by structured engagement and transparent dialogue.
Capital distributions
During 2025, the Board maintained oversight of key capital distributions,
including the approval of a €1.2 billion Directed Buyback following
shareholder approval at the May 2025 Annual General Meeting,
as well as dividend payments. These actions contributed to the return
of c.€21 billion of capital to the Irish State following the cancellation
of the warrants.
See pages 136 to 139.
See page 133 and 169.
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Jim Pettigrew, Chair, and Bridget Dowling,
Head of Strategic and Employee Communications
Colin Hunt, CEO, and Yvonne Aki-Sawyerr, Mayor of Freetown
in Sierra Leone, at the 9th AIB Annual Sustainability Conference
Colin Hunt, CEO, and Jim Pettigrew, Chair, at the
2025 AIB Annual General Meeting
Board Members, Independent Non-Executive Directors
Tanya Horgan and Anne Sheehan with Jim Pettigrew, Chair
2025 was a year of continued progress for
the Board, strengthening our capabilities and
maintaining the highest standards of
governance in support of our long-term
strategy.
Jim Pettigrew
Chair
On behalf of the Board, I am pleased to introduce the Governance Report
for 2025. Together with the Statement of Directors’ Responsibilities and
the Risk governance section of the Risk Management Framework report,
it outlines how our governance framework operates in practice and
confirms the Group’s compliance with the UK Corporate Governance
Code 2024 (UK Code), as set out on page 121.
In 2025, the Board maintained strong oversight of the Group’s strategic
delivery, including the annual strategy review, assessment of strategic
outcomes and progress across our three strategic priorities; Customer
First, Greening Our Business and Operational Efficiency and Resilience.
We also focused on how our purpose and values are reflected in our
customers’ and employees’ experience, spending time assessing,
monitoring and embedding the culture we want. Insights from listening
sessions, the results of the AIB Engage surveys and customer feedback
gives us a strong platform to deepen our cultural focus in 2026.
During the year, we continued planned Board succession to maintain the
right balance of skills, experience, independence and diversity. I was
pleased to welcome Anne Sheehan to the Board and I would like to
sincerely thank Helen Normoyle, Raj Singh and Ann O’Brien for their
significant contributions over the past number of years. As we look ahead
to future appointments, increasing both gender and ethnic diversity will be
a clear priority so that we continue to strengthen the breadth of
perspectives around the Board table.
This year’s externally facilitated Board Performance Review affirmed what
I see in my role as Chair: a respectful, challenging and highly engaged
Board, supported by strong Committees and open, constructive
relationships with management. The review also pointed to areas where
we can keep improving in 2026, including devoting more time to long-term
strategic choices, continuing to build strong succession, and maintaining
a continuous focus on making our papers clearer and more helpful for
decision-making.
The Board recognises that a robust governance structure and effective
risk management framework are essential to sustainable growth,
shareholder returns and delivery of the 2024–2026 strategy. As we enter
the final year of the strategic cycle, we will maintain close oversight of
performance, risk and cultural alignment to support strong delivery
against our ambitions and lay the foundations for the next phase of the
Group’s strategy.
Jim Pettigrew
Chair
Corporate governance highlights at a glance
Total Dividend FY2025
58.585 cent per share
Dividend per ordinary share in 2024/2025: an increase on the prior year.
1. 2025 includes both Interim and Final Dividend
State repaid
Investor Engagement
c. €21bn
300+
As at 31 December 2025, AIB Group has repaid c. €21 billion to the Irish
State.
investor meetings globally
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Chair's introduction
58.585
36.984
2025
2024
1
AIB Group (AIB or the Group) is subject to a broad set of corporate
governance obligations reflecting its regulatory status and dual listings.
AIB Group plc is authorised as a financial holding company and is listed
on both Euronext Dublin and the London Stock Exchange. The Group
applies the requirements of the Euronext Dublin Listing Rules, which set
out specific rules and continuing obligations for issuers and also complies
with the Listing Rules of the London Stock Exchange. The Irish Corporate
Governance Annex is no longer applicable from 1 January 2025.
Allied Irish Banks, p.l.c., the principal operating company, is authorised
as a credit institution and is subject to the Central Bank of Ireland’s
Corporate Governance Requirements for Credit Institutions 2015 (CBI
requirements), including the additional obligations applicable to
‘high-impact institutions’. It is also required to comply with additional
governance requirements for significant institutions under the Capital
Requirements Directive (CRD).
Although the underlying regulatory requirements differ between AIB Group
plc and Allied Irish Banks, p.l.c., the Group applies a consistent corporate
governance approach across both entities. The Corporate Governance
Frameworks for both entities are anchored in the UK Code and the CBI
Requirements along with best practice standards, which together are
considered appropriate and proportionate to the Group’s size, complexity
and regulatory environment.
The Board, with support from its Committees, oversees the development,
implementation and periodic review of the Corporate Governance
Framework to ensure continued compliance with regulatory expectations
and alignment with best practice.
Corporate Governance Compliance
During 2025, the Group materially complied with the following Corporate
Governance Requirements:
• Central Bank of Ireland (CBI) Corporate Governance Requirements for
Credit Institutions 2015 (CBI Requirements);
• European Union (Capital Requirements) Regulations 2014
(S.I.158/2014 and S.I.159/2014 as amended) (CRD);
• European Banking Authority (EBA) Guidelines on Internal Governance
under Directive 2013/36/EU as amended;
• Joint European Securities and Markets Authority (ESMA) and EBA
Guidelines on the assessment of the suitability of members of the
management body and key function holders under Directive 2013/26/
EU, as amended;
• Companies Act 2014 (Companies Act); and
• Applicable Listing Rules of Euronext Dublin and the London Stock
Exchange and related Transparency rules and Directive requirements.
UK Code Compliance Statement
AIB Group plc, by virtue of its listings on the London Stock Exchange and
Euronext Dublin, applies the UK Code, which is publicly available at
frc.org.uk. Dual-listed issuers continue to apply the UK Code as required
under the UK Listing Rules and as permitted under the Euronext Dublin
Listing Rules.
The Group is required to explain to investors how it applies the main
principles of the UK Code and how it complies with its provisions.
Throughout 2025, the Group applied the principles and complied with all
provisions of the UK Code, with the exception of certain remuneration-
related requirements in Section 5, specifically Principle R and Provisions 36
and 39. The rationale for non-compliance is set out in the tables opposite.
The Board maintained a strong focus on stakeholder engagement during the
year, ensuring that the priorities of each stakeholder group informed its
discussions and decisions.
In prior years, the Group included a standalone statement describing how
the Board considered stakeholder interests and long-term impacts in its
decision-making. This year, these matters are embedded throughout the
Governance Report and wider stakeholder disclosures, reflecting the
Board’s integrated approach to governance.
Further details on how the Board considers stakeholders can
be found on page 134 and 136.
How we apply the principles of the UK Code
Board leadership and Company purpose
Page
Chair’s introduction
120
The role of the Board
128
Purpose, values and culture
129
Strategy
6-11, 14 & 134
Board Decisions and Outcomes
128-139
Stakeholder Engagement and workforce policies
and practices
129, 131,
136-139 & 142
Division of responsibilities
Board composition
148-151
Key Roles and Responsibilities,
time commitment, external appointments,
independence, tenure and access to advice
131 & 148
Composition, succession and evaluation
Appointment to the Board and succession planning
148
Board skills, experience and knowledge
149
Board diversity
150-151
Board Performance Review
132-133
Audit, risk and internal control
Auditor independence and effectiveness of the audit
142
Fair, balanced and understandable assessment
141
Principal, emerging and evolving risks
16-19
Risk management activities and Internal Controls
143-145 & 166
Viability Statement
168
Remuneration
Directors’ Remuneration Report
152
Directors’ Remuneration Policy
155
Engagement with stakeholders on remuneration
153-154,
156 & 163
Provisions we are required to ‘Explain’ under the UK Code
Comply or Explain process
Principle R: Exercise of independent judgement and discretion when
authorising remuneration outcomes.
Provision 36: Remuneration schemes should promote long-term
shareholdings by Executive Directors that support alignment with long-term
shareholder interests.
Provision 39: The pension contribution rates for Executive Directors, or
payments in lieu, should be aligned with those available to the workforce.
Rationale
In relation to Provision 36, due to the remaining restriction of €20,000 per
annum limit on variable remuneration, the structure of Executive Directors
remuneration is predominately fixed pay. The Corporate Governance
Remuneration Statement sets out proposed changes in the Executive
Directors remuneration policy including the introduction of a Fixed Share
Allowance and shareholding requirements.
In relation to Provision 39, the pension arrangements in 2025 were
considered fair and appropriate in the context of the remuneration
restrictions in place. Contribution rates for 2025 and proposed changes
for Executive Directors to align pension contributions to the wider
workforce are set out in the Corporate Governance Remuneration
Statement.
Further detail is provided on pages 155 to 163.
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Corporate Governance Framework
Jim Pettigrew
Chair
Non-Executive Director
Anik Chaumartin
Independent
Non-Executive Director
Basil Geoghegan
Independent
Non-Executive Director
Date of appointment
28 October 2021
Nationality
British
Date of appointment
1 July 2021
Nationality
French
Date of appointment
4 September 2019
Nationality
Irish
Committee membership and tenure
4y
4y
Committee membership and tenure
4y
3y
Committee membership and tenure
6y
<1y
Background and experience:
Jim Pettigrew has over 37 years’
leadership experience in UK and
international financial services,
including board-level roles as CEO and
Chair. He served as Chair of Scottish
Financial Services, the Scottish financial
services trade body. He also served as
Co-Chair of Scotland’s Financial
Services Advisory Board and is a former
President of the Institute of Chartered
Accountants of Scotland. Jim retired as
Chair of Virgin Money and CYBG plc in
2020. He is a Chartered Accountant and
Fellow of the Association of Corporate
Treasurers, with an LLB from Aberdeen
University and a DipACC from Glasgow
University.
Background and experience:
Anik Chaumartin has more than 40
years’ international and professional
services experience. She spent 27
years as a partner at PwC in Paris,
holding leadership positions for 15 of
those years. Anik acted as Global
Client Relationship Partner and Lead
Audit Partner for major banking and
financial services organisations,
demonstrating expertise in audit and
client management. Her career
reflects a strong commitment to
excellence in professional services
and leadership within the financial
sector.
Background and experience:
Basil Geoghegan has held senior roles
as Managing Director at Goldman
Sachs, Deutsche Bank and Citigroup
in London and New York, gaining
broad experience in M&A, corporate
finance and strategic advisory. He
qualified as a solicitor with Slaughter
and May and holds an LLB from Trinity
College, Dublin, as well as an LLM
from the European University Institute.
Basil’s career spans the US, UK,
Ireland and internationally, with
expertise in financial strategy and
legal advisory.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Extensive experience in financial
services, with expertise spanning retail
banking, customer and conduct
management, governance, strategic
planning and culture development.
This broad skillset supports
organisational integrity, enhances
customer outcomes and fosters a
strong, values-driven culture aligned
with business objectives.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Demonstrates deep technical
expertise in accountancy and audit
within the financial services sector,
combined with a strong capability in
talent and culture development.
Skilled in fostering high-performing
teams and managing stakeholder
relationships to achieve strategic
objectives.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Possesses extensive expertise in
international finance, corporate
banking, strategic planning and risk
management, ensuring a strong
foundation for driving financial
performance and organisational
resilience.
Key external appointments
• Chair of RBC Global Asset
Management (UK) Limited
• Chair of Scottish Ballet
Key external appointments
• Non-Executive Director of Ayvens
Group
• Non-Executive Director of
La Banque Postale
• Non-Executive Director of Saol
Assurance DAC and Saol
Assurance Holdings Ltd
Key external appointments
• Chair of daa plc
• Partner at PJT Partners and director
of PJT deNovo Partners Finance
• Patron of the Ireland Fund of Great
Britain
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Our Board of Directors
Board Committee key
Committee chair
Remuneration
Nomination & Corporate Governance
Board Audit
Board Risk
Sustainable Business Advisory
Technology & Data Advisory
Tanya Horgan
Independent
Non-Executive Director
Sandy Kinney Pritchard
Independent
Non-Executive Director
Elaine MacLean
Senior Independent
Non-Executive Director
Andy Maguire
Independent
Non-Executive Director
Date of appointment
14 September 2021
Nationality
Irish
Date of appointment
22 March 2019
Nationality
Irish
Date of appointment
4 September 2019
Nationality
British
Date of appointment
15 March 2021
Nationality
Irish
Committee membership and tenure
4y
4y
Committee membership and tenure
7y
7y
Committee membership and tenure
6y
5y
Committee membership and tenure
5y
5y
Background and experience:
Tanya Horgan has extensive
experience in compliance, internal
audit and risk management, with over
twenty years in publicly listed
companies. She qualified as a
chartered accountant with PwC and
has held roles in organisations
including Tesco, Flutter Entertainment
plc and Primark. Tanya holds a
B.Comm in Accounting from
University College Cork, bringing
strong governance and risk expertise
to the Board.
Background and experience:
Sandy Kinney Pritchard has significant
experience in financial services,
having held non-executive
directorships at Irish Life, Permanent
TSB plc, TSB Bank plc, MBNA Ltd and
Credit Suisse (UK) Ltd, as well as
serving as a senior partner at
PricewaterhouseCoopers LLP. Sandy
is a qualified accountant and a
graduate of University College Dublin,
with a career grounded in leadership
and governance across the financial
sector.
Background and experience:
Elaine MacLean is a highly
experienced human resources
director, specialising in financial
services and retail. Her early career
included roles at Harrods and
Windsmoor, followed by serving as
Retail Operations Director and Human
Resources Director with Arcadia.
Elaine later moved into financial
services, culminating in her
appointment as Group Human
Resources Director for Legal and
General plc. She is the Designated
Non-Executive Director for workforce
engagement and holds an MA in
English Literature and Psychology
from the University of Glasgow.
Background and experience:
Andy Maguire has 37 years of financial
services experience, including 16
years with the Boston Consulting
Group, where he became Managing
Partner of the London office covering
the UK and Ireland, prior to which he
held several global roles, including the
Global Head of Retail Banking. From
2014 to 2020, Andy was Group Chief
Operating Officer for HSBC Holdings
plc, overseeing operations,
technology and transformation. He
has chaired Napier Technologies
Limited and CX Holdings. Andy holds
a BA and a BAI from Trinity College,
Dublin.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Extensive expertise in risk
management, compliance, finance,
accounting and audit, with strong
capabilities in customer conduct and
technology integration. Skilled in
ensuring regulatory adherence and
driving operational resilience.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Demonstrates deep expertise across
finance, accounting and audit, with
strong proficiency in governance,
regulatory compliance and customer
conduct. Skilled in risk management
and wealth management,
complemented by extensive
experience in both retail and
investment banking.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Brings extensive experience in
remuneration and governance, with a
strong focus on designing
organisational structures and driving
people and culture development.
Adept at aligning governance
frameworks with strategic objectives
while fostering inclusive, high-
performing environments that support
long-term business success.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Brings extensive expertise in retail
banking, technology and digital
innovation, transformation initiatives
and risk management. Proven ability
to drive operational excellence,
implement strategic change and
deliver robust solutions that enhance
organisational resilience and
customer experience.
Key external appointments
• Executive Director of Mercury
Engineering Ltd
Key external appointments
• Chair of Raymond James Wealth
Management Group Limited,
Raymond James Wealth
Management Limited and
Raymond James Investment
Services Ltd
Key external appointments
None
Key external appointments
• Chair of Thought Machine Group
Limited
• Non-Executive Director of Westpac
Banking Corporation
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Board
committee key
Committee
chair
Remuneration
Nomination &
Corporate
Governance
Board Audit
Board Risk
Sustainable
Business
Advisory
Technology &
Data Advisory
Brendan McDonagh
Independent Non-Executive
Director and Deputy Chair
Fergal O’Dwyer
Independent
Non-Executive Director
Anne Sheehan
Independent
Non-Executive Director
Jan Sijbrand
Independent
Non-Executive Director
Date of appointment
27 October 2016
Nationality
Irish
Date of appointment
22 January 2021
Nationality
Irish
Date of appointment
1 September 2025
Nationality
Irish
Date of appointment
14 September 2021
Nationality
Dutch
Committee membership and tenure
7y
6y
8y
9y
Committee membership and tenure
5y
<1y
Committee membership and tenure
<1y
Committee membership and tenure
4y
3y
Background and experience:
Brendan McDonagh began his banking
career with HSBC in 1979, working
across Asia, Europe, North America
and the Middle East. He held roles
such as Group Managing Director for
HSBC Holdings plc, CEO of HSBC
North America Holdings Inc. and
served as Director of Ireland’s NTMA,
Bradford & Bingley Limited and NRAM
Limited. Brendan was Executive Chair
of The Bank of N.T. Butterfield & Son
Limited and appointed Deputy Chair
of AIB Group in 2019.
Background and experience:
Fergal O’Dwyer has significant
expertise in financial management,
treasury, strategy, capital deployment
and development. He retired in 2020
from DCC plc, where he began as an
Associate Director, later progressing
to Chief Financial Officer in 1992, and
Executive Director in 2000. Prior to
DCC, Fergal worked at PwC and
KPMG. He serves on the board of
Goodbody Stockbrokers UC and AIB
Group (UK) p.l.c. Fergal is a Chartered
Accountant with a distinguished
career in finance.
Background and experience:
Anne Sheehan is General Manager of
Enterprise Commercial for Europe
North at Microsoft and previously
served as Chief Executive Officer of
Microsoft Ireland. Anne has extensive
experience in technology across
Ireland, Europe and the US, focusing
on digital transformation and
operational efficiency. She began her
career at IBM and moved to Vodafone,
where she held leadership roles
including Director of Vodafone
Business UK and Director Vodafone
Business (Enterprise) Ireland.
Background and experience:
Jan Sijbrand has held executive roles
at Royal Dutch Shell plc, Rabobank
Nederland, ABN AMRO Holding N.V.
and NIBC Bank N.V. and was a
member of the Executive Board and
Chair for Supervision at De
Nederlandsche Bank N.V. (the central
bank of the Netherlands). He also
served on the Global Board of PwC
until June 2022. Jan holds an MSc in
Applied Mathematics and a PhD in
Mathematics from the University of
Utrecht.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Extensive global expertise in financial
services, encompassing retail and
commercial banking, strategic
planning, governance, regulatory
compliance and risk management.
Proven ability to drive organisational
success through robust frameworks
and innovative approaches across
diverse markets.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Brings extensive expertise in finance
and accounting, treasury and liquidity
management, strategic planning and
capital markets. Adept at delivering
robust financial solutions, optimising
liquidity strategies and driving
initiatives that enhance organisational
performance and long-term growth.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Demonstrates expertise in risk
management and governance, with a
strong focus on strategic planning and
execution. Skilled in leading and
developing people, fostering
collaboration and driving
organisational success. Adept at
leveraging technology to optimise
processes and deliver innovative
solutions.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Expert in risk management, retail and
commercial banking, governance and
financial regulation, with a strong
grasp of compliance frameworks.
Skilled in creating strategies to
mitigate risk, maintain operational
integrity and uphold governance
across complex financial
environments.
Key external appointments
• Chair of PEAL Capital Group Limited
• Serves on the Board of The Ireland
Funds, Ireland Chapter
• Council Member of Global Advisory
Council, Impact Ireland Fund
• Chair of the Trinity College Dublin
Audit Committee
Key external appointments
• Non-Executive Director of ABP
Food Group Unlimited
• Director of Blackrock Healthcare
Group Unlimited
• Chair of Focus
Housing Association
Key external appointments
• Non-Executive Director of Enable
Ireland
Key external appointments
• Supervisory Director of
PwC Netherlands
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Our Board of Directors continued
Colin Hunt
Chief Executive Officer &
Executive Director
Chair of ELT
Donal Galvin
Chief Financial Officer &
Executive Director
Member of ELT
Date of appointment
8 March 2019
Nationality
Irish
Date of appointment
28 May 2021
Nationality
Irish
Committee membership and tenure
7y
Committee membership and tenure
None
Background and experience:
Colin Hunt was appointed Chief
Executive Officer of AIB Group in 2019,
having joined AIB in 2016 as Managing
Director of Wholesale, Institutional &
Corporate Banking. Previously, Colin
has served as Managing Director at
Macquarie Capital, Policy Adviser at
the Departments of Transport and
Finance and held senior roles at
Goodbody Stockbrokers and Bank of
Ireland. He holds a PhD in Economics
from Trinity College, Dublin and
B.Comm and MEconSc degrees from
University College Cork and is a
Chartered Bank Director and Fellow of
the Institute of Bankers.
Background and experience:
Donal Galvin joined AIB as Group
Treasurer in 2013, was appointed
Chief Financial Officer in 2019 and
joined the Board in 2021. Donal has
over 27 years of experience in
domestic and international financial
markets. He previously held a number
of senior executive roles, including
Global Head of Asian Fixed Income &
Equities at Mizuho Securities in Hong
Kong and a number of senior Global
Financial Market roles across Europe
and Asia Pacific for Rabobank. He
serves as a Non-Executive Director of
Goodbody Stockbrokers UC.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Brings strategic leadership and
extensive executive experience across
risk management, treasury, research
and capital markets, with a strong
emphasis on customer focus and
sustainability. Proven ability to drive
organisational resilience and long-
term value through innovative and
responsible practices.
Skills and attributes which support
our strategy and deliver long-term
sustainable success:
Extensive expertise in international
retail and wholesale banking,
complemented by strong capabilities
in capital management, liquidity
oversight, treasury operations,
investor relations and comprehensive
risk management.
Key external appointments
• Ibec clg Board Member
Key external appointments
None
Board composition
as at 31 December 2025
AIB Directors Board (Limited assurance)
Age
Nationalities
Gender (Limited assurance)
Tenure
Further details on Board diversity are included on
pages 150 and 151.
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2
11
Exec
NED
5
8
Female
Male
4
4
5
46-55
56-64
65-70
1
9
3
0-3 years
4-6 years
7-9 years
9
2
1 1
Irish
British
French
Dutch
Colin Hunt, Chief Executive Officer, and Donal Galvin, Chief Financial Officer, are also members of the Executive Leadership Team (ELT).
Further Information is available in their biographies on page 125.
Cathy Bryce
Managing Director of Capital Markets
Geraldine Casey
Managing Director of Retail Banking
Graham Fagan
Chief Operating Officer
Skills, expertise and experience
Cathy was appointed Managing Director of Capital
Markets in 2019. She is an experienced leader with
a strong background in investment banking and
treasury management, having started her career at
Morgan Stanley and ABN AMRO. Cathy has held
senior roles across international and Irish
portfolios and also serves as a Non-Executive
Director at Goodbody Stockbrokers UC. She holds
a business degree from Trinity College Dublin, an
MBA from INSEAD Business School and completed
the General Management Program at Harvard
Business School.
Skills, expertise and experience
Geraldine joined AIB as Chief People Officer in
January 2020 and was appointed MD Retail
Banking in October 2023. She has over 20 years’
experience in the retail and financial services
sectors and in her current position leads AIB’s
Retail Banking business which includes Homes,
Consumer, SME, Wealth, AIB UK along with the
Group’s network of branches. Geraldine is
President of the Institute of Bankers in Ireland,
holds a B.Comm from University College Cork and
is a Certified Bank Director, Institute of Bankers.
Skills, expertise and experience
Graham was appointed Chief Operating Officer in
July 2025, following his role as Chief Technology
Officer. Since joining AIB in 2016, Graham has led
technology, digital and cyber security functions,
driving innovation and efficiency. He previously
held leadership roles at Dell Technologies, Perot
Systems and British Telecom. Graham holds BSc
and MSc degrees from Trinity College Dublin, is a
Chartered Technology Professional, Fellow of the
Irish Computer Society and is certified in the
Governance of Enterprise IT.
Barry Field
Corporate Affairs Director
Michael Frawley
Chief Risk Officer
David McCormack
Chief People Officer
Skills, expertise and experience
Barry was appointed Corporate Affairs Director in
February 2024, to safeguard and protect AIB’s
reputation, ensuring open communication with
stakeholders and fostering trust, to enable the
delivery of AIB’s strategic priorities. Barry joined
AIB in 2008, and has over 15 years’ experience in
financial, regulatory and treasury roles, including
Head of Customer Treasury Services in New York
and Chief of Staff in the Office of the CEO.
Skills, expertise and experience
Michael was appointed Chief Risk Officer in July
2022. Prior to joining AIB he had 26 years’ banking
experience across retail, commercial, wholesale,
asset management, trade finance, strategy
implementation and risk management, including
international roles at HSBC and Permanent TSB.
Michael holds an MBA from Columbia Business
School, a B.Comm from University College Cork
and is a CFA holder.
Skills, expertise and experience
David was appointed Chief People Officer in
October 2023. With over 25 years’ experience as a
senior HR professional, he has held roles across all
facets of the HR function, including Group Deputy
Chief People Officer and Head of HR in AIB UK.
David has overseen the design and
implementation of major strategic programmes
aligning employees to the Group’s cultural and
strategic ambitions.
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Our Executive Leadership Team
Miriam Nagle
Group General Counsel
Paul Travers
Managing Director Climate &
Infrastructure Capital
Skills, expertise and experience
Miriam was appointed Group General Counsel and
joined the ELT in 2025. She is a litigation specialist
and has over two decades of legal experience in
private practice and in-house roles. Miriam joined
AIB in 2013 and has held a range of senior
positions across the Bank. She currently leads the
legal and third-party management teams. She
holds a Bachelor of Civil Law from University
College Cork and was admitted to the Law Society
of Ireland in 2005.
Skills, expertise and experience
Paul was appointed Head of Climate &
Infrastructure Capital in February 2024 after joining
AIB in 2018 as the Head of Energy, Climate Action
and Infrastructure. He leads lending activities for
renewables and critical infrastructure projects
across Ireland, the UK, Europe and North America.
Prior to AIB, Paul was previously the Head of
Macquarie Capital Ireland, which is an
infrastructure and renewables specialist investor
and one of the world’s largest infrastructure asset
managers. Paul was also a Director for numerous
Macquarie investments. He is a qualified
accountant and a Certified Bank Director. He also
serves as a Non-Executive Director on the Board of
AIB Group (UK) p.l.c.
Orlaith Ryan
Chief Customer Officer
Mary Whitelaw
Chief Strategy & Sustainability Officer
Skills, expertise and experience
Orlaith was appointed Chief Customer Officer in
October 2024. She brings over 25 years’
experience in insight, commercial and
transformation roles at Vodafone, Aviva and FTI
Consulting. Before joining AIB, Orlaith served for
eight years at Sky Ireland in several commercial
and customer roles, most recently as Chief
Commercial Officer where she led commercial
strategy, customer growth and innovation,
focusing on data-driven customer outcomes.
Orlaith is a Certified Bank Director and a recently
appointed board member of Financial Services
Ireland.
Skills, expertise and experience
Mary was appointed to the AIB ELT in 2019 having
held a number of senior leadership roles across
AIB in Capital Markets, Retail Banking and
Treasury. Mary is a Chartered Accountant and
Chartered Tax Advisor and holds a degree in
Commerce & German and a Masters in Accounting
from University College Dublin. She is also a Non-
Executive Director of Goodbody Stockbrokers UC.
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AIB Group Board governance structure
The AIB Group Board governance structure is set out on the following pages. Please refer to Board Activities on page 134 and Stakeholder
Engagement on pages 136 to 139, which set out how the Board considers its stakeholders in its decision-making.
AIB Group Board
Board Audit
Committee
Board Risk
Committee
Nomination
and Corporate
Governance
Committee
Remuneration
Committee
Sustainable
Business
Advisory
Committee
Technology
and Data
Advisory
Committee
See p.140
See p.143
See p.146
See p.152
See p.164
See p.165
Oversees the quality
and integrity of the
Group’s accounting
policies, financial and
narrative reporting, non-
financial disclosures
and disclosure
practices, internal
control framework and
audit, as well as the
mechanisms through
which employees
and contractors may
raise concerns.
Oversees and fosters
sound risk governance
across the Group’s
operations, overseeing
the Risk Management
Framework and
compliance function
to include the risk
appetite profile and
the overall risk
awareness across
the Group.
Oversees the Board
and Executive
Leadership Team
composition and
succession planning
and leads the process
for nomination and
appointments. Keeps
the Board’s governance
arrangements and
corporate governance
compliance under
review.
Oversees the Group’s
Remuneration Policy
and the operation of
remuneration policies
and practices, ensuring
that the Remuneration
Policy is designed to
support the long-term
business strategy,
values and culture of
the Group, as well as
to promote effective
risk management.
Supports the Board in
overseeing the Group’s
performance as a
sustainable business
and the delivery of AIB’s
Sustainability Strategy
in accordance with the
approved Group
Strategy and Financial
Plan and maintaining
and safeguarding the
Group’s social licence
to operate.
Supports the Board by
reviewing and
challenging the
strategy, governance
and execution of
matters relating to
technology, data
including cyber security
and analytics, as well
as business
enablement activities.
Executive Leadership Team
Board Leadership
Role of the Board
The Group is headed by an effective Board, which is collectively
responsible for the long-term sustainable success of the Group,
generating value for shareholders and contributing to wider society. The
Board is responsible for establishing the strategic direction of the Group
and for overseeing its execution.
The Board has delegated the day-to-day running of the business and the
development of strategy to the Chief Executive Officer (CEO), who is
supported by the ELT, this being the most senior management committee of
the Group. The ELT operates under defined Terms of Reference and has full
authority to delegate any of its powers, authority or activities to identified
executives or to one or more of its sub-committees.
Further details on the Group Strategy can be found on page 14
and 134.
The Board supports and strives to operate in accordance with the Group’s
purpose and values at all times and challenges management as to
whether the purpose, values and strategic direction of the Group align
with its desired culture, or if they do not, whether there are options to
mitigate any potential negative stakeholder impacts.
The Board ensures there is a clear division of responsibilities between the
Chair, who is responsible for the overall leadership of the Board and for
ensuring its effectiveness, and the CEO, who manages and leads the
business. The governance framework and organisational structure are
sufficient to ensure that no one individual has unfettered powers of decision
or exercises excessive influence. Key roles and responsibilities are clearly
defined, documented and communicated to key stakeholders via the
Group’s website on aib.ie/investorrelations. The Board is supported in
discharging its duties by a number of Board and Advisory Committees.
Whilst arrangements have been made by the Directors for the delegation of
the management, organisation and administration of the Group’s affairs,
certain matters are reserved specifically for decision by the Board. These
matters are kept under review to ensure that they remain relevant and are
available on the Group’s website aib.ie/investorrelations.
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Board Leadership, Purpose
and Governance
Conflicts of Interest
The Board Code of Conduct and Conflicts of Interest Policy for Directors
sets out how actual, potential or perceived conflicts of interest are to be
identified, evaluated, reported and managed to ensure that Directors
act at all times in the best interests of the Group and its stakeholders.
Executive Directors, as employees of the Group, are also subject to the
Group’s Code of Conduct and Conflicts of Interests Policy for employees.
Stakeholder engagement
The Group’s six principal stakeholder groups are customers, employees,
suppliers, investors, regulators and society and communities. The Board
ensures that effective engagement is maintained with each of these
groups so that their views, needs and expectations meaningfully inform
the Board’s discussions and decision-making. This includes considering
long-term implications, maintaining high standards of business conduct
and acting fairly between the shareholders of the Company.
Engagement with stakeholders occurs through a broad range of channels,
including face-to-face meetings, structured engagement sessions,
topic-specific briefings, research and focus groups, surveys, media
engagement, partnerships and sponsorships, community initiatives,
participation in industry and regulatory forums and direct interaction
between the Group’s subject-matter experts and relevant business,
public or voluntary organisations.
There is a Designated Non-Executive Director for workforce engagement,
whose role is described under Division of Responsibilities on page 131.
Further details on how the Board engages with its stakeholder
groups and how it considers stakeholders in its decision
making can be found on page 134 and 136.
The Annual General Meeting (AGM) remains a key opportunity for
shareholders to hear directly from the Board on performance, strategic
direction and governance matters and to pose questions to Committee
Chairs. Shareholders are encouraged to attend and participate. The Chair
also provides the Board with regular updates on engagements held
with major shareholders to ensure that Directors maintain a clear
understanding of investor views on governance, performance and
strategic delivery.
Further detail on the 2026 AGM and shareholder related
information is available on page 381 and on the Group’s
website at aib.ie/investorrelations.
Our Purpose, Culture and Values
The Group’s culture programme reinforces our commitment to customers
and underpins the delivery of sustainable long-term value. The culture
programme was shaped in response to the results of the Irish Banking
Culture Board (IBCB) employee survey conducted in 2023 and
subsequent listening sessions with AIB employees conducted by an
external partner specialising in organisational culture. The focus of the
programme is on embedding the Group’s values and behaviours which
drives a culture where colleagues feel connected, empowered to raise
concerns and supported to deliver innovative and positive outcomes for
customers, communities and colleagues. A sample of the culture metrics
currently tracked and reported to the Board are included in Culture at a
Glance. In 2026, AIB will participate in the IBCB Éist Employee Survey and
the culture programme and metrics will continue to evolve, informed by
survey results and employee listening sessions conducted during the year
so it is not expected that the same metrics will be used in the 2026 annual
report.
Our Purpose
The Board has established a clear purpose for the Group – ‘Empowering
People to Build a Sustainable Future’ – which continues to guide strategy,
decision-making and cultural expectations across the organisation.
Throughout 2025, the Board received regular updates from management on
how purpose is being embedded and communicated across the Group to
ensure continued alignment between purpose, values, culture and strategy.
Our Culture and Values
Culture is a key enabler of the Group’s Strategy and the current
programme is built around four core pillars to support delivery of the
Group’s ambition and strategic priorities:
• embedding customer-centricity;
• empowering colleagues and strengthening accountability;
• promoting innovation and continuous improvement; and
• connecting colleagues with each other and with AIB.
These cultural pillars support delivery of the Group’s ambition and
strategic priorities.
Further details on our purpose, values and behaviours can be
found on pages 44, 101 and 129.
Culture at a glance
58%1
81%1
Employee response rate in
AIB Engage survey.
Employees believe in team
collaboration and that they
can rely on colleagues to get
work done.
78%1
630+
Employees believe that
people leaders create a
positive working environment
and are living the AIB values.
Number of innovation ideas
submitted through the
Innovation Channel in 2025.
1. Based on latest AIB Engagement Survey.
How the Board assesses and monitors Culture
The Board has overarching responsibility for assessing, monitoring and
embedding a positive culture and ensuring a values-led and customer-
centric culture is in place across AIB. The Board and ELT lead by example
and promote the desired culture, where commitment to high standards
and values are at the heart of decision-making and employees are aware
of and understand their risk management responsibilities.
The Board assesses and monitors culture through a range of reporting,
and engagement, summarised in the table below.
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Board reporting on culture
What did the Board receive?
Key areas of focus
Outcomes
Culture Progress and
People Strategy Updates
• Embedding customer-centricity
• Promoting empowerment and
accountability
• Stimulating and recognising innovation
• Connecting colleagues to our Purpose
• Reinforced alignment between Purpose, values and behaviours
• Strengthened leadership visibility and colleague engagement
• Enhanced customer-centric behaviours and cultural consistency
• Improved employee understanding of behavioural expectations
Integrated Culture
Tracker
• Bi-annual reporting of metrics across the
four culture pillars
• Provided a single, data-driven and risk-aligned view of cultural health
• Enabled early identification of cultural risks and behavioural trends
• Supported stronger Board challenge and timely management intervention
Culture and Conduct
Risk updates
• Culture and Conduct Risk
• Annual Code of Conduct update to the
Board Audit Committee
• Strengthened conduct and behavioural standards
• Improved oversight of Code of Conduct awareness and breaches
• Ensured ongoing alignment with the Group Risk Appetite
‘AIB Engage’ colleague
engagement survey
results
• Results from the 2025 engagement surveys
• People related actions based on analysis of
results
• Provided deeper insight into colleague sentiment and engagement
drivers
• Informed enhancements to the People Strategy and Culture
Programme
• Supported improvements in decision-making, collaboration and
innovation
Group and Subsidiary
alignment
• Implementation of culture initiatives in
subsidiaries
• Ensured consistency of culture and values across licensed
subsidiaries
• Strengthened Board visibility over cultural maturity across the Group
Raising concerns and
Whistleblowing updates
• Whistleblowing updates to the Board Audit
Committee
• Updates on ‘Raising Concerns’ to the
Sustainable Business Advisory Committee
• Greater employee confidence in raising concerns
• Better visibility of themes and emerging conduct risks
• Strengthened accountability and cultural transparency
• Board Audit Committee Chair, Whistleblowing message to all
employees
Embedding the Right Culture across AIB
Throughout 2025, the Board continued to embed and reinforce the Group’s
purpose, values and behaviours. The Board remained focused on ensuring
that the culture of the organisation supported effective execution of the
2024–2026 strategy and delivered fair outcomes for customers, colleagues
and other stakeholders. The Board maintained close oversight of cultural
development through regular reporting which included workforce and
customer insights. A summary of outcomes is set out in the table above and
examples of how culture is embedded across the organisation is set out
below.
Promoting a customer-centric culture
A key focus of the Culture Programme in 2025 was increasing employees’
understanding of customer needs, expectations and challenges.
Management delivered several initiatives, including a customer closeness
programme, the launch of a Customer Experience Podcast which
provided practical training and examples to drive positive outcomes, a
refreshed AIB Brand Campaign that reinforced customer-first messaging
and a lessons-learned review on customer-centricity.
Empowerment and accountability
The Board received regular updates on cultural-embedding initiatives,
including strong participation in the Employee Values Awards, which
attracted over 4,500 nominations, which was an improvement on the prior
year, over 20,000 votes and 95 finalists.
The Board also noted continued investment in leadership development,
with more than 3,000 people leaders attending the in-person Leadership
Summit, over 4,000 colleagues joining the Wake Up Call – Empowering
our People session with the Board Chair and Chief People Officer. Board
Members also participated in panel discussions during Risk in
Conversation week.
Additionally, the Board reviewed progress on the refreshed Code of
Conduct training, including the new Values-focused introductory module,
and received updates on the Invest in You programme, which emphasised
the role of behaviours in supporting performance and career development
and engaged over 2,000 colleagues. The Board was further briefed on the
completed review of the Aspire model and the planned phased refresh of
the wider Performance and Development approach for 2026.
Driving innovation
Developing a culture of innovation remained a key priority. In 2025, the
Group launched an Innovation Channel enabling colleagues to submit
ideas and accelerate innovation across the Group. Over 630 ideas were
submitted to the Innovation Channel in 2025, reflecting strong
engagement and encouraging momentum in our innovation culture. While
there have been clear successes, further work is needed to accelerate
promising ideas into implementation.
Listening to our People
In 2025, the Board reviewed the results of two AIB Engage employee
surveys, which provided insights into colleague satisfaction, values,
behaviours, innovation and decision-making, supported by open-text
feedback highlighting strengths and areas requiring attention. While results
remained solid in areas such as collaboration and recognition, including
strong scores for people leaders living the values (78%) and team
collaboration (81%), some indicators declined, notably participation rates
in the latest survey (58%) and overall satisfaction with AIB as a place to
work. Acknowledging both the progress and the areas for improvement, the
Board will continue to monitor developments through regular culture
updates and the Integrated Culture Tracker.
Strengthening culture governance
The Board reviewed and approved the Integrated Culture Tracker which
provides a single, enterprise-wide view of progress and associated risk
indicators across each of the culture pillars. As part of the development
of the tracker, the Board provided feedback and challenge on its
components. The tracker provides the Board with more data-driven insight
into cultural health enabling more effective oversight and prompt
intervention where issues arise.
Policies, frameworks and conduct
The Board Risk Committee and Group Risk Committee (management
committee), continued to oversee the Culture Risk and Conduct Risk
Framework while the Group Code of Conduct is reviewed annually by the
Board Audit Committee and the Group Customer & Conduct Committee
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Board Leadership, Purpose and Governance continued
(management committee), This strengthened oversight of cultural risks
and improved alignment between risk appetite, values and behaviours. A
Code of Conduct for Directors also remains in place. Further details on
our management committees are available on pages 167 and 178.
Investing and rewarding the workforce
The Board places significant importance on how the Group invests in and
rewards the workforce. Further details on investing and rewarding our
workforce is available on pages 82 and 154.
Raising concerns and Whistleblowing
The Board maintained oversight over the implementation of the new
Whistleblowing Policy, with 98% training completion, launch of an
enhanced reporting portal and establishment of a Whistleblowing
Advocacy Network. The Whistleblowing Champion on the Board, Sandy
Kinney Pritchard, reinforced the importance of speaking up through
Group-wide communications.
Further details on engagement with our employees and raising
concerns is available on pages 89, 101 and 137.
Division of Responsibilities
Key Roles & Responsibilities
Chair
The Chair leads the Board, setting its agenda, ensuring that Directors
receive adequate and timely information, facilitating the effective
contribution of Non-Executive Directors (NEDs), ensuring the ongoing
training and development of all Directors and reviewing the performance
of individual Directors. Jim Pettigrew was appointed as Chair on
28 October 2021.
Deputy Chair
The Deputy Chair, Brendan McDonagh, deputises for the Chair as may be
required from time to time and is available to the Directors for consultation
and advice.
Senior Independent Director
Elaine MacLean is the Board’s Senior Independent Director (SID). The SID
acts as a conduit for the views of shareholders and is available as an
alternate point of contact to address any concerns or issues they feel have
not been adequately dealt with through the usual channels of communication.
The SID also leads the annual review of the Chair’s performance with the
Non-Executive Directors and succession planning for the Chair role.
Designated Non-Executive Director for Workforce Engagement
Elaine MacLean was appointed as the Group’s Designated Non-Executive
Director (DNED) for Workforce Engagement in 2021. The purpose of
this role is to engage directly with employees, facilitate two-way
communication between employees and the Board and enhance the
Board’s understanding of workforce views. The DNED provides regular
updates on workforce engagement at Board meetings and the Board
keeps the mechanism selected to engage with employees under review.
The interactions between the DNED and employees are set out in
Stakeholder Engagement on page 137.
Independent Non-Executive Directors
Independent Non-Executive Directors (INEDs) provide a key layer of
oversight, scrutinising the performance of management in meeting agreed
objectives and monitoring reporting against performance. They bring an
independent viewpoint to the deliberations of the Board that is objective
and independent of the activities of the management and of the Group.
They constructively challenge and help develop proposals on strategy and
other key matters. In addition, they oversee the Group’s strategy through
regular strategic updates, monitoring strategic outcomes, one-to-one
meetings with members of the senior management, such as the Group
Chief Executive, Chief Financial Officer (CFO), Chief Risk Officer (CRO)
and other members of the Group Executive Leadership Team. INEDs play
a key role in appointing and removing Executive Directors.
Further details on how the Board oversees strategy is available
on page 134.
Chief Executive Officer
The CEO, Colin Hunt, manages the Group on a day-to-day basis and makes
decisions on matters affecting the Group. The ELT assists and advises him
in reaching these decisions.
Biographical details for each of these roles are available on pages 122 to 125.
Group Company Secretary and Head of Corporate Governance
The Directors have access to the advice and services of Conor Gouldson,
the Group Company Secretary, and Aeilish McGovern, Head of Corporate
Governance, who advise the Board and Board Committees on all
governance matters and corporate governance best practice, ensuring
that Board procedures are followed and that the Group is in compliance
with applicable rules and regulations. Both the appointment and removal
of the Company Secretary are matters for the Board as a whole.
Board Committees
The Board is assisted in the discharge of its duties and contribution to the
delivery of its strategy by a number of Board Committees, whose purpose
is to consider, in greater depth than would be practicable at Board
meetings, those matters for which the Board retains responsibility. They
also make recommendations and decisions where appropriate on matters
delegated to them under their respective terms of reference. Each
Committee operates under terms of reference approved by the Board
which are available on the Glroup’s website at aib.ie/investorrelations.
The Board governance structure is available on page 128.
Advisory Committees
In addition to the four main Board Committees, the Board also has
a Sustainable Business Advisory Committee (SBAC) and a Technology and
Data Advisory Committee (TDAC). The Advisory Committees are comprised
of Non-Executive Directors and members of senior management from
relevant business areas. Each Committee Chair provides an update to the
Board on matters considered at the preceding Committee meeting. The
agenda, papers and minutes of Committee meetings are generally
available to all Directors.
Reports from the Board and Advisory Committees are available
on pages 140 to 165.
Chairman’s Committee
Additionally, a Chairman’s Committee acts on behalf of the Board
between its scheduled meetings to deal with matters of an administrative
nature and to take decisions on urgent matters in accordance with the
authority delegated to it by the Board, or as specifically set out in its Terms
of Reference. These responsibilities include the consideration of
individual cases in line with the requirements of the Central Bank of
Ireland Code of Practice on Lending to Related Parties. The Executive
Directors and any impacted Directors are excluded from the decision-
making process for these individual cases.
Board and Committee Meeting attendance
The Board met on 15 occasions in 2025. Attendance at Board and
Committee meetings is outlined on page 132. Where a Director cannot
attend, papers are provided in advance and comments may be submitted
to the Board Chair or the relevant Committee Chair. The NEDs also meet
during the year without Executive Directors or management present.
The Chair and Board Committee Chairs ensure that meetings support
open discussion, constructive challenge and debate. The Board receives a
regular Executive Management report, with the remainder of the agenda
drawn from the annual work programme and including strategic items,
out-of-course activities, in-depth reviews and key project updates.
A clear escalation process through Executive and Board Committees
ensures the Board receives timely and relevant information to support
effective decision-making. The Chair leads the agenda-setting process,
supported by the CEO and the Group Company Secretary.
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FY2025 Board and Committee attendance
Director
Board
Board Audit
Committee
Board Risk
Committee
Nomination
and Corporate
Governance
Committee
Remuneration
Committee
Sustainable
Business
Advisory
Committee
Technology and
Data Advisory
Committee
Anik Chaumartin
15/15
11/12
-
-
-
5/5
-
Donal Galvin
15/15
-
-
-
-
-
-
Basil Geoghegan
13/15
-
9/11
-
-
-
-
Tanya Horgan
14/15
-
11/11
-
-
-
4/4
Colin Hunt
15/15
-
-
-
-
3/5
-
Sandy Kinney Pritchard
15/15
12/12
11/11
-
-
-
-
Elaine MacLean
13/15
-
-
4/4
9/10
-
-
Andy Maguire
15/15
-
10/11
-
-
-
3/4
Brendan McDonagh
15/15
10/12
11/11
4/4
9/10
-
-
Helen Normoyle1
6/7
-X
-
0/1
-
2/2
1/1
Ann O'Brien2
12/15
12/12
-
-
9/10
-
4/4
Fergal O'Dwyer
15/15
12/12
-
-
1/1
-
-
Jim Pettigrew
15/15
-
-
4/4
10/10
-
-
Anne Sheehan3
4/4
-
-
-
-
-
1/1
Jan Sijbrand
15/15
-
11/11
-
-
5/5
-
Raj Singh2
14/15
-
10/11
-
-
3/5
-
Executive Leadership Team
Graham Fagan
-
-
-
-
-
-
4/4
Andrew McFarlane4
-
-
-
-
-
-
1/2
Orlaith Ryan
-
-
-
-
-
4/5
-
Paul Travers
-
-
-
-
-
5/5
-
Mary Whitelaw
-
-
-
-
-
5/5
-
1. Helen Normoyle resigned from the Board on 1 May 2025.
2. Ann O’Brien and Raj Singh resigned from the Board with effect from 31 December 2025.
3. Anne Sheehan was appointed to the Board on 1 September 2025.
4. Andrew McFarlane resigned as Chief Operating Officer on 17 July 2025.
Board Performance Review
Each year, the Board, evaluates its effectiveness, including that of its
Committees, Directors and Chair. As required by the UK Code, the Board
Performance Review is externally facilitated at least once every three
years. The last external review was conducted in 2022, with the 2023 and
2024 evaluations performed internally by the Group Company Secretary.
In 2025, the Board undertook an externally facilitated review conducted by
Egon Zehnder (EZ). EZ is an independent external consultancy firm, which
has no other connection to the Group or individual Directors aside from
providing leadership coaching services to the Group from time to time or
where EZ may have undertaken an evaluation for an external entity to
which a Director was appointed. The evaluation and coaching services are
provided independently by separate teams within EZ.
The Board Performance Review commenced in September 2025 and
concluded with a review of the actions in February 2026. EZ’s evaluation
followed a comprehensive and structured process. The process began with
discussions with the Chair and the SID to agree objectives, priorities and
the scope of the evaluation, followed by a detailed review of key Board
papers, governance documents and minutes. Board and Committee
members completed confidential questionnaires, providing both
quantitative assessments and narrative feedback, complemented by
surveys and interviews. EZ also observed Board and Committee meetings
in September 2025. EZ analysed these inputs to identify strengths,
behavioural dynamics and areas for development. Preliminary themes
were discussed with the Chair and SID in December 2025, and the final
report, including the recommendations was considered by the Board at the
February Nomination and Corporate Governance Committee and Board
meetings.
As shown in the Board’s review-cycle diagram on page 133, the Board
applies a structured, multi-year approach to assessing its effectiveness.
The 2024 internally facilitated review confirmed a high-performing Board
with strong challenge, effective Committee structures and highly effective
Chair leadership, while the 2025 externally facilitated review reaffirmed
this performance and provided deeper insights through broader
stakeholder engagement, direct observation and individual Director
feedback.
Looking ahead to 2026, the Board will review three priority areas: strategy
and foresight, information flows and decision support and Board and
Committee composition and succession. In considering the effectiveness
of its Committees, the Board will also review the optimal structure of its
Advisory Committees, SBAC and TDAC to support its future purpose and
strategy. Both of these Committees have been in operation for a number
of years and have provided valuable focus and significant impact in their
respective areas.
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Board Leadership, Purpose and Governance continued
The Board’s review cycle
FY2024
FY2025
Internal review
External review
What the 2025 External
Review added
The 2024 performance review was internally
facilitated by the Group Company Secretary.
• The process combined confidential Director and
Committee questionnaires, along with
one-to-one meetings led by the Chair and a
separate Chair review by the SID.
• Board was assessed as high-performing, with
clear roles, strong challenge and effective
Committee structures.
• Chair viewed as highly effective, promoting
openness and constructive debate.
• 2025 focus areas: Continued improvement of
Board and Committee papers; greater
stakeholder engagement visibility and a stronger
long-term strategic focus beyond the current
cycle.
EZ’s performance review key findings at a glance:
• Independent evaluation confirmed a high-
performing Board and Committees with strong
governance and a constructive, engaged culture.
• Directors highlighted confidence in the Chair’s
leadership, quality of challenge and effective
relationships with executives.
• Board’s diverse skills and experience enabled
robust challenge and high-quality
decision-making.
• Relationships with the ELT were viewed as open,
transparent and effective, fostering trust and
supporting strong oversight.
• Improvements were noted in Board paper clarity
and disciplined meeting management.
• Enhancement areas included a more
forward-looking strategic focus, continued
development of Board papers and continued
attention to succession planning and skills
balance.
• Consider optimal structure of Advisory
Committees to support future strategy.
• Broader Stakeholder Input: Structured
one-to-one interviews with Board
members, ELT members, the Group
Head of Internal Audit, the Head of
Corporate Governance and the Group
Company Secretary.
• Direct Observation: EZ attended and
observed a meeting of the Board of
Directors and a meeting of each of the
Committees.
• Independent Feedback on
Leadership: Feedback provided to the
SID on the Chair’s performance.
• Individual Insights: Provided feedback
to the Chair on individual Board
members. Delivered feedback to each
Director, supporting development,
effectiveness and succession insight.
Areas of focus
for FY2026
Strategy
& Foresight
Information Flow
& Decision Support
Composition & Succession
The Board will further enhance its
forward-looking strategic focus by
considering opportunities and strategic
topics in greater depth. To support this
there will be a focus on market trends
competitor insights, market
developments, maintaining strategic
focus throughout the Board cycle.
The Board will work with
management to further improve the
clarity, conciseness and strategic
relevance of Board papers and
presentations, supporting robust
decision-making.
The Board will continue to strengthen
succession planning, optimising future
Board and Committee composition,
while maintaining diversity,
independence and continuity.
Board composition and succession
Further details on the composition of the Board and succession process
are set out on page 148.
Audit, risk and internal control
The Board has delegated responsibility for the consideration and approval
of certain items pertaining to audit, risk and internal control to the Board
Audit Committee and Board Risk Committee. Where required, topics are
referred onward to the Board as a whole for further discussion or approval.
The Board monitors the Group’s risk management and internal control
framework and at least annually, carries out a review of its effectiveness.
Information on this can be found on page 177. Information on the
activities of the Board Audit Committee and Board Risk Committee in
2025 can be found in their respective reports on pages 140 to 145.
Remuneration
The Board has delegated responsibility for the consideration and approval
of the remuneration arrangements of the Chair, Executive Directors, ELT
members, the Group Company Secretary and certain other senior
executives to the Remuneration Committee. A group of senior
management executives and the Group Company Secretary are
responsible for recommending to the Board, the fees to be paid to Non-
Executive Directors, within the limits set by shareholders at the AGM and
in accordance with the Articles of Association.
Further details on the activities of the Remuneration
Committee can be found on pages 152 to 154.
Relationship with the Irish State
The Group received significant support from the Irish State during the
financial crisis. On 17 June 2025, the State fully exited its shareholding,
returning the Group to private ownership. On 31 October 2025, the Group
and the Minister for Finance agreed to cancel the outstanding warrants
granted in 2017. As at 31 December 2025, total proceeds returned to the
State were c. €21 billion, including c. €650 million in levies and other fees.
While the State was a shareholder, the relationship was governed by the
Relationship Framework (Framework). Following the return to full private
ownership and the execution of a deed of release in July 2025, the
Framework’s undertakings and commitments ceased to apply, although
the restriction preventing paying variable remuneration awards above
€20,000 without Ministerial consent remains. The Board is satisfied that
the Group complied with the Framework during 2025 and that the Minister
for Finance complied with the independence provisions.
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During 2025, the Board focused on delivering the 2024–2026 strategy and acted in good faith,
in a manner it believed would best promote the long-term success of the Group for the benefit
of stakeholders. In reaching decisions, the Board assessed the long-term implications of its
decisions, their alignment to strategic priorities and their impact on customers, employees,
suppliers, investors, regulators and society and community.
The Board also considered the need to uphold high standards of business conduct and act fairly between shareholders. The table below summarises
key decisions taken by the Board and key areas of oversight during 2025.
Further details on matters considered by Board Committees which in certain cases are also considered by the Board are detailed in
individual Board and Board Advisory Committees set out on pages 140 to 165.
Key Board decisions and discussions
Stakeholder and strategy key
Stakeholder group:
Customers
Employees
Suppliers
Investors
Regulators
Society & Community
Link to strategy:
Customer
first
Greening
our business
Operational efficiency
and resilience
Financial
Link to strategy
Stakeholder alignment
Key decisions
• AIB Group plc 2024 Annual
Financial Report & 2025 Half
Yearly Report
• Stock Exchange
Announcements, analyst
presentations and Trading
updates
• Capital Distributions
• Dividend Policy
• Going Concern and Viability
Statement
• Recovery Planning and
Resolvability Plan
• 2026-2028 Financial and
Investment Plan
• Capital Adequacy Statement &
Capital Plan & Liquidity
Adequacy Statement &
Funding and Liquidity Plan
Key Areas of Oversight
• Medium Term Note
Programme
• Macroeconomic Environment
• Business and Financial
Performance
People, Culture and Values
Link to strategy
Stakeholder alignment
Key decisions
• Remuneration Policy
• Integrated Culture Tracker
• Modern Slavery Statement
Key Areas of Oversight
• Culture and people strategy
• Workforce Engagement and
Health & Safety annual update
Further details on how the Board assesses and monitors
culture and ensures that it is embedded throughout the Group
can be found on page 101.
Strategy
Link to strategy
Stakeholder alignment
Key decisions
• Sale of a minority shareholding in
AIB Merchant Services to Fiserv
in September 2025
• Outsourcing Strategy
• Enterprise Information & Cyber
Security Strategy
• People Strategy
• Customer Communication
Policy
Key Areas of Oversight
• Annual Review of Group
Strategy
• Strategic Outcomes
• Group Ambition Statement
• Customer Strategy
• Transformation Plan
Implementation
• Operational Resilience Strategy,
• Sustainability Strategy (including
Social Strategy)
• Data Strategy
• Artificial Intelligence Progress
• Corporate Development
Opportunities
• Macroeconomic and External
Environment
• Investor Perspectives
• Next generation mobile app
Further details on the Group Strategy can be found on page 14.
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Board Activities
Regulatory
Link to strategy
Stakeholder alignment
Key decisions
• Annual Compliance Statement
confirming compliance with
CBI Corporate Governance
Requirements 2015
• Other market announcements
• Third Party Risk Management
Framework
Key Areas of Oversight
• Regulatory engagement
activities
• Market Abuse Regulation
• Supervisory Review Evaluation
Process and onsite
inspections with the Joint
Supervisory Team (JST)
• CBI Thematic Review Updates
• Regulatory Directive
Programmes
• Related Party Lending
• Individual Accountability
Framework
• Anti-Money Laundering and
Counter-Terrorism Financing
Governance
Link to strategy
Stakeholder alignment
Key decisions
• Companies Act 2014-
Directors’ Compliance
Statement
• Appointed an external
evaluator for Board and
Committee Effectiveness
Evaluation
• Governance & Organisational
Framework and Matters
Reserved for the Board
• Board Committee Terms of
Reference
• Appointment of Senior
Independent Director
• Appointment of NEDs
• Composition of the Board
Committees and subsidiaries
• Board and Executive
Succession Plan
• Board Suitability Assessments
& Policy
• Board Skills Matrix
• Board Diversity Policy
including Targets
• Annual Reappointment of
Chair
• Annual General Meeting
Key Areas of Oversight
• Board Committee updates
from the Chairs
• Board Chair engagements
updates
• Annual Review of Non-
Executive Director
Independence
• Subsidiary Oversight
• Review of Directors & Officers
Insurance
• Renewal of Non-Executive
Director Terms of Office
• Corporate Governance and
Upstream Developments
Further details can be found in the Nomination and Corporate
Governance Committee Report on page 146.
Internal Controls and Risk Management
Link to strategy
Stakeholder alignment
Key decisions
• Group Risk Appetite Statement
• Material Risk Assessment
• Risk Management Framework
and Policies
Key Areas of Oversight
• Internal Control Effectiveness
Review
• Annual Review of Group
Connected Customers & Large
Exposure Credit Policy
• Second Line Opinion Papers
on all Material Decisions, e.g.
Strategy or the Financial and
Investment Plan
Further details on Internal Controls and Risk Management can
be found on pages 140 to 145, 166 and 177.
Regular Updates
Link to strategy
Stakeholder alignment
Key Areas of Oversight
• Executive Management Updates
• Business and Financial Performance
• Chair Activities
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A balance of stakeholder interests is deemed to be critical to any decision taken by the Board.
The manner in which the Board and wider Group interact with stakeholders continued to evolve in
2025, with a focus on active engagement to ensure that the interests of all stakeholder groups were
taken into consideration in its decision-making and to uphold high standards of business conduct.
The way the Board engages with its stakeholders varies and ranges from direct engagement to receiving management reports and updates on relevant
stakeholders matters, which assist the Board in understanding the impacts of the Group’s operations on its key stakeholders. Further information on our
key stakeholders is available on pages 46 to 48.
Key
Stakeholder group:
Customers
Employees
Suppliers
Regulators
Investors
Society & Community
Customers
Why the Group engages:
Actions and Decisions:
The Board remains committed to placing the customer at the front of
their decision-making ensuring that the Group strives to meet the full
range of their financial needs conveniently and responsibly. Our purpose
is to empower people to build a sustainable future and to help support
our customers to achieve the life they’re after. Our Customer First
approach is a core pillar of AIB’s 2024-2026 strategy and building trust,
long-term relationships and having an informed view of customer needs
is integral to this.
• Embedded a Customer Impact Assessment into all major Board
decisions.
• Assessed customer implications of key strategic decisions,
including the AIBMS minority share sale (June 2025) and monitored
progress updates on SEPA Instant go-live (October 2025).
• Monitored development of the new Customer Segmentation
model to drive more targeted, data-led service delivery.
• Reviewed rollout of the new error and complaints system and
enhancements to Abi, the AI Digital Assistant.
• Considered updates on the Customer Closeness Programme
and supported launch of the ‘For the Life You’re After' brand
campaign.
• Reviewed and directed next steps following demonstrations of
the new next generation mobile app, setting expectations for
continued digital improvements.
• Approved the updated Customer Communication Policy to
strengthen clarity, transparency and fairness.
• Received and evaluated updates on sustainability engagement
through the AIB Green Living Hub and reviewed measures
supporting vulnerable customers and staff training.
How the Group engages:
• Throughout the year, the Board received regular updates on Key
Performance Indicators (Complaints and Error metrics, Net Promoter
Scores, Customer Journeys).
• Chief Customer and Chief Operating Officers updates on Customer
Strategy and Technology and Data.
• Featured customer segments at internal AIB All-Employee updates,
Employee Leadership Summit and external events (AIB Sustainability
Conference) attended by Board and Executive members setting out
the positive sustainability actions taken by customers, which are
supported by AIB.
Further details on strategic progress from a Customer
First perspective are set out on pages 14, 15, 80 and 89.
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Stakeholder Engagement
Colin Hunt, CEO, Colette Twomey, MD of Clonakilty Food Company - Customer, Orlaith Ryan, CCO,
and Donal Whelton, Head of Agri, Food and Fisheries, at the National Ploughing Championships 2025.
Employees
Why the Group engages:
Actions and Decisions:
The Board is fully aware that our people are the key resource and enabler
for the Group to deliver the overall ambition and strategy in a manner
underpinned by the Group’s values. The Group employed 10,207 people
across Ireland, the United Kingdom and the United States of America. The
Group aims to ensure that all employees are engaged and empowered in
their roles. Ensuring that the Group’s workforce is engaged and motivated
is critical to delivery for all our stakeholder groups.
• DNED workforce engagement: Elaine MacLean led direct
employee engagement sessions, with structured reporting to the
Board on culture, wellbeing, inclusion and emerging themes.
• Approved the Integrated Culture Tracker, strengthening oversight
of cultural indicators.
• The Board Chair participated in an employee ‘Wake-Up’ call on
empowerment; Executive Directors engaged with over 3,000
leaders at the Group’s Annual Leadership Summit; and Board
members contributed to the Group’s ‘Risk in Conversation’ week.
• The Board and Board Audit Committee received regular
whistleblowing updates and the Whistleblowing Champion
issued a Group-wide message reinforcing the importance of
whistleblowing.
• Launched the Whistleblowing Advocacy Network.
• Regular updates with the CEO and two All Employee Updates.
• ELT ‘Out and About’ visits to branches across the country.
• Director visits to foreign branches.
• Review of Employee Engagement Survey results, together with
customer feedback and branch-level insights, supporting Board
decision-making on organisational culture, development and
customer experience.
How the Group engages:
• Throughout the year the Board monitored performance against key
metrics (Employee Engagement, Wellbeing and Inclusion & Diversity).
• Direct Engagement between the DNED and employees.
• Internal employee conversation between Board members, ELT and
employees.
• Raising Concerns and Whistleblowing channels for employees to
report concerns.
• Employee engagement surveys to explore engagement and culture
drivers.
• ELT visits to branches to engage with branch teams.
• Recognition of employee contributions and Long Service Awards.
Further details on Employee Engagement are set out on
pages 82, 89 and 101.
Suppliers
Why the Group engages:
Actions and Decisions:
The Group is committed to conducting all its business activities to the
expected standard of professionalism and ethical conduct and to
support and improve the communities where we operate from an
environmental, social and economic perspective. The Group expects
suppliers to do the same, through adherence to the Group Responsible
Supplier Code. It reflects the Group’s values and it sets out the
minimum standards to which we hold ourselves and to which suppliers
are expected to adopt.
• The Board strengthened its oversight of supplier governance
during the year through a series of decisions designed to support
responsible and sustainable supply chain management.
• Approved updates to the Group’s Modern Slavery Statement (May
2025), enhancing transparency and reinforcing the Group’s
commitment to protecting human rights across the supply chain.
• Approved the Third Party Risk Management Policy and critical
third party assessments, embedding strengthened standards for
supplier due diligence, risk management and ongoing monitoring.
• Approved the Group Outsourcing Strategy.
• Completed the annual attestation to the Group’s Responsible
Supplier Code for larger suppliers, providing Board assurance
over supplier adherence to ethical, environmental and
labour-related expectations.
How the Group engages:
• Regular updates to the Board on the supply chain from management.
• Group-wide Third Party Management function in place that maintains
oversight of activities at various stages of the Third Party Management
lifecycle.
• Supplier spotlights at the annual AIB Sustainability Conference.
• Whistleblowing Channel to report supplier concerns.
• Dedicated Supplier Relationship Management Framework.
Further details on Supplier Engagement are set out on
pages 48, 89, 99 and 100.
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Key
Stakeholder group:
Customers
Employees
Suppliers
Regulators
Investors
Society & Community
Regulators
Why the Group engages:
Actions and Decisions:
The Board maintained open and proactive engagement with the Central
Bank of Ireland, Bank of England, European Central Bank, European
Commission, Single Resolution Board, Prudential Regulation Authority,
Financial Conduct Authority, New York State Department of Financial
Services and the Federal Reserve Bank of New York to support financial
stability, consumer protection and market integrity across all
jurisdictions. This sustained regulatory dialogue ensured the Group
remained aligned with supervisory expectations and well positioned to
meet evolving regulatory requirements.
• Engaged constructively with supervisory authorities on consumer
protection, strategy, capital, liquidity and risk management,
supporting transparent dialogue and clear expectations.
• Engaged with the ECB on approval of the Capital Distribution,
including the 2025 Directed Buyback.
• Monitored supervisory engagement activity, including completion
of inspections and thematic reviews, ensuring management
actions and remediation were implemented where required.
• Maintained direct engagement with the JST through Chair,
Executive Director and ELT management one-to-ones, formal
updates and the annual Supervisory Reporting Evaluation Process
meeting.
• Received structured updates from Group Regulatory Relations on
supervisory matters, emerging themes and inspection outcomes,
supporting timely decisions, escalation and aligned oversight.
How the Group engages:
• Constructive engagement with supervisory authorities.
• Oversight of regulatory inspections and thematic reviews.
• Regular interaction with the JST.
• Structured reporting to the Board and Committees from the Group
Regulatory Relations team.
Further details on Regulatory Engagement are set out on
pages 48 and 89.
Investors
Why the Group engages:
Actions and Decisions:
Transparent and frequent communication with the Group’s
shareholders is a key priority for the Group. All relevant information is
reported to the market on a timely basis and in line with the Market
Abuse and Stock Exchange Rules. The investor engagement programme
provides clarity on strategic priorities and performance. The Board
remains accessible to shareholders to provide clear updates on
strategic priorities and financial performance. The Board continues to
receive regular briefings on shareholder sentiment and market views
and feedback from the AGM for effective oversight and governance.
• Ensured transparent and timely communication with
shareholders through Annual and Half-Yearly Results live
webcasts and Q1 and Q3 trading updates.
• Engaged directly with investors, with the Chair, SID, CEO, CFO
and business leaders completing 300 interactions across 10
jurisdictions covering topics including: strategy, performance,
capital and sustainability.
• Approved capital distributions, including the Directed Buyback in
advance of shareholder approval at the AGM and dividends.
• Led governance-focused engagements, with the Chair at top
institutional investors at Investment stewardship meetings and
accompanied by other Board members on culture, remuneration,
succession, risk and sustainability.
• Board Chair and Chair of the Remuneration Committee engaged
with a number of our largest institutional investors on the
development of our Remuneration Policy.
• Integrated investor feedback briefing provided to the Board to
inform discussions and decisions.
• Engaged with shareholders at the AGM, with Directors and
Committee Chairs available to address governance,
remuneration, financial and strategic matters.
How the Group engages:
• Financial reporting and market updates.
• Comprehensive investor engagement programme.
• Shareholder engagement at the AGM.
• Governance-focused engagement led by the Chair.
Further details on Investor Engagement are set out on
pages 89, 129 and 156.
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Stakeholder Engagement continued
Society & Community
Why the Group engages:
Actions and Decisions:
Our communities and society as a whole, are at the forefront of all of our
stakeholder considerations and are also central to the sustainability
strategy. The Board considered the wider impact of all decisions taken
by the Group on society and community as part of the wider governance
framework in operation in the Group.
• Approved the sustainability disclosures in the Annual Financial
Report, ensuring alignment with regulatory expectations and
long-term climate, nature, social and governance commitments.
• Received focused updates on sustainability trends, green
products and education initiatives, supporting informed challenge
and strategic decision-making.
• Reviewed community initiatives, partnerships and support for
vulnerable customers to ensure social commitments remained
embedded and measurable.
• Supported visible leadership through Executive participation in
key community and sustainability events.
• Reviewed the Social Impact Report and Sustainability Disclosures
Tables for accuracy and completeness.
• Approved the Modern Slavery Statement, strengthening
human-rights oversight.
• Engaged with stakeholders at the AIB Sustainability Conference
and regional events.
• Completed sustainability training, reinforcing Board and Executive
capability to oversee Sustainability matters.
How the Group engages:
• The Board and Board Committee oversight of Sustainability Reporting.
• Participation in the AIB Sustainability Conference and regional
sustainability events.
• Executive Director and ELT participation in community engagement
activities.
• Regular Sustainability Updates to the Board and Committees.
• Oversight of Social Strategy, Community Initiatives and supporting
customers with additional needs.
Further details on Society & Community are set out on
pages 88, 89 and 92.
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Rigorous challenge, open dialogue across our Board
Committees and a commitment to continuous improvement
underpinned our governance model in 2025 ensuring that the
Group’s reporting remains robust and aligned with
stakeholder expectations.
Sandy Kinney Pritchard
Committee Chair
Board Audit Committee members
Sandy Kinney Pritchard (Chair)
Anik Chaumartin
Brendan McDonagh
Ann O’Brien (until 31 December 2025)
Fergal O’Dwyer
Read more about our cross-Committee Membership on page 132
and Committee Membership changes on page 148.
Highlights during FY2025
Financial reporting oversight
The Committee reviewed significant accounting judgements and
estimates, including deferred taxation, pensions, going concern
and viability and Expected Credit Loss (ECL), recommending
underlying scenarios and ECL outcomes to the Board in
coordination with the Board Risk Committee.
See page 141.
CSRD and Sustainability Statement
governance
The Committee oversaw the governance of CSRD disclosures
within the annual financial report and strengthened sustainability
reporting readiness, including focused supervision of
preparations for the Group’s CSRD compliant disclosures.
See page 141.
Internal Audit effectiveness
The Committee supported the future proofing of the Internal Audit
function, overseeing its plans for AI driven efficiencies in Internal
Audit, piloting AI enabled analytics and automation in planning
and fieldwork, endorsing enhanced data analytics tooling, and
confirming capability via the annual skills review. The Committee
also completed an annual review confirming the overall
effectiveness of the Internal Audit function
See page 142.
On behalf of the Board Audit Committee (BAC or the
Committee), I am pleased to present the Committee
Report for 2025. I would like to thank Ann O’Brien,
who stood down from the Committee, for her significant
contribution, insight and commitment during her tenure.
We wish Ann the very best in future endeavours. I would
also like to take this opportunity to thank my fellow
Committee members for their valued contribution
throughout 2025.
Committee purpose and responsibilities
The BAC supports the Board by overseeing the integrity of the Group’s
financial and narrative reporting, the effectiveness of internal controls,
and the assurance provided by internal and external audit. The BAC is also
tasked with monitoring the adequacy of arrangements that allow staff to
raise concerns confidentially.
Please find our Terms of Reference on aib.ie/investorrelations.
Other key activities in 2025
In what was another very busy year for the Committee it:
• monitored the performance, independence and effectiveness of
both Internal Audit and the External Auditor, supporting constructive
engagement;
• monitored the Group’s approach to non-audit services to ensure they
remain appropriate and do not compromise the External Auditor’s
independence;
• considered the findings and thematic insights arising from internal audit
work and external audit reviews and assessed management’s proposed
actions;
• maintained oversight of the operation of the Group’s whistleblowing
and confidential reporting arrangements, ensuring protected disclosure
concerns were raised safely and were handled appropriately; and
• completed an external review of the Committee’s effectiveness,
concluding that the Committee continues to operate effectively.
Priorities for 2026
Our priorities for 2026 are as follows:
• continue to strengthen assurance over non-financial reporting, with a
focus on CSRD and ESG disclosures, ensuring clear governance
pathways and cross Committee coordination; and
• continue to support the further development of the Internal Audit
function, including integrated assurance with the first and second lines
of defence, horizon scanning of emerging risks, ensuring the timely
execution of the audit plan, and maintaining appropriate challenge and
alignment between Group Internal Audit’s work and the Committee’s
oversight priorities.
Sandy Kinney Pritchard
Committee Chair
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Report of the Board Audit Committee
Financial Reporting key areas of focus
A key activity for the Committee is the consideration of significant matters relating to the Group’s Financial Statements for 2025. Significant matters, including
critical accounting judgements and estimates and the related disclosures, are subject to detailed review with management and the External Auditor.
A summary of the Committee’s considerations in relation to those judgements and estimates is set out below, and further detail on these matters is
disclosed in note 2 on page 273.
Key Issues
Committee considerations
Deferred Taxation
The Group has recognised deferred tax assets for unutilised losses of €1,975 million (2024: €2,203 million). The recognition of
these assets require significant judgements to be made about the long-term future profitability of the Group.
When evaluating the Group's future profitability in Ireland, the Committee considered a range of both positive and negative
factors including management’s assessment of the expected timeline for utilising the deferred tax asset. Given the scale of the
Group’s operations in the UK, the Committee reassessed the decision to limit recognition of deferred tax assets in its UK
subsidiary to amounts expected to be realised within 15 years.
For both the Ireland and UK deferred tax assets, the Committee concluded that management’s judgements were sufficiently
supported by the Group’s long-term financial plan and the Committee reaffirmed their support for the continued recognition of
these assets.
Impairment of
Financial Assets
The Group has an ECL allowance of €1,145 million (2024: €1,347 million). The calculation of the ECL allowance is complex
and requires the use of several accounting judgements and estimates, some of which are, by their nature, highly subjective. In
conjunction with the Board Risk Committee, the Committee assessed and challenged the inputs and outcome of
macroeconomic scenarios for use in the ECL models, as well as the weightings applied to those scenarios, in advance of the
onward recommendation to the Board for approval. The Committee reviewed and approved updates regarding the ECL
outcome provided by management, including the appropriate application of post model adjustments. In forming its view on
ECL matters, the Committee also considered inputs from the Risk function on their independent challenge relating to ECL
levels.
The Committee is satisfied that the impairment requirements of IFRS 9 have been appropriately applied to the Group’s
financial assets.
Retirement Benefit
Obligations
The Group has net defined benefit assets of €12 million (2024: €22 million) and gross defined benefit obligations of €4,521
million (2024: €4,950 million). There is a significant degree of judgement and estimation in the calculation of retirement benefit
obligations.
The Committee gave due consideration to the reasonableness of defined benefit obligations and of the underlying actuarial
assumptions in use, including the discount rate, inflation rates and pensions in payment increases, and approved these
assumptions as inputs in the calculation of the IAS 19 pensions position for the AIB Group Irish pension scheme.
Going Concern and
long-term Viability
In preparing the financial statements, the directors are responsible for assessing the Group’s ability to continue as a going
concern over a period of at least twelve months from the date of approval of the financial statements. Separately, and in line
with the requirements of the UK Code, the directors are required to assess the longer-term viability of the Group.
In assessing the Group’s ability to continue as a going concern and in supporting the viability statement, the Committee
evaluated a broad range of factors. These included the Group’s risk profile, capital forecasts, internally generated
macroeconomic scenarios, the Group’s long term financial plan and the Group’s strong capital and liquidity position.
Having considered the available evidence, the Committee recommended to the Board that the financial statements be
prepared on a going concern basis and that that three years was a suitable timeframe for the Viability Statement. The Viability
Statement can be found on page 168.
Other key areas of focus
External Reporting
During 2025, the Committee maintained strong oversight of financial and non financial disclosures, reviewing the integrity,
completeness and clarity of both the Annual Financial Report and the Half Yearly Financial Report. The Committee concluded
that it could recommend the Annual and the Half-Yearly Financial Reports to the Board for approval, on the basis that they are
considered to be a fair, balanced and understandable assessment of the Group’s financial position, and provide the
information necessary for shareholders to assess the Group’s performance, business model and strategy. To support this
detailed assessment, financial reporting matters were considered at several Committee meetings. Significant matters,
including key accounting judgements, estimates and disclosures, were scrutinised with management and the External
Auditor. The Committee is satisfied that disclosures provide clear insight into the Group’s performance and strategic progress.
The year also saw continued enhancements to sustainability reporting as the Group entered its second year of CSRD-aligned
disclosures, with a focus on strengthening consistency, assurance and underlying controls. The Committee reviewed the
Sustainability Statement in detail, ensuring it was underpinned by robust governance, appropriate assurance, and alignment
between financial and sustainability related messaging.
When reviewing both the Annual Financial Report and the Half-Yearly Financial Report, the Committee considered the minutes
of the Group Disclosure Committee, a management level Committee that is tasked with providing oversight of material Group
disclosures, in advance of making any recommendations to the Board. Pillar 3 reporting is also subject to robust governance
and review processes, and the Committee reviewed and approved the annual and half-yearly Pillar 3 disclosures.
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Other key areas of focus continued
Internal Audit
The Committee continued to oversee the effectiveness and independence of Group Internal Audit (GIA), approving the Internal
Audit Charter, the annual and three year audit plans, and reviewing ongoing delivery against plan. Throughout the year, the
Committee considered GIA’s audit findings, thematic insights and assessments of the control environment, with particular
attention to management’s responsiveness to audit recommendations and the timely closure of actions. The Committee
received the annual and half year Internal Audit opinions on the Group’s overall control environment.
The Committee reviewed GIA’s annual skills and capability assessment, including its approach to meeting Article 191
requirements under the Capital Requirements Regulation. Regular meetings between the Committee Chair and the Group
Head of Internal Audit provided further visibility of emerging control environment themes, reinforcing the Committee’s
oversight of the function’s independence and resourcing.
The Committee conducted an annual assessment of the overall effectiveness of GIA, confirming the effectiveness of the
function. Following a robust assessment process, the Audit Committee concluded that the GIA function was effective. The
Committee also noted that GIA have implemented the new Global Internal Audit Standards that came into effect in 2025 into
their methodology and operating processes.
External Audit
PricewaterhouseCoopers (PwC) was appointed as the Group’s External Auditor on 4 May 2023, following an external tender
process in 2021 and has since been reappointed following consideration by the Committee and approval by the shareholders
at the Annual General Meeting on 1 May 2025.
During the year the Committee oversaw the independence, objectivity and performance of the External Auditor, assessing
audit quality through reporting, interaction with PwC, and evaluation of the audit team’s expertise and challenge. The
Committee reviewed and approved the terms of engagement, the audit plan, the half-year and year end audit results and the
Auditor’s recommendations.
In line with regulatory requirements, the Committee monitored non-audit services to ensure they did not impair auditor
independence. This included reviewing and approving limits for such services in accordance with the Group’s Non-Audit
Services Policy, as well as considering an update related to the hiring of former Auditor personnel. Following its review, the
Committee recommended the proposed statutory audit fee to the Board for approval.
Whistleblowing and
Code of Conduct
As part of its oversight of the Group’s whistleblowing and protected disclosure framework, the Committee received an annual
report on whistleblowing activities, case themes and enhancements made during the year, including the launch of an
enhanced reporting portal and establishment of a Whistleblowing Advocacy Network. The Committee Chair, acting as the
Board appointed Group Whistleblowers’ Champion, met the Head of Group Accountability & Performance and Head of
Whistleblowing to discuss material cases, process developments and training and awareness initiatives to strengthen the
trust and confidence of our workforce in our whistleblowing arrangements.
The Committee also approved enhancements to the Group Code of Conduct and received an annual update on Code of
Conduct related activity.
Internal Controls
The Committee continued to strengthen its oversight of the effectiveness of the Group’s Internal Control and Risk
Management Framework. During the year, the Committee:
• received Chief Financial Officer updates on the testing and operation of financial and non financial reporting controls,
aligned to the half year and year end processes;
• reviewed the Directors’ Statements relating to internal controls and supported their recommendation to the Board;
• assessed findings from Group Internal Audit’s half year and year end evaluations of the control environment;
• reviewed management’s responses to control observations from the External Auditor;
• received quarterly credit control environment updates from the Group Chief Risk Officer;
• considered progress on the evolution of the aligned assurance model across the Three Lines of Defence, including key
thematic insights; and
• received updates from management regarding internal fraud risk and effectiveness of internal fraud controls.
On the basis of these activities, the Committee concluded that the Internal Control and Risk Management Framework
operated effectively during the year. Further details can be found in Internal Controls on page 166.
Subsidiary
Oversight
To support oversight across the Group, the Committee Chair met with the Chairs of the material subsidiary audit committees
during the year and attended a number of subsidiary committee meetings. The Committee reviewed annual reports and
minutes from the audit committees of AIB Group (UK) p.l.c., EBS d.a.c., AIB Mortgage Bank Unlimited Company, and
Goodbody Stockbrokers UC, ensuring visibility of subsidiary level issues, local regulatory considerations and key audit
themes. The participation of Committee member Fergal O’Dwyer, as Chair of the Goodbody Audit Committee during 2025,
further strengthened the link between Group and subsidiary governance.
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Report of the Board Audit Committee continued
In a year shaped by cyber threats and geopolitical
shocks, the Committee’s priority was clear: disciplined
risk governance, strong challenge and resilience in
delivery of the Group’s strategy.
Brendan McDonagh
Committee Chair
Board Risk Committee members
Brendan McDonagh (Chair)
Basil Geoghegan
Tanya Horgan
Sandy Kinney Pritchard
Andy Maguire
Jan Sijbrand
Raj Singh (until 31 December 2025)
Read more about our cross-Committee Membership on page 132
and Committee Membership changes on page 148.
Highlights during FY2025
Cyber Risk
The Committee enhanced its oversight of cyber risk and operational
resilience in response to an increasingly complex and evolving threat
landscape. This was facilitated through increased reporting received from
the Chief Information Security Officer and Risk team following Information
Security (including Cyber) Risk’s elevation to a material risk in 2025.
See page 144.
Geopolitical and macroeconomic Risk
The Committee maintained a strong focus on geopolitical risk
throughout 2025, informed by regular updates from the Geopolitical
Working Group and the Chief Economist, and through explicit and
detailed consideration of geopolitical factors within the Risk Appetite
Statement process.
See page 145.
Evolving and Non-Financial Risks
During the year, the Committee continued to strengthen its oversight
of evolving and non-financial risks, including operational resilience,
third party and outsourcing risk, climate and environmental risk, and
data and model risk, in line with evolving regulatory and supervisory
expectations.
See pages 144 to 145.
On behalf of the Board Risk Committee (BRC or the
Committee), I am pleased to present the Committee
Report for 2025. I would like to thank Raj Singh, who
stood down from the Committee, for his valuable
contribution, insight and commitment during his tenure.
We wish Raj the very best in his future endeavours. I
would like to take this opportunity to thank my fellow
Committee members for their valued contribution
throughout 2025.
Committee purpose and responsibilities
The Committee assists the Board in approving and overseeing the Group’s
risk appetite, risk governance and risk management frameworks. It
provides challenge and oversight across each principal risk, ensures
risk policies and controls remain effective, and monitors external
developments that may affect the Group’s strategic delivery. The
Committee also reviews emerging risks and assures the Board that the
Group operates within a prudent and well-controlled risk environment.
The Group Chief Risk Officer has unrestricted access to the Committee
and attends all Committee meetings. The Chief Financial Officer, Group
Head of Internal Audit, the lead External Audit partner are also invited to
attend all Committee meetings.
Please find our Terms of Reference on aib.ie/investorrelations.
Other key activities in 2025
In what was another very busy year for the Committee it:
• maintained oversight of credit and financial risks, including asset
quality and top exposures and overseeing the management of liquidity,
capital adequacy and funding risk;
• reviewed and recommended the Risk Appetite Statement and key risk
frameworks, ensuring alignment with strategy and corporate culture
and values;
• received regular reporting on risk management at the subsidiaries and
branches from both the second and third line of defence;
• oversaw other non-financial risks, including climate and environment,
compliance and conduct risk and key regulatory change programmes;
and
• completed an external review of the Committee’s effectiveness,
concluding that the Committee continues to operate effectively.
Priorities for 2026
Our priorities for 2026 are as follows:
• maintain heightened oversight of geopolitical and cyber threats and
ensuring appropriate embedding into existing risk management
frameworks and alignment with the Group’s operational resilience
arrangements; and
• maintain oversight of the implementation and embeddedness of Risk
Data Aggregation and Risk Reporting (RDARR) across the organisation,
strengthening the quality, timeliness and reliability of data to support
effective decision-making.
Brendan McDonagh
Committee Chair
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Report of the Board Risk Committee
Key areas of focus
Principal Risk considerations
Credit Risk
The Committee continued to regularly consider the overall asset quality and Credit Risk profile of the Group, with a particular
focus in 2025 on credit performance given the evolving geopolitical and macroeconomic environment. The Credit Risk profile
was reported to the Committee as remaining stable throughout 2025, and the Committee remained alert to any potential
emerging signs of deterioration through regular monitoring of the Credit Risk profile and overall business performance, as well
as considering changes to the Group’s expanded risk appetite in relation to corporate renewable energy and related
infrastructure. There was also continued focus on the Group’s credit control environment. In conjunction with the BAC, the
Committee reviewed, challenged, and approved the macroeconomic scenarios for use in the Group’s ECL models.
Market and
Equity Risk
The Committee received regular updates with respect to Market and Equity risk throughout 2025, including the impact of
financial market volatility on the Group’s overall risk profile, influenced during the year by geopolitical/tariff developments and
later periods of market volatility. The Committee also had an enhanced oversight of the integrated management of the Group’s
balance sheet from a risk perspective and considered financial risk deep-dives on interest rate risk in the banking book and
Net Interest Income sensitivity. It noted ECB rate cuts and related hedging actions to reduce sensitivity to falling rates and
monitored ongoing supervisory metrics.
Capital Adequacy
Risk
The Committee assessed reports from management to ensure that the Group had appropriate buffers in place above the
Group’s own minimum capital targets, as well as regulatory capital requirements. The Committee also reviewed capital plans/
planning, including consideration of the Group’s Internal Capital Adequacy Assessment Process report, with reference to
contingent capital and the related Group-wide stress test scenarios, including climate stress testing. In conjunction with the
BAC, the Committee recommended macroeconomic scenarios for use within the ICAAP to the Board for approval. The
Committee was satisfied that the capital adequacy of the Group has been well demonstrated in a range of scenarios. The
Committee also considered deep dives and regular reporting in relation to risk-adjusted return on capital.
Liquidity and
Funding Risk
The Committee received regular updates throughout 2025 with respect to the status of the Liquidity and Funding Risk profile.
The Committee assessed reports from management to ensure that the Group had appropriate buffers in place in excess of the
Group’s liquidity requirements. The Committee also reviewed liquidity and funding plans/planning, including consideration of
the Group Internal Adequacy Assessment Process report, which included climate stress testing. The Committee was satisfied
that the liquidity adequacy of the Group has been well demonstrated in a range of scenarios
Business Model
Risk
The Committee received regular reports regarding the status of Business Model Risk in the context of delivery of the Group
Strategy 2024-2026, performance against the Financial Plan and the Group’s medium-term targets. The Committee continued
to provide management with detailed feedback on the Group’s definition of Business Model Risk to ensure appropriate
reporting and meaningful information is provided to support decision-making. The Committee considered the increased risk
arising from the current geopolitical and macroeconomic environment, being cognisant of the potential risks arising from any
deterioration in that regard, and how this might impact Business Model Risk.
Information
Security (including
Cyber) Risk
In its first full year as a material risk, the Committee maintained close oversight of Information Security and Cyber Risk, in the
context of a heightened external threat environment and increased disruptive attack activity. The Committee monitored
management’s response to significant external developments and incidents, including ransomware-related learnings and the
strengthening of controls and monitoring. It reviewed performance against risk appetite measures (including outcomes and
remediation actions). The Committee also tracked delivery of the new InfoSec (including cyber) framework and related
assurance activity to support measurable risk reduction. The Committee also benefits from the advice and expertise provided
by the Technology and Data Advisory Committee.
Operational and
Resilience Risk
The Committee reviewed the ongoing and evolving operational risk profile throughout 2025. Given the level of change in the
Group, the Committee remained focused on Execution Risk and Change Risk and continued to monitor the challenges
associated with delivering the business-as-usual agenda alongside the delivery of key change initiatives. The Committee
continued to provide detailed oversight of the Group’s Operational Resilience Strategy, the Group Outsourcing Strategy and
key outsourcing and critical arrangements across the Group. The Committee provided oversight of third party risk
management matters, via regular updates from the first and second line teams and approval of critical outsourcing
arrangements. During the year, the Committee also regularly considered the Group’s Data Risk governance and
arrangements, receiving updates from the first line and second lines of defence and considering the implications of the ECB
Guide on effective risk data aggregation and risk reporting for the Group.
Climate and
Environment Risk
During the year, the Committee maintained a strong focus on Climate and Environmental risk, recognising its increasing
relevance across strategy, risk appetite and regulatory expectations. The Committee received regular updates on the Climate
Capital and Infrastructure portfolio, transition and physical risk considerations, and the integration of climate risk into credit
decision-making, stress testing and risk appetite metrics. The Committee also reviewed developments in external regulation
and supervisory expectations and challenged management on readiness for the forthcoming risk management guidelines and
ongoing embedding of climate and environmental risk within the Group’s enterprise risk framework. The Committee also
benefits from the advice and expertise provided by the Sustainable Business Advisory Committee.
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Report of the Board Risk Committee continued
Model and AI Risk
The Committee continued to receive regular reports on the Model and AI Risk profile and model capabilities across the Group,
as well as progress against key regulatory deliverables. In 2025, the Committee oversaw the elevation of AI Risk through its
integration into the new Model and AI Risk Framework, with a focus on satisfying itself that incorporation into that Framework
was the best course of action for the organisation. The Committee also maintained risk oversight of the delivery against the IRB
programme, receiving regular programme updates throughout the year. Regular Model Risk Reports for all model types were
also considered, with an assessment of model risk improvements and progress against deadlines undertaken. The status of
the quality and adequacy of models were assessed through independent validation, the outcome of which was also reported
to the Committee.
Conduct Risk and
Culture Risk
The management of Conduct Risk and ensuring fair outcomes for customers continued to be a core focus for the Group. The
Committee received regular reporting throughout the year regarding the status of the Conduct Risk profile, including updates
on open restitutions and customer complaints metrics. The Committee regularly receives updates on external fraud trends to
support its oversight of the Group’s fair treatment of its customers where they are the victims of fraud. The Committee also
received updates on the status of the Culture Risk profile during the year. Updates on Culture Risk continued, with particular
interest in cultural readiness for change and large-scale transformation. In 2025, the Committee received regular updates on
the Group’s progress in implementing the new Consumer Protection Code.
Regulatory
Compliance Risk
The Committee continued to maintain oversight of the Group’s adherence to and delivery of regulatory compliance
commitments. Throughout the year, the Committee received regular updates from the Chief Risk Officer and the Group Chief
Compliance Officer regarding the status of the regulatory compliance risk profile, including updates on prudential regulation,
conduct of business regulation, Financial Crime and Data Protection. The Committee also received updates regarding the
delivery of specific regulatory change programmes. Financial Crime risk was considered throughout the year, through ongoing
reporting as well as standalone updates provided by the Money Laundering Reporting Officer.
Other risk considerations
Risk Appetite,
Risk Profile and
Risk Strategy
The Committee reviewed and recommended the 2026 Group Risk Appetite Statement (RAS) to the Board for approval during
the year. Performance against the 2025 Group RAS was overseen through the ongoing monitoring of the risk profile against
agreed Group RAS metrics whilst ensuring alignment to the Group’s strategic objectives. The Committee also reviewed regular
reports from the Chief Risk Officer, which provided an overview of the status, profile and trajectory of the Group’s key material
risks and considered and recommended the assessment of the material risks facing the Group to the Board for approval.
Regulatory
Engagement
Throughout the year, the Committee considered regular updates regarding the status of Risk Mitigation Programme action
plans, as well as the upstream regulatory horizon. The Committee also considered and recommended, as appropriate,
management action plans put in place to address those findings identified as part of regulatory inspections. During 2025, the
Committee Chair engaged directly with the Group’s regulators, providing further detail on the Group’s approach to regulatory
areas of focus.
Geopolitical and
macroeconomic
risk
Throughout 2025, the Committee maintained heightened oversight of geopolitical risk, recognising its potential to affect
Ireland’s economy and AIB’s portfolios through tariffs, trade disruption and conflict escalation. Updates from the Geopolitical
Working Group informed scenario design and stress testing, including development of an Ireland-focused geopolitical risk
index and sector-level portfolio reviews. The Committee challenged management on appropriate risk posture and customer/
portfolio resilience. It also considered macroeconomic perspectives, including updates from the Chief Economist.
Emerging Risks
The Committee adopts a forward-looking perspective and anticipates changes in business and market conditions in its
deliberations ensuring that forward looking risk considerations are integrated into strategic decision making. In doing so, the
BRC monitors external developments and evolving risk trends, and provides challenge and guidance to management on the
adequacy of mitigating actions.
Subsidiary and
Branch Oversight
During the year, the Committee Chair met with a number of material subsidiaries' risk committees and board chairs to ensure
that appropriate connection with the Group is maintained on risk matters. Furthermore, the Committee Chair attended at
least one risk committee or board meeting for each material subsidiary and reports were received by the risk committee chairs
of both AIB Group (UK) p.l.c. and Goodbody Stockbrokers UC. In addition, the Branch Managers for each of the Group’s key
branches provided quarterly reports to the Committee in conjunction with the Risk team’s quarterly branch reporting.
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The focus of the Committee in 2026 will include advancing
Board and Executive succession planning to ensure continued
depth and resilience in Board and Executive Leadership Team
composition, managing planned retirements and overseeing
the renewal of existing Board member terms.
Elaine MacLean
Committee Chair
Nomination and Corporate Governance
Committee members
Elaine MacLean (Chair)
Basil Geoghegan (from 25 September 2025)
Helen Normoyle (until 1 May 2025)
Brendan McDonagh
Jim Pettigrew
Read more about our cross-Committee Membership on page 132
and Committee Membership changes on page 148.
Highlights during FY2025
Composition
The Committee recommended term renewals for a number of
Directors and noted planned retirements. We recommended
Committee leadership positions including a new Chair for both
Sustainable Business Advisory Committee and Technology and Data
Advisory Committee and also considered the independence of INED.
See page 147.
Governance matters
The Committee completed the annual review of the Governance &
Organisation Framework and Schedule of Matters Reserved to the
Board, recommended the annual Board Diversity Policy, approved
Suitability policies and materials (including the Board Skills Matrix)
and considered Annual Financial Report 2025 Governance
disclosures.
See page 147.
Board Performance Review
The Committee engaged with external evaluator Egon Zehnder for the
2025 Board performance review and considered emerging themes.
See page 147.
On behalf of the Nomination and Corporate Governance
Committee (NomCo or the Committee), I am pleased to
present this report in my capacity as Chair. Throughout the
year, the Committee’s composition evolved in accordance
with our planned succession arrangements.
I would like to acknowledge and thank Helen Normoyle for
her valuable service prior to her stepping down from the
Committee. I am also pleased to welcome Basil
Geoghegan, whose extensive experience enhances the
Committee’s overall expertise. I would like to take this
opportunity to thank my fellow Committee members for
their valued contribution throughout 2025.
Committee purpose and responsibilities
The Committee oversees Board composition, succession planning and
Director appointments, ensuring the Board and its Committees maintain
the right balance of skills, experience and diversity. It also monitors
governance standards and leads orderly transitions, supporting effective
leadership and accountability across the Group.
Please find our Terms of Reference on aib.ie/investorrelations.
Other key activities in 2025
In what was another very busy year for the Committee it:
• completed the annual independence assessment of Non-Executive
Directors, confirming continued adherence to expected standards;
• advanced succession planning for ELT and Control Function leaders,
emphasising diversity, gender balance and evolving competency needs;
• maintained oversight of induction plans and processes for appointment
of new Directors; and
• completed an external review of the Committee’s effectiveness,
concluding that the Committee continues to operate effectively.
Priorities for 2026
Our priorities for 2026 are as follows:
• advance planned INED appointments and Board succession;
• manage scheduled retirements to maintain skill coverage, diversity
and independence;
• monitor evolving regulatory governance expectations and embed
updates to the Suitability policy; and
• oversee Board and Committee performance review outcomes and
actions from the 2025 external review.
Elaine MacLean
Committee Chair
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Report of the Nomination and
Corporate Governance Committee
Key areas of focus
Board Succession
Planning, Renewals
and Board
Committee
Composition
The size, structure, composition and succession plans of the Board, Board Committees and ELT were standing items
throughout 2025.
The Committee used the services of Teneo in 2025, to support Non-Executive Director searches. The firm has no other
connection to the Group other than, from time to time, assisting with executive searches, providing leadership development
and assessment services and leadership advisory services. It has no other connection to individual Directors other than, from
time to time, assisting external entities, of which the individual directors may be a Director, in candidate searches or
considering individual Directors as potential candidates for external roles.
The Committee progressed Director renewals, Committee leadership designations, alongside INED search and induction
plans to sustain the right blend of skills, experience and diversity as longer serving Directors approach or pass nine years’
tenure. The Committee also confirmed the independence of INEDs and recommended the CBI Annual Compliance Statement
to the Board.
Executive
Succession
Planning &
Appointments
The Committee maintained oversight over ELT composition and succession, including CEO and Control Function pipelines,
and approved ELT structural updates. The Committee’s bi-annual succession reviews (June and December) maintained focus
on leadership depth, development planning, and external pipeline mapping where appropriate.
Diversity
Consistent with the Board Diversity Policy, the Committee advanced actions to sustain gender balance and broader diversity
across the Board, supporting planned appointments, renewals and monitoring progress against targets (including the target
that a female holds at least one of the senior Board positions). Our gender diversity statistics for the Board can be found on
pages 125, 150 and 151.
Board Performance
Review
In line with established governance codes and our commitment to continuous improvement, the Committee carried out the
full annual review cycle during the year. This included formally endorsing the 2024 Board Performance Review, initiating
engagement with Egon Zehnder to undertake the external Board Performance Review for 2025 and completing the NomCo
evaluation process. The resulting actions and recommendations identified across these reviews will be tracked and
progressed throughout 2026 to ensure strong follow through and ongoing governance enhancement. Further detail relating to
the Board Performance Review is set out on page 132.
Corporate
Governance
The Committee oversees and monitors corporate governance arrangements and makes recommendations to the Board to
ensure that the standards and arrangements across the Group are consistent with existing corporate governance standards
and emerging best practice. The Committee undertook its annual schedule of work in relation to the Group’s governance
arrangements, corporate governance compliance, and related policies, including:
• a review of the Board Diversity Policy and diversity targets;
• oversight of compliance with applicable corporate governance requirements and guidelines;
• oversight of upstream regulatory developments in corporate governance and best practice;
• engagement with the Board Performance Review process conducted by Egon Zehnder; and
• consideration of workforce engagement processes via the Designated INED, who is also Chair of the Committee.
Subsidiary Board
and Committee
Composition
The Committee considered a number of Executive and Non-Executive Director appointments to the Group’s material
subsidiary boards and the respective board committee membership, including for AIB Mortgage Bank Unlimited Company,
EBS d.a.c. and Goodbody Stockbrokers UC. Such appointments, where established, ensure appropriate information flow,
oversight, consistency and alignment between the Group and its subsidiaries.
The Committee also considered INED term anniversaries and made recommendations for reappointment to the subsidiary
boards where relevant, taking account of ongoing suitability considerations.
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Board Composition
At 31 December 2025, the Board consisted of the Chair, who was deemed
independent on appointment, ten INEDs and two Executive Directors,
being the Chief Executive Officer and the Chief Financial Officer.
Board and Board Committee changes
Changes that occurred to the Board or Board Committee membership in
2025 are set out in the table below.
Board
committee key
Committee
chair
Remuneration
Nomination &
Corporate
Governance
Board
Board Audit
Board Risk
Sustainable
Business
Advisory
Technology &
Data Advisory
2025 Changes
Roles
Joined/
Resigned
When
Orlaith Ryan1
Joined
1 January 2025
Helen Normoyle
Resigned
1 May 2025
Anik Chaumartin
Appointed
Chair
26 June 2025
Andrew McFarlane1
Resigned
1 July 2025
Anne Sheehan
Joined
1 September 2025
25 September 2025
Basil Geoghegan
Joined
25 September 2025
Fergal O’Dwyer
Joined
25 September 2025
Andy Maguire
Appointed
Chair
9 December 2025
Cathy Bryce1
Joined
12 December 2025
Ann O’Brien
Resigned
31 December 2025
Raj Singh
Resigned
31 December 2025
1. Member of ELT.
Board succession planning and appointments
The review of the appropriateness of the composition of the Board and
Board Committees is a continuous process and recommendations for
appointment are made based on merit and objective criteria, having
regard to the collective skills, experience, independence and knowledge
of the Board, along with its diversity requirements. The Board recognises
that the size of the Board may vary temporarily at times, particularly at
times of heightened succession. The optimal composition of the Board
will remain a key focus for the NomCo and the Board in 2026. The Board
Succession Plan is reviewed by the NomCo alongside the Board Skills
Matrix at each scheduled meeting to allow for proactive and continuous
succession planning and, in turn, the timely commencement of Director
search processes.
The Board Succession Plan details planned Board composition, as well
as Board Committee membership, the likely tenure of INEDs and
upcoming actions to be undertaken. The skills included in the Board Skills
Matrix set out on page 149 were identified, taking into account the Group’s
strategic priorities and relevant regulatory requirements. Each Director
was selected for appointment on the basis of their knowledge, skills and
experience, which enable them to effectively discharge their duties,
ensure the effective governance of the Group and contribute to its long-
term, sustainable success. The biographies on pages 122 to 125 set out
the key skills and experience that each Director brings to the Board.
In addressing appointments to the Board, a role profile for the proposed
new Directors is prepared on the basis of the criteria laid down by the
Committee, taking into account the existing skills and expertise of the
Board and the anticipated time commitment required. The services of
experienced third party professional search firms are retained for INED
appointments where required and deemed necessary by the Committee.
In all Director selection activity, the Group ensures that a formal and
rigorous process is followed.
Prior to the recommendation for appointment of any given candidate,
a comprehensive due diligence process is undertaken, which includes
the candidate’s self-certification of probity and financial soundness, as
well as external checks and enhanced due diligence. The due diligence
process enables the Committee to satisfy itself as to the candidate’s
independence, fitness and probity and their capacity to devote sufficient
time to the role. A final recommendation is made to the Board by
the Committee.
A Board-approved Policy is in place for the assessment of the suitability of
members of the Board, which outlines the Board appointment process and
is in compliance with applicable joint guidelines issued by the European
Securities and Markets Authority and the European Banking Authority.
Terms of appointment
INEDs are generally appointed for a three year term, with the possibility of
renewal for a further three years on the recommendation of the
Committee. Any additional term beyond six years is subject to annual
review and approval by the Board. In accordance with practice in recent
years and the provisions of the UK Code, all Directors submit themselves
for re-election at each Annual General Meeting. Details of the
appointment dates and length of tenure of each Director are available
from their appointment dates, included in their biographies on pages 122
to 125.
Professional development and continuous
education programme
The Board’s professional development and continuous education
programme continued throughout 2025 and was designed in conjunction
with the indicative work programme to ensure that training was delivered
at a time when it would be of most benefit and relevance to the Board.
The sessions were delivered by a mix of internal and external subject-
matter experts and the topics included: Individual Accountability & Senior
Executive Accountability Regime, Risk Models, Anti-Money Laundering
and Counter the Financing of Terrorism, Information Security, Risk
Appetite Statement, Artificial Intelligence, Sustainability, Cyber and
Market Abuse Regulation. Additional training and individual sessions with
subject-matter experts on areas of interest to the Directors are facilitated
upon request.
A structured induction programme is delivered to any incoming Director
and includes a series of meetings with senior management and relevant
briefings, together with any specific training identified during the course of
the appointment of the individual. Further insights from Anne Sheehan,
who was appointed as INED during 2025, on the effectiveness of the
induction, including reflections on early understanding of AIB’s risk profile,
strategic priorities and key activities, are set out in the Q&A on page 149.
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Board composition and succession
Directors’ skills and experience
The table provides an overview of the skills and experience held by the Group’s NEDs on the Board. This is reviewed annually by the NomCo to ensure
that the Board has the skills and experience required to effectively discharge its duties and to support succession-planning discussions.
Key:
Strong
Proficient
Entry
Skills and experience
Total number of
NEDs
Risk Management
Finance, Accounting & Audit
Strategy
Governance
Leadership
Customer & Conduct
Capital & Liquidity
Retail Banking
Corporate, Institutional and Business Banking
Skills and experience
Total number of
NEDs
Treasury Management
Non-Executive Director Experience
Culture Development
People Management and Development
Climate & Environmental (incl. Sustainability)
Digital
Technology
Stakeholder Management
Outsourcing & Change Management
Q&A
Welcoming Anne Sheehan,
Independent Non-Executive Director
Q:
Given your background, which technology themes (cloud
transformation, data governance, responsible AI) are most
material to AIB over the next three to five years?
A:
The most material themes are those that strengthen AIB’s
digital foundations. Cloud transformation will continue to
modernise our core platforms, while strong data governance
and insight generation will enable better decisions and more
personalised services. Building digital literacy across the
organisation will be essential to make full use of these tools.
Platform engineering will remain the backbone that allows us to
deliver technology safely and at scale, and the Next Generation
App will be a critical channel that brings these capabilities
together for customers.
Q:
How effectively did the induction help you develop an
understanding of AIB’s risk profile, key strategic priorities
and major activities?
A:
The induction process was highly effective in giving me an early
and well-rounded understanding of AIB’s risk profile, key
strategic priorities and major activities. The combination of
structured briefings, comprehensive onboarding materials and
targeted sessions with senior leaders provided clear context on
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9
2
4
5
2
7
4
8
3
8
3
9
2
10
1
9
2
11
3
8
7
3
1
2
6
3
6
3
2
2
7
2
6
4
1
10
1
6
4
1
5
5
1
the Group’s overall risk environment, how risks are governed
and managed, and the linkage to strategic decision-making.
In the discussion-based elements with senior leaders, I
experienced customer at the core in their strategic priorities,
and I found these sessions particularly valuable in
understanding how AIB assesses emerging risks, balances
regulatory expectations, and embeds risk culture in day-to-day
operations. The overview of strategic priorities, supported by
insights into major programmes and business activities,
enabled me to gain an early line of sight on the key drivers of
performance and long-term value creation.
Q:
What are your first impressions of Culture within AIB?
A:
From the outset, AIB’s culture felt genuinely people-centred.
Our purpose comes through clearly in how we talk about
customers and make decisions. The culture of open challenge,
the environment that encourages people to raise concerns,
especially the Integrated Culture Tracker, gives an honest view
of how we’re living our values. It’s a culture that feels
intentional, open and focused on doing the right thing.
Balance and independence
Responsibility has been delegated by the Board to the NomCo for ensuring
an appropriate balance of experience, skills and independence on the
Board. INEDs are appointed so as to provide strong and effective
leadership and appropriate challenge to management. The independence
of each Non-Executive Director is considered by the NomCo prior to
appointment and reviewed annually thereafter. It was determined that the
following INEDs in office as at 31 December 2025, namely, Anik
Chaumartin, Basil Geoghegan, Tanya Horgan, Elaine MacLean, Andy
Maguire, Brendan McDonagh, Fergal O’Dwyer, Sandy Kinney Pritchard,
Anne Sheehan and Jan Sijbrand, were independent in character and
judgement and free from any business or other relationship with the
Group that could affect their judgement. This conclusion was reached
after consideration of all relevant circumstances that are likely to impair, or
could appear to impair, independence.
The Board took account of the fact that Brendan McDonagh had served on
the Board for nine years in October 2025 and assessed whether this could
impair his independence. In confirming independence, the Board agreed
that he continues to demonstrate the ability to offer constructive
challenge and perform his role on the Group Board and its Committees
effectively and with independence of mind, which is evident at each
meeting, where he provides well considered views, together with
articulate and constructive challenge.
The Chair, Jim Pettigrew, was determined as independent on
appointment.
Access to advice
There is a procedure in place to enable the Directors to take independent
professional advice, at the Group’s expense, on matters concerning their
role as Directors. The Group holds insurance to protect Directors and
Officers against liability arising from legal actions brought against them in
the course of their duties.
Time commitment
INEDs are required to devote such time as is necessary for the effective
discharge of their duties. The expected time commitment of the Chair and
INEDs is agreed and set out in writing in a letter of appointment. This is
issued following confirmation of an individual’s capacity to take on the role
and involves an assessment of existing external commitments and
demands on time. Any changes, such as additional external appointments
that could impair the ability to meet the above requirements, can only be
accepted following approval of the Chair and Group Company Secretary
and, in certain cases, the approval of the Board as a whole and/or the CBI,
must also be sought.
There is a procedure in place to assess and seek Board approval for any
additional external roles proposed by Directors, to ensure that there will
be no impact on their ongoing suitability or ability to continue to dedicate
sufficient time to their Group roles.
The estimated minimum time commitment set out in the letters of
appointment is 30 to 60 days per annum for INEDs and 100 days per annum
for the Chair, including attendance at Committee meetings.
Inclusion & Diversity
Employee inclusion and diversity in the Group is addressed through policy,
practices and values, which recognise that a productive workforce
comprises diverse backgrounds, cultures, experiences, characteristics and
work styles. The Board recognises that inclusion and diversity are integral to
the successful delivery of the Group’s strategic priorities: Customer First,
Greening Our Business and Operational Efficiency and Resilience. The
Group has implemented a Diversity and Inclusion Code and opposes all
forms of discrimination. The efficacy of related policies and practices and
the embedding of the Group’s values is overseen by the Board, which has
endorsed the Group’s inclusion and diversity strategy, supported by short-
term activities and targets, as one of the key focus areas of the Culture
Programme. The Board also considers inclusion and diversity within the
context of the Group’s People strategy and Future of Work strategy.
Further details on how the Board is encouraging inclusion and
diversity across the Group are set out on pages 78 and 82 to 87.
The Board is supported in its oversight of inclusion and diversity by its
Committees, specifically by NomCo, which considers diversity as a key
element within the context of succession planning for the ELT and its
succession pipeline within the Group. In addition, the SBAC considers
inclusion and diversity in the Group as it relates to that Committee’s role
in overseeing the Group’s efforts to promote economic and social
inclusion as part of the sustainability agenda.
With regard to diversity among Directors, there is a Board Diversity Policy
in place that sets out our commitment to and also details our approach to
achieving, our diversity ambitions. This policy is available on the Group’s
website at aib.ie/investorrelations.
The Committee is responsible for developing measurable objectives to effect
the implementation of this Policy and for monitoring progress towards
achievement of the objectives. The Policy and performance relative to the
target is reviewed annually by the Committee, in conjunction with Board
succession and skills planning and any proposed changes to the Policy are
presented to the Board for approval. The Board’s target, as set out in its
Diversity Policy, is that it shall maintain at least 40% female representation. In
addition, at least one Board member shall be from a minority ethnic group and
at least one senior Board position shall be held by a female.
The Board recognises that diversity in its widest sense is important,
is inclusive of all individuals and is focused on ensuring a truly diverse
Board. The Board embraces the benefits of diversity among its members
and, through its succession planning, is committed to achieving the most
appropriate blend and balance of diversity possible over time.
In terms of implementation of the Board Diversity Policy, NomCo reviews and
assesses the Group Board composition and has responsibility for leading the
process of identifying and nominating, for approval by the Board, candidates
for appointment as Directors. In reviewing the Board composition, balance
and appointments, the Committee considers candidates on merit against
objective criteria and with due regard for the benefits of diversity, in order to
maintain an appropriate range and balance of skills, experience and
background on the Board and in consideration of the Group’s future strategic
plans. Where external search firms are engaged to assist in a candidate
search, they are requested to aim for a fair representation of both genders to
be included in the initial list of potential candidates, so NomCo has a
balanced list from which to select candidates for interview.
Throughout 2025, the Board maintained a gender balance of 40%. However,
at 31 December 2025, following the departures of Ann O’Brien and Raj
Singh with effect from that date, female representation on the Board
decreased to 38%, falling below the stated target. The female INED
representation was 45%. At 31 December in addition, the departure of Raj
Singh resulted in the Board no longer meeting the target of having at least
one member from a minority ethnic background. The Board remains
committed to these diversity objectives and the selection process for future
appointments will take both factors into consideration with the aim of
restoring compliance with the policy. Additionally, in compliance with the
UK Listing Rule Requirements, at least one senior Board position, that of the
Senior Independent Director, was held by a female. The gender balance of
those in the senior management and their direct reports is 41%1.
1. ELT and their direct reports.
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Board composition and succession continued
Gender and Ethnic Diversity
The tables below outline the gender and ethnic diversity of the Board and Executive Management as at 31 December 2025 as required by the UK Listing
Rules, reflecting data gathered through self-identification based on the criteria set out in the tables below.
Gender (Limited assurance)
Number of
Board members
Percentage of
the Board1
Number of senior
positions on the Board2
Number in
Executive
management3
Percentage of
Executive
management3
Men
8
62 %
3
8
62 %
Women
5
38 %
1
5
38 %
1. The Board comprises the INEDs and Executive Directors. Excluding the Executive Directors women represent 45% of the Board.
2. Senior positions on the Board comprises the Group Chair, Chief Executive Officer, Chief Financial Officer and Senior Independent Non-Executive Director.
3. Executive management comprises the Chief Executive Officer, his direct reports and the Group Company Secretary.
Ethnic Diversity
Number of
Board members
Percentage of
the Board1
Number of senior
positions on the Board2
Number in
Executive
management3
Percentage of
Executive
management3
White Irish or other white
(including minority-white groups)
13
100 %
4
13
100 %
Mixed/multiple ethnic groups
—
—
—
—
—
Asian/Asian Irish
—
—
—
—
—
Black/African/Caribbean/Black Irish
—
—
—
—
—
Other ethnic group, including Arab
—
—
—
—
—
1. The Board comprises of INEDs and Executive Directors.
2. Senior positions on the Board comprises the Group Chair, Chief Executive Officer, Chief Financial Officer and Senior Independent Non-Executive Director.
3. Executive management comprises the Chief Executive Officer, his direct reports and the Group Company Secretary.
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2025 marked a pivotal year for AIB with continued strong
performance and the return to full private ownership. This led to the
easing of remuneration constraints in place since 2009 enabling
important steps to align Executive Director pay with market levels,
so as to ensure that we continue to attract and retain the
leadership needed and address a material risk for the Group in
delivering long-term, sustainable value for our shareholders.
Elaine MacLean
Committee Chair
Remuneration Committee members
Elaine MacLean (Chair)
Brendan McDonagh
Ann O’Brien (until 31 December 2025)
Fergal O’Dwyer (from 25 September 2025)
Jim Pettigrew
Read more about our cross-Committee Membership on page 132
and Committee Membership changes on page 148.
Highlights during FY2025
Return to private ownership and
remuneration restrictions
In June, the Department of Finance announced the State’s exit from
the AIB shareholder register, with the Group returning to full private
ownership. This represented a significant milestone for the Group
and reflects the transformation achieved in recent years. That
transformation has focused on repaying the State investment and
supporting our customers, communities and the wider economy. In
July 2025, the Minister for Finance announced the removal of the
€500,000 cap on base salaries.
While the continuing restrictions on variable pay present challenges
in positioning our remuneration arrangements competitively and in
such a way that ensures reward is clearly linked to performance, the
removal of the cap on base pay is welcomed by the Committee. It
has enabled the Committee to move closer to more market-aligned
levels of remuneration for Executive Directors.
See page 155.
Executive Director remuneration
The Committee has considered carefully how it might bring the
Executive Directors’ remuneration to a more market-aligned level,
noting the remaining restrictions on variable pay. The Chair of the
Board and I have engaged extensively with our largest shareholders
and their feedback has helped the Committee to shape our proposals.
The Committee agreed that there should be an increase to base
salaries alongside the introduction of a Fixed Share Allowance (FSA).
The FSA will be structured as a percentage of base salary, payable in
shares which vest immediately and are subject to a holding period.
FSAs have been a standard element of remuneration at banks which
are subject to CRD V limits on variable pay.
See page 153.
On behalf of the Remuneration Committee (RemCo or the
Committee) I am pleased to present this report in my
capacity as Chair. This report sets out how the
Committee operated the Directors’ Remuneration Policy
in 2025 and explains the changes proposed for
shareholder approval at the 2026 AGM. I would like to
acknowledge and thank Ann O’Brien for her valuable
service. I am also pleased to welcome Fergal O’Dwyer,
whose extensive experience in the area of executive
reward enhances the Committee’s overall expertise. I
would like to take this opportunity to thank my fellow
Committee members for their valued contribution
throughout 2025.
Committee purpose and responsibilities
The Committee oversees the Group’s remuneration framework, ensuring
it supports AIB’s long-term strategy, values and culture, promotes
effective risk management and aligns reward outcomes with business and
individual performance. The Committee operates within applicable legal
and regulatory requirements and seeks to reward colleagues fairly and
responsibly.
Please find our Terms of Reference on aib.ie/investorrelations.
Other key activities in 2025
In what was another very busy year for the Committee it:
• conducted its programme of annual reviews including
a review of the Group Remuneration Policy, the process for identifying
Material Risk Takers and the limited variable commission schemes in
operation across the Group; and
• approved the quantitative and qualitative reports required under Pillar 3
for the Group.
Priorities for 2026
Our priorities for 2026 are as follows:
• introduce the FSA to mitigate the impact of variable pay limits and
support the attraction and retention of senior leadership, while
recognising that these measures will not fully close the gap to market
levels;
• continue to monitor market developments, regulatory expectations and
shareholder feedback, and keep the operation of the Directors’
Remuneration Policy under regular review; and
• oversee the Group variable remuneration scheme in 2026, with the
outcome to be disclosed in next year’s annual report.
Elaine MacLean
Committee Chair
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Report of the Remuneration Committee
Key areas of focus
The table below provides a non-exhaustive list of the Committee’s areas of focus during 2025:
Changes to
Government
restrictions on
remuneration
While the continuing restrictions on variable pay present challenges in positioning our remuneration arrangements
competitively and in such a way that ensures reward is clearly linked to performance, the removal of the cap on base pay is
welcomed by the Committee. It has enabled the Committee to move closer to more market-aligned levels of remuneration for
Executive Directors.
Executive Director
remuneration
The Chair of the Board and the Committee Chair have engaged extensively with our largest shareholders and their feedback
has helped the Committee to shape our final proposals. The Committee is grateful for the engagement from many of these
shareholders, whether that be during consultation meetings or in their written feedback. The feedback was clear. There is
compelling support for our Executive Directors and for our proposals as set out below.
Noting the time the Government restrictions on remuneration have been in place, the strong performance of both the business
and our Executive Directors and the associated retention risks, our shareholders were clear that they supported the
Committee in bringing remuneration closer to market norms without delay.
Introduction of a Fixed Share Allowance
The FSA will be structured as a percentage of base salary, payable in shares which vest immediately and are subject to a
holding period. FSAs have been a standard element of remuneration at banks which are subject to CRD V limits on variable
pay.
The Committee’s preference would be to bring the Executive Directors’ remuneration to market levels through the introduction
of performance-based variable remuneration schemes. However, as noted above, AIB is subject to restrictions which limit
variable remuneration to €20,000 per annum. The award of a FSA does, however, align the remuneration of Executive Directors
to the interests of shareholders and the longer-term performance of the business through share ownership.
Therefore, shareholders will be asked to approve the updated Directors’ Remuneration Policy, which includes the introduction
of a FSA and shareholding requirement, at the 2026 AGM. Details of the Policy and changes can be found on page 157.
Changes to base salaries and other elements of Executive Director remuneration
Since 2023, in anticipation of the removal of base salary restrictions, the Committee formulated plans for the development of
Executive Director remuneration in the period immediately following. This recognised the material talent retention risk faced by
the Board and the Committee which the salary restrictions presented. Following the eventual removal of the base salary
restrictions in July 2025, the Committee proceeded to implement its plans to increase the remuneration of its Executive
Directors closer to market levels on a phased basis, recognising that normal practice and the expectation among shareholders
and the proxy adviser firms that large salary increases would be phased.
The Committee therefore increased the CEO’s salary to €795,000 and the CFO’s salary to €700,000 effective from 1 August
2025 as a first step to bring base salaries to market levels. The Committee has been constrained by the remuneration
restrictions since their introduction in 2009.
When consulting our largest shareholders about the proposals to introduce a FSA, it became clear that there was widespread
support for Executive remuneration to be much more closely aligned to market norms. Having regard to the Committee’s
responsibility for abating the ongoing retention risk given the gap to market, the strong performance of the business and of the
Executive Directors, the Committee increased the CEO’s salary to €1,350,000 and that of the CFO to €810,000 with effect
from 1 January 2026. Base salaries will, in future, be reviewed on an annual basis.
At the same time as implementing the salary increases described from 2026, the Committee reduced the pension contribution
for the Executive Directors from 20% of salary (applicable during 2025) to the same contribution level as the wider workforce,
removed the non-pensionable allowance of €30,000 per annum, increased the notice period from 6 months to 9 months and,
subject to the commencement of the Fixed Share Allowance, introduced a shareholding requirement of 200% of base salary
for the Executive Directors.
The Committee believes that the salaries now in place, combined with the FSA, will appropriately incentivise and retain our
Executive Directors recognising however that the Committee’s preference, as soon as it can, will be to introduce market
aligned, performance based, variable remuneration, which it is constrained from doing currently.
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Key areas of focus continued
Executive Director
remuneration
continued
Market data
The Committee considered market data for (i) comparably sized FTSE listed businesses; (ii) comparable European banking
peers; and (iii) other listed businesses based in Ireland. A summary of the reference points is presented below.
In arriving at base salary and FSA award levels, the Committee has considered the relative values of the certainty of fixed
remuneration compared to higher levels of variable pay.
The increases to base salary result in salaries being within, but not above, the market range. However, total target pay is
below market levels and total maximum pay is significantly below, providing an appropriate balance between the guaranteed
nature of fixed pay, compared to the potential opportunity but uncertainty of variable pay.
1. Given the small number of Irish listed companies, a peer group of comparably sized Irish companies cannot be presented, as such the most comparably sized
companies are presented on an individual basis.
2. The European Banking peer group consists of the following constituents: ABN AMRO; Banco BPM; Banco Sabadell; Bankinter; BPER Banca; CaixaBank; Danske
Bank; FinecoBank; KBC; and Mediobanca.
3. The remuneration reporting requirements for EU countries require disclosure of CEO and other director pay only. The CFO role is not always a director role in many
European companies and therefore pay disclosure for the CFO is limited.
The Committee is confident that these changes result in a remuneration package which is fair and appropriate, aligns
Executives more closely with the interests of shareholders and addresses the concerns with the previous remuneration
arrangements. The Committee also considers that the revised structure strengthens the link between remuneration and long-
term value creation, while recognising the continued constraints on variable remuneration.
Wider workforce
remuneration
The Committee engaged with our colleagues on remuneration matters through senior leader engagement with their teams; union
representatives and our senior management facilitates feedback both to and from the RemCo. Eligible employees receive
remuneration in the form of base salary, benefits, pension contributions and variable remuneration.
The Group launched Save As You Earn (SAYE) schemes in Ireland and the UK. AIB operates a variable remuneration scheme
which applies to all employees, subject to set eligibility criteria. The formulaic outcome of the variable remuneration
scorecard was an award of 5% for those eligible. Further details regarding the performance achieved during 2025 can be
found on page 161.
The Committee carefully considered the formulaic outcome against the overall financial and non-financial performance of
the Group during 2025 which included input from the BRC and the experience of stakeholders and concluded that the
outcomes were appropriate. Therefore, no discretion was applied to the formulaic outcomes.
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Report of the Remuneration Committee continued
Remuneration Policy and governance
The Directors’ Remuneration Policy (the Remuneration Policy or the
Policy) applies to the Group’s Directors. Under Section 1110M of the
Irish Companies Act, AIB is required to obtain shareholder approval for the
Remuneration Policy by the fourth anniversary of the previous approval,
or sooner if changes are required. UK regulations, which AIB follows as a
matter of best practice to the extent practicable, require a new Policy to be
brought to shareholders every three years or sooner if changes are required.
The Policy will be subject to a shareholder advisory vote at the 2026 AGM
and is expected to apply from the date of approval for a three-year period.
The wider Group Remuneration Policy can be found on our website:
aib.ie/investorrelations
Purpose and aims of the Remuneration Policy
The Policy sets the framework for all remuneration related policies,
procedures and practices for the Directors of the Group. The principal
aim of the Remuneration Policy is to support AIB’s purpose, culture and
values. The Group’s remuneration philosophy aims to ensure that
remuneration, within the confines of applicable regulation is aligned
with performance and that Executive Directors are rewarded fairly and
appropriately for their contribution to the Group’s success and growth.
The Group is committed to a simple, transparent and affordable reward
structure, which is fair, performance-based, and risk-aligned. AIB is
subject to the Governments’ restriction of a limit on variable remuneration
of €20,000 per employee per annum as well as the Excess Bank
Remuneration Charge.
The Executive Directors Remuneration Policy is designed to:
foster a truly customer-focused culture;
create long-term sustainable value for our customers
and shareholders;
attract, develop and retain the best people; and
safeguard the Bank’s capital, liquidity and risk
positions.
The Committee seeks to provide market competitive levels of
remuneration recognising the restrictions on variable remuneration.
The Policy is governed by the Committee on behalf of the Board. The
Committee is responsible for determining the Policy and for overseeing its
implementation.
The Committee further ensures that the Policy and practices are reviewed
at least annually alongside the wider Group Remuneration Policy, taking
into account the alignment of remuneration to the Group’s culture, and
market and regulatory requirements and developments. The annual
review is informed by input from Group Risk, Compliance and GIA to
ensure that remuneration policies and practices are operating as
intended, are consistently applied across the Group and are compliant
with regulatory requirements.
The Group reports to and complies with the applicable requirements
of the UK Code. The UK Code is used to inform decision-making and
disclosures in respect of remuneration. The Group also complies with
the Companies Act. Due to the constraints on variable remuneration,
certain requirements of the UK Code and disclosure requirements are not
currently applicable to the Group. The Group will continue to review these
requirements alongside any future changes to the restrictions on variable
remuneration to ensure ongoing compliance.
Summary of proposed changes
The only substantive change proposed as part of this Policy is the ability
to award a FSA and the introduction of a shareholding requirement for
Executive Directors.
The FSA forms part of fixed remuneration and awards AIB shares to
Executive Directors which will be subject to a five-year holding period.
The FSA has the following objectives:
• to bring the Executive Directors’ remuneration closer to market levels; and
• to provide a mechanism for Executive Directors to build a material
shareholding in the Group over time, aligning to shareholder interests
and the long-term sustainable performance of the Group.
The value of a FSA will be approved by the Remuneration Committee up to
a maximum of 100% of base salary. To ensure ongoing shareholder
alignment, Executive Directors in receipt of the FSA will also be subject
to a shareholding requirement both during and post-employment.
Remaining remuneration constraints
AIB remains subject to an effective limit of €20,000 on individual variable
remuneration awards. In the event variable remuneration is paid above
this threshold by some banks in Ireland the variable remuneration is
subject to the Excess Bank Remuneration Charge of 89%.
Should this remaining restriction be eased, the Committee would
consider whether any changes are needed to the Remuneration Policy,
including seeking necessary shareholder approvals for any such changes.
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Corporate Governance
Remuneration Statement
Consideration of employment conditions
elsewhere in the Group
The Policy and AIB’s approach to the wider employee population is based
on the principle that remuneration should be sufficient to attract and
retain the best talent and therefore be competitive within our industry,
in order to deliver AIB’s strategy. Remuneration structure and quantum
are driven by seniority and accountability (mindful of the restrictions
on variable remuneration), as well as market practice although the
remuneration structures are broadly aligned throughout the Group.
The below provides examples of areas of alignment between the
remuneration of Executive Directors and the wider workforce:
(a) The Remuneration Policy and the wider Group Remuneration Policy
are based on the same principles.
(b) AIB’s current remuneration structure for all employees predominantly
consists of fixed pay elements, encompassing base salary,
allowances, benefits (including healthcare) and employer pension
contributions. All employees, including Executive Directors, are
eligible for inclusion in a variable remuneration scheme based on
company performance operating within the restrictions on variable
remuneration of €20,000 per employee per year. Eligible employees
in the Republic of Ireland (ROI) can participate in an Approved Profit
Sharing Scheme (APSS) and employees in the UK can participate in a
Share Incentive Plan (SIP).
(c) While certain benefits are provided based on seniority, there are other
aspects of remuneration that do not apply to more senior employees,
e.g. overtime.
Consideration of shareholder views
The Committee is committed to a transparent dialogue with shareholders
on key remuneration matters and details of engagement in respect of this
Policy is set out in the Annual Report on Remuneration. The Remuneration
Policy and Report provide shareholders with a detailed understanding of
the decisions that have been made during the year and the Committee
Chair is always available to shareholders to discuss the Policy and general
approach to remuneration.
As part of the development of the Policy, the Committee Chair met with
representatives of a number of our largest institutional investors.
The Committee also keeps up to date with proxy adviser and shareholder
guidelines and expectations which are considered when making decisions
in respect of the remuneration of the Executive Directors.
Compliance with relevant regulatory
requirements
Remuneration policies, procedures and practices reflect the provisions,
where applicable, of national and EU legislation, continuing Irish
Government remuneration restrictions on variable remuneration, the
CRD, the Investment Firms Directive, corporate governance requirements
issued by the Central Bank of Ireland, and relevant guidelines issued by
the EBA and other regulatory authorities. The provisions of the EBA
Guidelines on sound remuneration will continue to be applied to AIB’s
new Variable Remuneration Scheme. In particular, the Remuneration
Policy incorporates the provisions of the EBA Guidelines in relation to the
ongoing design, implementation and governance of remuneration.
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Corporate Governance Remuneration Statement continued
Key components of the Directors’ Remuneration Policy
The following table sets out the key components of the Directors’ remuneration.
Base Salary
• To attract and retain
the right calibre of
individuals to support
the Group’s future
success and growth.
• Set taking into account appropriate
market ranges which reflect the size,
skills and level of responsibilities
attached to the role as well as the
restrictions on variable remuneration
that can be awarded.
• Typically reviewed annually as part of
the annual pay review process.
• Reviewed by the Committee on behalf of the Board.
• Increases in base salary may be awarded following the
outcome of the annual pay review, alternatively, to
reflect a significant increase in the scope of
responsibility of an Executive Director.
Fixed Share
Allowance
• To contribute towards
a market-aligned level
of overall remuneration
and provide an
additional element of
fixed remuneration
where there are
restrictions on variable
remuneration to align
Executive Directors to
the long-term
sustainable
performance of the
Company and the
interests of
shareholders.
• An allowance of shares, paid on a
periodic basis, normally quarterly.
Shares will vest immediately.
• Vested shares will be subject to a
holding period of five years and
normally be released at the end of this
period, subject to sales of shares,
permitted to meet taxes on vesting.
• The maximum annual value that can be awarded under
the Fixed Share Allowance is 100% of salary per
annum.
Variable
Remuneration
Scheme
• To incentivise
Executive Directors to
deliver strong financial
and strategic
performance aligned
with the performance,
risk profile and culture
of the Group.
• Variable remuneration
arrangements are
designed in a way that
promotes the interests
of our stakeholders
and to comply with
applicable regulatory
requirements.
• Variable remuneration schemes are
based on Company performance.
• Awards under the scheme are granted
in cash, however, similar to other
eligible employees, Executive Directors
will have the opportunity to acquire
shares with their annual variable
remuneration cash award.
• Performance will typically be assessed based on a one
year performance period, considering a combination of
financial and non-financial performance aligned to
AIB’s strategy.
• The maximum award is subject to the limit set out in the
Excess Bank Remuneration Charge, currently €20,000
per annum on any award or combination of awards per
Executive Director.
• The Remuneration Committee has the discretion to
adjust the formulaic outcome of the award, including
the ability to apply risk adjustments.
Pension
• Contributes with other
elements of pay to a
market-aligned
remuneration package
and enables Executive
Directors to plan for an
appropriate standard
of living in retirement.
• Executive Directors are entitled to
participate in one of the Group’s
defined contribution schemes.
• In common, with all similar employees,
Executive Directors whose
accumulated pension benefits have
exceeded or are likely to exceed the
Standard Fund Threshold (SFT) have
the option of a non-pensionable
allowance in lieu of employer pension
contribution.
• Executive Directors are entitled to an employer pension
contribution of 10% of base salary plus an additional
matching contribution of up to 8%, depending on the
age of the Executive Director or alternatively, a 15% of
salary non-pensionable allowance in lieu of pension
contribution. The non-pensionable allowance in lieu of
employer pension contribution will be reduced, where
necessary, by an auto-enrolment offset.
Pay Element
Objective
Description
Performance Assessment and Maximum Potential Value
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Other Benefits
• To provide affordable
benefits in accordance
with general market
practice.
• Benefits currently include healthcare,
income protection, death-in-service
cover and transaction-fee free banking
services.
• A functional car policy is in place. The
Group does not provide company cars
outside of the policy. Executive
Directors may occasionally avail of a
pool car and driver.
• SAYE Scheme is in operation.
• The Committee may provide additional
benefits.
Not applicable.
Shareholding
requirements
• To provide alignment
between Executive
Directors, the long-
term sustainable
performance of the
Company and the
interests of
shareholders.
• Where an Executive Director is in
receipt of a FSA, they are required to
build a shareholding by retaining vested
shares under the FSA or other forms of
shares, until the shareholding
requirement is achieved.
• The shareholding requirement is 200%
of base salary.
• When an Executive Director steps down
from the Board, they must retain the
lower of the shares held at that time
and the shareholding requirement for a
period of two years. The Committee
retains the discretion to amend this
requirement in exceptional
circumstances.
• Shares acquired by the Executive
Director using their own funds are not
required to be retained post-stepping
down from the Board.
Not applicable.
Non-Executive
Directors
• To remunerate Non-
Executive Directors
appropriately
recognising skills,
experience,
responsibilities and
time commitment.
• Non-Executive Directors are paid a
base fee and additional fees/
allowances for acting as SID and as
Chair(s) of Board Committees (or to
reflect other additional responsibilities
and/or additional/unforeseen time
commitments).
• The Chair of the Board receives an all-
inclusive fee.
• Neither the Chair of the Board nor the
Non-Executive Directors participate in
any incentive plans.
• The fee for the Chair of the Board is set
by the Remuneration Committee; the
Non-Executive Directors’ fees are set
by the Board.
• The Group will reimburse any
reasonable expenses incurred by
Directors in the discharge of their
duties (and related tax if applicable).
Not applicable.
Pay Element
Objective
Description
Performance Assessment and Maximum Potential Value
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Corporate Governance Remuneration Statement continued
Recruitment and exit under the Remuneration Policy
The following table provides additional detail in respect of the application of the Remuneration Policy to Executive Directors upon their appointment and
at the end of employment. In relation to AIB employees appointed as Executive Directors, such elements will only apply from the date of appointment
(and not retrospectively) and any existing awards will be honoured and form part of ongoing remuneration arrangements.
Remuneration
Statement
Recruitment Policy
(subject to compliance with remuneration restrictions)
Exit Policy
Salary, fees,
benefits,
allowances
and pension
• Base salary would be set at an appropriate level
considering the factors mentioned in the Policy table
above.
• Benefits and pension will also be set in line with the
Policy.
• If notice is served by either party, the Executive Director can continue
to receive base salary, allowances, benefits and pension in line with
the Policy for the duration of their notice period.
• The Executive Director may be asked to perform their normal duties
during their notice period, or they may be put on garden leave.
• The Group may, at its sole discretion, terminate the contract
immediately, at any time after notice is served, by making a
payment in lieu of notice equivalent to salary, benefits and
pension, with any such payments being paid in monthly
instalments over the remaining notice period.
• Benefits may also be provided in connection with termination of
employment and may include, but are not limited to, statutory
payments, outplacement, legal fees and payments in respect of
accrued holiday.
Relocation
• If an Executive Director needs to re-locate in order to
take up the role, the Group may pay to cover the costs of
relocation including (but not limited to), actual
relocation costs, temporary accommodation and travel
expenses.
Not applicable.
Buyout awards
• For external candidates, the Committee may (if it is
considered appropriate) provide a buyout award
equivalent to the value of any outstanding incentive
awards that will be forfeited on cessation of previous
employment.
• To the extent possible, the buyout award will be made on
a broadly like-for-like basis. The award will take into
account the performance conditions attached to the
vesting of the forfeited incentives, the timing of vesting,
the likelihood of vesting and the nature of the awards
(cash or equity).
Not applicable.
Variable
Remuneration
Scheme
• Joiners may receive a pro-rated award based on their
hire date in the performance year.
• Leavers are not eligible to receive an award.
• Where an exit date is confirmed, with the sole exception of a
retirement, the Executive is treated as a leaver, and not eligible to
receive an award.
In addition to the above, when appointing an Executive Director, all other aspects of the Remuneration Policy such as malus and clawback and
shareholding requirements will apply.
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Notes to the Remuneration Policy table
Minor amendments
The Committee may amend the arrangements for the Executive Directors as
described in the Policy, for regulatory, exchange control, tax or administrative
purposes, or to take account of a change in legislation or regulation.
Legacy arrangements
For the avoidance of doubt, the Committee may approve payments to
satisfy commitments agreed prior to the approval of this Remuneration
Policy, and any commitment made to a person before that person
became an Executive Director.
Discretion
The Committee operates the variable remuneration scheme according
to the rules of the scheme. The Committee retains discretion as to the
operation and administration of the scheme, within the limits of its rules,
including but not limited to:
• participants;
• timings of grant and/or payment;
• award size and/or payment;
• settlement of the award;
• choice and adjustment of performance measures and targets;
• adjustment to outcomes if they are considered to be inappropriate,
taking into account any relevant factors;
• measurement of performance in certain circumstances such as change
of control or other corporate events; and
• determination of a good leaver.
Service agreements and letters of appointment
All Executive Directors have a service agreement whereas all Non-
Executive Directors have a letter of appointment.
In respect of Executive Directors, no service agreement exists between
the Company and any Director which provides for a notice period from the
Company of greater than one year.
Non-Executive Directors are appointed for an initial term of three years.
Terms of office for Non-Executive Directors will not be extended beyond
nine years in total unless the Board, on the recommendation of the
NomCo, concludes that such extension is necessary, appropriate and
in compliance with applicable regulatory requirements and approvals.
All Directors, should they choose to stand, are subject to annual re-election
by shareholders.
External appointments
Subject to the advance approval of the Board, Executive Directors may
accept one external appointment as a Non-Executive Director and retain
the fees.
Malus and clawback
The circumstances in which the Committee may consider it appropriate
to apply clawback and/or malus to the variable remuneration scheme
include, but are not limited to those summarised below:
• behaviour by a participant which fails to reflect AIB’s governance and
business values;
• the extent to which any condition satisfied was based on an error, or on
inaccurate or misleading information or assumptions which resulted
either directly or indirectly in an award being granted or vesting to a
greater extent than would have been the case had that error not been
made;
• material adverse change in the financial performance of AIB or any
division in which the participant works and/or worked;
• a material financial misstatement of AIB’s audited financial accounts
(other than as a result of a change in accounting practice);
• any action which results in or is reasonably likely to result in
reputational damage to AIB;
• a material failure in risk management;
• corporate failure;
• negligence or gross misconduct of a participant; and/or
• fraud effected by or with the knowledge of a participant.
Variable remuneration awards are subject to malus prior to vesting and to
clawback following vesting or payment for an appropriate period in line
with regulatory requirements. Other elements of remuneration are not
subject to malus and clawback provisions.
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Corporate Governance Remuneration Statement continued
Executive Directors’ remuneration
The tables below outline the totals of the remuneration of the Group’s Executive Directors during 2025 and 2024.
Fixed remuneration (audited)
Base salaries of the Chief Executive Officer and the Chief Financial Officer were increased to €795,000 and €700,000 respectively during 2025, following
the removal of the Irish Government’s salary cap restriction. The Chief Executive Officer and Chief Financial Officer received a non-pensionable cash
allowance of €30,000. The Chief Executive Officer received an employer pension contribution of 20% (€125,000) which was taken as an allowance in
lieu of pension contribution. The Chief Financial Officer also received an employer pension contribution of 20% (€115,000).
The following table details the total remuneration of the Directors in office during 2025 and 2024:
2025
2024
Salary
Pension
contribution1
Annual
taxable
benefits2
Total
fixed
Variable
remuneration
Total
Salary
Pension
contribution1
Annual
taxable
benefits2
Total
fixed
Variable
remuneration
Total
(audited)
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
Executive
Directors
Colin Hunt
623
125
32
780
13
793
500
100
31
631
13
644
Donal Galvin
575
115
32
722
13
735
485
97
31
613
13
626
1,198
240
64
1,502
26
1,528
985
197
62
1,244
26
1,270
1. Pension contribution represents agreed payments to a defined contribution scheme, to provide post-retirement pension benefits for Executive Directors from the normal retirement date, and an
allowance in lieu where Executive Directors’ accumulated pension benefits have exceeded or are likely to exceed the Standard Fund Threshold (SFT).
2. Annual taxable benefits represents a non-pensionable cash allowance in lieu of a company car, in addition to medical insurance and other contractual benefits.
Variable remuneration scheme
The table below provides a summary for the 2025 variable remuneration scheme (the Scheme) outcome. Measures and performance targets were
agreed by the Committee and align with the Group’s ongoing strategy.
All employees, including the Executive Directors, who participate in the Scheme do so on the same terms.
The Scheme has a Group Profit underpin as its first component. This underpin is a minimum level of profit that must be achieved in order to trigger an
award under the Scheme. The underpin was achieved for the 2025 performance year.
Weighting
Achieved
Financial measures (60%)
Threshold
Target
Maximum
Underlying Profit
24%
90% Target
Target
110% Target
Maximum
RoTE
24%
90% Target
Target
110% Target
Maximum
Costs
12%
Target: Achieved/Not Achieved
Target Achieved
Non-financial measures (40%)
Green Finance
13.3%
In 2025, we continued to deliver strong performance against our ambitious green lending targets, which remain
a key tenet of the Group’s Sustainability Strategy.
Inclusion & Diversity
(I&D) – Gender Balance
13.3%
AIB is committed to gender balances across the Group. Our ongoing targets is to maintain gender balance
(40%-60% female) which has been achieved.
Customer Satisfaction
13.3%
We continue our focus on improving our customer banking experiences. We measure our customer
satisfaction across a number of key journeys and we are delivering successfully against them.
Based on performance during the year, the amounts that Executives will receive are set out below.
Executive
Annual incentive outcome
% of Salary
€ 000
Colin Hunt
1.60
12.7
Donal Galvin
1.80
12.7
The Scheme outcome will be paid in cash. Executive Directors are able to participate in the APSS using cash awarded under the 2025 variable
remuneration scheme to acquire shares in the company.
Further information on Green Finance, I&D – Gender Balance and Customer Satisfaction can be found on page 95 of this Report.
The Committee considered the formulaic variable remuneration scheme and deemed it appropriate within the wider financial and non-financial
performance of the business, and the Executive Directors. As such, no adjustments were applied.
The Committee did not apply malus and/or clawback during the year.
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Non-Executive Directors’ remuneration (audited)
The following table details the total remuneration of the Directors in office during 2025 and 2024:
20250
2
2024
Directors’ Fees
Directors’ Fees
Non-Executive Directors1
€ 000
€ 000
Anik Chaumartin
83
80
Basil Geoghegan
76
75
Tanya Horgan
80
80
Sandy Kinney Pritchard
95
95
Elaine MacLean2
105
85
Andy Maguire3
115
115
Brendan McDonagh (Deputy Chair)
135
135
Helen Normoyle4
63
188
Ann O'Brien5,7
130
130
Fergal O'Dwyer6
156
155
Jim Pettigrew (Chair)
365
365
Jan Sijbrand
80
80
Raj Singh7
80
80
Anne Sheehan8
23
—
Total
1,586
1,663
1. All Non-Executive Directors were paid a basic, non-pensionable fee in respect of service as a Director of €65,000 and additional non-pensionable remuneration in respect of other responsibilities,
such as through the chairing or membership of Board Committees or performing the role of Deputy Chair or Senior Independent Director. Current or former Directors who serve on the Board of any
Group Irish subsidiary company are also paid a non-pensionable flat fee for their services as a Director, chairing or membership of Board Committees.
2. The material increase in the fees received by Elaine MacLean reflect her change in role (assuming the role of SID) during the year.
3. Andy Maguire was paid €35,000 in 2025 (2024: €35,000), in respect of his role as a Director of AIB Mortgage Bank Unlimited Company.
4. Current or former Non-Executive Directors of AIB Group plc and Allied Irish Banks, p.l.c., as applicable, who also serve as Directors of AIB Group (UK) p.l.c. (AIB UK) are separately paid a
non-pensionable flat fee, which is independently agreed and paid by AIB UK, in respect of their service as a Director of that company. In that regard, Helen Normoyle earned fees during 2025
of €24,000 (2024: €73,000). Helen Normoyle stepped down from both the AIB Group and UK boards during 2025.
5. Ann O’Brien was paid €40,000 in 2025 (2024: €40,000) in respect of her role as a Director of EBS d.a.c.
6. Fergal O’Dwyer earned fees during 2025 of €80,000 (2024: €80,000) in his role as Director and Chair of the Audit Committee of Goodbody.
7. Ann O’Brien and Raj Singh resigned as Non-Executive Directors with effect from 31 December 2025.
8. Anne Sheehan was appointed as a Non-Executive Director during 2025.
Change in remuneration of Directors compared to employees
The table below shows the percentage change in total remuneration, using the single-figure methodology for the year ended 31 December 2025 for
the Directors of AIB and the average of all permanent employees of the Group (excluding Executive Directors) on a full-time equivalent basis.
The increases in total remuneration for Executive Directors resulted from increases in their salaries, following the removal of the salary cap which had
been in place. Data is presented from 2023/2024 as this is the first period where variable remuneration was operated within the Group.
The average increase for employees reflects a combination of annual pay review, promotions and progression where applicable.
2025/20242
2024/2023
%
%
Colin Hunt
23 %
5 %
Donal Galvin
17 %
3 %
Anik Chaumartin
4 %
— %
Basil Geoghegan
1 %
— %
Tanya Horgan
— %
— %
Sandy Kinney Pritchard
— %
— %
Elaine MacLean
24 %
— %
Andy Maguire
— %
5 %
Brendan McDonagh (Deputy Chair)
— %
— %
Helen Normoyle (resigned 1 May 2025)
— %
1 %
Ann O'Brien (resigned 31 December 2025)
— %
9 %
Fergal O'Dwyer
1 %
— %
Jim Pettigrew (Chair)
— %
— %
Jan Sijbrand
— %
— %
Raj Singh (resigned 31 December 2025)
— %
— %
Anne Sheehan (appointed 1 September 2025)
— %
— %
Average increase for employees
4.4 %
8 %
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Corporate Governance Remuneration Statement continued
Directors’ shareholdings and share interests
Under the Remuneration Policy, Executive Directors were not subject to
shareholding requirements during 2025.
Please refer to page 170 for details of the Directors’
shareholdings and interests.
Payments to former Directors and for loss
of office
There were no payments made to former Directors or payments to
Directors for loss of office during the 2025 financial year.
Pillar 3 and other remuneration disclosures
The Group publishes additional remuneration disclosures in its annual
Group Pillar 3 Report. These disclosures provide further information about
the Group’s remuneration policies and practices and, more specifically,
qualitative information about:
(a) The bodies that oversee remuneration.
(b) The design and structure of the remuneration system for those
individuals who have been identified as Material Risk Takers.
(c) The ways in which current and future risks are considered in
remuneration processes.
(d) The ratios between fixed and variable remuneration, which are set in
accordance with the regulatory requirements.
(e) The ways in which the Group links performance and remuneration.
(f) The adjustment of remuneration to take account of long-term
performance.
(g) The main parameters and rationale for the variable remuneration
schemes for which MRTs are eligible.
(h) The use of derogations in Article 94(3) of the CRD.
These disclosures also include quantitative information, in aggregate
form, about the amounts and structure of the remuneration of MRTs.
The Group’s Pillar 3 Report is available on the Group website:
aib.ie/investorrelations
EBA remuneration benchmarking requirements require the Group to
disclose remuneration data in respect of all staff, MRTs and high earners
(those earning above €1.0 million) to the CBI. The Group continued to
comply with these reporting requirements during 2025.
During 2025, the Group published its Gender Pay Gap Reports in relation
to its UK and ROI based employees. These disclosures are available at:
aib.ie
aibgb.co.uk
Material Risk Takers and risk oversight
The Group is required to maintain a list of employees whose professional
activities have the potential to have a material impact on the Group’s risk
profile. The list of Material Risk Takers (MRTs) is prepared using a
combination of qualitative and quantitative criteria in accordance with the
relevant EU regulations and guidelines, together with additional criteria
specific to the Group’s structure, business activities and risk profile. The
list is prepared at Group and subsidiary company levels.
Group Risk assesses the risks impacting the Group, including
performance against the Group’s Risk Appetite Statement, to ensure
that the Remuneration Policy is aligned with the Group’s risk profile.
The Chief Risk Officer reviews the list of MRTs in conjunction with Group
Reward and provides the Committee with an annual assessment of the
risks facing the Group, to ensure that policies and practices are consistent
with and promote sound and effective risk management.
Support for Committee
The Committee was supported in its work by the Group Reward team and
by Korn Ferry as the external remuneration consultants appointed by the
Committee in October 2022. Korn Ferry is a signatory to the Voluntary
Code of Conduct in relation to remuneration consulting in the UK.
Aside from their work supporting the Committee, during 2025, Korn Ferry
provided professional services in the ordinary course of business to AIB.
The Committee is satisfied that the advice received is independent and
objective.
Performance graph and table
The chart below illustrates the Total Shareholder Return (TSR) performance
of AIB since the end of 2022 (when variable remuneration was first
introduced) against the ISEQ All Share/FTSE 350 Banks, which has been
selected as being an appropriate index for comparison purposes.
TSR Performance
Shareholder votes on remuneration
The table below shows the results of the advisory vote on the Directors’
Remuneration Report at the 2025 AGM and the binding vote on the
Remuneration Policy at the 2024 AGM.
Resolution
Votes/%
For
Against
Withheld
Directors’
Remuneration
Report
(2025 AGM)
Shareholder
Votes
1,725,698,928
19,103,740 8,323,021
Votes as a
Percentage
98.91 %
1.09 %
—
Directors’
Remuneration
Policy
(2024 AGM)
Shareholder
Votes
2,164,992,566
44,233,016 5,565,014
Votes as a
Percentage
98.00 %
2.00 %
—
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AIB
FTSE 350 Banks
ISEQ All Share
31/12/2021 30/06/2022 31/12/2022 30/6/2023 31/12/2023 30/6/2024 31/12/2024 30/6/2025 31/12/2025
0
100
200
300
400
500
600
In 2025, the Committee strengthened its oversight of the
sustainability strategy — deepening its focus on sustainable
finance deployment, transition planning, sustainable
propositions — and enters 2026 committed to driving
consistent progress across sustainability and customer
priorities.
Anik Chaumartin
Committee Chair
Sustainable Business Advisory Committee
Members
Anik Chaumartin (Chair)
Helen Normoyle (until 1 May 2025)
Jan Sijbrand
Raj Singh (until 31 December 2025)
Colin Hunt
Orlaith Ryan, Chief Customer Officer (from 1 January 2025)
Paul Travers, Managing Director, Climate & Infrastructure Capital
Mary Whitelaw, Chief Strategy & Sustainability Officer
Read more about our cross-Committee Membership on page 132
and Committee Membership changes on page 148.
Highlights during FY2025
Sustainable Finance Oversight
Throughout 2025, the Committee strengthened its oversight of
sustainable finance across the Group. It received regular updates from
business areas on green products, new sustainability-aligned customer
propositions, sustainability marketing campaigns, and the AIB
Sustainability Conference, all aimed at supporting the deployment of
green and transition finance. The Committee also monitored progress
against AIB’s ambition for 70% of new lending to be green or transition, a
core enabler of the Group’s Greening Our Business strategic priority.
See page 60.
Expert insight sessions
The Committee strengthened its sustainability oversight through
two expert masterclasses. Professor Peter Thorne briefed members
and other Directors on the latest climate-science evidence and its
implications for Ireland, while Dr Brian Motherway provided insights
on the global renewable-energy transition clean-energy policy. These
sessions deepened SBAC’s technical understanding of climate and
energy issues, supporting more informed critique.
See pages 148 and 149.
Transition planning and decarbonisation
The Committee continued its oversight of AIB’s transition planning, including
progress on decarbonisation across Scope 1, 2 and 3 emissions. Given the
central importance of transition planning to the Group’s sustainability
strategy, decarbonisation progress was considered at every meeting
including developments on decarbonising AIB's own operations. This
sustained focus reflects the Board’s commitment to supporting customers,
employees, society and communities through the wider green transition.
See page 56.
On behalf of the Sustainable Business Advisory Committee
(SBAC or the Committee), I am pleased to present my first
report since becoming Chair in June 2025. During the year,
membership evolved as part of planned succession.
I would like to thank Helen Normoyle, my predecessor,
and acknowledge her significant and lasting contribution as
Chair. Her leadership, insight and deep commitment have
been instrumental in strengthening the Committee’s work
and its impact. I would also like to thank Raj Singh, who
resigned from the Committee, for his valued service and
contribution. I would like to take this opportunity to thank
my fellow Committee Members and the wider Sustainability
team for their valued contribution throughout 2025.
Committee purpose and responsibilities
The Committee supports the Board in overseeing the Group’s
sustainability strategy, advising on climate and environmental action,
societal and workforce progress and the embedding of responsible
business and ESG practices. It also reviews external sustainability
reporting and voluntary commitments.
Please find our Terms of Reference on aib.ie/investorrelations.
Other key activities in 2025
In what was another very busy year for the Committee it:
• strengthened oversight of the sustainability strategy through regular
strategic updates, monitoring progress on Key Performance Indicators
and regulatory alignment;
• supported the development of the Group’s sustainability disclosures
through its review, co-ordinating with the Board Audit Committee which
approved the disclosures;
• reviewed progress on social impact initiatives including updates on
vulnerable customers and stakeholder engagement initiatives;
• supported customer-first delivery by reviewing sustainability
propositions aligned to the Group’s strategic priorities; and
• completed an external review of the Committee’s effectiveness,
concluding that the Committee continues to operate effectively.
Priorities for 2026
Our priorities for 2026 are as follows:
• oversight of progress towards the ambition that 70% of new lending is
green or transition;
• continue monitoring decarbonisation progress across Scopes 1, 2 and
3 to support delivery of the Group’s transition ambitions;
• oversight of the sustainability strategy, ensuring alignment with evolving
EU and prudential requirements with a strong focus on ESG data
capture, quality and completeness and ongoing data maturity;
• ongoing review of sustainability propositions to support customer-first
delivery; and
• further enhance the Committee’s climate and environmental expertise
through expert-led thought-leadership sessions.
Anik Chaumartin
Committee Chair
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Report of the Sustainable Business
Advisory Committee
In 2025, the Committee had oversight of progress made in
strengthening AIB’s resilience with the successful delivery of
DORA, along with material advances in the development of the
next generation mobile app and the deployment at scale of
artificial intelligence (AI) to support ongoing enhancements
to customer service and increased productivity.
Andy Maguire
Committee Chair
Technology and Data Advisory Committee
members
Andy Maguire (Chair)
Tanya Horgan
Helen Normoyle (until1 May 2025)
Anne Sheehan (from 25 September 2025)
Cathy Bryce, MD of Capital Markets (from 12 December 2025)
Graham Fagan, Chief Operating Officer
Andrew McFarlane (until 17 July 2025)
Read more about our cross-Committee Membership on page 132
and Committee Membership changes on page 148.
Highlights during FY2025
Digital transformation
The Committee closely monitored the successful delivery of SEPA
Instant and the progress of delivery of the next generation mobile
app which is on track to launch in H2 2026.
See page 15.
Refreshed 2025 – 2027 Enterprise
Information Security and Cyber strategy
The Committee considered and challenged the refreshed Enterprise
Information Security and Cyber strategy prior to Board approval. This
strategy was grounded in strengthening AIB’s resilience while acting
as a critical enabler for its business.
See page 19.
Developments in cloud infrastructure
The Committee maintained oversight of the delivery of cloud
foundations required for secure, high-performance banking and
enhanced customer experience.
See page 15.
On behalf of the Technology and Data Advisory
Committee (TDAC or the Committee), I am pleased to
present my first report since becoming Chair in
December 2025. There were a number of changes to
TDAC’s membership over the course of 2025. I would like
to thank my predecessor Ann O’Brien and formally
acknowledge her significant contribution as Chair of the
Committee since 2021. Her time commitment combined
with her engagement with the agenda was instrumental in
guiding the Committee’s focus and enhancing its
effectiveness. I would also like to thank Helen Normoyle
and Andrew McFarlane for their valued contributions and
service. I welcome Anne Sheehan whose industry-based
technology experience will benefit the Committee
particularly in its oversight of digital transformation. I also
welcome Cathy Bryce whose deep customer focused
experience will strengthen the Committee’s oversight
responsibilities.
Committee purpose and responsibilities
The Committee assists the Board with its oversight of Technology,
Cyber & Data strategy, Technology & Data Operating Model Effectiveness
and Technology and Data Governance. It also reviews and assesses
technology related deliverables for key change projects.
Please find our Terms of Reference on aib.ie/investorrelations.
Other key activities in 2025
In what was another very busy year for the Committee it:
• maintained oversight of the delivery of regulatory programmes designed
to strengthen AIB’s resilience;
• challenged the delivery of key technology enabled change programmes
ensuring downstream milestone impacts were proactively managed
to safeguard strategic outcomes and customer benefits;
• monitored advances in data, analytics and AI capability in support of
operational efficiency, customer service and fraud prevention; and
• completed an external review of the Committee’s effectiveness,
concluding that the Committee continues to operate effectively.
Priorities for 2026
Our priorities for 2026 are as follows:
• continued oversight of AIB’s cyber and operational resilience, including
third-party ecosystems, with strong controls and sustained service
integrity;
• stewardship of the responsible scaling of AI and analytics, grounded in
strong data quality, lineage and privacy controls to enhance customer,
risk and operational decision-making; and
• oversight of enterprise delivery uplift, ensuring simplified structures,
strengthened engineering and effective partner management continue
to improve customer experience.
Andy Maguire
Committee Chair
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Report of the Technology and
Data Advisory Committee
Directors’ Statement on risk management
and internal controls
The Board of Directors is responsible for the Group’s system of internal
controls, which is designed to manage the risk of failure to achieve business
objectives and can provide only reasonable and not absolute assurance
against material misstatement or loss. The Group has implemented a
framework and policy architecture covering business and financial
planning, corporate governance and risk management. The system of
internal controls is designed to ensure that there is thorough and regular
evaluation of the Group’s risks in order to mitigate accordingly, rather
than to eliminate risk. This is done through a process of identification,
assessment, management, measurement, monitoring and reporting.
This process includes an assessment of the effectiveness of internal
controls, which was in place for the full year under review up to the date
of approval of the financial statements and which accords with the CBI
Requirements and the UK Code. The Board will continue to strengthen its
oversight of the effectiveness of the Group’s internal controls and risk
management framework and the Group is progressing its preparations to
support future reporting aligned with the UK Code, including Provision 29.
Supporting this process, the Group’s system of internal controls is based
on the following:
Board governance and oversight
• The Board is ultimately responsible for corporate governance,
encompassing leadership, direction and control and is accountable
for the effective management of risks and for the system of internal
controls within the Group. Some matters are reserved for decision
by the Board, including the approval of designated Frameworks and
Policies, Risk Appetite and reviewing the effectiveness of the system
of internal controls. The Board is assisted in fulfilling its duties by a
number of sub-committees. Each committee operates under Terms
of Reference approved by the Board.
Further details on these sub-committees can be found on
pages 140 to 165.
• The BAC is appointed by the Board to assist it in fulfilling its independent
oversight responsibilities in relation to the quality and integrity of the
Group’s accounting policies, financial and narrative reports, non-
financial disclosures and disclosure practices. The Committee also
ensures the effectiveness of the Group’s internal control, risk
management and accounting and financial reporting systems and the
adequacy of arrangements by which staff may, in confidence, raise
concerns about possible improprieties in matters of financial reporting or
other matters. It also ensures the independence and performance of the
internal and external auditors. The BAC works to ensure that this purpose
is fully aligned to the Group’s strategy and values, considering the
interests of stakeholders while operating within all applicable regulatory
and statutory requirements. The BAC is composed of INEDs and
operates under Board-approved terms of reference. Neither the Chair of
the Board nor the CEO are permitted to be members of the BAC. The
CFO, the CRO, the Head of Group Internal Audit (GIA) and the External
Auditor attend the meetings of the BAC, where appropriate.
• The BRC is appointed by the Board to support the Board by overseeing
risk governance, risk management and the Group’s risk-aware culture
by fostering sound risk governance across all of the Group’s finances
and operations (including all operations, legal entities and branches in
ROI, the UK and the USA), taking a forward-looking perspective and
anticipating changes in business conditions. The BRC discharges its
responsibilities in ensuring that risks within the Group are appropriately
identified, reported, assessed, managed and controlled to include the
commission, receipt and consideration of reports on key strategic and
operational risk issues. It ensures that the Group’s overall actual and
future risk appetite and strategy, taking into account all types of risks,
are aligned with the business strategy, objectives, corporate culture
and values of the institution, while promoting a risk awareness culture
within the Group. The BRC oversees and challenges the risk
management function, which is managed on a day-to-day basis by the
CRO and liaises regularly with the CRO to ensure the development and
on-going maintenance of a risk management system within the Group
that is effective and proportionate to the nature, scale and complexity
of the risks inherent in the business. The BRC provides qualitative and
quantitative input to the RemCo on the alignment of variable
remuneration to risk performance for material risk-takers. The Dodd
Frank Act establishes prudential standards and early remediation
requirements applicable to Foreign Banking Organisations having a
significant presence in the USA. The BRC acts as the risk committee for
the Company’s USA operations as required under the Act. The BRC is
composed of Independent Non-Executive Directors and operates under
Board-approved terms of reference. The CFO, the CRO, the Head of
GIA and the External Auditor attend the meetings of the BRC, where
appropriate.
• The RemCo is appointed by the Board to ensure the Group’s overall
Remuneration Policy for employees and directors, is designed to
support the long-term business strategy, values and culture of the
Group, as well as to promote effective risk management and reward
fairly and responsibly, with a clear link to corporate and individual
performance in compliance with applicable legal and regulatory
requirements. It oversees the operation of Group-wide remuneration
policies and practices for all employees, with specific reference to the
Company’s Executive Directors, the CEO, Group ELT members, Heads
of Control Functions, the Group Company Secretary and Material
Risk Takers. It also performs any other functions appropriate to a
remuneration committee or assigned to it by the Board. The RemCo
is composed of independent NEDs and the Chair of the Board and
operates under Board-approved terms of reference.
• The SBAC was established by the Board to act as an advisory committee,
supporting the execution of the Group’s sustainable business strategy in
accordance with the approved Group Strategic and Financial Plan. The
Strategy includes the development and safeguarding of the Group’s
social licence to operate through Environmental, Social and Governance
activities and the Group’s Pledge to Do More. The SBAC is composed of
NEDs and members of Senior Management and operates under Board-
approved term of reference.
• The TDAC was established by the Board as an advisory committee to
assist the Board in fulfilling its oversight responsibilities by reviewing
and challenging the strategy, governance and execution of matters
relating to technology, data and cyber security and to review and assess
technology-related deliverables for key change projects. The TDAC is
composed of NEDs and members of Senior Management and operates
under Board-approved term of reference.
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Internal Controls
• The NomCo is appointed by the Board to support and advise it in
fulfilling its oversight responsibilities in relation to the composition
of the Board. It does this by ensuring that the Board comprises of
individuals who are best able to discharge the duties and
responsibilities of Directors, by leading the process for nominations
and appointments to the Board and Board Committees, as appropriate
and making the recommendations in this regard to the Board for its
approval. It also supports and advises the Board in fulfilling its oversight
responsibilities in relation to the composition of the Group’s ELT
members and the composition of the Boards of its material
subsidiaries. It recommends to the Board suitable candidates for the
role of Group Company Secretary and Heads of Control Functions.
It supports succession planning for the Board and Group ELT by
ensuring that plans are in place for orderly succession and oversees the
development of a diverse pipeline, bearing in mind the future demands
of the business. It keeps Board governance arrangements, corporate
governance compliance and related policies under review and makes
appropriate recommendations to the Board to ensure that corporate
governance practices are consistent with best practice standards. The
NomCo is composed of INEDs and the Chair of the Board and operates
under Board-approved terms of reference.
Executive risk management and controls
• The Board has delegated the day-to-day running of the business and the
development of strategy to the Chief Executive Officer (CEO), who is
supported by the ELT, this being the most senior management
committee of the Group. The ELT operates under defined Terms of
Reference and has full authority to delegate any of its powers, authority
or activities to identified executives or to one or more of its sub-
committees.
• The Group Risk Committee (GRC) is the most senior management risk
committee of the Group. It was established by and is accountable to,
the ELT, further information on GRC’s roles and responsibilities are set
out on page 178.
• The Group Asset and Liability Committee (ALCo) is a sub-committee of
the ELT. Further details can be found on page 179.
• There is a centralised risk control function headed by the CRO, who is
responsible for independent challenge, ensuring that risks are
understood, managed, measured, monitored and reported on and for
reporting on risk mitigation actions.
Further details on the risk management framework of the
Group see page 177.
• The centralised credit function is headed by a Chief Credit Officer, who
reports to the CRO.
• Compliance, which is part of the Risk function, provides the interpretation
and assessment of compliance risk, specifically those laws, regulations,
rules and codes of conduct applicable to its banking activities.
• GIA is an independent and effective function responsible for assisting
the Board, through the BAC, in carrying out their corporate governance
responsibilities by providing an independent view and objective
assurance on the key risks facing the Group including outsourcing and
on the adequacy and effectiveness of governance, risk management
and the internal control environment in managing these risks. The Head
of Internal Audit is responsible for the audit function across the Group.
• AIB employees who perform pre-approved controlled functions/
controlled functions must meet the required standards as outlined in
the Group’s Fitness and Probity programme.
In the event that material failings or weaknesses in the systems of risk
management or internal control are identified, Management are required
to attend the relevant Board and its sub-committees to provide an
explanation of the issue and to present a proposed remediation plan.
Agreed remediation plans are tracked to conclusion, with regular status
updates provided to the relevant Board and its sub-committees.
Given the work of the Board, BRC and BAC and representations made by
the ELT during the year, the Board is satisfied that the necessary actions
to address any material failings or weaknesses identified through the
operation of the Group’s risk management and internal control framework
have been taken, or are currently being undertaken.
Taking this and all other information into consideration, as outlined above,
the Board is satisfied that there has been an effective system of control in
place throughout the year.
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167
In accordance with provision 31 of the UK Corporate Governance Code
published in January 2024, the Directors have assessed the viability of the
Group, taking into account its current position, the prevailing economic
and trading conditions and principal risks facing the Group over the next
three years to the end of 2028.
Horizon
The Directors concluded that three years was an appropriate period to
assess the viability of the Group, for the following reasons:
• It is the same period used within the Group for strategic and financial
planning process.
• The Group prepares its annual Internal Capital Adequacy Assessment
Process (ICAAP) and Internal Liquidity Adequacy Assessment Process
(ILAAP) on an annual basis using a three year time horizon.
• A three year time horizon is used for both internal and regulatory stress
testing. Where certain impacts can be assessed reliably beyond the three
year forecast horizon, a quantification is performed and considered.
• A three year time horizon is consistent with the internal risk
management practices within the Group, including but not limited to:
setting of the Risk Appetite and the Material Risk Assessment, as well
as Recovery and Resolution planning.
Considerations in assessing viability
of the Group
Assessment of prospects
The assessment of the Group’s prospects is built up based on the current
financial position of the Group, including its liquidity and funding and
capital position.
The Group’s fully loaded CET1 at 31 December 2025 is 16.2% against a
regulatory requirement of 11.29%, as set out on page 38. The Group’s
LCR, of 204% and NSFR of 163% demonstrate a very strong liquidity
position as described on pages 227 and 232.
The Group has completed a review of its Strategy, covering the period of
assessment which is described on pages 14 to 15. As part of the delivery
of the Group’s Strategy, the Directors consider the risks facing the Group,
including those that would threaten the competitive position of the
business and its operational capacity, as well as the Group’s governance
and internal control systems.
Profitability and growth were reassessed in the annual planning exercise
covering the period 2026 to 2028, undertaken by the Group in the second
half of 2025. Given the changing banking landscape, evolving operating
environment and the interest rate outlook, the Financial Plan (2026-2028)
shows that the Group expects strong profitability. The Board remains
cognisant of and monitors a number of headwinds to the credit
environment, most notably geopolitical risks.
Assessment of risks
During the year, the Directors rely on the following processes to identify
and assess risks that could impact on the continued viability of the Group:
• The Group’s Material Risk Assessment process seeks to ensure that all
significant risks to which the Group is exposed have been identified and
are being appropriately managed. New and emerging risks are also
identified and mitigating actions are put in place.
• As part of the setting of the Group’s Risk Appetite, consideration is
given to the amount of risk that the Group is willing to accept in pursuit
of its strategic objectives.
• Internal stress testing of the Group’s capital and liquidity position is
conducted, using a variety of different macroeconomic scenarios.
• In recovery and resolution planning, consideration is given to market
factors and the operational resiliency of the Group.
• The regular reporting of the Group’s financial performance by the CFO
and the reporting of the Group’s risk profile by the CRO.
• The provision of independent and objective assurance of the adequacy
of the design and operational effectiveness of the risk and control
environment by Group Internal Audit to the Board Audit Committee.
• The Board Risk Committee oversees the Group’s risk management.
A full description of the principal risks facing the Group is provided in the
Risk management section, individual risk types pages 182 to 239.
As part of the internal capital adequacy assessment process, material
risks to the Group’s financial performance are considered in terms of their
potential impact on the Group’s position. These risks are set out on page
177. Stress testing not only includes changes in macroeconomic
forecasts but also other factors such as; financial crime losses, disruption
to IT systems or the cost of a cyber incident, as well as financial loss
arising from compliance or conduct issues.
In addition, the Group continues to work to understand and manage risks
that could arise in relation to climate risk, both in terms of the transition to
Net Zero and the physical risks due to climate change.
Assessment of viability
The financial planning process is the main tool for assessing the
continued financial prospects of the Group. The plan is a detailed three-
year financial forecast for each segment and includes forecasts of
operating results, headcount, investment expenditure and new strategic
initiatives. Progress against the plan is reported monthly to the ELT and the
Board. Updated forecasts are prepared as required and mitigating
management actions are taken where required.
The Board considers the independent review of the plan by the Risk function,
covering the alignment of the plan with Group strategy and the Risk Appetite.
This review also identifies the key risks to delivery of the Group’s plan.
The Group’s base case underpins the financial plan and reflects changes
in the macro-economic and market environment and also includes the
consideration of downside scenarios. The first downside scenario centres
around how higher tariffs and deepening global trade fragmentation weigh
on growth and lead to a mild recession in 2026-2027.
The second downside looks to further rapid escalation in tariffs by the USA
and material retaliation by its trade partners depresses consumer and
business confidence, precipitating a collapse in economic growth
impacting unemployment and property prices in 2026 and 2027.
After assessing the Group’s prospects, risks and reviewing the financial plan
as well as the results of stress testing scenarios, the Group continues to:
• demonstrate internal capital generation through continued profitability
in each of the forecast years;
• demonstrate capacity to carry out the proposed distribution strategy to
shareholders, including sustainability of dividends, as well as the
buyback strategy;
• remain in excess of its regulatory capital requirements; and
• have significant liquidity over its regulatory liquidity coverage ratio and
net stable funding ratio.
Finally the Group did not identify any material climate related risks for the
three year period under consideration.
Statement of viability
On the basis of the above, the Directors have a reasonable expectation,
taking into account the Group’s current position and subject to the
identified risks and mitigating actions, that the Group will be able to
continue in operation and meet its liabilities as they fall due over the
three-year period of assessment.
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Annual Financial Report 2025
168
Viability Statement
The Directors of AIB Group plc (the Company) present their report and the
audited financial statements for the financial year ended 31 December
2025. The Statement of Directors’ Responsibilities is shown on page 242.
For the purposes of this report, AIB Group or the Group comprises
the Company and its subsidiaries in the financial year ended
31 December 2025.
Results
The Group’s profit attributable to the equity holders of the Company
amounted to €2,141 million and was arrived at as shown in the
consolidated income statement on page 253.
Dividend
The Board proposes to pay an ordinary dividend of 46.257 cent per share
(totalling €988 million, based on the total number of ordinary shares
currently outstanding), payable on 8 May 2026 to shareholders on the
register on 27 March 2026. This is subject to shareholder approval at the
Annual General Meeting (AGM) on 30 April 2026.
An interim dividend of 12.328 cent per share, equivalent to €263 million,
was paid to shareholders on 11 November 2025. This brings the total
dividends for the year ended 31 December 2025 to €1,251 million (58.585
cent per share).
On 9 May 2025, the Company paid a final dividend for the year ended
31 December 2024 of 36.984 cent per share, totalling €861 million, to
shareholders on the register at the close of business on 28 March 2025.
Buyback of ordinary shares
At the AGM, the Board normally seeks, and has received, a renewal of its
authority from shareholders to undertake on-market purchases of up to
10% of its ordinary shares. This was renewed at the 2025 AGM held on
1 May 2025.
Also at the 2025 AGM, the Company received shareholder approval to enter
into a share buyback contract with the Minister for Finance (the Minister) for
an off market directed buyback of its ordinary shares from the Minister in a
maximum consideration amount of €1.2 billion at a share price calculated
in accordance with a formula set out in the contract. Further thereto, on 9
May 2025 the Group completed an off-market purchase of 191,671,857
ordinary shares, representing approximately 8.2% of the Group’s issued
share capital, from the Minister for a total consideration of €1.2 billion.
These shares were repurchased at a price of €6.2607 per share and were
cancelled upon settlement. In accordance with regulatory requirements,
the Company obtained the prior approval of the ECB for the €1.2 billion
share buyback.
A summary of transactions in own shares has been set out below
and further information is available in note 34 on page 308.
Par Value
€ m
Number of Shares
000s
At 1 January 2025
1,455
2,328,438
Share buybacks*
(120)
(191,671)
At 31 December 2025
1,335
2,136,767
*all of the purchased shares were cancelled
The Company has received regulatory approval from the ECB to undertake
an on-market buyback of ordinary shares for a maximum aggregate
consideration of €1 billion.
Odd-lot offer
The Directors intend to seek approval from shareholders at the 2026 AGM
to launch an Odd-lot offer to smaller shareholders.
Warrants
On 31 October 2025, AIB announced the agreement with the Minister for
Finance for the cancellation of warrants over 271,166,685 shares held by
the Minister on the payment of €390 million.
Going concern
The financial statements for the year to 31 December 2025 have been
prepared on a going concern basis, as the Directors are satisfied, having
considered the risks and uncertainties impacting the Group, that it has the
ability to continue in business for the period of assessment.
In making this assessment, the Directors have considered a wide range of
information relating to present and future conditions. This includes capital
forecasts and internally generated macroeconomic scenarios that take
account of geopolitical risks, the impacts of tariffs, inflation, interest rates
and related impacts on unemployment and property prices. The period of
assessment used by the Directors is at least 12 months from the date of
approval of these annual financial statements.
Directors’ Compliance Statement
As required by section 225(2) of the Companies Act, the Directors
acknowledge that they are responsible for securing the Company’s
compliance with its relevant obligations (as defined in section 225(1) and
section 1374). The Directors confirm that:
(a) a compliance policy statement (as defined in section 225(3) (a)) has
been drawn up that sets out the Company’s policies and, in the
Directors’ opinion, is appropriate to ensure compliance with the
Company’s relevant obligations;
(b) appropriate arrangements or structures that are, in the Directors’
opinion, designed to secure material compliance with the relevant
obligations have been put in place; and
(c) a review of those arrangements or structures has been conducted in
the financial year to which this report relates.
Capital
Information on the structure of the Company’s share capital, including the
rights and obligations attaching to shares, is set out in the Schedule on pages
308 to 309 and is part of note 34 to the consolidated financial statements.
Accounting policies
The principal accounting policies, together with the basis on which the
financial statements have been prepared, are set out in note 1 to the
consolidated financial statements.
Review of principal activities
The statement by the Chair on pages 6 and 7, the review by the CEO on page
8 and the Operating and Financial Review on pages 22 to 37 contain an
overview of the development of the business of the Group during the year, of
recent events and of likely future developments.
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Annual Financial Report 2025
169
Directors’ Report
for the financial year ended 31 December 2025
Directors
At 31 December 2025, the Board of Directors of the Company was
comprised of Jim Pettigrew, Anik Chaumartin, Donal Galvin, Basil
Geoghegan, Tanya Horgan, Colin Hunt, Sandy Kinney Pritchard,
Elaine MacLean, Andy Maguire, Brendan McDonagh, Fergal O’Dwyer,
Anne Sheehan and Jan Sijbrand. Biographical details of all Directors are
provided on pages 122 to 125.
Elaine MacLean is the Senior Independent Non-Executive Director
and was appointed to this position on 1 May 2025. Elaine MacLean
has served as an Independent Non-Executive Director since
September 2019.
The appointment and replacement of Directors and their powers, are
governed by law and the Constitution of the Company and information on
these is set out in the Schedule on page 173.
Directors’ and Secretary’s Interests in Shares
The beneficial interests of the Directors and the Company Secretary
in office at 31 December 2025 and of their spouse, civil partner and minor
children, in the Company’s ordinary shares as disclosed to the Company
are as follows:
Ordinary shares
31 December
2025
1 January
2025
Unvested SAYE
Options
Directors:
Anik Chaumartin
—
—
—
Donal Galvin
—
—
5,617
Basil Geoghegan
9,835
9,835
—
Tanya Horgan
10,000
10,000
—
Colin Hunt
64,322
62,487
5,617
Sandy Kinney Pritchard
10,000
10,000
—
Elaine MacLean
—
—
—
Andy Maguire
30,000
30,000
—
Brendan McDonagh
20,000
20,000
—
Anne Sheehan
—
—
—
Fergal O’Dwyer
10,000
10,000
—
Jim Pettigrew
25,000
25,000
—
Jan Sijbrand
—
—
—
Company Secretary:
Conor Gouldson
53,966
52,226
3,370
There is no requirement for Directors, or the Company Secretary, to hold
shares in the Company.
Donal Galvin and Colin Hunt held options to buy 5,617 shares under the
SAYE scheme which are exercisable from December 2030. Conor
Gouldson holds options over 3,370 shares under the same scheme,
exercisable from December 2028.
There were no changes in the interests of the Directors and the
Company Secretary shown above between 31 December 2025
and 26 February 2026.
Directors’ remuneration
The Group’s policy with respect to Directors’ remuneration is included in
the Corporate Governance Remuneration Statement on pages 155 to 163.
Details of the total remuneration of the Directors in office during 2025 and
2024 are shown in the Corporate Governance Remuneration Statement
on pages 161 and 162.
Non-Financial Statement
Our Sustainability Statement, in accordance with Part 28 of the
Companies Act, including the requirements of the European Union
(Disclosure of Non-Financial and Diversity Information by certain large
undertakings and groups) Regulations 2017 (as amended by Statutory
Instrument No. 410 of 2018), is included in the Sustainability Report on
pages 41 to 116 forms part of this report.
Substantial interests
At 31 December 2025, the Company had been notified of the following
substantial interests:
• BlackRock, Inc. held 10.00% of the total voting rights attached to the
issued share capital.
• Massachusetts Financial Services Company held 7.88% of the total
voting rights attached to the issued share capital.
• Principal Global Investors held 4.99% of the total voting rights attached
to the issued share capital.
• Wellington Management Group LLP held 3.99% of the total voting rights
attached to the issued share capital.
• FIL Limited held 3.04% of the total voting rights attached to the issued
share capital.
The following interests were disclosed to the Company in accordance with
the Market Abuse Regulation and Part 5 of the Transparency Regulations
and the related transparency rules during the period from 31 December
2025 to 26 February 2026:
• BlackRock, Inc. held 11.01% of the total voting rights attached to the
issued share capital.
• FIL Limited held 3.05% of the total voting rights attached to the issued
share capital.
Corporate governance
The Directors’ Corporate Governance Report forms part of this report.
Additional information, disclosed in accordance with the European
Communities (Takeover Bids (Directive 2004/25/EC)) Regulations 2006, is
included in the Schedule to the Directors’ Report on pages 172 to 173.
In accordance with sections 1097 and 1551 of the Companies Act, the
Directors confirm that a Board Audit Committee is established. Details on
the Board Audit Committee’s membership and activities are shown on
pages 140 to 142.
Political donations
The Directors of the Company have satisfied themselves that there
were no political contributions that require disclosure under the
Electoral Act 1997.
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Directors’ Report continued
Accounting records
The measures taken by the Directors to secure compliance with the
Company’s obligation to keep adequate accounting records include the use
of appropriate systems and procedures, incorporating those set out within
the Internal Controls section in the Corporate Governance report on pages
166 and 167 and the employment of competent persons. The accounting
records are kept at the Company’s Registered Office at 10 Molesworth
Street, Dublin 2, Ireland and at the principal addresses outlined on
page 383.
Principal risks and uncertainties
Information concerning the principal risks and uncertainties facing
the Group, as required under the terms of the European Accounts
Modernisation Directive (2003/51/EEC) (implemented in Ireland by
the European Communities (International Financial Reporting Standards
and Miscellaneous Amendments) Regulations 2005), is set out on
pages 17 to 18.
Financial risk management
Information regarding the financial risk management of the Group, in
relation to the use of financial instruments, is set out in Risk Management
on pages 177 to 239.
Branches outside the State
The Company has not established any branches since incorporation.
However, the Company’s principal operating subsidiary, Allied Irish
Banks, p.l.c., has established branches in the United Kingdom and the
United States of America.
Auditor
The Auditors, PricewaterhouseCoopers (PwC), were appointed to
the Group on 4 May 2023 following shareholder approval at the 2023 AGM
on that date. PwC’s continued appointment as Auditor of the Company
was approved at the last AGM held on 1 May 2025 and they shall continue
to hold office until the conclusion of the next AGM of the Company on
30 April 2026, pursuant to section 383(2) of the Companies Act, at which
time their continued appointment will be proposed to the shareholders
for approval, pursuant to an advisory resolution. PwC have indicated a
willingness to continue in office in accordance with section 383(2)
of the Companies Act.
Statement of relevant audit information
Each of the persons who is a Director at the date of approval of this report
confirms that:
(a) so far as the Director is aware, there is no relevant audit information
of which the Company’s auditor is unaware; and
(b) the Director has taken all the steps that he/she ought to have taken as
a Director in order to make himself/herself aware of any relevant audit
information and to establish that the Company’s auditor is aware of
that information.
This confirmation is given and should be interpreted in accordance with the
provisions of section 330 of the Companies Act.
Other information
Other information relevant to the Directors’ Report may be found in the
following pages of the report:
Page
2025 Results – Financial Performance
2
Non-adjusting events after the reporting period
330
Jim Pettigrew
Chair
Colin Hunt
Chief Executive Officer
3 March 2026
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171
Additional information required to be contained in the
Directors’ Annual Report by the European Communities
(Takeover Bids (Directive 2004/25/EC)) Regulations 2006.
As required by these Regulations, the information contained below
represents the position of the Company as at 31 December 2025.
Capital structure
The authorised share capital of the Company is €2,500,000,000, divided
into 4,000,000,000 ordinary shares of €0.625 each (Ordinary Shares).
The issued share capital of the Company is 2,136,766,718 Ordinary
Shares of €0.625 each.
Rights and obligations of each class of share
The following rights attach to Ordinary Shares:
• the right to receive duly declared dividends, in cash or, where offered
by the Directors, by the allotment of additional Ordinary Shares;
• the right to attend and speak, in person or by proxy, at general meetings
of the Company;
• the right to vote, in person or by proxy, at general meetings of the
Company having, in a vote taken by a show of hands, one vote and on
a poll, a vote for each Ordinary Share held;
• the right to appoint a proxy, in the required form, to attend and/or vote
at general meetings of the Company;
• the right to receive, (by post or electronically), at least 21 days before
the Annual General Meeting, a copy of the Directors’ and Auditor’s
reports, accompanied by copies of the balance sheet, profit and loss
account and other documents required by the Companies Act to be
annexed to the balance sheet or such summary financial statements
as may be permitted by the Companies Act;
• the right to receive notice of general meetings of the Company; and
• in a winding-up of the Company and subject to payments of amounts
due to creditors and to holders of shares ranking in priority to the
Ordinary Shares, repayment of the capital paid up on the Ordinary
Shares and a proportionate part of any surplus from the realisation of
the assets of the Company.
There is, attached to the Ordinary Shares, an obligation for the holder,
when served with a notice from the Directors requiring the holder to do so,
to inform the Company in writing, within not more than 14 days after
service of such notice, of the capacity in which the shareholder holds any
share of the Company and, if such shareholder holds any share other than
as beneficial owner, to furnish in writing, so far as it is within the
shareholder’s knowledge, the name and address of the person on whose
behalf the shareholder holds such a share or, if the name or address of
such person is not forthcoming, such particulars as will enable or assist in
the identification of such a person and the nature of the interest of such a
person in such share. Where the shareholder served with such a notice (or
any person named or identified by a shareholder on foot of such notice)
fails to furnish the Company with the information required within the time
period specified, the shareholder shall not be entitled to attend meetings
of the Company, nor to exercise the voting rights attached to such a share
and, if the shareholder holds 0.25% or more of the issued Ordinary
Shares, the Directors will be entitled to withhold payment of any dividend
payable on such shares and the shareholder will not be entitled to transfer
such shares except by sale through a Stock Exchange to a bona fide
unconnected third party. Such sanctions will cease to apply after not
more than seven days from the earlier of date receipt by the Company of
notice that the member has sold the shares to an unconnected third party
or due compliance, to the satisfaction of the Company, with the notice
served as provided for above.
Restrictions on the transfer of shares
Save as is set out below, there are no limitations in Irish law or in the
Company’s Constitution on the holding of Ordinary Shares and there is no
requirement to obtain the approval of the Company, or of other holders of
Ordinary Shares, for a transfer of Ordinary Shares.
The Ordinary Shares are, in general, freely transferable, but the Directors
may decline to register a transfer of Ordinary Shares upon notice to the
transferee, within two months after the lodgement of a transfer with the
Company, in the following cases:
(i)
a lien held by the Company on the shares;
(ii) a purported transfer to an infant or a person lawfully declared to be
incapable for the time being of dealing with their affairs; or
(iii) a single transfer of shares that is in favour of more than four persons
jointly.
Shares held are transferable in accordance with the rules or conditions
imposed by the operator of the relevant system that enables title to the
Ordinary Shares to be evidenced and transferred in accordance with the
Companies Act.
The rights attaching to Ordinary Shares remain with the transferor until the
name of the transferee has been entered on the Register of Members of
the Company.
In accordance with the EU Central Securities Depository Regulation EU
909/2014 (CSDR), the Dematerialisation of Irish Securities came into
effect on 1 January 2025, requiring all shares issued by AIB Group plc to
be held in uncertificated form. Therefore, effective from 1 January 2025,
share certificates for AIB Group plc are no longer issued or valid as
evidence of title and entries on the shareholder register were replaced and
recorded electronically by book entry record.
Exercise of rights of shares in Employee
share schemes
The SIP and APSS provide that where the relevant trustee holds shares for
a participant, the trustee may ask that participant how they should vote in
respect of those shares. The relevant trustee will vote in accordance with
any directions the participant gives (save that under the SIP, they will only
vote on a show of hands if all the participants who have given them a
direction have given the same direction). The trustees will not vote in
respect of any shares they hold that are not allocated to a participant.
Deadlines for exercising voting rights
Voting rights at general meetings of the Company are exercised when the
Chair puts the resolution at issue to a vote of the meeting. A vote decided
by a show of hands is taken forthwith. A vote taken on a poll for the
election of the Chair or on a question of adjournment is also taken
forthwith and a poll on any other question is taken either immediately or at
such time (not being more than 30 days from the date of the meeting at
which the poll was demanded or directed) as the Chair of the meeting
directs. Where a person is appointed to vote for a shareholder as proxy,
the instrument of appointment must be received by the Company not
less than 48 hours before the time appointed for holding the meeting or
adjourned meeting at which the appointed proxy proposes to vote, or, in
the case of a poll, not less than 48 hours before the time appointed for
taking the poll.
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Schedule to the Directors’ Report
for the financial year ended 31 December 2025
Rules concerning amendment of the
Company’s Constitution
As provided in the Companies Act, the Company may, by special
resolution, alter or add to its Constitution. A resolution is a special
resolution when it has been passed by not less than three-fourths of the
votes cast by shareholders entitled to vote and voting in person or by
proxy, at a general meeting at which not less than 21 clear days’ notice
specifying the intention to propose the resolution as a special resolution,
has been duly given. A resolution may also be proposed and passed as a
special resolution at a meeting at which less than 21 clear days’ notice
has been given if it is so agreed by a majority in number of the members
having the right to attend and vote at any such meeting, this being a
majority together holding not less than 90% in nominal value of the shares
giving that right.
Rules concerning the appointment and
replacement of Directors of the Company
• Other than in the case of a casual vacancy, Directors are appointed on
a resolution of the shareholders at a general meeting, usually the
Annual General Meeting.
• No person, other than a Director retiring at a general meeting, is eligible
for appointment as a Director without a recommendation by the
Directors for that person’s appointment unless, not less than 42 days
before the date of the general meeting, written notice by a shareholder
duly qualified to be present and vote at the meeting of the intention to
propose the person for appointment and notice in writing signed by the
person to be proposed of willingness to act, if so appointed, have been
given to the Company.
• A shareholder may not propose himself or herself for appointment as
a Director.
• The Directors have the power to fill a casual vacancy or to appoint an
additional Director (within the maximum number of Directors fixed by
the Company in a general meeting) and any Director so appointed holds
office only until the conclusion of the next Annual General Meeting
following his/her appointment, when the Director concerned shall
retire, but shall be eligible for reappointment at that meeting.
• One-third of the Directors for the time being (or, if their number is not
three or a multiple of three, not less than one-third) are obliged to retire
from office at each Annual General Meeting on the basis of the
Directors who have been longest in office since their last appointment.
While not obliged to do so, the Directors have, in recent years, adopted
the practice of all (those wishing to continue in office) offering
themselves for re-election at the Annual General Meeting.
• A person is disqualified from being a Director and their office as a
Director is ipso facto vacated, in any of the following circumstances:
– if at any time the person has been adjudged bankrupt or has made
any arrangement or composition with his/her creditors generally;
– if found to no longer have adequate decision-making capacity in
accordance with law;
– if the person be prohibited or restricted by law from being a Director;
– if, without prior leave of the Directors, he/she be absent from
meetings of the Directors for six successive months (without an
alternate attending) and the Directors resolve that his/her office be
vacated on that account;
– if, unless the Directors or a court otherwise determine, he/she be
convicted of an indictable offence;
– if he/she be requested, by resolution of the Directors, to resign his/her
office as Director on foot of a unanimous resolution (excluding the
vote of the Director concerned) passed at a specially convened
meeting at which every Director is present (or represented by an
alternate) and of which not less than seven days’ written notice of the
intention to move the resolution and specifying the grounds therefore
has been given to the Director; or
– if he/she has reached an age specified by the Directors as being that
at which that person may not be appointed a Director or, being
already a Director, is required to relinquish office and a Director who
reaches the specified age continues in office until the last day of the
year in which he/she reaches that age.
• In addition, the office of Director is vacated, subject to any right of
appointment or reappointment under the Company’s Constitution, if:
– not being a Director holding for a fixed term an executive office in his/
her capacity as a Director, he/she resigns their office by a written
notice given to the Company, upon the expiry of such notice; or
– being the holder of an executive office other than for a fixed term,
the Director ceases to hold such executive office on retirement or
otherwise; or
– the Director tenders his/her resignation to the Directors and the
Directors resolve to accept it; or
– the Director ceases to be a Director pursuant to any provision of the
Company’s Constitution.
• Notwithstanding anything in the Company’s Constitution or in any
agreement between the Company and a Director, the Company may,
by ordinary resolution of which extended notice has been given in
accordance with the Companies Act, remove any Director before the
expiry of his/her period of office.
The powers of the Directors
Under the Company’s Constitution, the business of the Company is
to be managed by the Directors, who may exercise all the powers of
the Company subject to the provisions of the Companies Act, the
Constitution of the Company and to any directions given by special
resolution of a general meeting. The Company’s Constitution further
provides that the Directors may make such arrangements as may be
thought fit for the management, organisation and administration of the
Company’s affairs, including the appointment of such executive and
administrative officers, managers and other agents as they consider
appropriate and may delegate to such persons (with such powers of sub-
delegation as the Directors shall deem fit) such functions, powers and
duties as the Directors may deem requisite or expedient.
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Relations with shareholders
The Group has a number of procedures in place to allow its shareholders
and other stakeholders to stay informed about matters affecting their
interests. In addition to this Annual Financial Report, which is available on
the Group’s website at aib.ie/investorrelations and sent in hard copy to
those shareholders who request it, the following communication tools are
used by the Group:
Website
The Group’s website contains, for the years since 2000, the Annual
Financial Report, the Half-Yearly Financial Report and the Annual Report
on Form 20-F for the relevant years. In accordance with the Transparency
(Directive 2004/109/EC) (Amendment) (No. 2) Regulations 2015, this and
all future Annual and Half-Yearly Financial Reports will remain available to
the public for at least ten years. For the period 2008 to 2013, the Annual
Financial Report and the Annual Report on Form 20-F were combined.
The Group’s presentation to fund managers and analysts of annual and
half-yearly financial results are also available on the Group’s website.
None of the information on the Group’s website is incorporated in, or
otherwise forms part of, this Annual Financial Report.
Annual General Meeting
The AGM is an opportunity for shareholders to hear directly from the Board
on the Group’s performance and developments of interest for the year to
date and, importantly, to ask questions.
All shareholders of the Company are invited to attend the AGM. Separate
resolutions are proposed on each separate issue and voting is conducted
by way of a poll. The votes for, against and withheld on each resolution
are subsequently published on the Group’s website. It is usual for all
Directors to attend the AGM and to be available to meet shareholders
before and after the meeting. The Chairs of the Board Committees are
available to answer questions about the Committee’s activities.
A helpdesk facility is available to shareholders attending the AGM.
The Company’s 2026 AGM is scheduled to be held on 30 April 2026.
It is intended that Notice of the Meeting will be made available on the
Group’s website and sent in hard copy to those shareholders who request
it, at least 20 working days before the meeting, in accordance with the
Financial Reporting Council’s Board Effectiveness guidelines. The location
of the meeting and attendance options will be communicated with the
distribution of the aforementioned Notice.
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Other Governance Information
Throughout 2025, the Group worked with its regulators including the
European Central Bank; the CBI and the Data Protection Commission in
Ireland, the Prudential Regulation Authority (PRA), the Financial Conduct
Authority (FCA) and the Information Commissioner’s Office in the UK, the
New York State Department of Financial Services (NYSDFS), the Federal
Reserve Bank of New York (FRBNY), the California Department of
Financial Protection and Innovation (DFPI) and the Federal Reserve Bank
of San Francisco (FRBSF) in the USA, to ensure compliance with existing
regulatory requirements, together with the management of regulatory
change.
AIB Group plc is the holding company of Allied Irish Banks, p.l.c. (the
principal operating company of AIB Group) and, as such, AIB Group plc
is subject to consolidated supervision with respect to Allied Irish Banks,
p.l.c. and other credit institutions and investment firms in the Group.
Allied Irish Banks London Branch was approved by the PRA/FCA as
an incoming third country branch to operate in the UK post-Brexit.
Current climate of regulatory change
Regulatory change remained high in 2025 as the regulatory landscape for
the banking sector continued to evolve and the Group’s regulators
continued to focus on regulatory change implementation.
The Group is committed to proactively identifying regulatory obligations
arising in each of the Group’s operating markets in Ireland, the UK and the
USA, ensuring the timely implementation of regulatory change.
Throughout 2025, the Group focused on:
• preparing for the forthcoming EU Anti-Money Laundering (AML) Reform
package;
• key legislative initiatives in payments (including Instant Payments and
planning for the revised EU’s Payments Services Directives);
• amendments to primary EU conduct of business legislation (including
the Consumer Credit Directive and Distance Marketing Directive);
• finalisation by the CBI of the revised Consumer Protection Code;
• the introduction of new requirements concerning access to and
acceptance of cash; and
• new EBA Guidelines on ESG Risk Management and ongoing regulatory
guidance.
The Group also closely monitored evolving sanctions legislation which, in
a European, UK and USA context, saw continued rounds of sanctions as a
response to the war in Ukraine.
The level of regulatory change is expected to remain high in 2026 and
beyond, with the implementation of the significantly updated Consumer
Protection Code a key focus, along with the new Financial Data Access
regulation (FiDA) and key legislative changes in the area of Payments
(Payments Services Directive/Payments Services Regulation). Other key
regulatory change items include the introduction of an EU Digital Identity
Wallet, a revised Consumer Credit Directive and progress with implementing
new AI regulation. The Group will also be focused on our preparations for the
new EU AML Single Rulebook which is due to go live in 2027.
United Kingdom & London Branches
In 2025, AIB Group (UK) p.l.c. continued to prioritise compliance with its
regulatory obligations in Great Britain and Northern Ireland and will remain
focused on this throughout 2026.
In previous years, the UK regulatory regime remained closely aligned with
EU regulation. Divergence has now become a factor, with UK regulators
focused on ‘smarter’ and growth-oriented regulation, intended to make
the UK attractive to business.
2025 saw the publication of a number of strategic plans and work
programmes from the FCA and PRA, with both regulators continuing to
focus on similar strategic priorities including growth and competitiveness,
consumer protection under the Consumer Duty, operational resilience
and technology and AI. There were also significant levels of guidance and
policy papers on Financial Crime, including the National Risk Assessment
of Money Laundering and Terrorist Financing 2025.
2025 also saw the announcement that the UK Payment Systems Regulator
is being abolished, its functions consolidated to the FCA and the Bank of
England, as part of the FCA plan to reduce regulatory complexity and
stimulate economic growth.
2025 saw the final deadline for implementing all aspects of operational
resilience and work now needs to continue in firms to evolve frameworks
to continue to prevent intolerable harm as operational resilience sits at
the heart of how trust is deepened in financial services. The FCA has set
out its support for safe and responsible adoption of AI to drive innovation,
benefit consumers and markets and support growth and competitiveness
and intends to use existing frameworks such as Consumer Duty to
manage the risks associated with using AI. Consumer Duty is now central
to the FCA’s approach in its attempts to simplify and streamline regulatory
requirements. The embedding of Consumer Duty requirements continues,
with focus moving to how firms are evidencing good customer outcomes.
The FCA also remains focused on environmental claims and will regulate
ESG ratings providers from 29 June 2028.
United States
Compliance with federal and state banking laws
and regulations
AIB New York continues to prioritise compliance with its regulatory
obligations in the USA and will remain focused on this throughout 2026.
The level of regulatory change remained high in 2025.
AIB New York continues to maintain the annual attestation of compliance
to the NYSDFS for the AML and Sanctions (DFS 504) and Cybersecurity
(DFS 500) Programmes and to the FRB for its Security and Resiliency
requirements.
California has passed climate reporting legislation and AIBNY continues to
monitor legal challenges to the laws and related guidance or regulations.
New York State also proposed similar climate legislation and AIBNY will
continue to engage with AIB Group on meeting regulatory expectations.
Expanded use of digital payments, crypto and digital assets has increased
the need for defined regulatory authority around key risk areas.
Regulatory focus on Liquidity Risk Management, AML & Sanctions,
Climate and Cybersecurity & Resiliency continues in 2026, with regulatory
developments related to reputational risk and debanking arising at the
federal level and climate laws and third party management guidance a
focus at the state level. The NYSDFS finalised its second amendment to its
23 NYCRR Part 500 (Cybersecurity Rules) in 2023. The new compliance
requirements were implemented throughout 2024-2025.
While the scope of the beneficial owner reporting requirement has been
limited and now covers only foreign entities registered to do business in
the USA, several requirements arising out of the Anti-Money Laundering
Act 2020 that will continue to be a focus in 2026 and beyond.
AIB New York successfully worked with the California DFPI to meet all
regulatory requirements to open a San Francisco Representative Office in
2025. The Representative Office is jointly supervised by the California
DFPI and the FRBSF.
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Supervision and Regulation
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Risk
Management
In this section
1.
Risk Management Approach
178
1.1
Risk strategy
178
1.2
Risk governance and oversight
178
1.3
Identification and assessment
179
1.4
Management, monitoring and reporting
180
1.5
Risk culture
181
1.6
Control environment
181
2.
Individual Risk Types
182
2.1
Credit risk
182
2.1.1 Credit risk – Credit exposure overview
182
2.1.2 Credit risk – Credit profile of the loan portfolio
201
2.1.3 Credit risk – Impairment and write-offs
210
2.1.4 Credit risk – Asset class analysis
212
2.1.5 Credit risk – Credit ratings
220
2.1.6 Credit risk – Forbearance overview
221
2.2
Market and equity risk
223
2.3
Liquidity and funding risk
227
2.4
Capital adequacy risk
233
2.5
Information security (including cyber) risk
233
2.6
Business model risk
234
2.7
Operational and resilience risk
235
2.8
Climate and environmental risk
236
2.9
Model & AI risk
237
2.10 Culture risk and conduct risk
237
2.11 Regulatory compliance risk
239
The information below in sections, paragraphs or tables denoted as audited in sections 2.1 to 2.11 in the Risk Management Report forms an integral part
of the audited financial statements as described in note 1 (c) to the financial statements. All other information, including tables, in the Risk Management
Report are additional disclosures and do not form an integral part of the audited financial statements.
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1. Risk Management Approach
1. Introduction
The risk summary on pages 16 to 19 provides an overview of the Group’s
core risk management principles, the key developments in 2025 and risk
management and mitigants. This Risk Management section provides an
in-depth picture of how risk is managed within the Group. An analysis of
the Principal Risk categories are set out on pages 182 to 239, including the
framework by which risks are identified, managed, monitored and reported.
Each Principal Risk category is described using standard headings.
The Group uses a comprehensive risk management approach across all
risk types. This in outlined in the Group's Risk Management Framework
(RMF) including the key practices that are implemented in managing risks.
The framework is reviewed, updated and approved by the Board at least
annually to reflect any changes to the Group’s business or consideration
of external regulations, corporate governance requirements and industry
best practice. A key part of the overarching RMF are the individual
Frameworks and Policies. A Risk Framework is an overarching document
that outlines the governance and oversight of the management of financial
and non-financial risks. A Risk Policy is a document which supports a Risk
Framework and provides the details on the management of a specific risk
and the rules that must be followed to appropriately manage the risk
within agreed risk appetite.
The Group’s independent Risk function designs and maintains the
framework. The Risk function is led by the Chief Risk Officer (CRO) who
provides oversight and monitoring of all risk management activities.
1.1 Risk strategy
Risk strategy setting
The following section sets out at a high level the approach to Risk strategy
setting applicable across the Group, its subsidiaries and joint ventures.
The Group has a set of strategic risk objectives which supports the delivery
of the Group’s strategy. A Risk Plan is developed by the risk function and is
designed to align to the Group’s strategy, with enhanced oversight
of compliance with regulation and involvement in the development,
implementation, and safe execution of the Group’s strategy. The Group’s
Risk Appetite Statement (RAS) defines the amount and type of risk that the
Group is willing to accept, in pursuit of its strategic goals.
The focus of the Group’s strategic cycle is centred around customers’ needs
and anchored in a progressive sustainability agenda. See Our Strategy on
pages 14 to 15. Sustainability is a key strategic objective of the Group and
Sustainable Communities is one of the Group’s three strategic priorities.
1.2 Risk governance and oversight
The Group’s Governance and Organisation Framework encompasses the
leadership, direction and control of the Group, reflecting policies,
guidelines and statutory obligations. This ensures that control
arrangements provide appropriate governance of the Group’s strategy,
operations and mitigation of related material risks. This is achieved through
a risk governance structure designed to facilitate the reporting, evaluation
and escalation of risk concerns from business segments and control
functions to the Board and its appointed committees and sub-committees.
Board of Directors
The Board of Directors is ultimately responsible and accountable for the
effective management of risks and for the system of internal controls
in the Group. The Board has delegated a number of risk governance
responsibilities to various committees. The roles of the Board, the Board
Audit Committee, the Board Risk Committee (BRC), the Remuneration
Committee, Sustainable Business Advisory Committee, Technology and
Data Advisory Committee and the Nominations and Corporate
Governance Committee are all set out in the Governance report on pages
117 to 175.
Executive Leadership Team (ELT)
The ELT is the most senior management leadership team and has primary
authority and responsibility for the day-to-day operations of and the
development of strategy for the Group. Further information is provided in
the Governance report on page 128.
Group Risk Committee (GRC)
The GRC is the most senior management risk committee and is
accountable to the ELT to set policy and monitor all risk types across the
Group to enable delivery of the Group’s strategy.
The roles and responsibilities of the GRC are:
• Reviewing and approving (or recommending to the Board and/or its sub-
committees where appropriate) risk frameworks, risk appetite
statements, risk policies and thresholds in order to manage the risk
profile of the Group;
• Monitoring and reviewing the Group’s risk profile (enterprise wide);
• Periodically reviewing the effectiveness of the Group’s risk
management policies in identifying, evaluating, monitoring, managing
and measuring significant risks;
• Providing oversight and challenge of regulatory, operational
and conduct risk related matters;
• Providing oversight and challenge of credit risk management related
matters and periodically reviewing the credit portfolio exposures
and trends;
• Providing oversight and challenge of risk measurement matters;
• Overseeing the development of the Group’s risk management culture;
• Monitoring and reviewing the Group’s risk profile and the business
segment limits for equity risk;
• Considering the annual Money Laundering Reporting Officer’s report;
and
• Considering and assessing management’s response to Group Internal
Audit findings.
The sub-committees of the GRC are as follows:
• The Group Credit Committee (GCC) is responsible for developing and
monitoring credit policy within the Group and approval of all large credit
transactions. The Credit Committees under GCC exercise approval
authority in line with the relevant Credit Approval and Review
Authorities for the business areas;
• The Group Internal Ratings Based Committee ensures delivery of the
commitments set out in the Internal Rating Based (IRB) IRB Enterprise
Plan;
• The Regulatory Culture and Conduct Risk Committee is responsible for
the governance and oversight of regulatory and conduct risks;
• The Model Risk Committee reviews the technical and methodological
aspects of the Group’s material models as well as maintenance of
existing material models and approval of less material models;
• The Operational Risk Committee is responsible for the governance and
oversight of operational risks.
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Risk Management
1.2 Risk governance and oversight continued
Group Asset and Liability Management Committee (ALCo)
ALCo has been established as a sub-committee of the ELT. ALCo is the
Group’s strategic and business decision making forum for balance sheet
management matters. ALCo is tasked with decision-making in respect of
the Group’s balance sheet structure, including capital, funding, liquidity,
interest rate risk in the banking book from an economic value and net
interest margin (NIM) perspective, foreign exchange (FX) hedging risks
and other market risks to ensure it enables the delivery of the Group’s
Strategic Plan. ALCo provides oversight of funding and liquidity, capital,
market and equity/investments risk as well as balance sheet pricing in line
with the relevant risk frameworks and policies in accordance with risk
appetite. ALCo also monitors, reviews and makes decisions regarding
key legal, regulatory and accounting developments affecting the
measurement and control of balance sheet risks and capital. ALCo is
supported by its three subcommittees: Equity Investment Committee;
the Stress Testing & Scenarios Committee; and the Asset and Liability
Management Technical Committee (ALMTC).
Data governance
Data governance and quality is of prime importance to the risk
management process. It supports all stages of risk lifecycle and lays
the base for sound decision making. The Group’s principles for data
governance are in the Data Framework. The framework enhances the
monitoring of material risks, risk metrics and mitigates the risk of
inadequate data and risk reporting leading to poor decision making by the
Board and senior management.
1.3 Identification and assessment
Risk is identified and assessed in the Group through a combination
of on-going risk management practices including the following:
• Material Risk Assessment (MRA);
• Risk and Control Assessment (RCA);
• Integrated Financial Plan;
• Internal Capital Adequacy Assessment Process (ICAAP);
• Internal Liquidity Adequacy Assessment Process (ILAAP);
• Stress testing & Scenario Analysis;
• Recovery planning; and
• Resolution planning.
Material Risk Assessment (MRA)
The MRA is a top down process performed on at least an annual basis for
the Group which identifies the key Principal Risks and the identification
of Evolving and Emerging Risks. This assessment makes use of horizon
scanning and takes into account the Group’s strategic objectives and
incorporates both internal and external risk information. The Board is
responsible for the annual approval of the Group’s MRA.
Risk and Control Assessment (RCA)
The first line of defence (1LOD) is responsible for ensuring that
detailed bottom-up RCAs are undertaken for all businesses or business
processes falling under their responsibility. These assessments are
performed regularly and whenever there is a material change in
organisation, business processes or business environment.
Integrated financial plan
The financial plan is integral to how the Group manages its business and
monitors performance. It informs the delivery of the Group’s strategy and
is aligned to its risk appetite. It enables realistic business objectives to be
set for management, identifies accountability in the Group’s delivery of
planning targets and identifies the risks to the delivery of the Group’s
strategic goals as well as the mitigants of those risks. The plan is produced
under a base scenario and assessed under a range of alternative
scenarios over a three-year time horizon. This assessment forms the basis
for consideration of business model risk and internal capital adequacy.
Internal Capital Adequacy Assessment Process (ICAAP)
This is the Group process to ensure adequate capital resources are
maintained at all times, having regard to the nature and scale of its
business and the risks arising from its operations. The ICAAP is the
process by which the Group performs a formal and rigorous assessment
of its balance sheet, business plans, risk profile and risk management
processes to determine whether it holds adequate capital resources to
meet both internal objectives and external regulatory requirements.
Multiple scenarios are considered in the ICAAP, including both systemic
and idiosyncratic stress tests ranging from moderate to extreme, and are
informed by the Group’s material risks as identified through its MRA. The
stress time horizon of three years is aligned with the planning horizon.
Internal Liquidity Adequacy Assessment Process (ILAAP)
The ILAAP is a process by which the Group performs a formal and rigorous
assessment of its balance sheet, business plans, risk profile and risk
management processes to determine whether it holds sufficient liquid
resources of appropriate quality to meet both internal objectives and
external regulatory requirements. Multiple scenarios are considered for
each ILAAP including both firm specific, systemic risk events and
a combination of both to ensure the continued stability of the Group’s
liquidity position within the Group’s pre-defined liquidity risk tolerance
levels. The stress time horizon of three years is aligned with the
planning horizon.
Stress testing
Stress testing is recognised as a key risk management process within the
Group. It seeks to ensure that risk assessment is dynamic and forward
looking, and considers not only existing risks but also potential and
emerging threats. Stress test methodologies are developed to assess the
material risks identified in the MRA process.
The Group’s stress testing programme embraces a range of forward
looking stress tests and takes all the Group’s material risks into account.
The type of stress tests include:
• ICAAP stress testing undertaken on an annual basis and is integrated
with the Group’s annual financial planning process. This aims to
highlight the key vulnerabilities of the Group and inform potential future
capital needs including capital buffers, in excess of minimum
regulatory capital requirements, and internal capital requirements
under both base and stressed conditions over the planning horizon;
• Internal capital stress tests on all of the material risks of the Group.
These consider the implications of a severe shock across the Group’s
material risks and additional supporting scenarios as deemed
appropriate;
• Annual ILAAP stress testing applied to the funding and liquidity plan to
formally assess the Group’s liquidity risks;
• Internal liquidity stress tests which are performed weekly;
• The climate stress testing approach considers the impact of physical
and transition risks across a number of scenarios on the Group’s
exposures. The initial scope of climate stress testing activities and
climate modelling in the Group is primarily focused on the credit risk
implications for the loan portfolio;
• Reverse stress testing undertaken at least annually to explore the
vulnerabilities of the Group’s strategies and plans in extreme adverse
events that would cause the Group to fail. If necessary the Group will
adopt an action plan to prevent and mitigate these risks;
• Annual recovery stress tests which use scenarios to assess the
adequacy of recovery indicators of both capital and liquidity in
identifying the onset of a period of stress and the recovery plan options
used to exit that stress;
• Ad hoc stress testing on key core portfolios as required. This can
include emerging risks identified from the MRA process and as well as
in response to regulatory requests;
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1.3 Identification and assessment continued
Stress testing continued
• Sensitivity analysis assesses the marginal impact of an incremental
change in one risk parameter on the Group’s capital and liquidity
position; and
• Subsidiary stress tests conducted on in-scope subsidiaries subject to
individual regulatory capital requirements.
Stress testing methodology
Across all of the Group’s material risks, the methodology is an appropriate
blend of model based and expert judgement approaches. Assumptions
and outputs are reviewed by impacted businesses and central functions,
and via Risk review, to ensure they are plausible and intuitive. All models
used in the stress testing process are subject to model validation as per
the Group’s Model and AI Risk Management Framework. The stress tests
comply with all regulatory requirements, achieved through the
comprehensive review and challenge of macroeconomic scenarios and
stress test outcomes, as well as the ongoing validation requirements
of stress testing models.
Recovery planning
The Group’s recovery plan sets out the arrangements and measures that
the Group could adopt in the event of severe financial stress to restore the
Group to long term viability. A suite of indicators and options are included
in the Group’s recovery plan, which together ensures the identification of
stress events and the tangible mitigating actions available to the Group to
restore viability.
Resolution planning
Resolution is the restructuring of a bank (by a resolution authority) given that
the bank has failed or is likely to fail. A number of resolution tools in order to:
• Safeguard the public interest;
• Ensure the continuity of the Group’s critical functions;
• Ensure financial stability in the economy in which it operates; and
• Minimise costs to taxpayers.
The Group is under the remit of the Single Resolution Board (SRB) due to its
systemic importance. The SRB, in cooperation with the National Resolution
Authorities (Central Bank of Ireland for Ireland and Bank of England for the
UK), draft the resolution plan for the Group. The resolution plan describes
the Preferred Resolution Strategy (PRS), in addition to ensuring the
continuity of the Group’s critical functions and the identification and
addressing of any impediments to the Group’s resolvability.
The PRS for the Group is a single point of entry bail-in. The resolution
authorities set the loss absorbing capacity requirements for Minimum
Requirements for own funds and Eligible Liabilities (MREL), in addition to
any work programmes required to mitigate any perceived impediments to
resolvability. Senior management are responsible for implementing the
measures that are needed to ensure the Group’s resolvability. There are a
number of governance fora such as subject matter working groups and a
Resolution Steering Committee that provides governance and oversight
around resolution planning. The Risk function liaises with the Resolution
Planning Team to provide oversight over the Resolvability Programme to
ensure that deliverables are being met as set out within the Board
approved project plan and as outlined by regulatory guidelines.
1.4 Management, monitoring and reporting
Setting risk appetite
The Board sets the risk appetite for the Group informed by the material risk
assessment. Risk appetite is the nature and extent of risk that the Group
is willing to take, accept, or tolerate, in pursuit of its business objectives
and strategy. It also informs the Group’s strategy, and as part of the RMF,
is a boundary condition to strategy and guides the Group in its risk taking
and related business activities. The financial plan is tested to ensure risk
appetite adherence. The Group’s risk profile is measured against its risk
appetite and exceptions are reported to the GRC and BRC through the
CRO report.
The Group RAS is an articulation of the Group’s appetite for, and tolerance
of risk, expressed through qualitative statements and quantitative limits
and thresholds. The Group RAS seeks to encourage appropriate risk taking
to ensure that risks are consistent with the Group strategy and risk
appetite. The Group RAS cascades into key business segments with
separate Risk Appetite Statements for each licensed subsidiary reflecting
the risk appetite of the subsidiary as a standalone entity. Material
breaches of risk appetite are escalated to the Board and reported to the
Central Bank of Ireland/Joint Supervisory Team (JST).
Risk measurement
Each of the material risks has a specific approach to how the risk is
measured. The Group RAS and the separate Risk Appetite Statements for
the licensed subsidiaries contain metrics which are measured on a
monthly basis against the thresholds set.
Risk management
The material risk types are actively managed and measured against their
respective frameworks, policies and processes on an ongoing basis. The
management and measurement of the Group’s risk profile also informs
the Group’s strategic and operational planning processes.
Risk reporting
Risk reporting facilitates management decision making and is a critical
component of risk governance and oversight. Risk reporting processes are
in place for each of the material risks under the relevant risk frameworks
and policies. This enables management, governance committees and
other stakeholders to oversee the effectiveness of the risk management
processes, adherence to risk policies, and (where relevant) adherence to
regulatory requirements.
The CRO reports actual performance against Risk Appetite Statements to
the Board Risk Committee. A material breach of a Risk Appetite Statement
limit is reported to the Board and the Group’s regulator when appropriate.
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Risk Management continued
1.5 Risk culture
Risk culture is an integral part of the Group’s overall culture and plays
a crucial role for the Group to achieve its strategic objectives. The risk
culture defines how risk is managed and owned throughout the Group.
It is the values, behaviours, beliefs, knowledge, attitudes, awareness
and understanding of, and towards risk shared by individuals. It sets the
foundation for how the Group manages risk in a consistent and coherent
manner. An effective Group RAS is highly dependent on risk culture. Risk
culture is one of the key elements of the Group’s RMF. It is through the risk
framework and policy documents that an awareness of risk and control
is set and cascaded throughout the Group, including a Culture and
Conduct Risk Framework which emphasises the criticality of ensuring
fair customer outcomes.
The Group’s promotion of risk learning through recommended risk training
and education supports the embedding of risk culture. These ongoing
activities are supported by an annual Group wide risk awareness week to
reinforce key risk themes.
1.6 Control environment
Three lines of defence model (3LOD)
The Group operates a 3LOD which defines clear responsibilities and
accountabilities and ensures effective independent oversight and
assurance activities take place covering key decisions. The 1LOD lies with
the business line who are required to have effective governance and control
frameworks in place for their business and to act within the risk appetite
parameters set out. The second line of defence (2LOD) comprises the Risk
function, and oversees the first line, providing independent constructive
challenge, setting the frameworks, policies and limits, consistent with the
risk appetite of the Group. The third line of defence comprises Group
Internal Audit who provide an independent view on the key risks facing
the Group, and the adequacy and effectiveness of governance, risk
management and the internal control environment in managing these risks.
The Board and its sub committees, the BRC and Board Audit Committee
(BAC) are ultimately responsible for ensuring the effective operation of the
3LOD. They are supported by the ELT and its sub-committees. The Terms
of References for both the BRC and BAC are available on the
Group’s website.
The Board is accountable for the system of internal controls. Please refer
to the Internal Controls section on pages 166 and 167 for further details.
Assurance testing
The Group has implemented testing and assurance activities with the
objective to provide assurance to the Board, and its delegated sub-
committees, on the design and operating effectiveness of the control
environment within the Group. The material risk types are continuously
tested and assured in line with the Group assurance methodology, which
distinguishes between risk management, risk control and risk assurance.
Each line of defence is responsible for preparing business controls testing
plans with consideration of the materiality of the risk identified and the
design and effectiveness of the controls in place. Aligned assurance is the
coordination of assurance activities across the 2LOD and 3LOD, while
maintaining demarcation of roles and responsibilities. Aligned assurance
aims to optimise activities and to enable an effective control environment,
focused on key risk areas, delivered in an efficient manner, reducing
duplication of effort and minimisation of the impact on the areas under
review and is linked with the Group’s strategy with the objective to provide
better co-ordinated efforts, risk reporting, and to continuously improve
performance and resilience.
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2. Individual Risk Types
2.1 Credit risk
Key developments in 2025:
• The credit quality of the lending portfolio has remained stable during the year as the Irish economy continued to show resilience despite a
challenging international backdrop.
• New lending activity remained in line with targeted quality levels, with 43% of total new lending relating to green and transition lending, consistent
with the Group’s ongoing strategy to support sustainable finance.
• Expected credit losses (ECLs) continue to reflect the Group’s proactive stance on emerging risks while maintaining a comprehensive and forward
looking approach to assessing the credit environment, ensuring that the level of ECL stock remains appropriate.
Definition of credit risk
Credit risk is the risk that the Group will incur losses as a result of a
customer or counterparty being unable or unwilling to meet their
contractual obligations and associated bank credit exposure in respect
of loans or other financial transactions.
Based on the annual risk identification and materiality assessment
process, credit risk is grouped into the following three sub-categories:
(i)
Credit default risk: The risk of losses arising as a result of the
borrower, issuer, or derivative counterparty not meeting their
contractual obligations in full and on time and the resulting credit
default risk/risk of loss leading to a risk to capital including residual
risk (which is the risk that credit risk mitigation techniques used by the
Group prove less effective than expected);
(ii) Concentration risk: The risk of excessive credit concentration
including to an individual, counterparty, group of connected
counterparties, industry sector, a geographic region, country, a type
of collateral or a type of credit facility; and
(iii) Country risk: The risk of having exposure to a country, arising from
possible changes in the business environment that may adversely
affect operating profits or the value of assets related to the country.
Credit risk exposure derives from standard on-balance sheet products
such as mortgages, loans, overdrafts and credit cards. However, credit
risk also arises from other products and activities including, but not
limited to: ‘off-balance sheet’ guarantees and commitments; securities
financing; derivatives; investment securities; asset backed securities and
partial failure of a trade in a settlement or payment system.
Group Risk Appetite Statement
The Group’s Risk Appetite Statement (RAS) sets out the total amount and
types of risk the Group is willing to accept in order to achieve its business
goals, as determined by the Board. It acts as a boundary for strategy and
guides all risk-taking and business activities. The Board defines credit risk
appetite, which is described, tracked and reported using both qualitative
and quantitative metrics. These metrics cover credit default risk,
concentration risk, and country risk, and include limits on new lending,
total exposure, and credit quality. The Group regularly stress tests its risk
appetite to ensure it stays within its capacity for risk. The credit risk
appetite is reviewed and approved by the Board at least once a year.
Group Credit Risk Framework (audited)
The Group implements and operates policies to govern the identification,
assessment, approval, monitoring and reporting of credit risk. The Group
Credit Risk Framework is the overarching Board approved document
which sets out the principles of how the Group identifies, assesses,
approves, monitors and reports credit risk to ensure that robust credit risk
management is in place. This document contains the minimum standards
and principles that are applied across the Group to provide a common,
robust and consistent approach to the management of credit risk. The
Group Credit Risk Framework is supported by a suite of credit policies,
standards and guidelines which define in greater detail the minimum
standards and credit risk metrics to be applied for specific products,
business lines and market segments.
Credit risk management
Credit Risk, as an independent risk management function, monitors key
credit risk metrics and trends, including policy exceptions and breaches,
reviews the overall quality of the loan book, challenges variances to
planned outcomes and tracks portfolio performance against agreed credit
risk indicators. This allows the Group, if required, to take early and
proactive mitigating actions for any potential areas of concern.
The activities which govern the management of credit risk within the Group
are as follows:
• Establish governance authority fora to provide independent oversight
and assurance to the Board with regard to credit risk management
activities and the quality of the credit portfolio;
• Formulate, implement and effectively communicate a comprehensive
credit risk strategy that is viable through various economic cycles,
supported by appropriate credit risk policies, which is aligned to the
Group’s approved RAS and generates appropriate returns on capital
within acceptable levels of credit quality;
• Operate within a sound and well defined credit granting process, within
which, risks for new and existing lending exposures, including
connected exposures, are consistently identified, assessed, measured,
managed, monitored and reported in line with risk appetite and the
credit risk policies;
• Ensure all management and staff involved in core credit risk activities
can conduct their duties to the highest standard in compliance with the
Group’s policies and procedures. Senior management ensure ongoing
training and support to staff to ensure strong competencies to effect
sound credit risk management;
• Establish and enforce an efficient internal review and reporting system
to effectively manage the Group’s credit risk including internal controls
and assurance practices to ensure that exceptions to policies,
deviations to credit standards and limits are monitored and reported in
a timely manner for review and action;
• Ensure sound methodology and credit policies are in place to proactively
assess credit risk, to identify deteriorating credit quality and to take
remedial action to minimise losses, provide customers with affordable
and sustainable solutions and maximise recovery for the Group. This
includes consideration of, and the granting of, forbearance measures;
• Utilise quality management information and risk data to ensure an
effective credit risk management and measurement process when
reporting on the holistic credit risk profile of the Group, including
changes in risk profile and emerging or horizon risks. The Group’s
monitoring techniques provide adequate information on the
composition of the credit portfolio, including the identification of any
concentrations of risk;
• Mitigate potential credit risk arising from new or amended products or
activities by designing them in line with regulatory requirements,
including the identification and analysis of existing and potential risks
inherent in any credit product or activity; and
• Develop and continuously reinforce a strong, credit risk focused culture
across the credit risk management functions through the cycle, which
supports the Group’s goals and enables business growth, provides
constructive challenge and avoids credit risks that cannot be
adequately measured.
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Risk Management continued
2.1 Credit risk continued
Credit approval overview (audited)
The Group operates credit approval criteria which:
• Include a clear indication of the Group’s target market(s), in line with
Group and segment risk appetite statements;
• Require a thorough understanding and assessment of the borrower or
counterparty, as well as the purpose and structure of credit, and the
source of repayment; and
• Enforce compliance with minimum credit assessment and facility
structuring standards.
Credit risk approval is undertaken by professionals operating within a defined
delegated authority framework. However, for certain selected retail portfolios,
scorecards and automated strategies (together referred to as ‘score enabled
decisions’) are deployed to automate and to support credit decisions and
credit management (e.g. score enabled auto-renewal of overdrafts).
The Board is the ultimate credit approval authority in the Group. The Board
has delegated credit authority to various credit committees and to the
Chief Credit Officer (CCO). The CCO is permitted to further delegate this
credit authority to individuals within the Group on a risk appropriate basis.
Credit limits are approved in accordance with the Group’s risk policies
and guidelines.
All exposures above certain levels require approval by the Group Credit
Committee (GCC) and/or Board. Other exposures are approved according
to a structure of tiered individual authorities which reflect credit
competence, proven judgement and experience. Depending on the
borrower/connection, grade and the level of exposure, limits are
sanctioned by the relevant credit authority. Material lending proposals are
referred to credit units for independent assessment/approval or
formulation of a recommendation and subsequent adjudication by the
applicable approval authority.
The Group also has in place an Interbank Exposure Policy which
establishes the maximum exposure for each counterparty bank,
depending on credit grade rating. Each bank is assessed for the
appropriate maximum exposure limit in line with the policy. Risk
generating business units in each segment are required to have an
approved bank and country limit prior to granting any credit facility, or
approving any credit obligation or commitment which has the potential to
create interbank or country exposure.
Credit risk organisation and structure (audited)
The Group’s credit risk management structure operates through a hierarchy
of lending authorities. All customer loan requests are subject to a credit
assessment process. The role of the Credit Risk function is to provide
direction, independent oversight of and challenge to credit risk-taking.
Internal credit ratings (audited)
One of the objectives of credit risk management is to accurately quantify the
level of credit risk to which the Group is exposed through the initial credit
approval and ongoing review process. All relevant exposures are assigned
to a rating model and within that to an internal risk grade (rating). A grade is
assigned on the basis of rating criteria within each rating model from which
estimates of probability of default (PD) are derived.
Internal credit grades are fundamental in assessing the credit quality of loan
exposures, and for assessing capital requirements for portfolios where prior
regulatory approval has been received. Internal credit grades are key to
management reporting, credit portfolio analysis, credit quality monitoring
and in determining the level and nature of management attention applied to
exposures. Changes in the objective information are reflected in the credit
grade of the borrower/loan with the resultant grade influencing the
management of individual loans. In line with the Group’s credit management
lifecycle, heightened credit management and special attention is paid to
lower quality performing loans or ‘criticised’ loans and non-performing/
defaulted loans, which are defined below.
Using internal models, the Group utilises a credit grading masterscale that
gives it the ability to categorise credit risk across different rating models and
portfolios in a consistent manner. The masterscale consolidates complex
credit information into a single attribute, aligning the output from the risk
models with the Group’s Forbearance and Definition of Default and Credit
Impairment policies. The masterscale grades are driven by grading model
appropriate through-the-cycle PDs combined with other asset quality
indicators such as default, forbearance and arrears in order to provide the
Group with a mechanism for ranking and comparing credit risk associated
with a range of customers.
The masterscale categorises loans into a broad range of grades which can
be summarised into the following categories: strong/satisfactory grades;
criticised grades; and non-performing/default loans. The profile of the
Group’s loan portfolio under each of the above grade categories is set out
on page 202.
The IFRS 9 PD modelling approach uses a combination of rating grades
and scores obtained from these credit risk models along with key factors
such as the current/recent arrears status or the current/recent
forbearance status and macroeconomic factors to obtain the relevant
IFRS 9 12 month and Lifetime PDs (i.e. point-in-time). The Group has set
out its methodologies and judgements exercised in determining its
expected credit loss under IFRS 9 on pages 185 to 196.
Strong/satisfactory (audited)
Accounts are considered strong/satisfactory if they have no current or
recent credit distress and the probability of default is typically less than
6.95%, they are not in arrears and there are no indications that they are
unlikely to repay:
• Strong (typically with a PD less than 0.99%): Strong credit with no
weakness evident.
• Satisfactory (typically with a PD greater than or equal to 0.99% and less
than 6.95%): Satisfactory credit with no weakness evident.
Criticised (audited)
Accounts of lower credit quality and considered as less than satisfactory
are referred to as criticised and include the following:
• Criticised watch: The credit is exhibiting weakness in terms of credit
quality and may need additional management attention; the credit may
or may not be in arrears.
• Criticised recovery: Includes forborne cases that are classified
as performing including those which have transitioned from
non-performing forborne, but still require additional management
attention to monitor for re-default and continuing improvement in terms
of credit quality.
Non-performing/default (audited)
The Group’s definition of default is aligned with the EBA’s ‘Guidelines on
the application of the definition of default’ under Article 178 of the Capital
Requirements Regulation and the ECB Banking Supervision ‘Guidance to
banks on non-performing loans’.
The Group has aligned the definitions of ‘non-performing’, ‘classification
of default’ and IFRS 9 Stage 3 ‘credit impaired’, with the exception of loans
measured at fair value through profit or loss, and those loans which have
been derecognised and newly originated in Stage 1 or POCI (purchased or
originated credit impaired) which are no longer classified as credit
impaired but continue to be classified as non-performing and in default.
This alignment ensures consistency with the Group’s internal credit risk
management and assessment practices.
Loans are identified as non-performing or defaulted by a number of
characteristics. The key criteria resulting in a classification of non-
performing are:
• Where the Group considers a borrower to be unlikely to pay their loans
in full without realisation of collateral, regardless of the existence of any
past-due amount; or
• The borrower is 90 days or more past due on any material loan. Day
count starts when any material amount of principal, interest or fee has
not been paid by a borrower on the due date.
The criteria for the definition of financial distress and forbearance are
included in the Group’s Forbearance Policy. Criteria for the identification
of non-performing exposures and unlikeliness to pay are included in the
Group’s Definition of Default and Credit Impairment Policy.
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2.1 Credit risk continued
Credit risk monitoring (audited)
The Group has developed and implemented processes and information
systems to monitor and report on individual credits and credit portfolios in
order to manage credit risk effectively. There was significant investment by
the Group during 2025 as part of the annual review of the Group Credit
Management Policy. This review incorporated material changes to reflect
the introduction of the revised Credit Management Lifecycle. It is the
Group’s practice to ensure that adequate up-to-date credit management
information is available to support the credit management of individual
account relationships and the overall loan portfolio. Credit risk, at a
portfolio level, is monitored using key risk indicators and early warning
indicators which are reported regularly to senior management and to the
Board Risk Committee. Credit managers proactively manage the Group’s
credit risk exposures at a transaction and relationship level. Monitoring
includes credit exposure and excess management, regular review of
accounts, being up-to-date with any developments in customer business,
obtaining updated financial information and monitoring of covenant
compliance. This is reported on a regular basis to senior management and
includes information and detailed commentary on loan book growth,
quality of the loan book and expected credit losses including individual
large non-performing exposures.
Changes in sectoral and single name concentrations are tracked on
a regular basis highlighting changes to risk concentration in the Group’s
loan book. The Group allocates significant resources to ensure ongoing
monitoring and compliance with approved risk limits. Credit risk, including
compliance with key credit risk limits, is monitored monthly and is
periodically reported to senior management and to the Board Risk
Committee. Once an account has been placed on a watch list, the
exposure is carefully monitored and where appropriate, exposure
reductions are effected.
As a matter of policy, non-retail facilities are subject to a review on, at
least, an annual basis, even when they are performing satisfactorily.
Annual review processes are supplemented by more frequent portfolio
and case review processes in addition to arrears or excess management
processes. Borrowers may be subject to an ‘unlikely to pay’ test at the
time of annual review, or earlier, if there is a material adverse change or
event in their credit risk profile.
Through a range of forbearance solutions, as outlined on page 221, the
Group employs a dedicated approach to loan workout, monitoring and
proactive management of non-performing loans. A specialised recovery
function focuses on managing the majority of criticised loans and deals
with customers in default, collection or insolvency. Their mandate is to
support customers in difficulty while maximising the return on non-
performing loans. Whilst the basic principles for managing weaknesses
in corporate, commercial and retail exposures are broadly similar, the
solutions reflect the differing nature of the assets. Further details on
forbearance are set out in section 2.1.6 - Forbearance overview.
Credit risk mitigants (audited)
The perceived strength of a borrower’s repayment capacity is the primary
factor in granting a loan. However, the Group uses various approaches to
help mitigate risks relating to individual credits, including transaction
structure, collateral and guarantees. The main types of collateral for loans
and advances to customers are described under the following section on
collateral. Credit policy and credit management standards are controlled
and set centrally by the Credit Risk function.
Occasionally, credit derivatives are purchased to hedge credit risk.
Current levels are modest and their use is subject to the normal credit
approval process.
The Group enters into netting agreements for derivatives with certain
counterparties, to ensure that in the event of default, all amounts
outstanding with those counterparties will be settled on a net basis.
Depending on the size of the potential exposure derivative transactions
with wholesale counterparties are typically collateralised under a
Credit Support Annex in conjunction with the International Swaps and
Derivatives Association (ISDA) Master Agreement.
Collateral (audited)
Collateral and/or guarantees are generally taken as a secondary source of
repayment in the event of borrower default, in accordance with Group
lending policies.
The principal collateral types for loans and advances are:
• Charges over business assets such as premises, inventory and receivables;
• Charges over other plant and machinery and marine vessels;
• Mortgage or legal charge over residential and commercial property; and
• Charges over financial instruments such as debt securities and equities.
Collateral requirements vary by facility type, term and exposure amount. Debt
securities and treasury products are typically unsecured, except for asset
backed securities, which are secured by a portfolio of financial assets.
Collateral is not usually held against loans/advances to banks or central
banks, except where securities are held within reverse repurchase or
securities borrowing transactions, where collateral agreement is governed
by master netting agreements or where the bank purchases covered bonds.
Where collateral is taken for non-mortgage/non-property lending, it will
typically include a charge over the business assets such as inventory and
accounts receivable. A charge over property collateral or a personal
guarantee supported by a lien over personal assets may also be taken.
Valuations or business appraisals from independent external professionals
are utilised in many cases where cash flows arising from the realisation of
collateral are included in the expected credit loss assessments.
Methodologies for valuing collateral (audited)
Details on the valuation rule methodologies applied and processes used
to assess the value of property assets taken as collateral are described in
the Group Property Valuation Policy and are subject to an annual review.
As property loans, including residential mortgages, represent a significant
concentration within the Group’s loans and advances to customers
portfolio, some key principles have been applied in respect of the
valuation of property collateral held by the Group.
The value of property collateral is assessed at loan origination and at
certain stages throughout the credit lifecycle in accordance with the
Group Property Valuation Policy, e.g. at annual review, where required.
In accordance with the Group Property Valuation Policy, the valuation
approaches follow Global International Valuation Standards for secured
lending purposes. All valuations undertaken by the Group’s panel of
valuers must adhere to the valuation approaches outlined in these
standards. The Group employs a number of methods to assist in reaching
appropriate valuations for property collateral held:
(a) External valuation firms on the Group’s Valuers Panel, are engaged by
the Group to undertake valuations of immovable property collateral in
accordance with the rules set out in the Group Property Valuation Policy.
(b) Independent professional internal valuations are completed in limited
circumstances (e.g. agricultural land) using a desktop valuation
approach by professionally qualified internal valuers who are
independent of the credit process in the 2LOD. The assets being
valued by this means must have an independent professional external
valuation completed within the past three years.
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Risk Management continued
2.1 Credit risk continued
Credit risk mitigants continued (audited)
Collateral and ECLs (audited)
Applying one or a combination of the above methodologies, in line with the
Group Property Valuation Policy, has resulted in an appropriate range of
adjustments to original collateral valuations, influenced by the nature,
status and year of purchase of the asset. The frequency and availability
of such up-to-date valuations remain a key factor in ECL determination.
Additionally, relevant costs likely to be associated with the realisation of
the collateral are taken into account in the cash flow forecasts. The
spread of discounts is influenced by the type of collateral, e.g. land,
developed land or investment property and also its location. The valuation
arrived at, is therefore, a function of the nature of the asset.
When assessing the level of ECL allowance required for property loans,
apart from the value to be realised from the collateral, other cash flows,
such as recourse to other assets or sponsor support, are also considered,
where available. The other key driver is the time it takes to receive the
funds from the realisation of collateral. While this depends on the type of
collateral and the stage of its development, the period of time to realisation
is typically one to five years but sometimes this time period is exceeded.
These estimates are periodically reassessed on a case by case basis.
When undertaking an ECL review for individually assessed cases that have
been deemed unlikely to pay, the present value of future cash flows,
including the value of collateral held, and the likely time required to realise
such collateral is estimated. An ECL allowance is raised for the difference
between this present value and the carrying value of the loan. When
multiple discounted cash flows are captured where the gross credit
exposure is ≥ €5 million (Republic of Ireland) or ≥ £5 million (UK) or cases
in scope for the Group Leveraged Lending Policy, the value of collateral is
adjusted to reflect the impacts of up and downside scenarios for these
higher value exposures.
Summary of risk mitigants by non-credit portfolios
Set out below are details of risk mitigants used by the Group in relation to
financial assets detailed in the Maximum exposure to credit risk table on
page 197.
Securities financing (audited)
In addition to the credit risk mitigants, the Group, from time to time, enters
securities financing transactions. Securities financing consists of securities
borrowing transactions, reverse repurchase agreements and securities sold
under agreements to repurchase. At 31 December 2025, the total fair value of
the collateral received was €7,339 million (2024: €6,643 million) in relation to
reverse repurchase agreements and securities borrowing transactions (note
18 to the consolidated financial statements).
Derivatives (audited)
Derivative financial instruments are recognised in the statement of
financial position at their fair value. Those with a positive fair value
are reported as assets which at 31 December 2025 amounted to €1,641
million (2024: €2,144 million) and those with a negative fair value are
reported as liabilities which at 31 December 2025 amounted to €1,408
million (2024: €1,807 million).
The enforcement of netting agreements would potentially reduce the
statement of financial position carrying amount of derivative assets and
liabilities by €1,173 million at 31 December 2025 (2024: €1,385 million).
The Group also has Credit Support Annexes (CSAs) in place which provide
collateral for derivative contracts. At 31 December 2025, €111 million
(2024: €698 million) of CSAs are included within financial assets as
collateral for derivative liabilities and €497 million (2024: €814 million) of
CSAs are included within financial liabilities as collateral for derivative
assets (note 37 to the consolidated financial statements). Additionally, the
Group has agreements in place which may allow it to net the termination
values of cross currency swaps upon occurrence of an event of default.
Investment securities
At 31 December 2025, government guaranteed senior bank debt which
amounted to €209 million (2024: €164 million) was held within the
investment securities portfolio.
Risk transfer (audited)
The Group also uses other credit risk mitigation and protection techniques
such as credit risk transfers to optimise exposure to credit risk and reduce
potential credit losses associated with credit events, such as defaults or
downgrades in credit quality. At a portfolio level, credit risk is assessed in
relation to the degree of single name, sectoral asset class and geographic
concentrations. To manage credit risk exposure in the event of emerging
risk concentrations, the risk capital implications are assessed and, where
appropriate, risk transfer options (e.g. loan disposals, securitisations,
etc.) are considered.
In December 2025, the Group executed a significant risk transfer on a
€1.97 billion portfolio of residential mortgage loans assets. This
transaction reduced the Group’s credit risk exposure, and consequently
the risk weighted assets on the reference portfolio of loan assets, through
a combination of a risk sharing whereby the subscribers of credit linked
notes assume the credit risk for €49.8 million of potential credit losses on
the reference portfolio of loan assets and a series of insurance policies
with highly rated (re)insurance companies that provide protection for the
credit risk of an additional €270.8 million of potential credit losses on the
same portfolio.
In 2024, the Group executed a significant risk transfer involving a €1 billion
portfolio (2025: €663.8 million) of corporate loan assets. That transaction
reduced the Group’s credit risk exposure and risk-weighted assets
associated with the reference portfolio through a structured risk-sharing
arrangement. Under that arrangement, credit linked note subscribers
accepted credit risk for up to €97.5 million (2025: €64.7 million) in
potential losses on the reference portfolio.
Measurement, methodologies and judgements
Introduction (audited)
The Group has set out the methodologies used and judgements exercised
in determining its expected credit loss allowance for the year to 31
December 2025.
The Group, in estimating its ECL allowance, does so in line with the
expected credit loss impairment model as set out by the International
Financial Reporting Standard (IFRS) 9 Financial Instruments (‘the
standard’). This model requires a timely recognition of ECL across the
Group. The standard does not prescribe specific approaches to be used in
estimating ECL allowance, but stresses that the approach must reflect the
following:
• An unbiased and probability weighted amount that is determined by
evaluating a range of possible outcomes;
• Underlying models should be point-in-time and forward looking –
recognising economic conditions;
• The ECL must reflect the time value of money;
• A lifetime ECL is calculated for financial assets in Stages 2 and 3 and
Purchased or Originated Credit Impaired (POCI); and
• The ECL calculation must incorporate reasonable and supportable
information that is available without undue cost or effort at the
reporting date about past events, current conditions and forecasts of
future economic conditions.
The standard defines credit loss as the difference between all contractual
cash flows that are due to an entity in accordance with the contract
and all the cash flows that the entity expects to receive (i.e. all cash
shortfalls), discounted at the original effective interest rate (EIR) or an
approximation thereof.
ECLs are defined in the standard as the weighted average of credit losses
across multiple macroeconomic scenarios, with weights assigned based
on the probability of each scenario occurring, and are an estimate of
credit losses over the life of a financial instrument.
The ECL model applies to financial instruments measured at amortised
cost or at fair value through other comprehensive income. In addition,
the ECL approach applies to lease receivables, loan commitments and
financial guarantee contracts that are not measured at fair value through
profit or loss.
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2.1 Credit risk continued
Measurement, methodologies and judgements continued
Introduction continued (audited)
A key principle of the ECL model is to reflect any relative deterioration
or improvement in the credit quality of financial instruments occurring
(e.g. change in the risk of default). The ECL amount recognised as a loss
allowance or provision depends on the extent of credit deterioration since
initial recognition together with the impact on credit risk parameters.
Bases of measurement (audited)
Under the standard, there are two measurement bases:
1. 12-month ECL (Stage 1), which applies to all financial instruments from
initial recognition as long as there has been no significant increase in
credit risk; and
2. Lifetime ECL (Stages 2 and 3 and POCI), which applies when a
significant increase in credit risk has been identified on an account
(Stage 2), an account has been identified as being credit-impaired
(Stage 3) or when an account meets the POCI criteria.
Staging (audited)
Financial assets are allocated to stages dependent on credit quality
relative to when assets were originated. A financial asset, including
financial assets acquired by the Group, can only originate in either Stage 1
or POCI.
Credit risk at origination (audited)
Credit risk at origination (CRAO) is a key input into the staging allocation
process. The origination date of an account is determined by the date on
which the Group became irrevocably committed to the contractual
obligation and the account was first graded on an appropriate model.
For undrawn credit facilities, the Group uses the date of origination as the
date when it becomes party to the irrevocable contractual arrangements
or irrevocable commitment. For overdrafts which have both drawn and
undrawn components, the date of origination is the same for both. The
Group uses best available information for facilities which originated prior
to a credit risk rating model or scorecard being in place.
For accounts that originated prior to 1 January 2018, a neutral view of the
macroeconomic outlook at the time is used, i.e. where macroeconomic
variables are used in the Lifetime PD models, long-run averages are used
instead of historical forecasts.
Stage 1 characteristics (audited)
Obligations are classified Stage 1 at origination or at acquisition by the
Group, unless POCI, with a 12 month ECL being recognised. These
obligations remain in Stage 1 unless there has been a significant increase
in credit risk.
Accounts can also return to Stage 1 if they no longer meet either the Stage
2 or Stage 3 criteria, subject to satisfaction of the appropriate probation
periods, in line with regulatory requirements.
Stage 2 characteristics (audited)
Obligations where there has been a ‘significant increase in credit
risk’ (SICR) since initial recognition but do not have objective evidence of
credit impairment are classified as Stage 2. For these assets, lifetime
ECLs are recognised.
The Group assesses at each reporting date whether a significant increase
in credit risk has occurred on its financial obligations since their initial
recognition. This assessment is performed on individual obligations,
however where appropriate, a collective assessment at a portfolio level can
be undertaken. If the increase is considered significant, the obligation will
be allocated to Stage 2 and a lifetime ECL will apply to the obligation. If the
change is not considered significant, a 12 month ECL will continue to apply
and the obligation will remain in Stage 1.
SICR assessment (audited)
The Group’s SICR assessment is determined based on both quantitative
and qualitative measures:
Quantitative measure: This measure reflects an arithmetic assessment of
the change in credit risk arising from changes in the probability of default.
The Group compares each obligation’s annualised average probability
weighted residual origination lifetime probability of default (LTPD) (see
Credit risk at origination) to its current estimated annualised average
probability weighted residual LTPD at the reporting date. If the difference
between these two LTPDs meets the quantitative definition of SICR, the
Group transfers the financial obligation into Stage 2. Increases in LTPD
may be due to credit deterioration of the individual obligation or due to
macroeconomic factors or a combination of both. The Group has
determined that an account had met the quantitative measure if the
average residual LTPD at the reporting date was at least double the
average residual LTPD at origination, and the difference between the
LTPDs was at least 50bps or 85bps in the case of residential mortgages.
For lower default models, such as Treasury Debt Securities or Project
Finance, individual calibrated thresholds are applied. The
appropriateness of these thresholds are kept under review by the Group.
Qualitative measure: This measure reflects the assessment of the change
in credit risk based on the Group’s credit management and the individual
characteristics of the financial asset. This is not model driven and seeks to
capture any change in credit quality that may not be already captured by
the quantitative criteria.
The qualitative assessment reflects proactive credit management including
monitoring of account activity on an individual or portfolio level, knowledge
of client behaviour and cognisance of industry and economic trends.
The criteria for this qualitative trigger include, for example:
• A downgrade to watch grade of the borrower’s/facility’s credit grade
reflecting the increased credit management focus on these accounts;
and/or
• Forbearance has been provided and the account is within the
probationary period and the forbearance treatment does not result in
Stage 3 classification.
• Lender assessed SICR triggers: For non-retail portfolios, a suite of
lender assessed triggers are in place to ensure appropriate and timely
identification of increased credit risk, which when occur, trigger a
SICR event.
The criteria for this lender assessed trigger include, for example:
• A post distressed restructure payment default occurs where the
borrower is neither in default nor forborne;
• A material adverse event has occurred for the borrower which may
impact the borrower’s ability to repay such as: adverse publicity which
raises concerns over the viability of a business; loss of key personnel
(CEO/CFO/COO) which raises concerns over the strategy/viability of
the business or significant negative macroeconomic events (including
but not limited to economic or market volatility, changes in legislation
and technological threats to an industry, changes in access to markets)
where the financial impact to the borrower is deemed material.
• Backstop indicators: The Group has adopted the rebuttable
presumption within IFRS 9 that loans greater than 30 days past due
represent a significant increase in credit risk.
Where SICR criteria are no longer a trigger, the account can exit Stage 2
and return to Stage 1.
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Risk Management continued
2.1 Credit risk continued
Measurement, methodologies and judgements continued
Stage 3 characteristics (audited)
Defaulted loans (with the exception of newly originated or acquired loans
that are in Stage 1 or POCI) are classed as credit impaired and allocated
to Stage 3. Where default criteria are no longer met, the borrower exits
Stage 3 subject to a probation period, in line with regulatory requirements.
The key criteria resulting in a classification of default are:
• Where the Group considers a borrower to be unlikely to pay their loans
in full without realisation of collateral, regardless of the existence of any
past-due amount; or
• The borrower is 90 days or more past due on any material loan (day
count starts when any material amount of principal, interest or fee has
not been paid by a borrower at the date it was due).
Identification of non-performing exposures and unlikeliness to pay are
included in the Group’s Definition of Default and Credit Impairment Policy.
Purchased or originated credit impaired (POCI) (audited)
POCIs are assets originated credit impaired and have a discount to the
contractual value when measured at fair value. The Group uses an
appropriate discount rate for measuring ECL in the case of POCIs which is
the credit-adjusted effective interest rate. This rate is used to discount the
expected cash flows of such assets to fair value on initial recognition.
POCI obligations remain outside of the normal stage allocation process
for the lifetime of the obligation. The ECL for POCI obligations is always
measured at an amount equal to lifetime expected credit losses. The
amount recognised as a loss allowance for these assets is the cumulative
change in lifetime expected credit losses since the initial recognition of the
assets rather than the total amount of lifetime expected credit losses.
Measurement of expected credit loss (audited)
The measurement of ECL is estimated through one of the following
approaches:
(i)
Standard approach: This approach is used for the majority of
exposures where each ECL input parameter (Probability of Default –
PD, Loss Given Default – LGD, Exposure at Default – EAD, and
Prepayments – PP) is developed in line with standard modelling
methodology. The Group’s IFRS 9 models have been developed and
approved in line with the Group’s Model Risk Management
Framework.
(ii) Simplified approach: For portfolios not on the standard approach, the
Group has followed a simplified approach. This approach consists of
applying portfolio level ECL averages, drawn from similar portfolios,
where it is not possible to estimate individual parameters. These
generally relate to portfolios where specific IFRS 9 models have not been
developed due to immateriality, low volumes or where there are no
underlying grading models. As granular PDs are not available for these
portfolios, a non-standard approach to staging is required with reliance
on the qualitative criteria (along with the 30 days past due backstop).
(iii) Discounted cash flows (DCFs): DCFs are used as an input to the ECL
calculation for Stage 3 credit-impaired exposures where gross credit
exposure is ≥ €1 million in the Republic of Ireland or ≥ £500,000 in the
UK. For higher-value cases, multiple DCFs are prepared to ensure that
expected losses appropriately reflect forward looking outcomes.
This approach is required where gross credit exposure is ≥ €5 million
(Republic of Ireland), ≥ £5 million (UK), or where exposures fall within
the Group Leveraged Lending Policy. This approach captures borrower
specific impacts under base, downside and upside conditions, with
each scenario probability weighted to derive the final scenario weighted
ECL. Collateral valuation assumptions and the estimated time to
realisation of collateral are key drivers of the DCF approach. Forward
looking information is incorporated through the Group’s credit
assessment process and applied consistently across scenarios. Where
the calculated ECL is very low, a minimum ECL floor is applied. This is
benchmarked against relevant model outputs to ensure consistency and
prudence in ECL recognition.
(iv) Management judgement: Where the estimate of ECL does not
adequately capture all available forward looking information about
the range of possible outcomes, or where there is a significant degree
of uncertainty, management judgement may be considered
appropriate for an adjustment to ECL. The management adjustment
must consider all relevant and supportable information, including but
not limited to, historical data analysis, predictive modelling and
management experience. The methodology to incorporate the
adjustment should consider the degree of any relevant over
collateralisation (headroom) and should not result in a zero overall
ECL unless there is sufficient headroom to support this. The key post
model adjustments (PMAs) in the 2025 year-end ECL estimates are
outlined on pages 195 and 196.
IFRS 9 ECL Credit Risk models (audited)
The IFRS 9 ECL models provide the risk parameters which are the inputs
into the model driven estimate of ECL which is used across all Stage 1 and
Stage 2 assets plus all non-DCF Stage 3 exposures on the standard
approach to ECL.
IFRS 9 Portfolio Delineation (audited)
The IFRS 9 models are delineated into retail and non-retail portfolios. The
retail IFRS 9 portfolios provide exposure level risk parameter estimates
which take into account facility, or borrower level characteristics and
metrics where appropriate, whilst the non-retail portfolios provide metrics
which are either borrower, facility or connection level estimates.
Probability of default (audited)
Probability of default (PD) is the likelihood that an account or borrower
defaults over an observation period, given that they are not currently in
default, for each year of the expected contractual lifetime of the exposure.
The PD is a point-in-time estimate which is reflective of the current and
expected economic conditions.
In order to capture the appropriate risk dynamics across the lifetime of the
exposure the development process considers:
• Macroeconomic effects captured through factors such as
unemployment rate and GDP;
• Cross-sectional risk discriminators, in particular the internal rating model
outputs plus other factors such as forbearance and days past due; and
• Seasoning factors such as product type, delinquency and forbearance
status.
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2.1 Credit risk continued
Measurement, methodologies and judgements continued
Loss given default (audited)
Loss given default (LGD) is a current assessment of the amount that will
not be recovered in the event of default, taking account of future
conditions. It can be thought of as the difference between the amount
owed to the Group (i.e. the exposure) and the net present value of future
cash flows less any relevant costs expected to be incurred in the recovery
process. If an account returns to performing from default (excluding any
loss making concession) or if the discounted post-default recoveries are
equal to or greater than the exposure, the realised loss is (close to) zero.
The LGD modelling approach generally depends on whether the facility
has underlying security and, if so, the nature of that security. The following
sets out the general approaches for the retail and non-retail portfolios:
– Retail portfolios
For unsecured loans, a cash flow curve, which estimates the cumulative
cash received following default until the loan is written-off or returns to
performing, is used to estimate the future recovery amount. This is
discounted at the effective interest rate and compared to the current
outstanding balance. Any shortfall between the recovery amount and the
outstanding balance is the LGD used to estimate ECL. Where
appropriate, this may then be adjusted to reflect economic conditions.
For secured loans the following may be considered:
• The value of underlying property collateral is estimated at the
forecasted time of disposal (taking into account forecasted market
price growth/falls and haircuts on market values that are expected at
the date of sale plus associated relevant costs) in order to calculate
the future recovery amount;
• The potential for the exposure to be deleveraged through a portfolio
sale taking into account the costs associated with same; and
• Paths for returning to the performing portfolios such as forbearance
and self-cure.
– Non-retail portfolios
For unsecured loans, characteristics such as borrower sector, borrower
financials and nature of collateral linked to affiliated accounts under the
same customer group are used to determine future losses based on
historical experience of discounted recoveries.
For secured loans, the value of the underlying property collateral is
estimated at the reporting date. This is used to estimate the ECL based on
historical experience of discounted recoveries.
Exposure at default (audited)
Exposure at default (EAD) is defined as the exposure amount that will be
owed by a customer at the time of default. This will comprise changes in
the exposure amount between the reporting date and the date that the
customer defaults. This may be due to repayments, interest and fees
charged and additional drawdowns by the customer.
Prepayments (audited)
For term credit products, prepayment occurs where a customer fully
prepays an account prior to the end of its contractual term. For revolving
credit products, ‘prepayment’ is defined as the cessation of use and
withdrawal of the facility provided that the account was not in default prior
to closure.
Prepayment is used in the lifetime ECL calculation for Stage 2 loans to
account for the proportion of the facilities/customers that prepay each year.
Determining the period over which to measure ECL (audited)
Both the origination date and the expected maturity of a facility must be
determined for ECL purposes. The origination date is used to measure
credit risk at origination.
The expected maturity is used for assets in Stage 2, where the ECL must
be estimated over the remaining life of the facility.
The expected maturity approach is:
• Term credit products: the contractual maturity date, with exposure and
survival probability adjusted to reflect behaviour, i.e. amortisation and
prepayment;
• Revolving credit products: the period may extend beyond the contractual
period, i.e. behavioural lifetime estimate over which the Group is exposed
to credit risk, e.g. overdrafts and credit cards.
Forward looking indicators in the models (audited)
For ECL calculations reliant on models in the standard and simplified
approaches, forward looking indicators are incorporated into the models
through the use of macroeconomic variables. These have been identified
statistically as the key macroeconomic variables that drive the parameter
being assessed (e.g. PD or LGD). The final model structure incorporates
these as inputs with the 12 month and lifetime calculations utilising the
macroeconomic forecasts for each scenario. See the Macroeconomic
scenarios and weightings section for more detail on the process for
generating scenarios and associated key macroeconomic factors relevant
for the models. In circumstances where there is a risk that the modelled
output fails to capture the appropriate response to changes in the
macroeconomic environment such as inflation and interest rate changes,
these risks are captured through the use of post model adjustments.
Effective interest rate (audited)
ECLs are discounted to the reporting date using the effective interest rate
(EIR) set at initial recognition, or a suitable approximation. The Group
applies an account-level interest rate as an approximation for both drawn
and undrawn commitments. This approach is reviewed annually to ensure
it remains appropriate and does not materially misstate ECL. Testing has
confirmed that using current interest rates provides an appropriate
approximation for ECL discounting.
Policy elections and simplifications
Low credit risk exemption (audited)
The Group utilises practical expedients, as allowed by IFRS 9, for the stage
allocation of particular financial instruments which are deemed ‘low
credit risk’. This practical expedient permits the Group to assume, without
more detailed analysis, that the credit risk on a financial instrument has
not increased significantly since initial recognition if the financial
instrument is determined to have ‘low credit risk’ at the reporting date.
The Group allocates such assets to Stage 1.
Under IFRS 9, the credit risk on a financial instrument is considered low if:
• The financial instrument has a low risk of default;
• The borrower has a strong capacity to meet its contractual cash flow
obligations in the near term; and
• Adverse changes in economic business conditions in the longer term
may, (but will not necessarily) reduce the ability of the borrower to fulfil
its contractual cash flow obligations.
This low credit risk exemption is applied to particular assets within the Treasury
Debt Securities Portfolio, Capital Markets Securitisation Bonds and for Loans
and Receivables to Banks, specifically assets which have an internal grade
equivalent to an external investment grade rating (BBB-) or higher.
The Group applies a quantitative backstop trigger of a tripling of the
probability of default subject to a minimum threshold movement of 30bps
to determine whether assets subject to the low credit risk exemption
should be allocated to Stage 2. Additionally, if any of such assets are
on a watch list based on agreed criteria, they are allocated to Stage 2.
Short term cash (audited)
The Group’s IFRS 9 Impairment Policy does not require calculation of an
ECL for short term cash at central banks and other banks which have a
low risk of default with a very low risk profile. The calculation of the ECL
at each reporting date would be immaterial given these exposures’ short
term nature and their daily management.
Lease receivables and trade receivables (audited)
For lease receivables, the Group has elected to use its standard approach
for both stage allocation and the ECL calculation and has elected to use
an expedient (simplified approach) for trade receivables.
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Risk Management continued
2.1 Credit risk continued
Measurement, methodologies and judgements continued
Write-offs (audited)
When the prospects of recovering a loan, either partially or fully, do not
improve, a point may come when it will be concluded that as there is no
realistic prospect of recovery, the loan and any related ECL will be written-
off. The Group determines, based on specific criteria, the point at which
there is no reasonable expectation of recovery. When the following criteria
exist (or comparable circumstances arise), the loan can be subject to
a partial or full write-off:
• A decision has been taken to enforce on a loan, due to no agreement with
the customer for a restructure/settlement and all customer engagement
with the Group regarding their loan agreement has ceased;
• Inception of informal insolvency proceedings has commenced or is
about to commence;
• Receivership or other formal recovery action (e.g. where expectation of
recovery of collateral is expected through enforcement activity but no
additional recoveries above the collateral value are anticipated) has
commenced or is about to commence; and
• A loan is substantially provided for or no material repayments have
been received for a period of time (minimum 12 months) and all
customer engagement with the Group regarding their loan agreement
has ceased.
Debt forgiveness may subsequently arise where there is a formal contract
with the customer for the write-off of the loan. In addition, certain
forbearance solutions and restructuring agreements may include an
element of debt write-down (debt forgiveness). Further details on
forbearance are set out in section 2.1.6 - Forbearance overview.
The contractual amount outstanding of loans written-off during the year that
are still subject to enforcement activity are outlined on page 211 and relate
to non-contracted write-offs, both full and partial. The Group recognises
cash received from the customer in excess of the carrying value of the
loan after a non-contracted write-off as ‘recoveries of amounts previously
written-off’ in the income statement.
ECL governance (audited)
The Board has put in place a framework, incorporating the governance
and delegation structures commensurate with a material risk, to ensure
credit risk is appropriately managed throughout the Group.
The key governance points in the ECL allowance approval process during
2025 were:
• Model Risk Committee;
• Asset and Liability Committee;
• Business level ECL Forum;
• Group Credit Committee; and
• Board Audit Committee.
For ECL governance, the Group’s senior management employ expert
judgement in assessing the adequacy of the ECL allowance. This is
supported by detailed information on the portfolios of credit risk
exposures and by the outputs of the measurement and classification
approaches, coupled with internal and external data provided on both the
short-term and long-term economic outlook. Business segments and
Group management are required to ensure that there are appropriate
levels of cover for all of the credit portfolios and must take account of
both accounting and regulatory compliance when assessing the expected
levels of loss.
Assessment of the credit quality of each business segment and
subsidiaries is initially informed by the output of the quantitative analytical
models but may be subject to management adjustments.
This ECL output is then scrutinised and approved at an individual business
unit level (ECL Forum), which also includes subsidiaries, prior to onward
submission to the GCC.
GCC reviews and challenges ECL levels for onward recommendation to
the Board Audit Committee as the final approval authority. The Board
Audit Committee then recommends the Group’s financial results to the
Board for ultimate final approval.
Credit risk management consideration of Climate and
Environmental (C&E) risks
The Group’s year-end 2025 assessment concluded that C&E risks are
not materially affecting credit quality or ECLs, with portfolio performance
remaining stable and no adverse movements attributable to
climate-related factors. Physical risks, notably flood risk, are well
understood and managed through underwriting standards, collateral
controls and established governance, while transition risks remain
concentrated in a small number of sectors and are subject to enhanced
monitoring, with no material credit impacts observed to date.
The Group’s Climate and Environmental Risk Framework, including
scenario analysis, ESG governance and credit underwriting/limits,
remains aligned with prevailing supervisory expectations and continues
to strengthen as data and modelling improve. While work to enhance
climate-related data remains ongoing, current assessments do not
indicate under-capture of risk, and therefore no climate-specific PMA is
required for year-end 2025. Further details on C&E risks are outlined in
section 2.8 on page 236.
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2.1 Credit risk continued
Measurement, methodologies and judgements continued
Management judgements during the year:
• The international backdrop remains volatile, but the global economy is forecast to grow at a relatively solid pace. Inflation rates have normalised,
and interest rate reduction cycles are nearing an end. Prior monetary policy easing is still supporting the real economy and property markets.
• Despite the recent period of heightened geopolitical uncertainty, unemployment rates have remained low in most economies. Although there are
some signs of softening in labour markets (e.g. rising jobless rates etc.), conditions are forecast to remain resilient.
• There are significant downside risks to the outlook, including current geopolitical tensions as well as uncertainty over economic and trade policies
related to the current US administration.
• The Group is of the view that risks to the economic outlook remain tilted to the downside and, for the purposes of IFRS 9 ECL reporting, has
applied the following weightings for 31 December 2025, which are unchanged from 31 December 2024: Base 50%, Moderate Upside 5%,
Moderate Downside 40% and Severe 5%. Further details are outlined in the Macroeconomic scenarios and weightings section below.
• The Group’s sensitivity analysis to the macroeconomic scenario weightings are outlined on page 194. Under the 100% Downside 2 (Global trade
war/Irish FDI shock) scenario, a 63% increase in ECL compared to the Reported ECL allowance stock is estimated.
• ECL allowance stock relating to post model adjustments (PMAs) has decreased by €59 million in the year to €294 million. ECL allowance stock
relating to PMAs as a percentage of total ECL stock on loans and advances to customers has remained unchanged at 26%. The reduction in PMA
stock is largely driven by utilisation as risks previously identified are now captured in the modelled outcomes and through portfolio disposals.
Further details are outlined under the PMA section on pages 195 and 196.
Macroeconomic scenarios and weightings
The macroeconomic scenarios used by the Group for ECL allowance
calculation purposes have been developed in a consistent way with that
set out in the 2024 Annual Financial Report and have been subject to the
Group’s established governance process covering the development and
approval of macroeconomic scenarios used for planning and internal
stress testing purposes. The macroeconomic scenarios are reviewed by
the Asset and Liability Committee (ALCo) regularly, and such reviews took
place frequently during 2025 in response to economic developments.
The macroeconomic scenarios are then reviewed by the Board Risk
Committee (BRC) and approved for use by the Board. The scenario
probabilities are approved by the Board Audit Committee (BAC).
The parameters used within the Group’s ECL models include
macroeconomic factors which have been established as drivers of the
default risk and loss estimates. Therefore, a different credit loss estimate
is produced for each scenario based on a combination of these identified
macroeconomic factors. The credit loss estimates for each scenario are
then weighted by the assessed likelihood of occurrence of the respective
scenarios to yield the ECL outcome.
The IMF expects modest global growth of 3.3% and 3.2% in 2026 and
2027, with headline inflation projected to converge back to target
gradually, with stickier inflation in the US and other advanced economies
compared to developing markets such as China. The UK and EU
economies saw modest activity growth during 2025, in line with 2024.
There are significant downside risks to the outlook, including ongoing
geopolitical tensions, geo-economic fragmentation, as well as elevated
trade policy uncertainty associated with the current US administration,
which has the potential to reinforce fragility in the European economy.
Upside potential exists in the form of improved business and consumer
sentiment that could boost economic activity if geopolitical tensions
subside and monetary policy continues to ease, productivity gains from
artificial intelligence, and the use of savings to support higher consumer
spending in countries such as Ireland.
As part of the process of deriving an ECL calculation, a range of plausible
scenarios was considered given the prevailing trends, emerging risks and
uncertainties facing the domestic and global economies, as at the
financial reporting date.
The Group has applied four scenarios in the calculation of ECL that, in its
view, reflect ongoing uncertainty regarding the economic outlook, as at
the reporting date. These four scenarios consist of a base case scenario
and three alternative scenarios (consisting of one upside and two
downside scenarios). These alternative scenarios encompass a range of
outcomes due to heightened geopolitical tensions, compared to Base
(Downside 1), a global trade war and a severe correction in financial
markets, leading to a credit crunch (Downside 2) and the impact of a
de-escalation of geopolitical tensions on global economic activity
(Upside). Non-linear effects are captured in the development of the
respective risk parameters.
The Group's Economic Research Unit (ERU) provide the assumptions for
each scenario over five years. These are then independently reviewed and
challenged, on both a quantitative and qualitative basis, by the Group’s
Risk function. The base case is benchmarked against the outlook
available from official sources (e.g., Central Bank of Ireland, IMF, ECB,
Bank of England, etc.), as well as private sector sources to ensure it is
appropriate.
The long-term projections reflect the relatively limited climate change
mitigation policies, mainly comprising the continued gradual substitution
of gas for coal, that have been announced so far. Without significantly
enhanced mitigating actions, the world is on course to warm by about 2°C
above pre-industrial levels by 2050. The long-term baseline scenario
seeks to follow the International Energy Agency (IEA) ‘stated policies’
scenario and implies emissions remaining roughly constant.
The scenarios used for the year-end ECL process are described below and
reflect the views of the Group as at the reporting date.
Base case: The economic backdrop is characterised by robust growth,
despite geopolitical risk. Lower inflation and prior cuts to central bank
rates should continue to support economic activity in the near term.
Geopolitical tensions act as a headwind to growth via higher potential
fragmentation in global trade patterns, but artificial intelligence (AI)
deployment is also underpinning global trade and investment.
Ireland’s economy is projected to grow moderately, by 3% in 2026. The
outlook is for low and stable inflation (averaging 2% over the 2026-2030
period). Labour market performance remains solid, with unemployment
expected to average 5% over the same period. House prices are
anticipated to rise modestly, by 2.5% in 2026, due to robust demand
alongside improvements in supply, while commercial property prices are
expected to grow by 5%, following several years of contraction.
UK economic momentum remains subdued, and GDP growth of 1.2% is
expected in 2026. Unemployment is projected to remain low at 4.9%.
Property prices are likely to rise modestly driven by factors such as falling
interest rates, gains in real incomes and supply shortages. Gains are also
expected for commercial property prices.
Growth in the US economy is forecasted to decelerate with average
growth of 1.7% over the 2026-2030 period expected. Interest rates are
projected to trough during 2026 as all central banks near the end of the
current easing cycles.
Subdued GDP growth of 1.1% is anticipated for the Euro area in 2026, picking
up in later years as the fiscal stimulus begins to boost economic activity.
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Risk Management continued
2.1 Credit risk continued
Measurement, methodologies and judgements continued
Macroeconomic scenarios and weightings continued
Downside 1 (Escalating geopolitical tensions): In this scenario, deepening
geopolitical tensions and global fragmentation weighs on global trade and
GDP growth. Consequently, global inflation proves to be initially sticky in
2026, but falls below the 2% target thereafter.
Central banks rates move in line with base case, including no change by
the ECB, until end-2026, before cutting rapidly during 2027. Conditions in
financial markets tighten, with rises in bond yields and credit spreads and
falls on stock markets.
Corrections in financial markets amplify the downturn in the real economy.
As a result, all major economies experience a shallow recession in
2026-2027, followed by a sluggish recovery in activity. In Ireland, GDP
growth slows sharply and unemployment peaks at 10% in 2028.
Downside 2 (Global trade war/Irish FDI shock): In this scenario, a further
rapid escalation in tariffs by the US and material retaliation by its trade
partners, alongside a severe correction in financial markets, depresses
consumer and business confidence, precipitating a collapse in economic
growth in 2026 and 2027. GDP growth is seen picking up thereafter in the
period 2028-2030. While tariffs are temporarily inflationary, the hit to
demand means central banks begin cutting rates aggressively to support
economies from mid-2026. The severe downturn exposes underlying
vulnerabilities in the financial sector, especially in the global commercial
real estate market and potential credit stresses lead to increased defaults
and instability within the financial system.
Upside (Easing geopolitical tensions): In this scenario, we see the
combination of easing global trade tensions resulting in lower tariffs from
2026, boosting business and consumer confidence, and having a positive
impact on financial markets, which combined with faster labour force
growth raises global economic activity. AI productivity gains amplify the
growth cycle. Combined with faster labour force growth, this raises global
economic activity which benefits the Group’s key markets.
The table below sets out the five-year average forecast for each of the key
macroeconomic variables that are required to generate the scenarios or
are material drivers of the ECL under (i) Base, (ii) Downside 1, (iii)
Downside 2 and (iv) Upside scenarios at 31 December 2025 (average over
2026-2030) and at 31 December 2024 (average over 2025-2029).
December 2025
5 year (2026-2030) average forecast
December 2024
5 year (2025-2029) average forecast
Macroeconomic factor (%)
Base
Downside 1
(Escalating
geopolitical
tensions)
Downside 2
(Global trade
war/Irish FDI
shock)
Upside
(Easing
geopolitical
tensions)
Base
Downside 1
(Geopolitical
tensions)
Downside 2
(Credit
crunch)
Upside
(Quick
recovery)
Republic of Ireland
GDP growth
3.0
2.4
0.9
3.8
3.0
1.8
0.7
3.8
Residential property price growth
2.1
0.1
(4.1)
4.2
2.5
(0.1)
(4.7)
4.2
Unemployment rate
5.0
8.3
10.7
4.4
4.5
7.4
10.1
3.9
Commercial property price growth
3.4
(1.1)
(3.9)
5.8
3.4
(1.2)
(5.2)
5.8
Employment growth
1.8
0.9
(0.5)
2.2
1.5
1.0
(0.6)
1.9
Average disposable Income growth
5.0
3.6
2.6
6.3
4.4
4.0
3.0
6.5
Inflation
2.0
1.9
1.7
3.1
2.0
2.9
1.9
3.1
United Kingdom
GDP growth
1.4
0.6
(0.3)
1.8
1.5
0.6
(0.1)
2.1
Residential property price growth
2.2
(0.7)
(4.9)
4.4
2.6
(1.1)
(5.4)
4.6
Unemployment rate
4.8
7.6
9.1
3.9
4.6
7.6
9.1
3.8
Commercial property price growth
2.9
(1.7)
(4.2)
5.3
2.8
(1.8)
(6.1)
5.1
Inflation
2.1
2.1
1.9
3.5
2.1
2.7
1.8
3.4
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2.1 Credit risk continued
Measurement, methodologies and judgements continued
Macroeconomic scenarios and weightings continued
Additional information is provided in the table below which details the individual macroeconomic factor forecast for each year across the four scenarios,
at 31 December 2025.
Estimate
Base
Downside 1
(Escalating geopolitical tensions)
Macroeconomic factor
2025
%
2026
%
2027
%
2028
%
2029
%
2030
%
2026
%
2027
%
2028
%
2029
%
2030
%
Republic of Ireland
GDP growth1
7.0
3.0
3.8
2.8
2.8
2.7
1.7
1.3
2.7
3.1
3.3
Residential property price growth
3.5
2.5
2.0
2.0
2.0
2.0
(6.0)
(2.5)
4.0
2.5
2.5
Unemployment rate
4.8
5.0
5.2
5.1
5.0
4.9
5.9
8.0 10.0
9.1
8.4
Commercial property price growth
1.0
5.0
3.0
3.0
3.0
3.0
(10.0)
(3.5)
3.0
3.0
2.0
Employment growth
2.2
1.8
1.6
1.9
2.0
1.9
0.6
(1.0)
0.6
2.5
2.0
Average disposable income growth
5.7
4.6
4.0
5.5
5.5
5.5
3.8
1.7
2.7
4.7
5.0
Inflation
1.7
1.9
2.1
2.0
2.0
2.0
1.8
1.7
2.0
2.0
2.0
United Kingdom
GDP growth
1.2
1.2
1.5
1.4
1.4
1.3
—
(0.7)
0.8
1.4
1.5
Residential property price growth
1.7
3.0
2.0
2.0
2.0
2.0
(8.5)
(3.0)
2.0
3.0
3.0
Unemployment rate
4.7
4.9
4.8
4.7
4.7
4.7
6.1
7.8
8.6
8.1
7.5
Commercial property price growth
2.5
5.0
3.0
2.5
2.0
2.0
(11.0)
(3.0)
1.5
2.0
2.0
Inflation
3.5
2.7
2.0
2.0
2.0
2.0
2.7
1.7
2.0
2.0
2.0
1. The macroeconomic scenario assumptions presented in these tables were prepared in Q4 2025 using information available at the time.
Downside 2
(Global trade war/Irish FDI shock)
Upside
(Easing geopolitical tensions)
Macroeconomic factor
2026
%
2027
%
2028
%
2029
%
2030
%
2026
%
2027
%
2028
%
2029
%
2030
%
Republic of Ireland
GDP growth
(0.5)
(4.3)
2.4
3.3
3.8
5.9
5.4
3.4
1.9
2.4
Residential property price growth
(10.0) (12.5)
(0.5)
1.0
1.5
6.5
5.0
4.0
3.0
2.5
Unemployment rate
6.7
9.7
12.1
12.5
12.6
4.5
4.4
4.3
4.3
4.3
Commercial property price growth
(11.5) (13.0)
(1.0)
2.5
3.5
7.0
10.0
5.0
4.0
3.0
Employment growth
(1.1)
(2.8)
(1.6)
1.3
1.8
2.7
2.5
2.1
1.9
1.8
Average disposable income growth
2.3
0.1
1.4
4.3
5.0
7.1
7.6
6.5
5.1
5.0
Inflation
1.8
1.2
1.6
2.0
2.0
3.4
4.6
3.0
2.5
2.0
United Kingdom
GDP growth
(1.6)
(3.3)
0.3
1.5
1.7
1.6
2.4
2.0
1.6
1.2
Residential property price growth
(11.0) (14.0)
(2.0)
1.0
1.5
6.5
5.5
4.0
3.0
3.0
Unemployment rate
6.4
8.6
10.0
10.5
10.0
4.2
3.9
3.8
3.5
3.9
Commercial property price growth
(12.5) (14.0)
(1.0)
2.5
4.0
7.5
6.0
5.0
4.0
4.0
Inflation
2.1
1.5
1.7
2.0
2.0
5.0
4.8
3.0
2.5
2.0
The key differences to the scenario forecasts versus 31 December 2024 relate to downward revisions to inflation in our main markets, with somewhat
weaker economic growth and higher inflation in the US. Irish, UK and Euro area projections remain broadly unchanged. Labour markets in all our key
markets have remained robust, but unemployment rates are expected to trend slightly higher as conditions soften. House price growth expectations
remain largely unchanged. The four scenarios detailed above are designed to capture a reasonable range of plausible outcomes. The ECL allowance
reflects a weighted average of the credit loss estimates under the four scenarios. Similar to the scenario forecasts, the probability weight assigned to
each scenario is proposed by the ERU, with a review and challenge from the Group Risk function. The probabilities described below reflect the views of
the Group at the reporting date.
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Risk Management continued
2.1 Credit risk continued
Measurement, methodologies and judgements continued
Macroeconomic scenarios and weightings continued
The weights for the scenarios at the reporting date are ultimately based on expert judgement, with reference to external market information where
possible, though the decision is also informed by analysis using more formal econometric methods (e.g., early warning indicators of economic activity)
to assess the relative probabilities of moderate and more severe economic downturns. The weightings associated with the four scenarios remain
unchanged compared to those at 31 December 2024. The continued high weighting for Downside 1 for this reporting period reflects an elevated
geopolitical risk affecting the economy via key global trade channels.
The weightings that have been applied as at 31 December 2025 and 2024 are:
Scenario (audited)
Weighting
Weighting
December 2025
December 2024
Base
50 %
Base
50 %
Downside 1 (Escalating geopolitical tensions)
40 %
Downside 1 (Geopolitical tensions)
40 %
Downside 2 (Global trade war/Irish FDI shock)
5 %
Downside 2 (Credit crunch)
5 %
Upside (Easing geopolitical tensions)
5 %
Upside (Quick recovery)
5 %
In assessing the adequacy of the ECL allowance, the Group has considered all available forward looking information as of the balance sheet date in
order to estimate the future expected credit losses. The Group, through its risk management processes (including the use of expert credit judgement and
other techniques) assesses its ECL allowance for events that cannot be captured by the statistical models it uses and for other risks and uncertainties.
The assessment of ECL at the balance sheet date does not reflect the worst case outcome, but rather a probability weighted outcome of the four
scenarios. Should the credit environment deteriorate beyond the Group’s expectation, the Group’s estimate of ECL would increase accordingly.
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2.1 Credit risk continued
Measurement, methodologies and judgements continued
Sensitivities (audited)
The Group’s estimates of expected credit losses are responsive to varying
economic conditions and forward looking information. These estimates
are driven by the relationship between historic experienced loss and the
combination of macroeconomic variables. Given the co-relationship of
each of the macroeconomic variables to one another and the fact that loss
estimates do not follow a linear path, a sensitivity to any single economic
variable is not meaningful. As such, the following sensitivities provide an
indication of ECL movements that include changes in model estimates and
quantitative ‘significant increase in credit risk’ (SICR) staging assignments,
with a single 100% weighting applied individually.
Relative to the 100% Base scenario, the ECL allowance in the 100%
Downside 1 and 2 scenarios increases by 30% (€312 million) and 85%
(€896 million), respectively, and declines by 8% (€87 million) in the 100%
Upside scenario. Relative impacts are similar for the AIB UK portfolio in
most scenarios, with lower relative impact observed in the 100% Downside
2 scenario.
ECL allowance at 31 December 2025
Reported
100% Base
100% Downside
Scenario 1
(Escalating
geopolitical
tensions)
100% Downside
Scenario 2
(Global trade war/
Irish FDI shock)
100% Upside
Scenario
(Easing
geopolitical
tensions)
Loans and advances to customers (audited)
€ m
€ m
€ m
€ m
€ m
Residential mortgages
176
150
204
427
135
Other personal
131
122
139
168
117
Property and construction
432
395
487
586
357
Non-property business
404
339
480
700
313
Total
1,143
1,006
1,310
1,881
922
Off-balance sheet loan commitments
38
34
41
53
32
Financial guarantee contracts
10
9
10
11
8
1,191
1,049
1,361
1,945
962
Of which:
AIB UK segment
94
83
109
114
78
ECL allowance at 31 December 2024
Reported
100% Base
100% Downside
Scenario 1
(Geopolitical
tensions)
100% Downside
Scenario 2
(Credit crunch)
100% Upside
Scenario
(Quick recovery)
Loans and advances to customers (audited)
€ m
€ m
€ m
€ m
€ m
Residential mortgages
270
241
304
464
223
Other personal
137
128
145
167
124
Property and construction
464
410
569
689
384
Non-property business
473
415
535
636
393
Total
1,344
1,194
1,553
1,956
1,124
Off-balance sheet loan commitments
44
36
46
60
34
Financial guarantee contracts
13
12
16
20
12
1,401
1,242
1,615
2,036
1,170
Of which:
AIB UK segment
174
160
192
206
151
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Risk Management continued
2.1 Credit risk continued
Measurement, methodologies and judgements continued
Post model adjustments (PMAs) (audited)
PMAs are applied where management believe that they are necessary
to ensure an adequate level of ECL provision and to address known
model limitations and/or novel risks not captured in the models. They
may also be used where models are being redeveloped but are not yet
deployed, where the impact of introducing the new models can be
accurately quantified.
PMAs are approved through the ECL governance process within which the
appropriateness of PMAs is considered against:
• The backdrop of the risk profile of the loan book;
• Recent loss history or changes in underlying resolution strategies not
captured in the models; and
• Management’s view of novel risks.
At 31 December 2025, the Group has continued to consider all PMAs in
light of the current economic environment and continued geopolitical
tensions. The calculation of PMAs and ECL adjustments requires a high
degree of judgement, particularly in relation to emerging macroeconomic
and sectoral risks. PMAs were reviewed within this context, and a cautious
approach was taken to ensure an appropriate level of protection against
potential vulnerabilities amid ongoing economic uncertainty. Release of
PMAs will occur as new models are deployed or where the risk has been
judged by management to be captured in the modelled outcomes, or to
have passed.
The PMAs approved for 31 December 2025 (and 2024 comparison) are set
out below and are categorised as follows:
• Non-performing exposure (NPE) resolution (€79 million) – ECL
adjustments where the current model does not consider all potential
downside risks or a range of outcomes that should be incorporated into the
final loss estimate for defaulted assets.
• Sectoral/Emerging risks (€115 million) – ECL adjustments which reflect
novel risks within a sector or portfolio for which there has not been time
to embed an adjustment within the related models. This also refers to
ECL adjustments for which time is needed for events to evolve or
impacts to crystallise.
• Future model developments/Other (€100 million) – ECL adjustments
required where the impact of upcoming model changes or recalibrations
is known with sufficient accuracy and ECL adjustments where it was judged
that an amendment to the modelled ECL was required for reasons other
than the above.
2025
Post model adjustments
(audited)
ECL allowance
before PMAs
NPE resolution
Sectoral/
Emerging risks
Future model
developments/
Other
Total PMAs
Total ECL
allowance
Proportion of
PMAs to total
ECL allowance
€ m
€ m
€ m
€ m
€ m
€ m
%
Residential mortgages
163
12
—
1
13
176
7
Other personal
113
18
—
—
18
131
14
Property and construction
264
34
63
71
168
432
39
Non-property business
309
15
52
28
95
404
24
Total loans and advances to
customers
849
79
115
100
294
1,143
26
Loan commitments and
financial guarantees issued
48
—
—
—
—
48
—
Total ECL allowance
897
79
115
100
294
1,191
25
2024
Post model adjustments
(audited)
ECL allowance
before PMAs
NPE resolution
Sectoral/
Emerging risks
Future model
developments/
Other
Total PMAs
Total ECL
allowance
Proportion of
PMAs to total ECL
allowance
€ m
€ m
€ m
€ m
€ m
€ m
%
Residential mortgages
222
48
—
—
48
270
18
Other personal
125
12
—
—
12
137
9
Property and construction
234
76
60
94
230
464
50
Non-property business
410
6
3
54
63
473
13
Total loans and advances to
customers
991
142
63
148
353
1,344
26
Loan commitments and
financial guarantees issued
57
—
—
—
—
57
—
Total ECL allowance
1,048
142
63
148
353
1,401
25
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2.1 Credit risk continued
Measurement, methodologies and judgements continued
Post model adjustments (PMAs) (audited)
NPE resolution (audited)
At 31 December 2025, a total PMA of €79 million on non-performing
exposures reflects the Group’s continued prudent approach to downside
risks not fully captured by the existing models.
A PMA of €12 million continues to be held against Stage 3 mortgages at 31
December 2025. This has reduced from €48 million at 31 December 2024
following the recent NPE portfolio sale. The PMA addresses potential ECL
underestimation relating to portfolio sale assumptions embedded in the
mortgage model and is informed by the outcome of the recent portfolio sale,
with a read across applied to the remaining Stage 3 mortgage portfolio.
Within the unsecured Stage 3 Retail portfolio, a PMA of €26 million
(€18 million for other personal, €7 million for non-property business and
€1 million for property) was approved at 31 December 2025, informed by
the outcome of the recent portfolio sale and read across to the residual
unsecured Retail Stage 3 portfolio. This adjustment recognises the
potential for further loss emergence in this segment, particularly
considering recent disposal activity.
A PMA of €40 million (€32 million for property and €8 million for non-
property business) continues to account for latent risks and alternative
resolution strategies, such as NPE portfolio loan sales or collateral
valuations, which remain sensitive to prevailing market conditions. This
adjustment reflects the Group’s assessment of potential reductions in
asset values and the impact of market volatility on recovery strategies.
Other PMAs amounting to a further €1 million in this category are not
individually significant.
Sectoral/Emerging risks (audited)
At 31 December 2025, a total PMA of €115 million reflects sectoral and
emerging risks, consistent with the Group’s cautious stance in addressing
novel risks within specific sectors or portfolios.
A PMA of €72 million addresses the latent risk of potential increased
forbearance activity. This PMA also takes into consideration the Group’s
cautious approach to the potential increase in case migrations to
forbearance against the current uncertain economic outlook. €62 million
of the PMA predominantly relates to the commercial real estate property
portfolio. At 31 December 2025, €10 million reflects the increased risk of
forbearance in the non-property business portfolio.
A further €40 million PMA was approved at 31 December 2025 for the C&IC
segment. A PMA of €30 million reflects the identification of specific risk
characteristics and emerging underperforming trends impacting a small
number of borrowers within the fibre/broadband infrastructure sector. A
PMA of €10 million reflects novel geopolitical risks impacting some
renewable assets.
Other PMAs amounting to a further €3 million in this category are not
individually significant.
Future model developments/Other (audited)
At 31 December 2025, a total PMA of €100 million primarily reflects the
impact of upcoming model changes.
Within the Capital Markets property portfolio, the recalibrated investment
property model which was deployed in June 2025 is expected to result in
additional exposures migrating to Stage 2. At 31 December 2024, a PMA
of €90 million was introduced to reflect the potential increase in Stage 2
balances and associated ECL. At 31 December 2025, the PMA has been
reduced to €70 million, which includes the impact of a staging adjustment
to transfer €0.6 billion of Stage 1 loans to Stage 2.
PMAs in place for the deployment of new models for non-property
business (€13 million) and the Syndicated & International Finance (SIF)
portfolio (€6 million) in Capital Markets have been retained at reduced
levels for 31 December 2025. This reduction reflects the regrading of
cases on the new models and a more stable geopolitical risk outlook.
Other PMAs amounting to a further €11 million in this category are not
individually significant.
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Risk Management continued
2.1.1 Credit risk – Credit exposure overview
Key credit profile metrics in 2025:
• The credit quality of the lending portfolio remained stable during the year, supported by the continued resilience of the Irish economy despite a more
challenging international environment. While latent and emerging risks, including geopolitical factors have moderated during the year, they continue
to be monitored closely given the uncertain external landscape. There was a net credit impairment charge of €172 million in 2025 (2024: €55 million)
comprising a €178 million charge on loans and advances to customers (2024: €60 million) partially offset by an €8 million writeback for off-balance
sheet exposures (2024: €3 million writeback). There was a further €3 million charge for investment securities exposures (2024: €2 million writeback)
and a €1 million writeback for securities financing exposures (2024: Nil).
• Total gross loans and advances to customers increased to €72.3 billion from €71.2 billion year-on-year. The movement reflects new lending of
€14.7 billion, partially offset by redemptions/repayments of €12.3 billion, adverse foreign exchange movements of €0.8 billion, and portfolio
disposals of €0.4 billion. ECL stock of €1.1 billion represents an overall coverage ratio of 1.6% (2024: €1.3 billion, 1.9%). The reduction in
coverage primarily reflects the impact of model recalibrations and deleveraging activity within higher-coverage portfolios.
• Total new lending amounted to €14.7 billion for the year, representing an increase of €0.2 billion or 2% compared with 2024 (€14.5 billion). The
growth was driven primarily by a 25% increase in property lending to €2.0 billion, reflecting a degree of recovery in real estate investment activity
and UK lending from a subdued prior period. New lending in the non-property business sector remained broadly in line with the prior year, while
personal lending was up 4%, mortgage lending recorded a decline of 4%.
• The staging composition of the portfolio remained stable during the year, with Stage 1 loans at 87%, Stage 2 at 11%, and Stage 3 at 2% (2024:
86%, 11% and 3%, respectively). Stage 1 loans increased by €1.7 billion to €62.8 billion (2024: €61.1 billion), while Stage 2 loans decreased by
€0.2 billion to €7.8 billion (2024: €8.0 billion). Reductions in Stage 2 loans were recorded across all asset classes with the exception of the
non-property business portfolio, which increased by €0.3 billion. The increase was primarily driven by the C&IC portfolio, reflecting enhanced
qualitative SICR triggers and a number of sector-specific borrower downgrades from Stage 1 to Stage 2. Non-performing loans reduced to €1.6
billion, a year-on-year decline of €0.4 billion, largely attributable to portfolio disposals of €0.3 billion. NPLs represent 2.2% of total gross loans
(2024: 2.8%).
Maximum exposure to credit risk (audited)
Maximum exposure to credit risk from on-balance sheet and off-balance sheet financial instruments is presented before taking account of any collateral
held or other credit enhancements (unless such enhancements meet accounting offsetting requirements). For financial assets recognised on the
statement of financial position, the maximum exposure to credit risk is their carrying amount, and for financial guarantees and similar contracts granted,
it is the maximum amount the Group would have to pay if the guarantees were called upon. For loan commitments and other credit related commitments
that are irrevocable over the life of the respective facilities, it is generally the full amount of the committed facilities.
Credit risk exposure derives from standard on-balance sheet products such as mortgages, loans, overdrafts and credit cards. In addition, credit risk
arises from other products and activities including, but not limited to: ‘off-balance sheet’ guarantees and commitments; securities financing;
investment securities; asset backed securities; and the failure/partial failure of a trade in a settlement or payments system.
The Group manages and reduces its net exposure to credit risk through the use of collateral, netting arrangements and risk transfer strategies. Further
information on credit risk mitigants is provided on pages 184 and 185.
The following table sets out the financial instruments in the statement of financial position and the Group’s maximum exposure to credit risk on those
financial instruments at 31 December 2025 and 2024.
2025
Income statement
Statement of financial position
Maximum exposure
Maximum exposure to credit risk (audited)
Net credit
impairment
charge/writeback
Exposure
ECL
allowance
Carrying
amount
Amortised
cost
Fair
value
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Cash and balances at central banks1
—
40,571
—
40,571 1
39,920
—
39,920
Derivative financial instruments
—
1,641
—
1,641
—
1,641
1,641
Loans and advances to banks
—
601
—
601
601
—
601
Loans and advances to customers
(178)
72,343
(1,143) 71,200
71,116
84
71,200
Securities financing
1
7,339
—
7,339
7,339
—
7,339
Investment securities2
(3)
21,245
(1) 21,244
5,043
16,201
21,244
Trading portfolio financial assets
—
286
—
286
—
286
286
Other financial assets
—
1,039
(1)
1,038
1,012
26
1,038
(180)
145,065
(1,145) 143,920
125,031
18,238
143,269
Loan commitments and other credit related
commitments
3
17,033
(38)
(38)
16,995
—
16,995
Financial guarantees
5
1,206
(10)
(10)
1,196
—
1,196
8
18,239 3
(48)
(48)
18,191
—
18,191
Total
(172)
163,304
(1,193) 143,872
143,222
18,238
161,460
1. Comprises balances at central banks of €39,920m and other cash on hand of €651m.
2. Excluding equity shares of €304m.
3. Comprises off-balance sheet instruments.
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2.1.1 Credit risk – Credit exposure overview continued
2024
Income statement
Statement of financial position
Maximum exposure
Maximum exposure to credit risk (audited)
Net credit
impairment charge/
writeback
Exposure
ECL
allowance
Carrying
amount
Amortised
cost
Fair
value
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Cash and balances at central banks
—
37,315
—
37,315 1
36,651
—
36,651
1
Derivative financial instruments
—
2,144
—
2,144
—
2,144
2,144
Loans and advances to banks
—
1,321
—
1,321
1,321
—
1,321
Loans and advances to customers
(60)
71,233
(1,344) 69,889
69,825
64
69,889
Securities financing
—
6,644
(1)
6,643
6,643
—
6,643
Investment securities2
2
18,372
(1) 18,371
4,803
13,568
18,371
Trading portfolio financial assets
—
136
—
136
—
136
136
Other financial assets
—
592
(1)
591
592
—
592
(58)
137,757
(1,347) 136,410
119,835
15,912
135,747
Loan commitments and other credit related
commitments
1
16,823
(44)
(44)
16,823
—
16,823
Financial guarantees
2
976
(13)
(13)
976
—
976
3
17,799 3
(57)
(57)
17,799
—
17,799
Total
(55)
155,556
(1,404) 136,353
137,634
15,912
153,546
1. Comprises balances at central banks of €36,651m and other cash on hand of €664m.
2. Excluding equity shares of €297m.
3. Comprises off-balance sheet instruments.
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Risk Management continued
2.1.1 Credit risk – Credit exposure overview continued
Concentration by industry sector
The following tables set out the concentration of credit by industry sector and geography for loans and advances to customers and loan commitments and
financial guarantee contracts issued together with the related ECL allowance analysed by the ECL stage profile at 31 December 2025 and 2024:
Gross exposures to customers
2025
At amortised cost
At FVTPL
Gross carrying amount
Analysed by stage profile
Loans and
advances to
customers
Loan
commitments
and financial
guarantees
issued
Total
Stage 1
Stage 2
Stage 3
POCI
Total
Total
Concentration by industry sector
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
5,443
2,099
7,542
6,543
942
57
—
7,542
29
Of which renewables
4,972
1,379
6,351
5,408
893
50
—
6,351
—
Leisure
2,796
448
3,244
2,754
438
50
2
3,244
—
Manufacturing
2,894
2,323
5,217
4,319
830
67
1
5,217
—
Health, education and social work
1,887
392
2,279
2,017
248
14
—
2,279
10
Services
2,458
1,630
4,088
3,713
321
52
2
4,088
—
Agriculture, forestry and fishing
1,634
677
2,311
1,823
405
78
5
2,311
—
Retail and wholesale trade
2,059
1,911
3,970
3,395
518
53
4
3,970
27
Transport and storage
1,839
749
2,588
2,382
185
20
1
2,588
—
Telecommunications, media and technology
1,444
397
1,841
1,431
206
204
—
1,841
18
Financial, insurance and other
government activities
446
1,057
1,503
1,471
31
1
—
1,503
—
Total non-property business
22,900
11,683
34,583
29,848
4,124
596
15
34,583
84
Property and construction
8,389
2,105
10,494
7,565
2,554
374
1
10,494
—
Residential mortgages
37,531
1,409
38,940
36,399
1,795
596
150
38,940
—
Other personal
3,439
3,042
6,481
5,654
731
96
—
6,481
—
Total
72,259
18,239
90,498
79,466
9,204
1,662
166
90,498
84
Concentration by location1
Republic of Ireland
56,375
13,278
69,653
61,061
7,145
1,281
166
69,653
84
United Kingdom
9,143
3,531
12,674
11,420
973
281
—
12,674
—
North America
3,829
629
4,458
4,063
394
1
—
4,458
—
Rest of the World
2,912
801
3,713
2,922
692
99
—
3,713
—
72,259
18,239
90,498
79,466
9,204
1,662
166
90,498
84
ECL allowance
2025
At amortised cost
ECL allowance
Analysed by stage profile
Loans and
advances to
customers
Loan
commitments
and financial
guarantees
issued
Total
Stage 1
Stage 2
Stage 3
POCI
Total
Concentration by industry sector
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
36
1
37
5
20
12
—
37
Of which renewables
30
—
30
2
17
11
—
30
Leisure
85
2
87
14
55
19
(1)
87
Manufacturing
42
5
47
8
24
16
(1)
47
Health, education and social work
20
1
21
6
11
4
—
21
Services
34
4
38
9
16
13
—
38
Agriculture, forestry and fishing
31
2
33
5
14
18
(4)
33
Retail and wholesale trade
58
7
65
8
37
20
—
65
Transport and storage
26
1
27
6
9
12
—
27
Telecommunications, media and technology
70
4
74
5
16
53
—
74
Financial, insurance and other government activities
2
—
2
1
1
—
—
2
Total non-property business
404
27
431
67
203
167
(6)
431
Property and construction
432
14
446
83
218
145
—
446
Residential mortgages
176
—
176
13
48
125
(10)
176
Other personal
131
7
138
23
53
62
—
138
Total
1,143
48
1,191
186
522
499
(16) 1,191
Concentration by location1
Republic of Ireland
925
35
960
128
441
407
(16)
960
United Kingdom
125
11
136
41
33
62
—
136
North America
21
—
21
7
14
—
—
21
Rest of the World
72
2
74
10
34
30
—
74
1,143
48
1,191
186
522
499
(16) 1,191
1. Based on country of risk.
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2.1.1 Credit risk – Credit exposure overview continued
Concentration by industry sector continued
Gross exposures to customers
2024
At amortised cost
At FVTPL
Gross carrying amount
Analysed by stage profile
Loans and
advances to
customers
Loan
commitments
and financial
guarantees
issued
Total
Stage 1
Stage 2
Stage 3
POCI
Total
Total
Concentration by industry sector
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
4,995
2,221
7,216
6,904
294
18
—
7,216
29
Of which renewables
4,479
1,506
5,985
5,734
248
3
—
5,985
—
Leisure
2,942
490
3,432
2,706
605
118
3
3,432
—
Manufacturing
2,753
2,234
4,987
4,409
537
40
1
4,987
—
Health, education and social work
1,879
358
2,237
1,774
442
19
2
2,237
—
Services
2,250
1,311
3,561
3,156
361
41
3
3,561
—
Agriculture, forestry and fishing
1,691
685
2,376
1,875
405
89
7
2,376
—
Retail and wholesale trade
1,895
1,916
3,811
3,126
617
63
5
3,811
17
Transport and storage
1,848
699
2,547
2,226
244
77
—
2,547
—
Telecommunications, media and technology
1,450
201
1,651
1,436
165
50
—
1,651
18
Financial, insurance and other government
activities
470
1,018
1,488
1,417
59
12
—
1,488
—
Total non-property business
22,173
11,133
33,306
29,029
3,729
527
21
33,306
64
Property and construction
8,761
2,103
10,864
7,274
3,013
574
3
10,864
—
Residential mortgages
36,970
1,577
38,547
35,731
1,870
776
170
38,547
—
Other personal
3,265
2,986
6,251
5,322
820
109
—
6,251
—
Total
71,169
17,799
88,968
77,356
9,432
1,986
194
88,968
64
Concentration by location1
Republic of Ireland
56,215
13,103
69,318
59,738
7,759
1,627
194
69,318
64
United Kingdom
9,132
3,378
12,510
11,058
1,163
289
—
12,510
—
North America
2,850
705
3,555
3,514
41
—
—
3,555
—
Rest of the World
2,972
613
3,585
3,046
469
70
—
3,585
—
71,169
17,799
88,968
77,356
9,432
1,986
194
88,968
64
ECL allowance
2024
At amortised cost
ECL allowance
Analysed by stage profile
Loans and
advances to
customers
Loan
commitments
and financial
guarantees
issued
Total
Stage 1
Stage 2
Stage 3
POCI
Total
Concentration by industry sector
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
32
2
34
17
15
2
—
34
Of which renewables
23
1
24
15
9
—
—
24
Leisure
86
5
91
21
38
33
(1)
91
Manufacturing
59
6
65
10
36
19
—
65
Health, education and social work
51
2
53
12
37
5
(1)
53
Services
34
4
38
10
16
12
—
38
Agriculture, forestry and fishing
37
3
40
5
16
23
(4)
40
Retail and wholesale trade
56
5
61
10
31
21
(1)
61
Transport and storage
73
2
75
8
7
60
—
75
Telecommunications, media and technology
31
1
32
8
13
11
—
32
Financial, insurance and other government activities
14
—
14
2
2
10
—
14
Total non-property business
473
30
503
103
211
196
(7)
503
Property and construction
464
20
484
67
230
188
(1)
484
Residential mortgages
270
1
271
11
53
210
(3)
271
Other personal
137
6
143
20
57
66
—
143
Total
1,344
57
1,401
201
551
660
(11) 1,401
Concentration by location1
Republic of Ireland
1,071
46
1,117
127
467
534
(11) 1,117
United Kingdom
196
9
205
51
42
112
—
205
North America
12
1
13
11
2
—
—
13
Rest of the World
65
1
66
12
40
14
—
66
1,344
57
1,401
201
551
660
(11) 1,401
1. Based on country of risk.
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Risk Management continued
2.1.2 Credit risk – Credit profile of the loan portfolio
The Group’s customer loan portfolio comprises loans (including overdrafts), instalment credit and finance lease receivables. An overdraft provides a
demand credit facility combined with a current account. Borrowings occur when the customer’s drawings take the current account into debit.
The balance may, therefore, fluctuate with the requirements of the customer. Although overdrafts are contractually repayable on demand (unless a fixed
term has been agreed), provided the account is deemed to be satisfactory, full repayment is not generally demanded without notice.
Credit profile of the loan portfolio
The following table analyses loans and advances to customers at amortised cost by segment, internal credit ratings and ECL staging at 31 December
2025 and 2024:
At amortised cost
2025
2024
Retail
Banking
Capital
Markets
C&IC1
AIB
UK
Group
Total
Retail
Banking
Capital
Markets
C&IC1
AIB
UK
Group
Total
Gross carrying amount
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Residential mortgages
36,043
508
—
980
—
37,531
35,520
479
—
971
—
36,970
Other personal
3,282
97
—
60
—
3,439
3,106
93
—
66
—
3,265
Property and construction
407
5,256
—
2,726
—
8,389
428
5,912
—
2,421
—
8,761
Non-property business
2,905
11,214
6,342
2,348
91
22,900
3,033
11,018
5,528
2,544
50
22,173
Total
42,637
17,075
6,342
6,114
91
72,259
42,087
17,502
5,528
6,002
50
71,169
Analysed by internal credit ratings2
Strong
30,759
6,989
5,367
3,481
—
46,596
29,594
10,467
4,858
3,468
20
48,407
Satisfactory
8,911
8,522
656
2,365
91
20,545
9,058
5,568
579
2,083
30
17,318
Total strong/satisfactory
39,670
15,511
6,023
5,846
91
67,141
38,652
16,035
5,437
5,551
50
65,725
Criticised watch
1,883
735
50
72
—
2,740
2,039
466
2
59
—
2,566
Criticised recovery
189
445
66
85
—
785
221
471
51
132
—
875
Total criticised
2,072
1,180
116
157
—
3,525
2,260
937
53
191
—
3,441
Non-performing
895
384
203
111
—
1,593
1,175
530
38
260
—
2,003
Gross carrying amount
42,637
17,075
6,342
6,114
91
72,259
42,087
17,502
5,528
6,002
50
71,169
Analysed by ECL staging
Stage 1
38,803
13,027
5,245
5,646
91
62,812
37,728
12,976
5,206
5,159
50
61,119
Stage 2
2,864
3,663
894
357
—
7,778
3,112
3,995
284
583
—
7,974
Stage 3
812
384
203
111
—
1,510
1,062
529
38
260
—
1,889
POCI
158
1
—
—
—
159
185
2
—
—
—
187
Total
42,637
17,075
6,342
6,114
91
72,259
42,087
17,502
5,528
6,002
50
71,169
ECL allowance – statement of financial position
Stage 1
42
91
4
36
—
173
39
91
19
35
—
184
Stage 2
125
323
31
20
—
499
138
335
20
31
—
524
Stage 3
254
144
59
30
—
487
351
192
6
99
—
648
POCI
(15)
(1)
—
—
—
(16)
(11)
(1)
—
—
—
(12)
Total
406
557
94
86
—
1,143
517
617
45
165
—
1,344
ECL allowance cover
percentage
%
%
%
%
%
%
%
%
%
%
%
%
Stage 1
0.1
0.7
0.1
0.6
—
0.3
0.1
0.7
0.4
0.7
—
0.3
Stage 2
4.4
8.8
3.5
5.6
—
6.4
4.4
8.4
6.9
5.4
—
6.6
Stage 3
31.3
37.5
29.1
27.0
—
32.3
33.1
36.4
16.0
38.1
—
34.3
POCI
(9.5)
(100.0)
—
—
—
(10.1)
(5.7)
(59.6)
—
—
—
(6.2)
Income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Net remeasurement of ECL
allowance
68
18
69
49
—
204
50
(69)
22
89
—
92
Recoveries of amounts
previously written-off
(15)
(4)
—
(7)
—
(26)
(20)
(10)
—
(2)
—
(32)
Net credit impairment charge/
(writeback)
53
14
69
42
—
178
30
(79)
22
87
—
60
1. Climate & Infrastructure Capital (2024: Climate Capital).
2. Further analysis of internal credit grade profile by ECL staging is set out on page 202.
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2.1.2 Credit risk – Credit profile of the loan portfolio continued
Credit profile of the loan portfolio continued
The following table analyses loans and advances to customers at FVTPL by segment and internal credit ratings at 31 December 2025 and 2024:
2025
2024
FVTPL
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Carrying amount
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business
—
84
—
—
—
84
—
64
—
—
—
64
Total
—
84
—
—
—
84
—
64
—
—
—
64
Analysed by internal credit ratings
Strong
—
84
—
—
—
84
—
64
—
—
—
64
Satisfactory
—
—
—
—
—
—
—
—
—
—
—
—
Total strong/satisfactory
—
84
—
—
—
84
—
64
—
—
—
64
Total criticised
—
—
—
—
—
—
—
—
—
—
—
—
Non-performing
—
—
—
—
—
—
—
—
—
—
—
—
Total
—
84
—
—
—
84
—
64
—
—
—
64
Internal credit grade profile by ECL staging (audited)
The table below analyses the internal credit grading profile by ECL staging for the Group’s loans and advances to customers at 31 December 2025 and
2024:
Total
Strong
44,871
1,702
—
23
46,596
45,774
2,593
—
40
48,407
Satisfactory
16,950
3,558
—
37
20,545
14,598
2,706
—
14
17,318
Total strong/satisfactory
61,821
5,260
—
60
67,141
60,372
5,299
—
54
65,725
Criticised watch
987
1,746
—
7
2,740
728
1,828
—
10
2,566
Criticised recovery
3
772
—
10
785
18
847
—
10
875
Total criticised
990
2,518
—
17
3,525
746
2,675
—
20
3,441
Non-performing
1
—
1,510
82
1,593
1
—
1,889
113
2,003
Gross carrying amount
62,812
7,778
1,510
159
72,259
61,119
7,974
1,889
187
71,169
ECL allowance
(173)
(499)
(487)
16
(1,143)
(184)
(524)
(648)
12
(1,344)
Carrying amount
62,639
7,279
1,023
175
71,116
60,935
7,450
1,241
199
69,825
At amortised cost
2025
2024
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
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Risk Management continued
2.1.2 Credit risk – Credit profile of the loan portfolio continued
Aged analysis of contractually past due loans and advances to customers
The following table shows aged analysis of contractually past due loans and advances to customers by industry sector analysed by ECL staging and segment
at 31 December 2025 and 2024:
At amortised cost
2025
Of which past due
Not past
due
1-30
days
31-60
days
61-90
days
91-180
days
181-365
days
> 365
days
Total
past due
Total
Industry sector
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
5,441
1
—
—
—
—
1
2
5,443
Of which renewables
4,972
—
—
—
—
—
—
—
4,972
Leisure
2,776
3
1
1
2
3
10
20
2,796
Manufacturing
2,883
1
—
—
1
2
7
11
2,894
Health, education and social work
1,885
—
—
—
—
—
2
2
1,887
Services
2,436
6
1
1
3
5
6
22
2,458
Agriculture, forestry and fishing
1,609
10
2
—
1
2
10
25
1,634
Retail and wholesale trade
2,018
22
1
1
2
8
7
41
2,059
Transport and storage
1,832
2
1
—
1
1
2
7
1,839
Telecommunications, media and technology
1,442
1
—
—
—
—
1
2
1,444
Financial, insurance and other government activities
446
—
—
—
—
—
—
—
446
Total non-property business
22,768
46
6
3
10
21
46
132
22,900
Property and construction
8,282
22
46
2
8
5
24
107
8,389
Residential mortgages
37,082
59
31
13
42
53
251
449
37,531
Other personal
3,322
37
11
8
24
34
3
117
3,439
Total gross carrying amount
71,454
164
94
26
84
113
324
805
72,259
ECL staging
Stage 1
62,756
56
—
—
—
—
—
56
62,812
Stage 2
7,620
85
55
18
—
—
—
158
7,778
Stage 3
986
21
38
8
83
110
264
524
1,510
POCI
92
2
1
—
1
3
60
67
159
71,454
164
94
26
84
113
324
805
72,259
Segment
Retail Banking
41,991
115
46
24
77
100
284
646
42,637
Capital Markets
17,006
30
25
—
—
3
11
69
17,075
C&IC
6,342
—
—
—
—
—
—
—
6,342
AIB UK
6,024
19
23
2
7
10
29
90
6,114
Group
91
—
—
—
—
—
—
—
91
71,454
164
94
26
84
113
324
805
72,259
As a percentage of total gross loans at amortised cost
%
%
%
%
%
%
%
%
%
98.9
0.2
0.1
—
0.1
0.2
0.4
1.1
100.0
The figures reported are inclusive of overdrafts, bridging loans and cases with expired limits. There were no contractually past due loans measured at
FVTPL at 31 December 2025 and 2024.
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2.1.2 Credit risk – Credit profile of the loan portfolio continued
Aged analysis of contractually past due loans and advances to customers continued
At amortised cost
2024
Of which past due
Not past
due
1-30
days
31-60
days
61-90
days
91-180
days
181-365
days
> 365
days
Total
past due
Total
Industry sector
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
4,989
—
—
—
3
—
3
6
4,995
Of which renewables
4,476
—
—
—
3
—
—
3
4,479
Leisure
2,849
25
3
12
4
11
38
93
2,942
Manufacturing
2,617
113
—
—
1
18
4
136
2,753
Health, education and social work
1,870
—
—
—
1
1
7
9
1,879
Services
2,229
5
1
1
3
3
8
21
2,250
Agriculture, forestry and fishing
1,654
13
2
3
5
3
11
37
1,691
Retail and wholesale trade
1,849
16
1
5
9
4
11
46
1,895
Transport and storage
1,808
35
—
—
1
1
3
40
1,848
Telecommunications, media and technology
1,448
—
—
—
—
1
1
2
1,450
Financial, insurance and other government activities
459
1
—
—
—
—
10
11
470
Total non-property business
21,772
208
7
21
27
42
96
401
22,173
Property and construction
8,444
57
1
7
164
28
60
317
8,761
Residential mortgages
36,350
80
14
25
50
103
348
620
36,970
Other personal
3,136
38
10
7
22
33
19
129
3,265
Total gross carrying amount
69,702
383
32
60
263
206
523
1,467
71,169
ECL staging
Stage 1
60,931
188
—
—
—
—
—
188
61,119
Stage 2
7,818
111
20
25
—
—
—
156
7,974
Stage 3
855
82
12
34
259
194
453
1,034
1,889
POCI
98
2
—
1
4
12
70
89
187
69,702
383
32
60
263
206
523
1,467
71,169
Segment
Retail Banking
41,217
148
29
34
88
153
418
870
42,087
Capital Markets
17,057
173
—
7
170
44
51
445
17,502
C&IC
5,528
—
—
—
—
—
—
—
5,528
AIB UK
5,850
62
3
19
5
9
54
152
6,002
Group
50
—
—
—
—
—
—
—
50
69,702
383
32
60
263
206
523
1,467
71,169
As a percentage of total gross loans at amortised cost
%
%
%
%
%
%
%
%
%
97.9
0.5
0.1
0.1
0.4
0.3
0.7
2.1
100.0
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Risk Management continued
2.1.2 Credit risk – Credit profile of the loan portfolio continued
Gross loans1 and ECL movements (audited)
The following tables set out the movements in the gross carrying amount and ECL allowance for loans and advances to customers at amortised cost by
ECL staging between 1 January 2025 and 31 December 2025 and the corresponding movements between 1 January 2024 and 31 December 2024.
Accounts that triggered movements between Stage 1 and Stage 2 as a result of failing/curing a quantitative measure only (as disclosed on page 186) and
that subsequently reverted within the year to their original stage, are excluded from ‘Transferred from Stage 1 to Stage 2’ and ‘Transferred from Stage 2 to
Stage 1’. The Group believes this presentation aids the understanding of the underlying credit migration.
Gross carrying amount movements – total (audited)
2025
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
At 1 January
61,119
7,974
1,889
187
71,169
Transferred from Stage 1 to Stage 2
(6,859)
6,859
—
—
—
Transferred from Stage 2 to Stage 1
5,262
(5,262)
—
—
—
Transferred to Stage 3
(84)
(791)
875
—
—
Transferred from Stage 3
18
196
(214)
—
—
New loans originated/top-ups
15,840
—
—
49
15,889
Redemptions/repayments
(13,448)
(2,513)
(458)
(44)
(16,463)
Interest credited
2,724
423
67
7
3,221
Write-offs
—
—
(113)
(1)
(114)
Derecognised due to disposals
(144)
(70)
(549)
(43)
(806)
Exchange translation adjustments
(829)
(71)
(15)
—
(915)
Impact of model, parameter and overlay changes
(1,039)
1,039
—
—
—
Other movements
252
(6)
28
4
278
At 31 December
62,812
7,778
1,510
159
72,259
2024
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
At 1 January
57,252
7,672
1,923
122
66,969
Transferred from Stage 1 to Stage 2
(6,290)
6,290
—
—
—
Transferred from Stage 2 to Stage 1
4,509
(4,509)
—
—
—
Transferred to Stage 3
(149)
(907)
1,056
—
—
Transferred from Stage 3
29
217
(246)
—
—
New loans originated/top-ups
15,898
—
—
88
15,986
Redemptions/repayments
(11,842)
(2,704)
(765)
(31)
(15,342)
Interest credited
2,863
469
89
5
3,426
Write-offs
—
—
(126)
—
(126)
Derecognised due to disposals
(264)
(112)
(81)
—
(457)
Exchange translation adjustments
530
49
15
1
595
Impact of model, parameter and overlay changes
(1,499)
1,499
—
—
—
Other movements
82
10
24
2
118
At 31 December
61,119
7,974
1,889
187
71,169
1. The gross carrying amount movement is recorded at each month end with movements calculated versus the position at previous month end. The sum of all 12 months movement is then presented.
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2.1.2 Credit risk – Credit profile of the loan portfolio continued
Gross loans and ECL movements continued
ECL allowance movements – total (audited)
2025
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
At 1 January
184
524
648
(12)
1,344
Transferred from Stage 1 to Stage 2
(88)
287
—
—
199
Transferred from Stage 2 to Stage 1
61
(170)
—
—
(109)
Transferred to Stage 3
(1)
(90)
152
—
61
Transferred from Stage 3
1
19
(38)
—
(18)
Net remeasurement (within Stage)
2
25
76
(7)
96
New loans originated/top-ups
77
—
—
—
77
Redemptions/repayments
(14)
(43)
—
1
(56)
Impact of model changes1
—
(16)
(1)
—
(17)
Impact of overlay changes1
41
(4)
(6)
—
31
Impact of credit or economic risk parameters
(41)
(18)
(1)
—
(60)
Net remeasurement of ECL allowance
38
(10)
182
(6)
204
Write-offs
—
—
(113)
(1)
(114)
Derecognised due to disposals
(44)
(12)
(228)
(2)
(286)
Exchange translation adjustments
(5)
(3)
(5)
—
(13)
Other movements
—
—
3
5
8
At 31 December
173
499
487
(16)
1,143
2024
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
At 1 January
254
635
634
(3)
1,520
Transferred from Stage 1 to Stage 2
(79)
277
—
—
198
Transferred from Stage 2 to Stage 1
87
(243)
—
—
(156)
Transferred to Stage 3
—
(108)
190
—
82
Transferred from Stage 3
—
21
(47)
—
(26)
Net remeasurement (within Stage)
(8)
15
75
(10)
72
New loans originated/top-ups
57
—
—
—
57
Redemptions/repayments
(33)
(69)
—
—
(102)
Impact of model changes1
14
53
—
—
67
Impact of overlay changes1
(10)
(12)
(37)
—
(59)
Impact of credit or economic risk parameters
(16)
(17)
(8)
—
(41)
Net remeasurement of ECL allowance
12
(83)
173
(10)
92
Write-offs
—
—
(126)
—
(126)
Derecognised due to disposals
(88)
(29)
(56)
—
(173)
Exchange translation adjustments
7
4
5
—
16
Other movements
(1)
(3)
18
1
15
At 31 December
184
524
648
(12)
1,344
1. For further clarity, the ECL allowance movements regarding the impact of model and overlay changes have been reported as separate categories for 2025 and 2024 comparatives.
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Risk Management continued
2.1.2 Credit risk – Credit profile of the loan portfolio continued
Gross loans and ECL movements continued (audited)
Total exposures to which an ECL applies increased during the year by
€1.0 billion from €71.2 billion at 1 January 2025 to €72.2 billion at
31 December 2025. The increase in the year was driven by new loans
originated/top-ups of €15.9 billion, partially offset by redemptions/
repayments net of interest credited of €13.2 billion, adverse foreign
exchange movements of €0.9 billion, and loan disposals including write-
offs of €0.9 billion.
Stage transfers are a key component of ECL allowance movements (i.e.
Stage 1 to Stage 2 to Stage 3 and vice versa) in addition to the net
remeasurement of ECL due to a change in risk parameters within a stage.
Excluding the impact of model changes, overlay changes and the updated
macroeconomic scenarios, an ECL charge of €250 million occurred due
to underlying credit management activity and a slight deterioration in
credit parameters which inform the modelled outcomes. This was
primarily driven by a €99 million charge for the non-property business
sector which included the credit deterioration of a small number of
borrowers in the fibre/broadband infrastructure sectors. The property and
construction sector also experienced a €95 million charge which was
driven by the recognition of risk through the modelled outcomes and
offset by a release of PMAs.
The impact of model changes resulted in a net writeback of €17 million. This
was primarily driven by a €47 million writeback due to the redeveloped
corporate LGD models deployed and partially offset by a €31 million charge
due to the deployment of the recalibrated investment property model.
The impact of overlay changes resulted in a net charge of €31 million. New
PMAs in the year of €40 million relating to the C&IC segment and €26 million
for the unsecured Stage 3 Retail portfolio were offset by a reduction in
existing PMAs due to the utilisation of PMAs which are now captured in the
modelled outcomes and through portfolio disposals. Further details on
PMAs are outlined on pages 195 and 196. PMAs ensure exposures subject
to risks which are not adequately reflected in the modelled outcomes, retain
an appropriate ECL.
The updated macroeconomic scenarios and weightings resulted in an ECL
release of €60 million. This ECL movement is presented separately within
‘Impact of credit or economic risk parameters’. This release was most
significant within the property and construction (€28 million) and non-
property business (€22 million) portfolios. The reduction reflects
improvements in the actual unemployment rates for 2025 in addition to
more favourable revised forecasts for 2026/27.
The gross loan transfers from Stage 1 to Stage 2 of €6.9 billion are due to
underlying credit management activity where a significant increase in
credit risk occurred during the year through either the quantitative or
qualitative criteria for stage movement. 50% of the movements relied on a
qualitative or backstop indicator of significant increase in credit risk (e.g.
forbearance or movement to a watch grade) with 1% caused solely by the
backstop of 30 days past due. Of the €6.9 billion which transferred from
Stage 1 to Stage 2 in the year, approximately €4.4 billion is reported as
Stage 2 at 31 December 2025.
Where a movement to Stage 2 is triggered by multiple drivers
simultaneously, these are reported in the following order: quantitative,
qualitative and backstop.
Similarly, transfers from Stage 2 to Stage 1 of €5.3 billion represent those
loans where the triggers for significant increase in credit risk no longer
apply or loans that have fulfilled a probation period.
These transfers include loans which have been upgraded through normal
credit management processes and incorporate loans which transferred due
to the impact of the updated macroeconomic scenarios and weightings.
Transfers from Stage 2 to Stage 3 of €0.8 billion represent those loans that
defaulted during the year. These arose in cases where it was determined
that the customers were unlikely to pay their loans in full without the
realisation of collateral regardless of the existence of any past due
amount or the number of days past due. In addition, transfers also include
all borrowers that are 90 days or more past due on a material obligation.
Of the transfers from Stage 2 to Stage 3, €0.2 billion had transferred from
Stage 1 to Stage 2 earlier in the year.
Transfers from Stage 3 to Stage 2 of €0.2 billion were mainly driven by
resolution activity with the customer, through either restructuring or
forbearance previously granted and which subsequently adhered to
default probation requirements. As part of the credit management
practices, active monitoring of loans and their adherence to default
probation requirements is in place.
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2.1.2 Credit risk – Credit profile of the loan portfolio continued
Movements in off-balance sheet exposures (audited)
The following tables set out the movements in the nominal amount and ECL allowance for loan commitments and financial guarantees by ECL staging
for the year to 31 December 2025 and 2024:
Nominal amount movements (audited)
2025
Loan commitments
Financial guarantee contracts
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January
15,354
1,379
83
7 16,823
883
79
14
—
976
Transferred from Stage 1 to Stage 2
(832)
832
—
—
—
—
—
—
—
—
Transferred from Stage 2 to Stage 1
632
(632)
—
—
—
221
(221)
—
—
—
Transferred to Stage 3
(57)
(13)
70
—
—
—
(5)
5
—
—
Transferred from Stage 3
3
5
(8)
—
—
—
—
—
—
—
Other movements1
418
(197)
(10)
(1)
210
31
199
—
—
230
At 31 December
15,518
1,374
135
6 17,033
1,135
52
19
—
1,206
2024
Loan commitments
Financial guarantee contracts
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January
14,921
1,136
71
8 16,136
790
52
14
1
857
Transferred from Stage 1 to Stage 2
(835)
835
—
—
—
(71)
71
—
—
—
Transferred from Stage 2 to Stage 1
401
(401)
—
—
—
28
(28)
—
—
—
Transferred to Stage 3
(16)
(20)
36
—
—
(2)
—
2
—
—
Transferred from Stage 3
10
8
(18)
—
—
1
—
(1)
—
—
Other movements1
873
(179)
(6)
(1)
687
137
(16)
(1)
(1)
119
At 31 December
15,354
1,379
83
7 16,823
883
79
14
—
976
1. Includes new commitments, utilised and expired commitments.
The internal credit grade profile of loan commitments and financial guarantee contracts is set out in the following table (audited):
2025
2024
€ m
€ m
Strong
10,651
10,858
Satisfactory
6,935
6,435
Criticised watch
452
381
Criticised recovery
46
22
Default
155
103
Total
18,239
17,799
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Risk Management continued
2.1.2 Credit risk – Credit profile of the loan portfolio continued
Movements in off-balance sheet exposures continued (audited)
ECL allowance movements (audited)
2025
Loan commitments
Financial guarantee contracts
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January
16
23
4
1
44
1
4
8
—
13
Transferred from Stage 1 to Stage 2
(3)
15
—
—
12
(1)
3
—
—
2
Transferred from Stage 2 to Stage 1
6
(17)
—
—
(11)
—
(2)
—
—
(2)
Transferred to Stage 3
—
(1)
5
—
4
—
(1)
1
—
—
Transferred from Stage 3
—
—
(1)
—
(1)
—
1
(1)
—
—
Net remeasurement
(6)
—
(1)
—
(7)
—
(1)
(4)
—
(5)
Net income statement (credit)/charge
(3)
(3)
3
—
(3)
(1)
—
(4)
—
(5)
Other movements
(1)
—
(1)
(1)
(3)
1
—
1
—
2
At 31 December
12
20
6
—
38
1
4
5
—
10
2024
Loan commitments
Financial guarantee contracts
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January
12
26
4
1
43
2
5
9
—
16
Transferred from Stage 1 to Stage 2
(3)
22
—
—
19
—
5
—
—
5
Transferred from Stage 2 to Stage 1
6
(32)
—
—
(26)
2
(3)
—
—
(1)
Transferred to Stage 3
—
—
2
—
2
—
(1)
2
—
1
Transferred from Stage 3
—
—
(1)
—
(1)
—
1
(1)
—
—
Net remeasurement
—
7
(2)
—
5
(2)
(3)
(2)
—
(7)
Net income statement charge/(credit)
3
(3)
(1)
—
(1)
—
(1)
(1)
—
(2)
Other movements
1
—
1
—
2
(1)
—
—
—
(1)
At 31 December
16
23
4
1
44
1
4
8
—
13
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2.1.3 Credit risk – Impairment and write-offs
Income statement
The table below analyses the key components of the income statement charge for loans and advances to customers at 31 December 2025 and 2024:
At amortised cost
2025
2024
Residential
mortgages
Other
personal
Property and
construction
Non-
property
business
Total
Residential
mortgages
Other
personal
Property and
construction
Non-
property
business
Total
Income Statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Net stage transfers
17
42
31
43
133
35
25
2
36
98
Net remeasurement
(within Stage)
(15)
2
60
49
96
(15)
8
(4)
83
72
New loans originated/
top-ups
1
17
30
29
77
2
15
22
18
57
Redemptions/repayments
(4)
(4)
(26)
(22)
(56)
(5)
(3)
(39)
(55)
(102)
Impact of model changes1
—
—
28
(45)
(17)
—
13
29
25
67
Impact of overlay changes1
(24)
23
(42)
74
31
(32)
24
(6)
(45)
(59)
Impact of credit or
economic risk parameters
1
(10)
(29)
(22)
(60)
(13)
(1)
5
(32)
(41)
Net remeasurement
of ECL allowance
(24)
70
52
106
204
(28)
81
9
30
92
Recoveries of amounts
previously written-off
(8)
(1)
(6)
(11)
(26)
(8)
(2)
(6)
(16)
(32)
Net credit impairment
(writeback)/charge
(32)
69
46
95
178
(36)
79
3
14
60
1. For further clarity, the ECL allowance movements regarding the impact of model and overlay changes have been reported as separate categories for 2025 and 2024 comparatives.
There was a €178 million net credit impairment charge in the year to
31 December 2025 which comprised a net remeasurement of ECL
allowance charge of €204 million and recoveries of amounts previously
written-off of €26 million (2024: €60 million charge comprising a net
remeasurement charge of €92 million and €32 million of recoveries).
The key drivers of the net remeasurement of ECL allowance charge of
€204 million consist of the following components and activity:
• Net stage transfers resulted in a €133 million charge which was evident
across all asset classes. The charge was driven by net stage transfers
between Stage 1 and Stage 2 of €90 million, largely within the other
personal (€33 million) and non-property business (€29 million) sectors.
Net remeasurements within stage resulted in a €96 million charge
driven by the property and construction and the non-property business
sectors. New loans originated offset by redemptions/repayment activity
resulted in a €21 million charge. The redemptions/repayment activity
was largely in the non-property business and the property and
construction sectors, particularly within Stage 2 which accounted for a
€37 million writeback across both sectors driven by loans that fully
repaid. Further details on the ECL allowance movements are outlined
on pages 205 to 209.
• The impact of model changes resulted in a net writeback of €17 million.
This was primarily driven by a €47 million writeback due to the
redeveloped corporate LGD models deployed, partially offset by a €31
million charge due to the deployment of the recalibrated investment
property model.
• The impact of overlay changes resulted in a net charge of €31 million.
New PMAs in the year of €40 million relating to the C&IC segment and
€26 million for the unsecured Stage 3 Retail portfolio were offset by a
reduction in existing PMAs due to the utilisation of PMAs which are now
captured in the modelled outcomes and through portfolio disposals.
Further details on PMAs are outlined on pages 195 and 196.
• Within the IFRS 9 models, a €60 million ECL writeback has been observed
due to macroeconomic factors. The reduction reflects improvements in
the actual unemployment rates for 2025 in addition to more favourable
revised forecasts for 2026/27. Further details on the macroeconomic
scenarios and weightings are outlined on pages 190 to 193.
Recoveries of amounts previously written-off of €26 million (2024: €32
million) included €10 million of recoveries (2024: €15 million) due to cash
recoveries received against legacy non-performing exposures. The
remaining €16 million (2024: €17 million) relates to interest recognised as
a result of loans curing from Stage 3.
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Risk Management continued
2.1.3 Credit risk – Impairment and write-offs continued
Loans written-off and recoveries of previously written-off loans
The following table analyses loans written-off and recoveries of previously written-off loans by industry sector and geography for the years ended 31
December 2025 and 2024:
2025
2024
Loans
written-off
Recoveries
of amounts
previously
written-off
Loans
written-off
Recoveries of
amounts
previously
written-off
Concentration by industry sector
€ m
€ m
€ m
€ m
Non-property business
78
11
59
16
Property and construction
13
6
40
6
Residential mortgages
13
8
11
8
Other personal
10
1
16
2
Total
114
26
126
32
Concentration by location1
Republic of Ireland
34
19
63
23
United Kingdom
76
7
38
3
Rest of the World
4
—
25
6
114
26
126
32
1. By country of risk.
The contractual amount outstanding of loans written-off during the year that are subject to enforcement activity amounted to €2 million
(2024: €30 million) which includes both full and partial write-offs. Total cumulative non-contracted loans written-off at 31 December 2025 has reduced
to €94 million (2024: €170 million).
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2.1.4 Credit risk – Asset class analysis
Asset class summary – Key points:
• The residential mortgage portfolio increased to €37.5 billion (2024: €37.0 billion), driven by €4.5 billion of new lending offset by €3.8 billion of
repayments, with credit quality improving as Stage 1 loans increased to €35.0 billion, Stage 2 loans decreased to €1.8 billion and Stage 3 loans
reduced to €0.6 billion. Total criticised loans declined to €0.8 billion (2024: €1.0 billion) and total ECL cover eased to 0.5% (2024: 0.7%). There
was a €32 million net credit impairment writeback in the year (2024: €36 million writeback).
• The other personal portfolio increased to €3.4 billion (2024: €3.3 billion), supported by €1.4 billion of new lending largely offset by €1.2 billion of
repayments, while credit quality remained stable with a modest improvement in staging - Stage 1 loans rising to €2.8 billion, Stage 2 loans
decreasing to €0.5 billion and Stage 3 loans unchanged at €0.1 billion; total ECL cover reduced to 3.8% (2024: 4.2%). There was a net credit
impairment charge of €69 million in the year (2024: €79 million charge).
• The property and construction portfolio decreased to €8.4 billion (2024: €8.7 billion), as €2.2 billion of redemptions/repayments and FX
movements exceeded €2.0 billion of new lending. Stage 1 loans increased to €5.7 billion, Stage 2 loans decreased to €2.4 billion and Stage 3 loans
reduced to €0.3 billion. The overall credit quality remained stable, however the grading composition within strong/satisfactory has shifted slightly
following the deployment of the recalibrated grading models, with strong grades reducing to 40% (2024: 64%) and total ECL cover eased to 5.1%
(2024: 5.3%). There was a €46 million net credit impairment charge in the year (2024: €3 million charge).
• The non-property business portfolio increased to €22.9 billion (2024: €22.2 billion), driven by €6.8 billion of new lending partially offset by €5.5
billion of repayments, with credit quality remaining stable as Stage 1 loans rose to €19.3 billion and Stage 2 loans increased to €3.1 billion while
Stage 3 loans remained unchanged at €0.5 billion. The grading composition within strong/satisfactory has shifted slightly following the deployment
of the recalibrated grading models, with strong grades reducing to 50% (2024: 55%) and total ECL cover declined to 1.8% (2024: 2.1%). There was
a €95 million net credit impairment charge in the year (2024: €14 million charge).
Loans and advances to customers – Residential mortgages
The residential mortgages portfolio amounted to €37.5 billion at 31
December 2025, with the majority (97%) relating to residential mortgages in
the Republic of Ireland and the remainder relating to Northern Ireland. This
compares to €37.0 billion at 31 December 2024, of which 97% related to
residential mortgages in the Republic of Ireland. The split of the residential
mortgages portfolio was owner-occupier €36.4 billion and buy-to-let €1.1
billion (2024: owner-occupier €35.7 billion and buy-to-let €1.3 billion).
The portfolio increased by €0.5 billion in the year due to new lending of
€4.5 billion (2024: €4.7 billion), which was largely offset by redemptions/
repayments of €3.8 billion and disposals of €0.2 billion.
The staging composition of the portfolio improved in the year as Stage 1
loans increased by €0.8 billion to €35.0 billion, Stage 2 loans decreased
by €0.1 billion to €1.8 billion and there was a €0.2 billion decrease in
Stage 3 loans to €0.6 billion, primarily due to the sale of a non-performing
loan portfolio in long-term default which was completed during the year.
The split of the residential mortgages portfolio comprises €21.0 billion
(56%) fixed rate, €10.6 billion (28%) variable rate and €5.9 billion (16%)
tracker rate mortgages (2024: €20.5 billion (55%) fixed rate, €9.6 billion
(26%) variable rate and €6.9 billion (19%) tracker rate mortgages).
Forbearance
Residential mortgages subject to forbearance measures reduced slightly
to €0.5 billion at 31 December 2025 (2024: €0.6 billion). Details of
forbearance measures are set out on pages 221 and 222.
Income statement
There was a €32 million net credit impairment writeback in the year
to 31 December 2025 compared to a €36 million net credit impairment
writeback in 2024. This comprises a net remeasurement of ECL allowance
writeback of €24 million and recoveries of previously written-off loans of
€8 million.
The ECL allowance for the portfolio totalled €0.2 billion providing ECL
allowance cover of 0.5%. For the Stage 3 portfolio, the ECL allowance
cover is 21% (2024: €0.3 billion, 0.7% and 27% respectively).
Residual debt, which is now unsecured following the disposal of property
on which the residential mortgage was secured, is included in the
residential mortgages portfolio and as such, is included in the tables
within this section.
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Risk Management continued
2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers – Residential mortgages continued
The following table analyses the residential mortgage portfolio at amortised cost by segment, internal credit ratings and ECL staging at
31 December 2025 and 2024:
(Audited)
2025
2024
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Retail
Banking
Capital
Markets
C&IC
AIB
UK
Group
Total
Gross carrying amount
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Owner-occupier
35,014
449
—
942
—
36,405
34,346
417
—
925
—
35,688
Buy-to-let
1,029
59
—
38
—
1,126
1,174
62
—
46
—
1,282
Total
36,043
508
—
980
—
37,531
35,520
479
—
971
—
36,970
Analysed by internal credit ratings
Strong
30,091
342
—
769
—
31,202
28,930
311
—
849
—
30,090
Satisfactory
4,564
157
—
156
—
4,877
4,829
150
—
72
—
5,051
Total strong/satisfactory
34,655
499
—
925
—
36,079
33,759
461
—
921
—
35,141
Criticised watch
623
7
—
16
—
646
786
15
—
11
—
812
Criticised recovery
136
—
—
2
—
138
142
—
—
3
—
145
Total criticised
759
7
—
18
—
784
928
15
—
14
—
957
Non-performing
629
2
—
37
—
668
833
3
—
36
—
872
Gross carrying amount
36,043
508
—
980
—
37,531
35,520
479
—
971
—
36,970
Analysed by ECL staging
Stage 1
33,602
473
—
924
—
34,999
32,799
441
—
925
—
34,165
Stage 2
1,740
33
—
19
—
1,792
1,820
35
—
10
—
1,865
Stage 3
552
2
—
37
—
591
731
3
—
36
—
770
POCI
149
—
—
—
—
149
170
—
—
—
—
170
Total
36,043
508
—
980
—
37,531
35,520
479
—
971
—
36,970
ECL allowance – statement of financial position
Stage 1
12
—
—
1
—
13
10
—
—
—
—
10
Stage 2
47
1
—
—
—
48
52
1
—
—
—
53
Stage 3
122
—
—
3
—
125
206
1
—
3
—
210
POCI
(10)
—
—
—
—
(10)
(3)
—
—
—
—
(3)
Total
171
1
—
4
—
176
265
2
—
3
—
270
ECL allowance cover
percentage
%
%
%
%
%
%
%
%
%
%
%
%
Stage 1
—
—
—
0.1
—
—
—
—
—
—
—
—
Stage 2
2.7
3.0
—
—
—
2.7
2.9
2.5
—
—
—
2.8
Stage 3
22.1
—
—
8.1
—
21.2
28.2
30.3
—
8.3
—
27.2
POCI
(6.7)
—
—
—
—
(6.7)
(1.8)
—
—
—
—
(1.8)
Income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Net remeasurement
of ECL allowance
(24)
(1)
—
1
—
(24)
(27)
—
—
(1)
—
(28)
Recoveries of amounts
previously written-off
(7)
—
—
(1)
—
(8)
(8)
—
—
—
—
(8)
Net credit impairment
(writeback)/charge
(31)
(1)
—
—
—
(32)
(35)
—
—
(1)
—
(36)
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2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers - residential mortgages
Indexed loan-to-value ratios of the Group’s residential mortgage portfolio
The following table profiles the residential mortgage portfolio by the indexed loan-to-value (LTV) ratios at 31 December 2025 and 2024:
2025
2024
(Audited)
At amortised cost
At amortised cost
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Less than 80%
32,790
1,752
542
138 35,222
31,968
1,830
702
154 34,654
81 – 100%
2,077
32
28
5
2,142
2,082
26
42
5
2,155
100 – 120%
40
3
9
3
55
32
2
9
1
44
Greater than 120%
89
4
10
2
105
80
6
15
3
104
Total with LTVs
34,996
1,791
589
148 37,524
34,162
1,864
768
163 36,957
Unsecured
3
1
2
1
7
3
1
2
7
13
Total
34,999
1,792
591
149 37,531
34,165
1,865
770
170 36,970
Of which:
Owner-occupier
Less than 80%
31,864
1,629
501
128 34,122
30,950
1,669
646
146 33,411
81 – 100%
2,073
32
23
4
2,132
2,077
27
31
3
2,138
100 – 120%
39
2
6
1
48
31
1
7
1
40
Greater than 120%
87
4
7
1
99
76
5
10
3
94
Total with LTVs
34,063
1,667
537
134 36,401
33,134
1,702
694
153 35,683
Unsecured
2
—
1
1
4
2
—
1
2
5
Total
34,065
1,667
538
135 36,405
33,136
1,702
695
155 35,688
The weighted average indexed loan-to-value (LTV) of the stock of residential mortgages at 31 December 2025 was 46% (2024: 47%), new residential
mortgages issued during the year was 67% (2024: 68%), and Stage 3 was 45% (2024: 47%).
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Risk Management continued
2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers – Other personal
The following table analyses other personal lending at amortised cost by segment, internal credit ratings and ECL staging at 31 December 2025 and 2024:
(Audited)
2025
2024
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Gross carrying amount
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Credit cards
750
13
—
20
—
783
736
9
—
22
—
767
Loans/overdrafts
2,532
84
—
40
—
2,656
2,370
84
—
44
—
2,498
Total
3,282
97
—
60
—
3,439
3,106
93
—
66
—
3,265
Analysed by internal credit ratings
Strong
489
14
—
55
—
558
469
9
—
59
—
537
Satisfactory
1,900
77
—
4
—
1,981
1,797
76
—
6
—
1,879
Total strong/satisfactory
2,389
91
—
59
—
2,539
2,266
85
—
65
—
2,416
Criticised watch
796
6
—
—
—
802
728
8
—
—
—
736
Criticised recovery
11
—
—
—
—
11
13
—
—
—
—
13
Total criticised
807
6
—
—
—
813
741
8
—
—
—
749
Non-performing
86
—
—
1
—
87
99
—
—
1
—
100
Gross carrying amount
3,282
97
—
60
—
3,439
3,106
93
—
66
—
3,265
Analysed by ECL staging
Stage 1
2,662
90
—
57
—
2,809
2,403
84
—
62
—
2,549
Stage 2
534
7
—
2
—
543
604
9
—
3
—
616
Stage 3
86
—
—
1
—
87
99
—
—
1
—
100
POCI
—
—
—
—
—
—
—
—
—
—
—
—
Total
3,282
97
—
60
—
3,439
3,106
93
—
66
—
3,265
ECL allowance – statement of financial position
Stage 1
21
1
—
—
—
22
18
1
—
—
—
19
Stage 2
48
—
—
—
—
48
51
1
—
—
—
52
Stage 3
60
—
—
1
—
61
65
—
—
1
—
66
POCI
—
—
—
—
—
—
—
—
—
—
—
—
Total
129
1
—
1
—
131
134
2
—
1
—
137
ECL allowance cover
percentage
%
%
%
%
%
%
%
%
%
%
%
%
Stage 1
0.8
1.1
—
—
—
0.8
0.8
0.6
—
—
—
0.7
Stage 2
9.0
—
—
—
—
8.8
8.5
9.3
—
—
—
8.5
Stage 3
69.8
—
—
100.0
—
70.1
65.4
—
—
63.0
—
65.3
POCI
—
—
—
—
—
—
—
—
—
—
—
—
Income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Net remeasurement
of ECL allowance
71
(1)
—
—
—
70
81
—
—
—
—
81
Recoveries of amounts
previously written-off
(1)
—
—
—
—
(1)
(2)
—
—
—
—
(2)
Net credit impairment
charge/(writeback)
70
(1)
—
—
—
69
79
—
—
—
—
79
At 31 December 2025, the other personal lending portfolio of €3.4 billion
comprises €2.6 billion in loans and overdrafts and €0.8 billion in credit
card facilities (2024: €3.3 billion, €2.5 billion and €0.8 billion respectively).
The credit quality of the portfolio remained stable throughout the year,
with 26% categorised as less than satisfactory, of which defaulted loans
amounted to €0.1 billion (2024: 26% and €0.1 billion).
New lending totalled €1.4 billion for the year to 31 December 2025
(2024: €1.3 billion); this was largely offset by net redemptions/repayments
of €1.2 billion and disposals of €0.1 billion.
Stage 1 loans increased to €2.8 billion (2024: €2.6 billion), and Stage 2
loans decreased slightly by €0.1 billion to €0.5 billion (2024: €0.6 billion).
Stage 2 cover remained stable at 9% (2024: 9%). Total Stage 3 loans
experienced a slight decrease but remained unchanged at €0.1 billion.
Income statement
There was a net credit impairment charge of €69 million to the income
statement in the year to 31 December 2025 compared to a €79 million net
credit impairment charge in 2024. This comprises a net remeasurement of
ECL allowance charge of €70 million and recoveries of previously written-
off loans of €1 million.
The ECL allowance for the portfolio totalled €0.1 billion providing ECL
allowance cover of 4%. For the Stage 3 portfolio, the ECL allowance cover
is 70% (2024: €0.1 billion, 4% and 65% respectively).
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2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers – Property and construction
The following table analyses property and construction lending at amortised cost by segment, internal credit ratings and ECL staging at
31 December 2025 and 2024:
(Audited)
2025
2024
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Gross carrying amount
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Investment:
Residential investment
28
1,441
—
583
—
2,052
40
1,671
—
409
—
2,120
Student housing
—
304
—
571
—
875
—
337
—
541
—
878
Housing associations
—
232
—
577
—
809
—
157
—
486
—
643
Commercial investment –
Office
17
1,240
—
377
—
1,634
23
1,433
—
400
—
1,856
Commercial investment –
Retail
30
361
—
41
—
432
35
658
—
90
—
783
Commercial investment –
Mixed
34
763
—
145
—
942
49
697
—
116
—
862
Commercial investment –
Industrial
16
284
—
250
—
550
20
280
—
160
—
460
Total investment
125
4,625
—
2,544
—
7,294
167
5,233
—
2,202
—
7,602
Land and development:
Residential development
26
513
—
80
—
619
25
574
—
101
—
700
Commercial development
3
7
—
79
—
89
5
14
—
90
—
109
Total land and development
29
520
—
159
—
708
30
588
—
191
—
809
Contractors
253
111
—
23
—
387
231
91
—
28
—
350
Total
407
5,256
—
2,726
—
8,389
428
5,912
—
2,421
—
8,761
Analysed by internal credit ratings
Strong
30
2,167
—
1,184
—
3,381
54
4,473
—
1,108
—
5,635
Satisfactory
271
2,286
—
1,418
—
3,975
243
616
—
1,227
—
2,086
Total strong/satisfactory
301
4,453
—
2,602
—
7,356
297
5,089
—
2,335
—
7,721
Criticised watch
68
154
—
23
—
245
72
50
—
3
—
125
Criticised recovery
8
378
—
59
—
445
13
356
—
7
—
376
Total criticised
76
532
—
82
—
690
85
406
—
10
—
501
Non-performing
30
271
—
42
—
343
46
417
—
76
—
539
Gross carrying amount
407
5,256
—
2,726
—
8,389
428
5,912
—
2,421
—
8,761
Analysed by ECL staging
Stage 1
294
2,879
—
2,487
—
5,660
285
3,102
—
2,110
—
5,497
Stage 2
83
2,106
—
197
—
2,386
97
2,393
—
235
—
2,725
Stage 3
29
271
—
42
—
342
44
417
—
76
—
537
POCI
1
—
—
—
—
1
2
—
—
—
—
2
Total
407
5,256
—
2,726
—
8,389
428
5,912
—
2,421
—
8,761
ECL allowance – statement of financial position
Stage 1
1
59
—
17
—
77
1
44
—
15
—
60
Stage 2
4
202
—
10
—
216
5
208
—
13
—
226
Stage 3
15
116
—
9
—
140
15
149
—
15
—
179
POCI
(1)
—
—
—
—
(1)
(1)
—
—
—
—
(1)
Total
19
377
—
36
—
432
20
401
—
43
—
464
ECL allowance cover
percentage
%
%
%
%
%
%
%
%
%
%
%
%
Stage 1
0.3
2.0
—
0.7
—
1.4
0.4
1.4
—
0.7
—
1.1
Stage 2
4.8
9.6
—
5.1
—
9.1
5.0
8.7
—
5.6
—
8.3
Stage 3
51.7
42.8
—
21.4
—
40.9
35.2
35.8
—
19.6
—
33.4
POCI
(100.0)
—
—
—
—
(100.0)
(51.4)
—
—
—
—
(51.4)
Income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Net remeasurement of ECL
allowance
2
28
—
22
—
52
1
(6)
—
14
—
9
Recoveries of amounts
previously written-off
(3)
(3)
—
—
—
(6)
(3)
(3)
—
—
—
(6)
Net credit impairment
(writeback)/charge
(1)
25
—
22
—
46
(2)
(9)
—
14
—
3
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Risk Management continued
2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers – Property and construction
continued
The property and construction portfolio decreased by €0.3 billion to
€8.4 billion in the year to 31 December 2025 (2024: €8.7 billion). The
reduction was driven by net redemptions/repayments activity and foreign
exchange movements totalling €2.2 billion, which exceeded new lending
of €2.0 billion (2024: €1.6 billion). New lending was largely in the property
investment (€1.3 billion) and property development (€0.5 billion)
portfolios, of which €0.8 billion related to residential investment/
development projects.
The portfolio amounted to 12% of loans and advances to customers and
comprised 87% investment loans (€7.3 billion), 8% land and development
loans (€0.7 billion) and 5% relating to loans to contractors (€0.4 billion).
The Capital Markets and AIB UK segments continue to account for the
majority of this portfolio at 63% and 32% respectively.
At 31 December 2025, €7.4 billion of the portfolio was in a strong/
satisfactory grade (2024: €7.7 billion). However, following the deployment
of the recalibrated grading models, the grading composition within strong/
satisfactory has shifted with strong loans decreasing by 24% to 40% at
December 2025 (2024: 64%). The recalibration reflects an improvement
in how the Group measures the risk in the portfolio as opposed to any
deterioration in customer asset quality. The level of non-performing loans
decreased by €0.2 billion in the year to €0.3 billion (2024: €0.5 billion).
The overall stage composition of the portfolio improved in the year. Stage
1 loans increased by €0.2 billion to €5.7 billion (2024: €5.5 billion), Stage 2
loans decreased by €0.3 billion to €2.4 billion (2024: €2.7 billion) and
Stage 3 loans decreased by €0.2 billion to €0.3 billion (2024: €0.5 billion).
Income statement
There was a net credit impairment charge of €46 million to the income
statement in the year to 31 December 2025 compared to a €3 million
charge in 2024. This comprises a net remeasurement of ECL allowance
charge of €52 million and recoveries of previously written-off loans of
€6 million.
The ECL allowance for the portfolio totalled €0.4 billion providing ECL
allowance cover of 5%. For the Stage 3 portfolio, the ECL allowance cover
is 41% (2024: €0.4 billion, 5% and 33% respectively).
Investment
Investment property loans amounted to €7.3 billion at 31 December 2025
(2024: €7.6 billion), of which, €3.5 billion related to commercial investment.
The geographic profile of the investment property portfolio is predominantly in
the Republic of Ireland (€4.4 billion) and the UK (€2.6 billion).
The following are the key themes within the investment property
sub-sectors in relation to the total property and construction portfolio:
• The residential investment sub-sector represents 24% of the portfolio
at €2.1 billion. Performance is underpinned by a combination of strong
Irish economic performance, population growth and under-supply of
housing relative to market requirements and government targets.
• The office commercial investment sub-sector represents 20% of the
portfolio at €1.6 billion. Demand is rising for high quality, well located
spaces with take up concentrated in Dublin city centre with prime
headline rates broadly stable. Energy ratings of the secondary office
portfolio remain a key risk with growing emphasis on sustainability and
energy efficiency.
• The mixed commercial investment sub-sector represents 11% of the
portfolio at €0.9 billion. This sub-sector consists of mixed investment
properties including retail, office and residential. Where retail features,
transactions are expected to be prime or strong secondary and have
high quality characteristics in the stronger performing segments (retail
parks and food anchored retail).
• The student housing residential investment sub-sector represents 10%
of the portfolio at €0.9 billion. This sub-sector continues to experience
strong levels of occupancy due to significant under-supply.
• The social housing residential investment sub-sector represents 10%
of the portfolio at €0.8 billion. Similar to other residential sub-sectors,
social housing has remained resilient in both Ireland and the UK with
strong occupancy levels due to significant under-supply.
At 31 December 2025, there was a net credit impairment charge of €42
million to the income statement on the investment property element of the
property and construction portfolio (2024: €19 million charge).
Land and development
Land and development loans amounted to €0.7 billion at 31 December
2025 (2024: €0.8 billion) of which €0.5 billion related to loans in the
Capital Markets segment and €0.2 billion in the AIB UK segment.
The residential development sub-sector represents 7% of the total
property and construction portfolio at €0.6 billion. Whilst the majority of
the portfolio is funding development in the greater Dublin area or Cork,
proven developers are scaling up their regional presence.
At 31 December 2025, there was a net credit impairment writeback of
€3 million to the income statement on the land and development element
of the property and construction portfolio (2024: €20 million writeback).
Contractors
The contractors sub-sector represents 5% of the portfolio at €0.4 billion
(2024: €0.3 billion). The demand for this sub-sector is underpinned
by public works and residential projects. This sub-sector continues to deal
with a number of challenges including skill shortages, supply chain
disruptions and input cost inflation particularly in wages.
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2.1.4 Credit risk – Credit profile of the loan portfolio – Asset class analysis continued
Loans and advances to customers – Non-property business
The following table analyses non-property business lending at amortised cost by segment, internal credit ratings and ECL staging at 31 December 2025
and 2024:
(Audited)
2025
2024
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Retail
Banking
Capital
Markets
C&IC
AIB
UK
Group
Total
Gross carrying amount
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Natural resources
18
269
4,974
182
—
5,443
18
531
4,204
242
—
4,995
Of which renewables
—
1
4,949
22
—
4,972
—
282
4,176
21
—
4,479
Leisure
240
2,016
—
540
—
2,796
298
2,016
—
628
—
2,942
Manufacturing
146
2,462
—
286
—
2,894
148
2,395
—
210
—
2,753
Health, education and
social work
104
1,383
—
400
—
1,887
109
1,327
—
443
—
1,879
Services
552
1,426
257
223
—
2,458
532
1,174
265
279
—
2,250
Agriculture, forestry and fishing
1,240
350
—
44
—
1,634
1,284
353
—
54
—
1,691
Retail and wholesale trade
338
1,608
—
113
—
2,059
381
1,408
—
106
—
1,895
Transport and storage
213
914
348
364
—
1,839
205
785
394
464
—
1,848
Telecommunications,
media and technology
29
589
763
63
—
1,444
33
715
665
37
—
1,450
Financial, insurance and
other government activities
25
197
—
133
91
446
25
314
—
81
50
470
Total
2,905
11,214
6,342
2,348
91
22,900
3,033
11,018
5,528
2,544
50
22,173
Of which Syndicated &
International Finance (SIF)
—
3,342
—
—
—
3,342
—
2,803
—
—
—
2,803
Analysed by internal credit ratings
Strong
149
4,466
5,367
1,473
—
11,455
141
5,674
4,858
1,452
20
12,145
Satisfactory
2,176
6,002
656
787
91
9,712
2,189
4,726
579
778
30
8,302
Total strong/satisfactory
2,325
10,468
6,023
2,260
91
21,167
2,330
10,400
5,437
2,230
50
20,447
Criticised watch
396
568
50
33
—
1,047
453
393
2
45
—
893
Criticised recovery
34
67
66
24
—
191
53
115
51
122
—
341
Total criticised
430
635
116
57
—
1,238
506
508
53
167
—
1,234
Non-performing
150
111
203
31
—
495
197
110
38
147
—
492
Gross carrying amount
2,905
11,214
6,342
2,348
91
22,900
3,033
11,018
5,528
2,544
50
22,173
Analysed by ECL staging
Stage 1
2,245
9,585
5,245
2,178
91
19,344
2,241
9,349
5,206
2,062
50
18,908
Stage 2
507
1,517
894
139
—
3,057
591
1,558
284
335
—
2,768
Stage 3
145
111
203
31
—
490
188
109
38
147
—
482
POCI
8
1
—
—
—
9
13
2
—
—
—
15
Total
2,905
11,214
6,342
2,348
91
22,900
3,033
11,018
5,528
2,544
50
22,173
ECL allowance – statement of financial position
Stage 1
8
31
4
18
—
61
10
46
19
20
—
95
Stage 2
26
120
31
10
—
187
30
125
20
18
—
193
Stage 3
57
28
59
17
—
161
65
42
6
80
—
193
POCI
(4)
(1)
—
—
—
(5)
(7)
(1)
—
—
—
(8)
Total
87
178
94
45
—
404
98
212
45
118
—
473
ECL allowance cover
percentage
%
%
%
%
%
%
%
%
%
%
%
%
Stage 1
0.4
0.3
0.1
0.8
—
0.3
0.4
0.5
0.4
1.0
—
0.5
Stage 2
5.1
7.9
3.5
7.2
—
6.1
5.0
8.0
6.9
5.4
—
6.9
Stage 3
39.3
25.2
29.1
54.8
—
32.9
34.6
38.7
16.0
55.0
—
40.2
POCI
(50.0)
(100.0)
—
—
—
(55.6)
(48.6)
(57.2)
—
—
—
(49.7)
Income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Net remeasurement of ECL
allowance
19
(8)
69
26
—
106
(5)
(63)
22
76
—
30
Recoveries of amounts
previously written-off
(4)
(1)
—
(6)
—
(11)
(7)
(7)
—
(2)
—
(16)
Net credit impairment
charge/(writeback)
15
(9)
69
20
—
95
(12)
(70)
22
74
—
14
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Risk Management continued
2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers – Non-property business continued
The non-property business portfolio includes small and medium
enterprises (SMEs) which are reliant largely on the domestic economies
in which they operate. In addition to SMEs, the portfolio also includes
exposures to larger corporate and institutional borrowers which are
impacted by global economic conditions. The largest geographic
concentration of the portfolio exposure is to Irish borrowers (49%),
with the UK (23%) and USA (17%) being the other main geographic
concentrations.
The non-property business portfolio consists of €22.9 billion in loans and
advances to customers measured at amortised cost and €84 million of
loans measured at FVTPL.
The portfolio measured at amortised cost increased by €0.7 billion to
€22.9 billion in the year (2024: €22.2 billion). The increase in the portfolio
can be attributed to new lending totalling €6.8 billion (2024: €6.8 billion);
this was primarily driven by new lending of €3.5 billion in the Capital
Markets segment. There was a further €1.6 billion of new lending within
the C&IC segment as the Group continues to finance the transition to
renewable energy and infrastructure. Total new lending was partially offset
by net redemptions/repayments of €5.5 billion. The non-property business
portfolio amounted to 32% of total Group loans and advances to
customers in the year (2024: 31%).
The asset quality composition of the portfolio remained stable in the year.
Loans graded as strong/satisfactory were 92% (2024: 92%). The value of
loans graded less than satisfactory (including non-performing loans)
accounted for €1.7 billion (2024: €1.7 billion). However, following the
deployment of the recalibrated grading models, the grading composition
within strong/satisfactory has shifted with strong loans decreasing by 5%
to 50% (2024: 55%). This recalibration primarily reflects an improvement
in how the Group measures the risk in this portfolio as opposed to any
deterioration in customer asset quality.
The staging composition of the portfolio has remained stable in the year as
Stage 1 loans increased by €0.4 billion to €19.3 billion (2024: €18.9
billion), however Stage 2 loans also increased by €0.3 billion to €3.1 billion
(2024: €2.8 billion). The increase in Stage 2 loans was predominantly in
the C&IC segment, primarily impacted by enhanced qualitative SICR
triggers and a number of borrower downgrades from Stage 1 to Stage 2,
specifically within the natural resources and fibre/broadband
infrastructure sectors. Stage 3 loans remained unchanged at €0.5 billion.
The performing forborne portfolio, which is also reflected within the
criticised recovery category, decreased by €0.1 billion to €0.2 billion in the
year (2024: €0.3 billion), as borrowers successfully demonstrated
repayment capacity over 24 months.
The following are the key themes within the main sub-sectors of the non-
property business portfolio:
• The natural resources sub-sector comprises 24% of the portfolio at
€5.4 billion, which includes renewable energy. Continued growth in the
sub-sector is anticipated, which will be driven by very strong demand for
renewable energy as economies transition away from fossil fuels to meet
climate goals underpinned by international agreements, and to increase
energy security after a period of heightened geopolitical energy concerns.
However, project specific operational issues, construction delays and
grid outages led to an increase in the Stage 2 portfolio during 2025.
• The manufacturing sub-sector comprises 13% of the portfolio at €2.9
billion. Whilst non-food operators continue to experience strong export
demand especially in pharmaceuticals, engineering and technology,
the sector faces rising energy, wage and raw material costs, impacting
profitability. Cost pressures and regulatory requirements particularly
around sustainability are expected to persist. Whilst the value of food
and drink exports increased in 2025 despite trade uncertainties around
US tariffs, the food manufacturing sector continues to face challenges
on cost inflation, supply chain volatility and regulatory demands, with
continued investment in innovation and sustainability key for
competitiveness.
• The leisure sub-sector comprises 12% of the portfolio at €2.8 billion.
2025 evidenced a strong return of international tourists and stable
domestic demand. International tourism is expected to remain robust
supported by plans to expand Dublin airport capacity, whilst domestic
tourism shows greater growth potential due to strong economic
fundamentals. Reduction in VAT rate for food and catering from July
2026 and continuation of reduced VAT rate for gas and electricity will be
offset by PRSI increases, minimum wage increases and pension auto-
enrolment.
• The services sub-sector comprises 11% of the portfolio at €2.5 billion,
and includes professional services (accounting, legal and architectural/
engineering activities) and other services, representing a more diverse
grouping which includes contract services, machinery & equipment,
management consultancy, research & development and public/
community groups. Performance of service businesses is in part
correlated to the performance of the domestic and global economy.
Domestically, the Irish economy has been resilient in the face of
geopolitical uncertainty with modified domestic demand forecast to
continue to expand albeit at more moderate levels in 2026 and 2027.
Income statement
There was a net credit impairment charge of €95 million to the income
statement in the year to 31 December 2025 compared to a €14 million
charge in 2024. This comprises a net remeasurement of ECL allowance
charge of €106 million and recoveries of previously written-off loans of
€11 million.
The ECL allowance for the portfolio totalled €0.4 billion providing ECL
allowance cover of 2%. For the Stage 3 portfolio, the ECL allowance cover
is 33% (2024: €0.5 billion, 2% and 40% respectively).
Syndicated and International Finance
Syndicated and International Finance (SIF) is a specialised business unit
within Capital Markets which participates in the provision of finance to US
and European corporations for mergers, acquisitions, buyouts and
general corporate purposes.
The SIF non-property portfolio increased by €0.5 billion to €3.3 billion at
31 December 2025 (2024: €2.8 billion). Growth was driven by increased
appetite for lowly leveraged, strongly rated, large scale international
corporates. Key portfolio metrics and trends are as follows:
• S&P corporate family rating: Improving. 97% of the SIF portfolio is rated
by S&P (2024: 89%) with 91% rated B+ or above (+10% vs 2024), 7%
rated B (-1% vs 2024) and Nil rated B- or below (-1% vs 2024).
• Grading: Stable. 100% of the SIF portfolio is in a strong/satisfactory
grade (2024: 100%).
• Staging: Majority in Stage 1, 94%/€3.1 billion (2024: 97%/€2.7 billion).
Stage 2 modest at 6%/€0.2 billion (2024: 3%/€0.1 billion). Stage 3
exposure remains Nil.
• Scale: Strong preference to larger scale with vast majority of loans,
92%, to borrowers with EBITDA > €250 million (2024: 90%).
• Diversification: Improving. Reduced concentration with top 20
borrowers accounting for 31% of total exposure (-5% vs 2024).
Exposures diversified across multiple non-property business sub-
sectors. Primary sectoral concentrations are to manufacturing 22%
(2024: 24%), services 23% (2024: 18%), telecommunications, media
and technology 15% (2024: 20%).
• Exposures relate to borrowers domiciled in the US (71%), UK (6%) and
Rest of World - primarily Europe (23%), (2024: US 63%, UK 6% and Rest
of World - primarily Europe 31%).
The SIF portfolio had a net credit impairment writeback to the income
statement in 2025 of €2 million (2024: €78 million writeback).
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2.1.5 Credit risk – Credit ratings
External credit ratings of certain financial assets (audited)
The following table sets out the credit quality, based on external credit ratings, of financial assets measured at 31 December 2025 and 2024:
• Amortised cost: Loans and advances to banks of €601 million (2024: €1,321 million), securities financing of €7,339 million (2024: €6,643 million),
investment debt securities at amortised cost of €5,043 million (2024: €4,803 million);
• FVOCI: Investment debt securities at FVOCI of €16,201 million (2024: €13,568 million); and
• FVTPL: Trading portfolio of financial assets of €276 million (2024: €121 million).
Information on the credit ratings for loans and advances to customers where an external credit rating is available is disclosed on page 219.
2025
2024
(Audited)
At amortised cost
At amortised cost
Bank
Corporate
Sovereign
Other
Total
Bank
Corporate
Sovereign
Other
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
AAA/AA
1,410
—
2,372
2,235
6,017
1,213
—
2,412
1,946
5,571
A/A-
4,819
1,513
75
94
6,501
5,391
1,240
17
167
6,815
BBB+/BBB/BBB-
5
357
—
—
362
15
245
34
—
294
Sub investment
5
47
—
—
52
3
25
—
—
28
Unrated
1
50
—
—
51
6
53
—
—
59
Total
6,240
1,967
2,447
2,329 1
12,983
6,628
1,563
2,463
2,113 1
12,767
Of which:
Stage 1
6,240
1,967
2,447
2,329
12,983
6,628
1,563
2,463
2,113
12,767
Stage 2
—
—
—
—
—
—
—
—
—
—
Stage 3
—
—
—
—
—
—
—
—
—
—
2025
2024
(Audited)
At FVOCI
At FVOCI
Bank
Corporate
Sovereign
Other
Total
Bank
Corporate
Sovereign
Other
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
AAA/AA
5,296
188
6,172
107
11,763
5,164
196
5,002
153
10,515
A/A-
1,103
532
1,479
—
3,114
1,205
373
490
—
2,068
BBB+/BBB/BBB-
185
213
926
—
1,324
163
169
643
—
975
Sub investment
—
—
—
—
—
—
—
—
—
—
Unrated
—
—
—
—
—
—
—
10
—
10
Total
6,584
933
8,577
2
107
16,201
6,532
738
6,145 2
153
13,568
Of which:
Stage 1
6,584
933
8,577
107
16,201
6,532
738
6,145
153
13,568
Stage 2
—
—
—
—
—
—
—
—
—
—
Stage 3
—
—
—
—
—
—
—
—
—
—
2025
2024
(Audited)
At FVTPL
At FVTPL
Bank
Corporate
Sovereign
Other
Total
Bank
Corporate
Sovereign
Other
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
AAA/AA
—
—
171
—
171
—
—
103
—
103
A/A-
3
3
91
—
97
—
—
—
—
—
BBB+/BBB/BBB-
8
—
—
—
8
10
6
—
—
16
Sub investment
—
—
—
—
—
2
—
—
—
2
Unrated
—
—
—
—
—
—
—
—
—
—
Total
11
3
262
—
276
12
6
103
—
121
Of which:
Stage 1
11
3
262
—
276
12
6
103
—
121
Stage 2
—
—
—
—
—
—
—
—
—
—
Stage 3
—
—
—
—
—
—
—
—
—
—
1. Relates to asset backed securities.
2. Includes supranational banks and government agencies.
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Risk Management continued
2.1.6 Credit risk – Forbearance overview
Additional credit quality and forbearance disclosures on loans
and advances to customers
Forbearance
Overview
Forbearance occurs when a customer is granted a temporary or
permanent concession or an agreed change to the existing contracted
terms of a facility (forbearance measure), for reasons relating to the actual
or apparent financial stress or distress of that customer. This also
includes a total or partial refinancing of existing debt due to a customer
availing of an embedded forbearance clause(s) in their contract.
A forbearance agreement is entered into where the customer is in
financial difficulty to the extent that they are unable to meet their loans
to the Group in compliance with the existing agreed contracted terms and
conditions. A concession or an agreed change to the contracted terms
can be of a temporary (e.g. interest only) or permanent (e.g. term
extension) nature.
The Group uses a range of initiatives to support its customers. The Group
considers requests from customers who are experiencing financial
difficulties on a case by case basis in line with the Group’s Forbearance
Policy and relevant procedures, and completes an affordability/repayment
capacity assessment taking account of factors such as current and likely
future financial circumstances, the customer’s willingness to resolve such
difficulties, and all relevant legal and regulatory obligations to ensure
appropriate and sustainable measures are put in place.
Group credit policies, supported by relevant processes and procedures,
are in place which set out the policy rules and principles underpinning the
Group’s approach to forbearance, ensuring the forbearance measure(s)
provided to customers are affordable and sustainable, and in line with
relevant regulatory requirements. Key principles include supporting viable
small and medium enterprises, and providing support to enable
customers to remain in their family home, whenever possible. The Group
has implemented the standards for the Codes of Conduct in relation to
customers in actual or apparent financial stress or distress, as set out by
the Central Bank of Ireland (the Central Bank), ensuring these customers
are dealt with in a professional and timely manner.
A request for forbearance is a trigger event for the Group to undertake an
assessment of the customer’s financial circumstances prior to any
decision to grant a forbearance measure. This may result in the
downgrading of the credit grade assigned and an increase in the expected
credit loss. Facilities to which forbearance has been applied continue to
be classified as forborne until an appropriate probation period has passed
(minimum 24 months).
The effectiveness of forbearance measures over the lifetime of the
arrangements are subject to ongoing management review and monitoring
of forbearance. A forbearance measure is deemed to be effective if the
customer meets the revised or original terms of the contract over a
sustained period of time resulting in an improved outcome for the Group
and the customer.
Mortgage portfolio
Under the mandate of the Central Bank’s Code of Conduct on Mortgage
Arrears (CCMA), the Group has a four-step process called the Mortgage
Arrears Resolution Process, or MARP. This process aims to engage with,
support and find resolution for mortgage customers (for their primary
residence only) who are in arrears, or are at risk of going into arrears. In
2026 the CCMA will be incorporated into the updated Central Bank
Consumer Protection Code.
The four-step MARP process is summarised as follows:
• Communications – We are here to listen, support and provide advice;
• Receipt of financial information – To allow us to understand the
customer’s finances;
• Assessment – We use the financial information to assess the
customer’s situation; and
• Resolution – We work with the customer to find an appropriate
resolution.
The core objective of the process is to determine appropriate and
sustainable solutions that, where possible, help to keep customers in
their family home. In addition to relevant temporary forbearance
measures (such as interest only and capital and interest moratorium), this
includes permanent forbearance measures which have been devised to
assist existing Republic of Ireland primary residential mortgage customers
in financial difficulty. This process may result in debt write-off, where
appropriate. The types of permanent forbearance solutions currently
include; arrears capitalisation, term extension, split mortgages, mortgage
to rent, voluntary sale for loss and negative equity trade down.
Non-mortgage portfolio
The Group also has in place forbearance measures for customers in
the non-mortgage portfolio and buy-to-let mortgages who are in
financial difficulty.
This approach is based on customer affordability and sustainability by
applying the following core principles:
• Customers must be treated objectively and consistently;
• Customer circumstances and debt obligations must be viewed
holistically; and
• Solutions will be appropriately provided where customers are
cooperative, and are willing but unable to pay.
The forbearance process is one of structured engagement to assess the
long-term levels of sustainable and unsustainable debt. The commercial
aspects of this process require that customer affordability is viewed
comprehensively, to include all available sources of finance for debt
repayment, including unencumbered assets.
Types of non-mortgage forbearance include temporary measures (such as
interest only and capital and interest moratorium) and permanent
measures (such as term extension and arrears capitalisation). This
process may result in debt write-off, where appropriate.
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2.1.6 Credit risk – Forbearance overview continued
Additional credit quality and forbearance disclosures on loans and advances to customers
Forbearance
The following table analyses the forbearance portfolio at amortised cost by ECL staging at 31 December 2025 and 2024:
2025
2024
Residential
mortgages
Other
personal
Property and
construction
Non-
property
business
Total
Residential
mortgages
Other
personal
Property and
construction
Non-
property
business
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Analysed by ECL staging
Stage 1
4
—
—
—
4
17
—
—
2
19
Stage 2
124
11
445
191
771
119
13
376
340
848
Stage 3
267
8
71
238
584
383
15
123
280
801
POCI
56
—
—
—
56
67
—
—
—
67
Total
451
19
516
429
1,415
586
28
499
622
1,735
ECL allowance
51
7
81
96
235
117
10
89
173
389
The Group continues to support its existing customers ensuring they are provided with the appropriate forbearance measures, particularly given the
current economic uncertainty where customers may seek forbearance measures as a result of inflationary pressures and subsequent affordability
issues, due to the higher cost of household goods and services.
The total forbearance portfolio reduced to €1.4 billion in the year (2024: €1.7 billion). The decrease primarily reflects a reduction in the non-performing
forbearance loans as a result of loan disposals completed during the year.
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Risk Management continued
2.2 Market and equity risk
(a) Market risk
Market risk is the uncertainty of returns attributable to fluctuations in
market factors. Where the uncertainty is expressed as a potential loss in
earnings or value, it represents a risk to the income and capital position of
the Group.
Changes in customer behaviours and the relationship between wholesale
and retail rates give rise to changes in the Group’s exposure to market risk
factors and are also an important component of market risk.
Identification and assessment
The key market risks that the Group assumes as a result of its banking and
trading book activities that have been identified as part of the MRA are:
• Credit spread risk is the exposure of the Group’s financial position to
adverse movements in the credit spreads of bonds held in the hold-to-
collect-and-sell (HTCS) and hold-to-collect (HTC) securities portfolio.
Credit spreads are defined as the difference between bond yields and
interest rate swap rates of equivalent maturity.
• Interest rate risk in the banking book (IRRBB) is the current or
prospective risk to both the earnings and capital of the Group as a
result of adverse movements in interest rates. Changes in interest rates
impact the underlying value of the Group’s assets, liabilities and off-
balance sheet instruments and, hence, its economic value (or capital
position). Similarly, interest rate changes will impact the Group’s net
interest income (NII) through interest-sensitive income and expense
effects; and
• The Group also assumes market risk through its trading book activities
which relate to all positions in financial instruments (principally
derivatives) that are held with trading intent or in order to hedge
positions held with trading intent. Risks associated with valuation
adjustments such as credit value adjustment (CVA) and funding value
adjustment (FVA) are managed by the Group’s Treasury function. The
open market risk of Goodbody Stockbrokers is considered as part of the
Group’s trading book market risk.
Market risk scenarios are developed to test the capital requirements for
this risk in the semi-annual stress testing process and the annual ICAAP.
In addition to above market risks, equity investment risk and pension risk
are also identified by the MRA process as sub risks.
Management and measurement (audited)
The Market Risk Management Framework and policies set out the key
requirements for managing market risk. The key aspects of this are:
• The Group’s Treasury function is responsible for managing market risk.
Treasury also has a mandate to trade on its own account in selected
wholesale markets with risk tolerances approved on an annual basis
through the Group’s Risk Appetite process;
• The Group documents its annual Market Risk Strategy to ensure market
risk aligns with the Group’s strategic business plan; and
• Market risk is managed against a range of Board approved internal
capital limits which cover market risk in the trading book, interest rate
risk and credit spread risk in the banking book. The Board approved
limits are supplemented by a range of Level 2 GRC limits and Level 3
ALCo approved limits which include nominal, sensitivity limits and ‘stop
loss’ limits.
Market risk is managed and measured using portfolio sensitivities, internal
capital limits Value at Risk (VaR) and stress testing. Interest rate gaps and
sensitivities to various risk factors are measured and reported on a daily
basis. In terms of the VaR metric, the Group calculates a daily historical
simulation VaR to a 95% confidence level, using a one day holding period
and based on one year of historic data. In addition to VaR, Capital at Risk
(CaR) is also measured to a one year1 time horizon, a 99% confidence
level and a longer set of data.
Credit risk issues inherent in the market risk portfolios are also subject to
the Credit Risk Framework that is described in section 2.1.
The Group maintains a Structural Hedging Programme (SHP), subject to
oversight by ALCo. The SHP provides a framework for assessing and re-
balancing the extent of earnings sensitivity (to market rate changes) versus
the economic value (or capital) attributed to IRRBB. Forecast structural
changes in the composition of the balance sheet are a key driver of the
annual SHP strategy. From an IRRBB capital perspective the SHP strategy
seeks to maintain a broadly duration-matched repricing term profile where
term asset positions (typically, interest rate derivatives and fixed rate
mortgages) are offset by stable, non and low interest-bearing liabilities,
principally comprising current accounts and deposits, and equity.
The SHP strategy provides an effective basis for stabilising income over
the medium term and protecting income during periods of falling interest
rates. SHP interest rate derivatives are subject to either cash flow hedging
of floating-rate assets or macro fair value hedging of customer deposits.
Monitoring, escalating and reporting (audited)
On a daily basis front office and risk functions receive a range of valuation,
sensitivity and market risk measurement reports, while ALCo receives a
monthly market risk commentary and summary risk profile. Market risk
exposures are reported to the GRC and BRC on a monthly basis through
the CRO Report.
1. The Capital at Risk on core trading book positions is assessed using a ten day horizon, with the exception of FX which is assessed using a one year horizon.
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2.2 Market and equity risk continued
(a) Market risk continued (audited)
The following table sets out financial assets and financial liabilities at 31 December 2025 and 2024 subject to market risk analysed between trading and
non-trading portfolios, showing the principal market risks to which the assets and liabilities are exposed:
2025
(Audited)
Market risk measures
Carrying
amount
Trading
portfolios
Non-trading
portfolios
€ m
€ m
€ m
Risk factors
Assets subject to market risk
Cash and balances at central banks
40,571
—
40,571
Interest rate, foreign exchange
Trading portfolio financial assets
286
286
—
Interest rate, foreign exchange, equity
Derivative financial instruments
1,641
348
1,293
Interest rate, foreign exchange, credit
spreads, equity, inflation rates, wholesale
electricity prices
Loans and advances to banks
601
—
601
Interest rate, foreign exchange
Loans and advances to customers
71,200
—
71,200
Interest rate, foreign exchange
Securities financing
7,339
—
7,339
Interest rate, credit spreads, foreign exchange
Investment securities
21,548
—
21,548
Interest rate, foreign exchange, credit
spreads, equity
Liabilities subject to market risk
Deposits and advances from banks
156
—
156
Interest rate, foreign exchange
Deposits and advances from customers
117,671
—
117,671
Interest rate, foreign exchange
Securities financing
682
—
682
Interest rate, credit spreads, foreign exchange
Trading portfolio financial liabilities
525
525
—
Interest rate, foreign exchange, equity
Derivative financial instruments
1,408
319
1,089
Interest rate, foreign exchange, credit
spreads, equity, inflation rates, wholesale
electricity prices
Debt securities in issue
8,183
—
8,183
Interest rate, credit spreads, foreign exchange
Tier 2 subordinated liabilities and other capital instruments
2,626
—
2,626
Interest rate, credit spreads
2024
(Audited)
Market risk measures
Carrying
amount
Trading
portfolios
Non-trading
portfolios
€ m
€ m
€ m
Risk factors
Assets subject to market risk
Cash and balances at central banks
37,315
—
37,315
Interest rate, foreign exchange
Trading portfolio financial assets
136
136
—
Interest rate, foreign exchange, equity
Derivative financial instruments
2,144
425
1,719
Interest rate, foreign exchange, credit spreads,
equity, inflation rates, wholesale electricity prices
Loans and advances to banks
1,321
—
1,321
Interest rate, foreign exchange
Loans and advances to customers
69,889
—
69,889
Interest rate, foreign exchange
Securities financing
6,643
—
6,643
Interest rate, credit spreads, foreign exchange
Investment securities
18,668
—
18,668
Interest rate, foreign exchange, credit spreads,
equity
Liabilities subject to market risk
Deposits and advances from banks
836
—
836
Interest rate, foreign exchange
Deposits and advances from customers
109,883
—
109,883
Interest rate, foreign exchange
Securities financing
196
—
196
Interest rate, credit spreads, foreign exchange
Trading portfolio financial liabilities
262
262
—
Interest rate, foreign exchange, equity
Derivative financial instruments
1,807
461
1,346
Interest rate, foreign exchange, credit spreads,
equity, inflation rates, wholesale electricity prices
Debt securities in issue
8,832
—
8,832
Interest rate, credit spreads, foreign exchange
Tier 2 subordinated liabilities and other capital instruments
1,627
—
1,627
Interest rate, credit spreads
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Risk Management continued
2.2 Market and equity risk continued
(a) Market risk continued
Interest rate sensitivity (audited)
The table below shows the sensitivity of the Group’s banking book to an immediate and sustained +/- 100 basis point, +/-50 basis point and +/-25 basis
point movement in interest rates, in terms of the impact on net interest income on a forward looking basis over a 12 month period, assuming no change
in the balance sheet.
Sensitivity of projected net interest income to interest rate movements:
December 2025 (audited)
€ m
€ m
€ m
€ m
€ m
€ m
- 100bps
- 50bps
- 25bps
+ 25bps
+ 50bps
+ 100bps
Euro
(307)
(156)
(76)
76
158
317
Sterling
(44)
(21)
(11)
11
22
43
Other (mainly USD)
(27)
(14)
(7)
7
13
27
Total
(378)
(191)
(94)
94
193
387
December 2024 (audited)
€ m
€ m
€ m
€ m
€ m
€ m
- 100bps
- 50bps
- 25bps
+ 25bps
+ 50bps
+ 100bps
Euro
(385)
(189)
(93)
80
163
329
Sterling
(37)
(19)
(9)
9
19
37
Other (mainly USD)
(17)
(8)
(4)
4
8
17
Total
(439)
(216)
(106)
93
190
383
Interest rate sensitivity has continued to be a material risk management
priority during 2025, given the evolution in the structural balance sheet,
the falling interest rate environment and the Bank’s structural hedging
objectives. The year-on-year reduction in the reported sensitivity (-100bps
scenario) has been a considered response to the changes in customer
and wholesale volumes, retail rate pass through model dynamics and
relevant regulatory constraints (in the form of Supervisory Outlier Test
thresholds). On the liability side, the strong absolute growth in overall
customer balances continued to reflect the slowdown in deposit balance
migration from interest insensitive to interest-bearing products. On the
asset side, the excess liquidity was absorbed primarily by increases in
customer mortgage lending (with SVR growing faster than fixed rate
products), in wholesale assets (mostly bonds, swapped to floating) and
larger balances held with the CBI. The resulting net increase in structural
sensitivity during 2025 was offset by another material increase in Euro
structural hedging (being a mix of swaps and unhedged fixed rate
mortgages). Given the composition of the balance sheet, and its expected
evolution, the trade-off between managing IRRBB earnings (NII Sensitivity)
and economic value (Capital at Risk) perspectives will continue to be a
priority. The above sensitivity table is computed under the assumption of a
‘static’ balance sheet, that all market rates (Risk Free Rates/Euribors/
Swaps,etc) move up/down in parallel and use AIB’s internal retail rate
pass through models, the nature of which can give risk to the asymmetry
evident in the delta between the 2024 and 2025 results.
Group interest rate and foreign exchange rate VaR are calculated to a
95% confidence level with a one day holding period, and equity VaR is
calculated to a 99% confidence level with a one day holding period.
At 31 December 2025, interest rate VaR stood at €13.06 million, foreign
exchange rate VaR at €0.12 million and equity VaR at €0.22 million.
The Group recognises the limitations of VaR models, and supplements its
VaR measures with stress tests which draw from a longer set of historical
data and also with sensitivity measures.
Structural foreign exchange risk
Structural foreign exchange risk is the exposure of the Group’s capital
ratios to changes in exchange rates and results from net investment in
subsidiaries, associates and branches, the functional currencies being
currencies other than Euro. The Group is exposed to foreign exchange risk
as it translates foreign currencies into Euro at each reporting period and
the currency profile of the Group’s capital may not necessarily match that
of its assets and risk-weighted assets.
Exchange differences on structural exposures are recognised in other
comprehensive income in the financial statements. The Group ALCo
monitors structural foreign exchange risk and the foreign exchange
sensitivity of consolidated capital ratios. This impact is measured in terms
of basis point sensitivities using scenario analysis.
The following table shows the sensitivity of the Group’s fully loaded
CET1 ratio to a hypothetical and sustained movement in GBP/EUR
and USD/EUR foreign exchange rates.
Sensitivity of CET1 fully loaded capital ratio to
foreign exchange movements
31 December
2025
2024
+ 10% move in GBP and USD FX rates
(0.12) % (0.13) %
– 10% move in GBP and USD FX rates
0.12 %
0.13 %
The above analysis is subject to certain simplifying assumptions such
as GBP/EUR and USD/EUR foreign exchange rates moving in the same
direction and at the same time.
(b) Pension risk
Pension risk is the risk that:
• The funding position of the Group’s defined benefit schemes would
deteriorate to such an extent that additional contributions would be
required to cover its funding obligations towards current and former
employees;
• The capital position of the Group is negatively affected as funding
deficits will be fully deductible from regulatory capital; and
• There could be a negative impact on industrial relations if the funding
level of the scheme was to deteriorate significantly.
Risk identification and assessment
The Group maintains a number of defined benefit pension schemes for current
and former employees. All defined benefit schemes operated by the Group
closed to future accrual no later than the 31 December 2013 and staff
transferred to defined contribution schemes for future pension benefits.
Each scheme has a separate Trustee board and the Group has agreed
funding plans to deal with deficits where they exist. As part of any funding
agreement, the Group engages with each Trustee regarding an appropriate
investment strategy to reduce the risk in that scheme.
Irish schemes that are deemed to have a deficit under the Minimum
Funding Standard must prepare funding plans to address this situation in a
timely manner and submit them to the Pensions Authority for approval.
The IAS 19 valuation of the pension scheme assets and liabilities may vary
which could impact on the Group’s capital. The Group works with the
Trustees of each scheme to monitor the performance of investments and
estimates of future liability to identify deficits.
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2.2 Market and equity risk continued
(b) Pension risk continued
Given that variability in the value of the pension scheme assets and
liabilities can impact on the Group’s capital, the key processes through
which pension risk is evaluated are the ICAAP as well as internal stress
tests and monthly reporting of pension risk against risk appetite.
Management and measurement (audited)
The pension risk framework and policies set out the key risk management
rules in place for this risk. Each Trustee is ultimately responsible for the
investment strategy of the schemes, however, the Group engages with
each Trustee regarding risk and investment strategy.
The Group has developed a strategy for each of its defined benefit
schemes which include the following steps:
1. All defined benefit schemes are closed to future accrual.
2. They have funding plans (or are funded as required for the US schemes)
and each defined benefit scheme has an investment strategy in place.
3. All schemes have a strategy of de-risking in line with their regulatory
requirements, funding positions and funding plans, taking into account
the nature of their liabilities.
The Irish Scheme continued to de-risk in 2025, with further sales of
equities and additional investments in its Liability Driven Investment (LDI)
portfolio, which is in place to hedge its interest rate and inflation risk. The
LDI portfolio is comprised of a mixture of nominal bonds, inflation linked
bonds as well as interest rate and inflation derivatives.
Independent actuarial valuations for the Irish scheme and the UK scheme
are carried out on a triennial basis by the schemes’ actuary, Mercer. The
most recent valuation of the Irish scheme was carried out at 30 June 2024
and reported the scheme to be in surplus. The next actuarial valuation of the
Irish scheme will be prepared with an effective date of 30 June 2027 with the
results expected by 31 March 2028. No deficit funding is required at this time
as the Irish scheme continues to meet the minimum funding standard. The
most recent valuation of the UK scheme was carried out at 31 December
2023. The next actuarial valuation of the UK scheme will be carried out for
31 December 2026 with the results expected by 31 March 2028.
The Group and the Trustee began a substantial de-risking process of the UK
scheme in 2019, with the initial purchase of a buy-in for the pensioner
members and an assured payment policy for the deferred pensioner
members. The de-risking was completed in 2025 and all members’ benefits
are now substantially covered by buy-in policies which match the amount
and timing of the benefits payable to the members covered. To complete
the conversion to buy-in, the Group made total payments of £16.1m in
2025. This was made up of £2 million contributions to meet scheme
expenses and £14.1 million to cover the final buy-in transaction, the
expected cost of insuring Guaranteed Minimum Pension (GMP)
equalisation and data true-up liabilities, and a cash buffer to ensure the
scheme has sufficient liquidity to pay benefits as they fall due. The Group
expects to make payments of £2.6 million in 2026, which includes £2
million for expected Trustee expenses and an additional £0.6 million in
respect of the difference between the initial and final buy-in pricing from
Legal and Assurance Society (LGAS). These payments and any other related
costs are subject to change prior to finalisation.
Monitoring, escalating and reporting (audited)
Pension risk is monitored and controlled in line with the requirements of
the Group’s pension risk framework and policy. The surplus or deficit is
monitored on a monthly basis by the Group’s risk team and is currently
reported monthly in both the financial risk report to the Group Asset &
Liabilities Committee and the Group CRO report to GRC and BRC.
Pension risk is also included in the internal stress test process. The output
of these stress tests is reviewed by ALCo and on an annual basis an ICAAP
Report is produced which is a comprehensive analysis of the Group’s
capital position in base and stress scenarios over a three year horizon.
This document is reviewed and approved by the Board and is submitted to
the Joint Supervisory Team.
The pension capital-at-risk exposure is measured and reported monthly in
the CRO report against a Group Risk Appetite Statement watch trigger.
While the Group has taken certain risk mitigating actions, a level of
volatility associated with pension funding remains due to potential
financial market fluctuations and possible changes to pension and
accounting regulations.
(c) Equity risk
Banking book equity investment risk refers to the possibility of losses
arising in the equity investment portfolio of the Group due to changes
in the economic value of the investments. Where the uncertainty is
expressed as a potential loss in value, it represents a risk to the income
and capital position of the Group.
Identification and assessment
All equity proposals are considered to ensure all aspects of the proposal
are fully and consistently addressed. Where a proposal for a new equity
investment or divestment opportunity arises, Risk is involved and submits
a Risk opinion. Risk reviews and comments on all proposals and
recommends proposals for approval through the appropriate governance
process. All new investments need to adhere to relevant regulatory, policy
and accounting requirements.
Management and measurement
Exposures are reported on in line with Risk appetite requirements. Risk
measurement is also captured through stress testing. A forward looking
stress test is produced semi-annually. The stress test is used to assess
the impact of severe but plausible shocks to underlying risk factors on the
capital requirements for the business. Management projections of the
future business mix must be factored into the analysis and be consistent
with projections included in business area plans for equity risk.
Monitoring, escalating and reporting
Exposure levels are reviewed on an ongoing basis to ensure no undue risk
concentration and to consider whether the level of risk exposures remains
appropriate. Exposures are currently reported monthly by Equity Portfolio
Management to Risk and the Group ALCo and any limit/policy breaches or
exceptions that arose during the period are recorded.
Risk provide management with an independent perspective on the risk-
taking activities within the equity investment portfolio monthly via the
Financial Risk ALCo report, RAS limit report and the CRO report.
Additionally, there is a quarterly valuation review process in place while
Board and segment limits are applied and reported on with an escalation
process as set out in the Equity Risk Policy.
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Risk Management continued
2.3 Liquidity and funding risk
Liquidity consists of assets that can be readily converted to cash within a
short timeframe at a reliable value. Liquidity risk is the risk that the Group
or any of its subsidiaries cannot meet its actual or potential financial
obligations as they fall due in the short term.
Funding consists of on-balance sheet liabilities that are used to provide
cash to finance assets. Funding risk is the current or prospective risk that
the Group or its subsidiaries cannot meet financial obligations as they fall
due in the medium to long term, either at all or without increasing funding
costs to unacceptable levels.
Identification and assessment
Liquidity and funding risk is identified and assessed by the Group’s MRA
process in support of the ILAAP. The MRA process is a ‘top-down’
assessment performed on at least an annual basis and identifies the key
material risks to the Group, taking into account its strategic objectives, in
addition to internal and external risk information.
The ILAAP is fully integrated and embedded in the strategic, financial and
risk management processes of the Group. Embedding of the ILAAP is
facilitated through the setting of risk appetite and ensuring that liquidity
considerations are factored into all key strategic decisions.
The Group has a comprehensive ILAAP Framework for managing the
Group’s liquidity risk and complying with the Board’s risk appetite, as well
as evolving regulatory standards. This is delivered through a combination
of policy formation, governance, analysis, stress testing and limit setting
and monitoring, and is part of the wider Risk Management Framework.
Management and measurement (audited)
The objective of liquidity management is to ensure that, at all times,
the Group holds sufficient funds to meet its contracted and contingent
commitments to customers and counterparties at an economic price. The
ILAAP Framework and supporting Funding and Liquidity Risk Policy set out
the key requirements for managing the risk. These include:
• Adherence to both internal limits and regulatory defined liquidity ratios
including the Liquidity Coverage Ratio (LCR) and the Net Stable Funding
Ratio (NSFR). The LCR is designed to promote short-term resilience of the
Group’s liquidity risk profile by ensuring that it has sufficient high-quality
liquid resources to survive an acute stress scenario lasting for 30 days.
The NSFR has a time horizon of one year and has been developed to
promote a sustainable maturity structure of assets and liabilities;
• Performing a multi-year projection of the Group’s funding sources,
through the Group’s Funding and Liquidity Plan. The purpose of this
plan is to set out a comprehensive, forward looking liquidity and funding
strategy for the Group, including material subsidiary companies;
• Assessing the Funding and Liquidity Plan under a range of adverse
scenarios, the outcomes of which should ensure sufficient liquidity to
implement a sustainable strategy, even in a stressed environment;
• Maintaining a Contingency Funding Plan that identifies and quantifies
actions that are available to the Group in deteriorating liquidity
conditions and to help it emerge from a temporary liquidity crisis as a
credit-worthy institution;
• Monitoring a further set of triggers and liquidity options outlined in the
Group’s Recovery Plan, which presents the actions available to the
Group to restore viability in the event of extreme stress; and
• Having an approved liquidity cost-benefit allocation mechanism in place to
attribute funding costs, benefits and risks to the Group’s business lines.
Monitoring, escalating and reporting
The Group liquidity and funding position is reported regularly to the
Finance and Risk functions, ALCo, GRC and BRC. In addition, the ELT
and the Board are briefed on liquidity and funding on an ongoing basis.
On an annual basis, the Board attests to the Group’s liquidity adequacy
via the Liquidity Adequacy Statement as part of the ILAAP. The Group’s
ILAAP encompasses all aspects of liquidity and funding management,
including planning, analysis, stress testing, control, governance, policy
and contingency planning. This document is submitted to the JST and
forms the basis of their supervisory review and evaluation process.
Management of the Group liquidity pool
The Group manages the liquidity pool on a centralised basis and primarily
comprises government guaranteed bonds, balances with central banks
and covered bonds. The composition of the liquidity pool is subject to limits
recommended by the Risk function and approved by the Board.
At 31 December 2025, the Group held €76,080 million (2024: €69,063
million) in qualifying liquid assets (QLA)1 of which €8,807 million (2024:
€7,599 million) was not available due to repurchase, secured loans and
other restrictions.
At 31 December 2025, the Group's available QLA was €67,273 million
(2024: €61,464 million). During 2025, the available QLA ranged from
€59,549 million to €69,016 million (2024: €58,359 million to
€63,503 million) and the average balance was €63,831 million
(2024: €60,513 million).
The Group’s available QLA increased in 2025 by €5,809 million, which was
predominantly due to an increase in customer deposits in Ireland, debt
market issuance offset by an increase in customer loans, debt market
buybacks, contractual debt maturities, dividend payouts and an increase
in securities financing activities where cash was exchanged for non-QLA
eligible collateral.
1. QLA are assets that can be readily converted into cash, either with the market or with the
monetary authorities, and where there is no legal, operational or prudential impediments to
their use as liquid assets.
Other contingent liquidity
The Group has access to other unencumbered assets, providing a source
of contingent liquidity, which are not in the Group’s liquidity pool.
However, these assets may be monetised in a stress scenario to generate
liquidity through use as collateral for secured funding or outright sale.
Liquidity stress testing
Liquidity stress testing is a key component of the ILAAP Framework. The
purpose of these tests is to ensure the continued stability of the Group’s
liquidity position within the Group’s pre-defined liquidity risk tolerance
levels. The Group undertakes liquidity stress testing that includes both
firm-specific and systemic risk events and a combination of both as a key
liquidity control. Stressed assumptions are applied to the Group’s liquidity
buffer and liquidity risk drivers. This estimates the potential impact of a
range of stress scenarios on the Group’s liquidity position. Actions and
strategies available to mitigate the impacts of the stress scenarios are
evaluated as to their appropriateness. Liquidity stress test results are
reported to the ALCo, ELT and Board.
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2.3 Liquidity and funding risk continued
Liquidity regulation
The Group is required to comply with the liquidity requirements of the
Single Supervisory Mechanism/Central Bank of Ireland and also with the
requirements of local regulators in the jurisdictions in which it operates.
The Group adheres to these requirements.
2025
2024
Liquidity metrics
%
%
Liquidity Coverage Ratio
204
201
Net Stable Funding Ratio
163
162
The Group monitors and reports its liquidity positions against the Capital
Requirements Regulation and other related liquidity regulations (LCR
Delegated Act). It has fully complied with the minimum LCR and NSFR
requirements of 100% during 2025, with ratios well in excess of this level.
Funding structure (audited)
The Group’s funding strategy is to deliver a sustainable, diversified and
robust customer deposit base at economic pricing and to further enhance
and strengthen the wholesale funding franchise, with appropriate access
to term markets to support core lending activities. The strategy aims to
deliver a solid funding structure that complies with internal and regulatory
policy requirements and reduces the probability of a liquidity stress, i.e.
an inability to meet funding obligations as they fall due.
Deposits and advances from customers represent the largest source of
funding for the Group, with the core retail franchises and accompanying
deposit base in both Ireland and the UK providing a stable and reasonably
predictable source of funds.
Deposits and advances from
2025
2024
customers (audited)
€ m
€ m
Total
117,671
109,883
Of which:
Euro
106,361
98,270
Sterling
9,631
9,754
US Dollar
1,418
1,624
Other currencies
261
235
Deposits and advances from customers increased by €7,788 million in
2025, driven by higher personal and SME balances. This was
predominantly reflected in higher Euro deposit products (time deposits,
current accounts and demand deposits), offset by a decrease in Group
significant currencies (GBP and USD). There was a €329 million decrease
in the Euro equivalent of GBP and USD deposits. This was mainly due to
negative currency movements of €690 million offset by an underlying
€361 million increase on a constant currency basis.
Composition of wholesale funding1 (audited)
The Group maintains access to a variety of sources of wholesale funding, including bank deposits, securities financing, debt securities and subordinated
debt. At 31 December 2025, total wholesale funding outstanding was €11,647 million (2024: €11,491 million), of which €1,720 million is due to mature
in less than one year (2024: €2,366 million).
(Audited)
2025
< 1
month
€ m
1–3
months
€ m
3–6
months €
m
6–12
months €
m
Total
< 1 year
€ m
1–3
years
€ m
3–5 years
€ m
> 5
years
€ m
Total
€ m
Deposits and advances from banks
156
—
—
—
156
—
—
—
156
Securities financing
324
358
—
—
682
—
—
—
682
Debt securities in issue:
Senior debt
—
—
—
—
—
1,720
2,382
3,065
7,167
ACS
1
—
—
5
6
20
—
—
26
Credit linked notes
—
—
—
—
—
66
—
48
114
Commercial paper
108
676
67
25
876
—
—
—
876
Tier 2 subordinated liabilities and
other capital instruments
—
—
—
—
—
—
—
2,626
2,626
Total 31 December
589
1,034
67
30
1,720
1,806
2,382
5,739
11,647
Of which:
Secured
325
358
—
5
688
86
—
48
822
Unsecured
264
676
67
25
1,032
1,720
2,382
5,691
10,825
589
1,034
67
30
1,720
1,806
2,382
5,739
11,647
1. The maturity analysis has been prepared using the residual contractual maturity of the liabilities.
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Risk Management continued
2.3 Liquidity and funding risk continued
Composition of wholesale funding1 continued (audited)
(Audited)
2024
< 1 month
€ m
1–3
months
€ m
3–6
months
€ m
6–12
months
€ m
Total
< 1 year
€ m
1–3
years
€ m
3–5
years
€ m
> 5
years
€ m
Total
€ m
Deposits and advances from banks
830
—
6
—
836
—
—
—
836
Securities financing
184
12
—
—
196
—
—
—
196
Debt securities in issue:
Senior debt
—
—
—
495
495
2,183
3,461
1,734
7,873
ACS
2
—
—
—
2
—
5
20
27
Credit linked notes
—
—
—
—
—
—
—
95
95
Commercial paper
539
230
68
—
837
—
—
—
837
Tier 2 subordinated liabilities and
other capital instruments
—
—
—
—
—
—
—
1,627
1,627
Total 31 December
1,555
242
74
495
2,366
2,183
3,466
3,476 11,491
Of which:
Secured
186
12
6
—
204
—
5
115
324
Unsecured
1,369
230
68
495
2,162
2,183
3,461
3,361 11,167
1,555
242
74
495
2,366
2,183
3,466
3,476 11,491
1. The maturity analysis has been prepared using the residual contractual maturity of the liabilities.
Deposits and advances from banks decreased by €680 million to €156
million, primarily driven by a reduction in cash collateral received from
derivative and repurchase agreement counterparties. For further details,
see note 27 to the consolidated financial statements. Securities Financing
increased by €486 million to €682 million, reflective of a increase in
standard bilateral bank repo activity (see the currency split in the
'Currency composition of wholesale funding' table).
During 2025, senior debt decreased €706 million to €7,167 million,
primarily reflecting €770 million in early redemptions and €1,149 million in
contractual maturities, offset by €1,475 million in MREL bond issuance.
Over the twelve months to 31 December 2025, there was a net €39 million
increase in commercial paper to €876 million, whilst outstanding
externally held asset-covered securities (ACS) remained broadly flat at
€26 million. For further details, see note 29 to the consolidated financial
statements. Subordinated liabilities increased €999 million to €2,626
million, driven by a €1 billion green Tier 2 capital issuance.
Currency composition of wholesale funding
At 31 December 2025, 69% (2024: 70%) of wholesale funding was in Euro, with the remainder held in GBP and USD. The Group manages
cross-currency refinancing risk against foreign exchange cash flow limits.
2025
2024
EUR
GBP
USD
Other
Total
EUR
GBP
USD
Other
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Deposits and advances from banks
147
9
—
—
156
827
7
2
—
836
Securities financing
220
314
148
—
682
101
42
53
—
196
Senior debt
4,794
—
2,373
—
7,167
5,241
—
2,632
—
7,873
ACS
26
—
—
—
26
27
—
—
—
27
Credit link notes
114
—
—
—
114
95
—
—
—
95
Commercial paper
100
314
462
—
876
105
436
296
—
837
Tier 2 subordinated liabilities
and other capital instruments
2,625
1
—
—
2,626
1,625
2
—
—
1,627
Total wholesale funding
8,026
638
2,983
—
11,647
8,021
487
2,983
—
11,491
% of wholesale funding
%
%
%
%
%
%
%
%
%
%
69
5
26
—
100
70
4
26
—
100
Encumbrance
An asset is defined as encumbered if it has been pledged as collateral and, as a result, is no longer available to the Group to secure funding, satisfy
collateral needs or to be sold. As part of managing its funding requirements, the Group encumbers assets as collateral to support wholesale funding
initiatives. This would include covered bonds, securities repurchase agreements and other structures that are secured over customer loans. The Group
manages encumbrance levels to ensure that the Group has sufficient contingent collateral to maximise balance sheet flexibility.
The Group’s encumbrance ratio has increased to 5% at 31 December 2025 (2024: 4%), with €7.4 billion of the Group’s assets encumbered (2025: €5.9
billion). The encumbrance level is based on the amount of assets that are required in order to meet regulatory and contractual commitments.
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2.3 Liquidity and funding risk continued
Financial assets and financial liabilities by contractual residual maturity (audited)
The following table analyses financial assets and financial liabilities by contractual residual maturity at 31 December 2025 and 2024:
(Audited)
2025
On demand
<3 months
but not on
demand
3 months to
1 year
1–5 years
Over 5 years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Financial assets
Cash and balances at central banks
40,571
—
—
—
—
40,571
Trading portfolio financial assets
—
10
34
78
164
286
Derivative financial instruments1
—
42
116
626
857
1,641
Loans and advances to banks2
554
47
—
—
—
601
Loans and advances to customers2
1,814
1,316
3,065
21,545
44,603
72,343
Securities financing
246
2,246
2,328
2,519
—
7,339
Investment securities3
—
562
1,177
7,917
11,588
21,244
Other financial assets
—
1,012
—
—
26
1,038
43,185
5,235
6,720
32,685
57,238
145,063
Financial liabilities4
Deposits and advances from banks
22
134
—
—
—
156
Deposits and advances from customers
98,913
10,033
6,361
2,360
4
117,671
Securities financing
45
637
—
—
—
682
Trading portfolio financial liabilities
—
3
—
322
200
525
Derivative financial instruments1
—
26
52
572
758
1,408
Debt securities in issue
—
784
92
4,194
3,113
8,183
Tier 2 subordinated liabilities and other capital instruments
—
—
—
—
2,626
2,626
Other financial liabilities
1,632
—
—
29
—
1,661
100,612
11,617
6,505
7,477
6,701
132,912
(Audited)
2024
On demand
<3 months
but not on
demand
3 months
to 1 year
1–5 years
Over 5 years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Financial assets
Cash and balances at central banks
37,315
—
—
—
—
37,315
Trading portfolio financial assets
—
26
—
13
97
136
Derivative financial instruments1
—
16
52
700
1,376
2,144
Loans and advances to banks2
642
679
—
—
—
1,321
Loans and advances to customers2
2,319
1,331
2,950
20,778
43,855
71,233
Securities financing
5
1,610
2,970
2,058
—
6,643
Investment securities3
—
276
603
8,002
9,490
18,371
Other financial assets
—
894
—
—
—
894
40,281
4,832
6,575
31,551
54,818
138,057
Financial liabilities4
Deposits and advances from banks
26
804
6
—
—
836
Deposits and advances from customers
93,977
7,790
4,856
3,230
30
109,883
Securities financing
—
196
—
—
—
196
Trading portfolio financial liabilities
—
5
—
190
67
262
Derivative financial instruments1
—
72
78
538
1,119
1,807
Debt securities in issue
—
769
562
5,649
1,852
8,832
Tier 2 subordinated liabilities and other capital instruments
—
—
—
—
1,627
1,627
Other financial liabilities
1,748
—
—
44
—
1,792
95,751
9,636
5,502
9,651
4,695
125,235
1. Shown by maturity date of contract.
2. Shown gross of expected credit losses.
3. Excluding equity shares.
4. A maturity of lease liabilities is disclosed in note 30.
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Risk Management continued
2.3 Liquidity and funding risk continued
Financial liabilities by undiscounted contractual maturity (audited)
The balances in the table below include the undiscounted cash flows relating to principal and interest on financial liabilities and as such will not agree
directly with the balances on the consolidated financial statements. All derivative financial instruments have been analysed based on their contractual
maturity undiscounted cash flows.
In the daily management of liquidity risk, the Group adjusts the contractual outflows on customer deposits to reflect the inherent stability of these
deposits. Offsetting the liability outflows are cash inflows from the assets on the consolidated financial statements. Additionally, the Group holds a
stock of high-quality liquid assets, which are held for the purpose of covering unexpected cash outflows.
The following table analyses, on an undiscounted basis, financial liabilities by remaining contractual maturity at 31 December 2025 and 2024:
(Audited)
2025
On
demand
<3 months
but not on
demand
3 months
to 1 year
1–5 years
Over 5
years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Financial liabilities1
Deposits and advances from banks
22
134
—
—
—
156
Deposits and advances from customers
98,914
10,078
6,481
2,391
5
117,869
Securities financing
45
640
—
—
—
685
Trading portfolio financial liabilities
—
3
—
322
200
525
Derivative financial instruments
—
163
332
1,375
572
2,442
Debt securities in issue
—
834
373
5,303
3,582
10,092
Tier 2 subordinated liabilities and other capital instruments
—
—
96
501
3,045
3,642
Other financial liabilities
1,632
—
—
29
—
1,661
100,613
11,852
7,282
9,921
7,404
137,072
(Audited)
2024
On demand
<3 months
but not on
demand
3 months to
1 year
1–5 years
Over 5
years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Financial liabilities1
Deposits and advances from banks
26
804
6
—
—
836
Deposits and advances from customers
93,978
7,836
5,006
3,275
31
110,126
Securities financing
—
196
—
—
—
196
Trading portfolio financial liabilities
—
5
—
190
67
262
Derivative financial instruments
—
137
263
472
116
988
Debt securities in issue
—
813
880
6,761
2,232
10,686
Tier 2 subordinated liabilities and other capital instruments
—
—
59
320
1,859
2,238
Other financial liabilities
1,664
—
—
64
—
1,728
95,668
9,791
6,214
11,082
4,305
127,060
1. A maturity of lease liabilities is disclosed in note 30.
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2.3 Liquidity and funding risk continued
The undiscounted cash flows potentially payable under guarantees and similar contracts (audited)
The undiscounted cash flows that are potentially payable under guarantees and similar contracts, included below within contingent liabilities, are
classified on the basis of the earliest date the facilities can be called. The Group is only called upon to satisfy a guarantee when the guaranteed party
fails to meet their obligations. The Group expects that most guarantees it provides will expire unused. The Group has given commitments to provide
funds to customers under undrawn facilities. The undiscounted cash flows have been classified on the basis of the earliest date that the facility can
be drawn. The Group does not expect all facilities to be drawn, and some may lapse before drawdown. For further details, see note 38 to the
consolidated financial statements. The following table analyses undiscounted cash flows potentially payable under guarantees and similar contracts at
31 December 2025 and 2024:
(Audited)
2025
On demand
<3 months
but not on
demand
3 months to
1 year
1–5 years
Over 5 years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Contingent liabilities
1,206
—
—
—
—
1,206
Commitments
17,033
—
—
—
—
17,033
18,239
—
—
—
—
18,239
(Audited)
2024
On demand
<3 months
but not on
demand
3 months to
1 year
1–5 years
Over 5 years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Contingent liabilities
976
—
—
—
—
976
Commitments
16,823
—
—
—
—
16,823
17,799
—
—
—
—
17,799
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Risk Management continued
2.4 Capital adequacy risk (audited)
Capital adequacy risk is the risk that the Group breaches or may breach
regulatory capital ratios and internal targets, measured on a forward
looking basis across a range of scenarios, including a severe but
plausible stress.
Identification and assessment (audited)
An annual MRA is conducted to identify all relevant (current and
anticipated) material risks which are then assessed from a capital
perspective. The sub risks are identified as part of the MRA process
including risks surrounding the quality and composition of capital as well
as measurement and forecasting risk. Capital adequacy risk is primarily
evaluated through the annual financial planning and the Group’s ICAAP
processes where the level of capital required to support growth plans and
meet regulatory requirements is assessed over the three-year planning
horizon. Plans are assessed across a range of scenarios ranging from
base case and moderate downside scenarios to a severe but plausible
stress using the Group’s stress testing methodologies.
Management and measurement
The ICAAP is fully integrated and embedded in the strategic, financial and
risk management processes of the Group. The Capital Adequacy (CA)
Framework sets out the key processes, governance arrangements and
roles and responsibilities which support the ICAAP. The Stress Testing
Policy and Capital Adequacy Policy were updated to reflect the work of the
Climate Stress Testing project regarding Climate Stress Testing models,
roles and responsibilities and governance requirements relating to climate
stress testing across the Group. Embedding of the ICAAP is facilitated
through capital planning, the setting of risk appetite and risk adjusted
performance monitoring. In addition to the capital plan, a capital
contingency plan is in place which identifies and quantifies actions which
are available to the Group in order to mitigate against the impact of a
stress event. Trigger points at which these actions will be considered are
also identified. The impact of changing regulatory requirements, changes
in the risk profile of the Group’s balance sheet, other internal factors, and
changing external risks are regularly assessed by 1LOD and 2LOD teams
via regular monitoring of performance against the agreed financial plan,
monthly capital updates to ALCo and GRC and are also assessed via
quarterly internal stress testing. A further set of triggers and capital
options are set out in the Group’s Recovery Plan, which presents the
actions available to the Group to restore viability in the event of extreme
stress.
The Group uses risk adjusted return on capital (RAROC) for capital
allocation purposes and to determine a risk based return which is a key
performance metric for the business unit. The use of RAROC for portfolio
management and in new lending decisions continues to be an area of
focus and a key consideration for the pricing of lending products, both at
portfolio level and individually for large transactions.
The Board reviews and approves the ICAAP on an annual basis and is also
responsible for approving a capital adequacy statement attesting that the
Board has reviewed and is satisfied with the capital adequacy of the Group.
Monitoring, escalating and reporting (audited)
The Group monitors its capital adequacy on a monthly basis through
a capital reporting pack which is presented to senior executives and Board
setting out the evolution of the Group’s capital position. The risk profile,
including performance against risk appetite, is presented to the BRC via
the CRO report which is produced independently by the 2LOD. The
escalation process, as stipulated under the RAS process, is commenced
in the event of a breach of either the RAS watch trigger or limit for any of
the metrics. This ensures Board and Regulator notification, where
appropriate, within approved timeframes.
The output of internal stress tests is reviewed by ALCo and, on an annual
basis, an ICAAP report is produced which is a comprehensive analysis of
the Group’s capital position in base and stress scenarios over a three year
horizon. The ICAAP document is reviewed and approved by the Board and
is submitted to the Joint Supervisory Team, where it forms the basis of
their supervisory review and evaluation process.
2.5 Information security (including cyber) risk
Information security (including cyber) risk is the risk of harm being caused to
the Group or its customers as a result of a loss of the confidentiality,
integrity and availability of information in all its forms.
Identification and assessment
From 1 January 2025 Information security (including cyber) risk was
deemed a principal risk for the Group and is no longer a sub risk of
Operational risk. This outcome stemmed from the 2024 MRA process
which considered a number of factors including the potential impact on
the Group’s capital, historical loss events, external loss events sourced
from Operational Riskdata eXchange Association (ORX), the RCA, the
assessment of emerging risks and consideration of the regulatory horizon.
The 2025 MRA process also identified the associated sub risks including
Internal/Insider risk, External cyber attack risk, Third-party and supply
chain risk, Customer-facing risk, and Governance, process, and
control risks.
The RCA ensures that Information security (including cyber) risks are
proactively identified, evaluated, assessed, recorded monitored, reported,
and that appropriate action is taken for risk mitigation.
The potential impact of the identified risks is then used to shape the
scenarios applied to each of the Basel event category that are a part of the
ICAAP process. This scenario assessment forms a key component of the
Group’s capital management and broader risk governance framework.
Management and measurement
The Group adopts an integrated approach for the management and
measurement of Information security (including cyber) risk. Risk
management activities include the implementation of robust controls,
regular training and awareness programmes. It also includes access
management, data and platform security, and incident response planning.
The Group’s relevant policies and frameworks are aligned with
internationally recognised industry standards and regulatory obligations,
including DORA and NYDFS.
The Group’s Information security (including cyber) Risk Framework sets
out the approach for managing the risks. The Framework is founded on
five key principles, it integrates information security risk as a material
component of the overall risk management strategy; assigns clear
accountability for governance and oversight to the Board and ELT, ensures
effective risk management through a well-defined organisational structure
and the three 3LOD model; maintains strict compliance with all relevant
laws and regulations; and aligns its practices with internationally
recognised industry standards. Together, these principles reinforce the
Group’s commitment to protecting information assets, supporting
operational resilience, and upholding stakeholder trust.
Assurance activities, governance reviews, and stress testing are
conducted regularly to validate the effectiveness of risk controls and to
support ongoing compliance. Breaches, exceptions, and derogations are
documented, tracked, and escalated as necessary.
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2.5 Information security (including cyber) risk continued
Monitoring, escalating and reporting
The Group measures Information security (including cyber) risk using a
combination of qualitative and quantitative approaches as part of the
Group’s RAS and a suite of Key Risk Indicators (KRIs). The RAS articulates
the Group’s low appetite for the loss or breach of confidential business
and customer data, setting clear boundaries for acceptable risk exposure
in pursuit of strategic objectives. This appetite is defined to ensure
compliance with regulatory requirements and to support operational
resilience.
In addition to established risk appetite measures and limits, Information
security (including cyber) risk is routinely monitored through the Group’s
risk governance committees. This ensures that senior management,
through the Operational Risk Committee, GRC, BRC and the Board,
receives timely updates on the Group’s informational security risk profile.
The profile outlines the current status of Information security (including
cyber) risk, highlights emerging trends, provides updates on recent
significant risk events, associated remediation actions, and lessons
learned.
Risk events are recorded in the SHIELD system and escalated through a
defined process based on their impact and severity. Root causes are
identified and action plans are put in place to strengthen controls and
protect both customers and the Group.
2.6 Business model risk
Business model risk is the risk that the robustness of the business
model’s entire or key components will prove to be vulnerable to internal or
external factors which impact its viability. This also covers the inherent
risks in ensuring the implementation of strategy is appropriately aligned to
the Group’s capabilities.
Identification and assessment
The Group’s MRA process identifies the key elements of business model
risk. The process includes identifying the associated sub risks such as
strategic planning risk, strategic execution risk and the evolving and
emerging risk drivers including digital competitor risk, technology
evolution risk (including artificial intelligence) and macroeconomic/
geopolitical uncertainty.
The Group also identifies and assesses this risk as part of its integrated
planning process, which encapsulates strategic, business and financial
planning. This process drives delivery of strategic objectives aligned to the
Group’s risk appetite and enables measurable business objectives to be
set for management aligned to the short, medium and long term strategy
of the Group. The outcomes of these processes form the basis of the
Group’s ICAAP and ILAAP.
Every year, the Group prepares three year financial plans based on
macroeconomic and market forecasts across a range of scenarios
including a range of ‘downside’ scenarios. The plan includes an
evaluation of planned performance against a suite of key metrics,
supported by detailed analysis and commentary on underlying trends and
drivers, across the income statement, balance sheet and business
targets. This assessment includes discussions on new lending volumes
and pricing, deposit volumes and pricing, other income, cost
management initiatives and credit performance. The plan is subject to
robust review and challenge through the governance process including an
independent 2LOD review and challenge, performed by the Risk function
prior to approval by the Board.
The Group Plan is also supported by detailed business unit plans. Each
business unit plan is aligned to the Group Strategy and risk appetite. The
business plan typically describes the market in which the business
operates, market and competitor dynamics, business strategy, financial
assumptions underpinning the Strategy, actions/investment required to
achieve financial outcomes and any risks/opportunities to the Strategy.
The Group reviews underlying assumptions on its external operating
environment to identify potential risks and, by extension, its strategic
objectives on a periodic basis. The frequency of this review is determined
by a number of factors including the speed of change of the economic
environment, changes in the financial services industry and the
competitive landscape, regulatory change and deviations in actual
business outturn from strategic targets.
Management and measurement
At a strategic level, the Group manages Business model risk within its Risk
Management Framework, by setting limits in respect of measures such as
financial performance, capital constraints, portfolio concentration and
risk-adjusted return. At a more operational level, the risk is mitigated
through periodic monitoring of variances to strategic proof points and
financial plan targets. Where performance/progress against the plans are
considered to be outside of agreed tolerances or risk appetite metrics,
proposed mitigating actions are presented and evaluated, and tracked
thereafter. During the year, at least semi-annual strategic updates and/or
periodic forecast updates for the full year financial outcome may also be
produced.
At an individual level, planning targets translate into accountable
objectives to enable performance tracking across the Group and to
facilitate formulation and review of ELT performance scorecards.
Monitoring, escalating and reporting
Performance against plan is monitored at a business level on a monthly
basis and reported to senior management teams within the business. At
an overall Group level, performance against financial plan is monitored
as part of the monthly CFO report. Also, performance against strategic
targets is monitored quarterly by the Strategic Proof Points report, both of
which are discussed by the ELT and Board. Monitoring of the risk profile,
via the CRO report, including performance against Business model risk
appetite is presented to the BRC. The escalation process, as stipulated
under the RMF, is commenced in the event of a breach of RAS watch
trigger or limit for any of the metrics which may directly or indirectly impact
on Business model risk. This ensures Board and Regulator notification
within an approved timeframe, when appropriate.
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Risk Management continued
2.7 Operational & resilience risk
Operational & resilience risk is defined as the risk arising from inadequate or
failed internal processes, people and systems, or from external events. This
includes model risk, information and communication technology (ICT) risk,
legal risk, the potential for loss arising from the uncertainty of legal
proceedings and potential legal proceedings, but excludes strategic risk.
This also includes resilience risk, the failure to identify and prepare for,
respond, and adapt to, recover, and learn from operational disruptions
which may result in a failure to deliver critical services. Model risk forms part
of Operational Risk definition as defined by Basel IV requirements. However,
within the Group, Model risk is covered under the Group Model and AI Risk
Management Framework and Group Model and AI Risk Management Policy
Identification and assessment
Operational & resilience risk is identified and assessed by the Group’s
MRA which also identifies the following sub risks: Change and
Transformation risk, Physical safety and property risk, Continuity risk,
Technology risk, Third party risk, Legal risk, Data risk, Product and
proposition risk, People risk, Fraud risk and Transaction execution and
delivery risk. The risk and control assessment is the Group’s core bottom-
up process for the identification and assessment of operational risk
across the Group.
Following the approval of the 2025 MRA, Operational risk has been
expanded to ‘Operational & resilience risk’. This has been driven primarily
by industry and regulatory trends. In addition, Transaction execution &
delivery risk has been approved as a new sub risk under Operational &
resilience risk. The increasing number of payment related regulations
including the National Payments Strategy, the digital Euro, PSD3 and SEPA
instant all require enhanced oversight and monitoring of transaction
execution and delivery risk.
The RCA process serves to ensure that key operational risks are
proactively identified, assessed, recorded, and reported, and that
appropriate action is taken for risk mitigation. Self-assessment of risks is
completed at a business unit level and recorded on SHIELD which is the
Group’s governance, risk and compliance system. Service assessments
and risk assessments are performed on all critical or important
outsourcing arrangements and are also recorded on SHIELD.
SHIELD provides all areas with one consistent view of the operational
risks, controls, actions and events across the Group. RCAs are regularly
reviewed and updated by business unit management.
The potential impact of the identified risks is then used to inform
scenarios for each of the Basel event categories that are assessed
through ICAAP process.
Management and measurement
The Operational Risk Management Framework sets out the principles,
supporting policies, roles and responsibilities, governance arrangements
and processes for Operational & resilience risk management across the
Group. Operational & resilience risk and its sub risks are carefully
overseen within the Operational Risk Management Framework and
supporting policies, ensuring that key risks are identified, monitored, and
managed in line with the Group’s risk appetite and governance standards.
This approach helps maintain robust controls and supports the ongoing
resilience of the organisation. The Operational Risk Management
Framework and policies set out the process for risk and control
assessments, identification of the key non-financial risks arising from key
business processes and activities. If risk thresholds are breached, there is
a defined process to ensure these issues are promptly escalated and
addressed at the appropriate level within the organisation.
In addition, Operational & resilience risk is partially hedged through
an insurance programme in place, including a self-insured retention, to
cover a number of risk events which would fall under the operational risk
umbrella. These include financial lines policies such as:
• comprehensive crime/computer-crime/cyber/professional indemnity/
civil liability;
• employment practices liability;
• directors’ and officers’ liability; and
• a suite of general insurance policies to cover such things as property
and business interruption, terrorism, employers and public liability and
personal accident.
Operational & resilience risk is measured through a series of risk appetite
metrics and key risk indicators. These include metrics on operational
risk losses and events, people, physical safety & property, continuity,
technology, third party, legal, product & proposition, data, fraud and
change risks.
Monitoring, escalating and reporting
In addition to risk appetite measures and limits, Operational & resilience
risk is monitored on a regular basis via the Group’s risk governance
committees. This provides senior management, through the Operational
Risk Committee and GRC, BRC and the Board, with timely updates on the
Group’s Operational & resilience risk profile. The profile update details the
current status of the Group’s key Operational & resilience risks and
includes an overview of current trends. It also includes an update on
recent major risk events and any remediation actions and lessons
identified following events.
Operational & resilience risk events are identified and captured in the
SHIELD system. These are escalated through a defined process depending
on impact and severity. Root causes of events are determined, and action
plans are implemented to ensure there are enhanced controls in place to
keep customers and the business safe.
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2.8 Climate & environmental risk
Climate and Environmental (C&E) Risk encompasses the financial and
non-financial impacts on the Group arising from climate change,
environmental change and the transition to a sustainable economy.
These risks can affect the Group directly through operations or indirectly
through relationships with customers and third-party suppliers.
Identification and assessment
Risk identification and assessment for C&E Risk is completed in line with
the Groups Risk Management Framework as well as other internal
processes which consist of top-down and bottom-up approaches. The
processes included identify the sub risks associated such as Physical risk,
Transition risk and Liability risk. C&E risk drivers are far reaching in breadth
and magnitude over uncertain, often long-term time horizons with
dependency on short term action to mitigate. The Group undertakes
regular processes for the identification and assessment of C&E impacts,
risks and opportunities. These include: the MRA, RCAs, Transmission
Channel Analysis, Business Environment Scans, ‘House Views’ on key
sectors, compilation of Heatmaps, C&E Stress Testing and regulatory
horizon scanning. The outputs from these processes inform areas for
focus in the Group’s strategic, financial and investment planning
processes. Further information on C&E assessment can be found in
Sustainability Reporting on page 41.
Management and measurement
C&E Risk is actively managed through the C&E Risk Framework and Policy.
The C&E Risk Framework sets out the principles, roles and
responsibilities, governance arrangements and processes for C&E risk
management across the Group. The Framework sits within the overall
Group risk architecture and is one of the material risk frameworks
supporting the Group’s Risk Management Framework.
The C&E Risk Framework is underpinned by the C&E Risk Policy, ensuring
that C&E risk is managed in line with the Group’s overall purpose, the
three key strategic priorities, as well as the Group’s strategic objectives.
The C&E Policy was updated in December 2025 to ensure alignment with
applicable regulatory requirements, including the EBA Guidelines on the
management of Environmental, Social and Governance (ESG) risks.
In 2025, the Group introduced an overarching qualitative RAS, and all
other statements were updated accordingly to help articulate appropriate
areas of climate-related risk appetite. The Group approved three new
quantitative C&E metrics, bringing the total number of C&E related
metrics to 12. Two of the RAS metrics are forward looking and provide
quantitative projections of future risk. The RAS metrics are cascaded to
segments and subsidiaries as appropriate.
Monitoring, escalating and reporting
C&E risk is monitored through internal and external reporting across the
Group. The primary internal risk report, the CRO report, dedicates a section
to C&E risk providing the GRC and the BRC with relevant updates on the
C&E risk profile. The profile section encompasses the key developments
around the risk, planned initiatives and also reports on the Group’s
performance against risk appetite.
Monitoring and reporting of the C&E quantitative RAS metrics is
conducted monthly. The escalation process, as stipulated under the RMF,
is commenced in the event of a breach of either the RAS watch trigger or
limit for any of the metrics. This ensures the Group’s Board and Regulator
are notified within an approved timeframe, when appropriate.
In addition to RAS metrics, C&E KRIs have been considered, across all
material risk categories, based upon the impacts identified in the
Transmission Channel Analysis and how these impacts would manifest.
These KRIs are approved, reported and escalated through the appropriate
governance pathways for the relevant material risk.
Key Performance Indicators (KPIs) monitors the C&E risk drivers aligned to
the C&E materiality assessment. The materiality assessment focus efforts
on managing C&E risk with particular regard to credit and operational risk.
These are reported and monitored via the Strategic Outcome Report,
Sustainability Dashboard and ELT Scorecards. The KPIs are cascaded to
business lines and subsidiaries as appropriate. The KPIs are included in
the Sustainability Dashboard and roll-up into the Strategic Outcomes
Report and cascade to the ELT Scorecards. The Group actively monitors
the progress of achieving the Board approved sustainability targets via the
Sustainability Dashboard. The metrics contained in the dashboard are
reported in the CRO report, to the GSC and the SBAC.
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Risk Management continued
2.9 Model and AI risk
Model and AI risk is the potential harm that the Group, as well as its
customers and communities, may incur due to decisions based on the
outputs of models or AI systems. These risks arise from errors in the
development, implementation, or use of models or AI systems.
Identification and assessment
The Group’s MRA and the RCA forms the basis for identifying the key
elements of the risk. The MRA identifies the key sub risks including model
oversight risk, model data risk, model methodology and performance risk,
and model use and implementation risk. The RCA is the Group’s core
bottom-up process in the identification and assessment of Model and AI
risk across the Group.
The RCA includes a requirement to perform a self-assessment of the risks
at each business unit level. The potential impact of model risk is assessed
through the ICAAP. Model and AI risk is generally mitigated through
specific model adjustments. There is no explicit capital requirement
generated from this risk as it is indirectly assessed through the other risks.
Management and measurement
There is a Group Model and AI Risk Management Framework and
supporting policies in place to drive the consistent management of this
risk. This sets out the key controls required to mitigate Model and AI risk
across the model lifecycle, from initiation of a model build through to
implementation, use and ongoing monitoring. The key controls include:
• A complete inventory of all models in the Group, with a clear tiering of
models to ensure key controls such as model validation and monitoring
are being applied on a risk-based approach;
• Requirement for clear hand-offs between each stage in the lifecycle to
mitigate the risk of issues propagating through the lifecycle of
the model;
• Models are built, validated and monitored by suitably qualified
analytical personnel, supported by relevant business, risk and finance
functions;
• All material models are validated by an appropriately qualified team
which is independent of the model build process. Where issues are
identified, appropriate mitigants are applied. This can include
temporary post model adjustments which are put in place until a model
is re-developed.
Model and AI risk is measured using a composite assessment of model
outcomes across the lifecycle for all models in the inventory.
Monitoring, escalating and reporting
The GRC and its sub-committee, the Model Risk Committee, are the
primary committees for overseeing Model and AI risk in the Group. Model
materiality is defined in the Group Model and AI Risk Management Policy.
The outcomes of validation and other reviews are brought to the
appropriate highest approval authority (HAA) for oversight to ensure all
models remain fit for their intended use and that any issues are
appropriately escalated.
Model monitoring on material models is reported to committees regularly
with appropriate actions raised when models perform below the required
performance levels.
An overall assessment of Model and AI risk is performed on a quarterly
basis and is reported quarterly to the Model Risk Committee and
semi-annually to the GRC and BRC. The status of Model and AI risk is
reported on a monthly basis in the CRO report, which includes an update
on recent significant events and any remediation actions that are
underway.
2.10 Culture risk and conduct risk
Culture risk and conduct risk are two distinct material risks. Culture risk is
the risk that the behaviours, actions and/or decisions are not aligned to
the Group’s values impacting how we deliver on the Strategy, purpose and
ambition.
Conduct risk is defined as the risk that inappropriate actions or inactions
by the Group cause poor or unfair customer outcomes or negatively
impact on market integrity.
The effective management of conduct risk requires embedding of a strong
conduct culture with a customer centric approach to conduct
risk management as articulated in the Group’s values, behaviours and
Code of Conduct.
The conduct risk priorities for the Group include:
• Embedding a strong, ethical and customer centric culture that aligns to
the Group’s purpose, values and regulatory expectations
• Proactively identifying and addressing cultural and conduct drivers of
misconduct, poor decision making or non-compliance.
• Aligning the Group’s culture and conduct with regulatory expectations,
internal policies and stakeholder trust.
• Embedding a customer centric culture to evidence that customers are
treated in a fair and transparent way by utilising Customer Impact
Assessments (CIAs) to support decision making and incorporating
lessons learned.
• Continuing to build customer, stakeholder and regulatory trust in the
Group’s conduct by ensuring that the Group can demonstrate that
Culture risk and Conduct risk is understood and reinforced.
• Cultivating a culture that supports colleague empowerment, staff
retention, and encourages innovation to deliver positive customer
outcomes and operational efficiencies.
Identification and assessment
The Group’s MRA and RCA forms the basis for identifying the key elements
of Culture risk and conduct risk.
The Group has identified a number of risk drivers pertaining to conduct
risk and these are reviewed on an annual basis as part of the MRA
process. These include, inter alia:
• Monitoring trends of customer complaints on a regular basis;
• The pace and complexity of changing industry best practice and
clarifications received in relation to regulatory expectations can drive an
accelerated process for changing products, practices, services and
cultures;
• Potential of unintended consequences arising from the scale and pace
of inorganic and strategic change;
• Understanding the implications of the evolving Global, European and
Irish economic landscape on short to medium term interest rate
environment;
• Increased competition in terms of resources, skills, industry
participants remuneration practices and customer bases;
• Negative macroeconomic environment can result in unexpected Group
and/or employee behaviour and potential increased market instability
could result in market conduct risk; and
• ESG risks may result in poor customer outcomes such as incorrect risk
preferences or failing to identify climate impacts on product offerings.
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2.10 Culture risk and conduct risk continued
Conduct risks are identified during the RCA process which provides
documentary evidence of risk assessments. It determines the risk profile of
the business, drives risk management and actions plans including KRI
development and reporting. A risk register of the Group’s material risks is also
maintained. The RCA has identified a number of key conduct risks relating to
customer satisfaction and employee behaviour as well as client, business
and product practice.
The Group Compliance function completes horizon scanning and
benchmarking to identify future conduct risk considerations within
business and regulatory environments. In addition, the Compliance
function identifies regulatory change through its upstream and horizon
scanning team. Conduct risks are considered during the implementation
as appropriate.
The amalgamation of Culture risk within the Compliance function has
progressed in 2025.The Culture Risk and Conduct Risk Framework and
Conduct Risk Policy have been reviewed with Culture risk further
embedded.
Culture forms an integral part of risk culture and overall conduct risk
management and is core to all customer and market facing decisions and
interactions. It is imperative that the Group maintains a strong customer
culture in order to deliver appropriate customer outcomes. The Group’s
cultural ambition is that all colleagues truly demonstrate and live the
Group’s values and the behaviours that underpin them. The challenge is to
ensure that the Group’s values are embedded consistently across the
organisation by all employees. The tone is set from the top, and leaders
have a critical role to play in shaping the Group’s culture. Culture risk
captures the need for the Group’s core values to be shared by all staff,
demonstrated through staff behaviour and that consistent and fully
understood performance measures are in place resulting in outcomes
aligned to the Group’s Strategy.
Management and measurement
The Group has a Culture and Conduct Risk Framework and Conduct Risk
Policy which applies to the Group including all subsidiaries. This
Framework and Policy, as well as other supporting policies, are in place to
drive consistent management of Culture risk and conduct risk.
The Policy includes the approach to vulnerable customers, which is defined
as recognising customers who are in need of additional care, support or
protection due to various circumstances. The Vulnerable Customer Team
ensure governance structures are in place for the oversight of the
Vulnerable Customer Programme, developing and ensuring execution of
the Group Vulnerable Customer Action Plan as well as developing and
delivering Group level training for staff on customer vulnerability issues.
Where the Group engages in investment and wholesale services and
activities it must implement and maintain adequate policies and
procedures designed to detect any risk of failure by the Group with its
obligations, and put in place adequate measures and procedures
designed to minimise such risk. In particular, it is expected that the Group
is able to demonstrate awareness and management of Wholesale Market
Conduct Risk in the areas of strategy, governance, culture, risk
management and management information
Conduct risk measurement is considered qualitatively under normal and
stressed conditions. Any new material business development or change in
strategy would also warrant an independent assessment of conduct risks
and potential impact on reputation.
The Group Head of Culture and Conduct risk team (which sits within the
Compliance function) provides independent oversight and governance of
conduct risk across the Group (and is a mandatory approver of product
and propositions proposals), including training and awareness building.
An approved Group Conduct Strategy, aligned with the Group’s Purpose,
Strategy and Values, is supported by annual business conduct action plans,
delivering against key strategic objectives, ensuring continued progress on
embedding conduct and meeting evolving regulatory expectations.
The Conduct Risk and Culture Risk RAS is recommended by the Compliance
function and consists of qualitative statements and KRI metrics. The KRIs
establish specific limits, ceilings and floors that relate to the qualitative RAS.
Risk, through the Compliance function and Group Risk Assurance function,
provide independent challenge of potential and identified conduct risks and
provide advice to business segments on Conduct risk issues.
Business segments conduct dashboards to measure key management
information trends under the five key conduct risk areas, as reflected in
the Group’s conduct strategy.
The Group Head of Conduct in the 1LOD is a member of a number of key
working groups and fora regarding the management and measurement of
conduct risk, and provides challenge on RAS metrics which are monitored
monthly, customer solutions and the resolution of materialised conduct
risks.
Monitoring, escalating and reporting
Culture risk and conduct risk are monitored across the Group in line with
risk management procedures. Significant conduct events are assessed
and remedial actions implemented where necessary. These are escalated
based on a materiality assessment, in line with the Culture and Conduct
Risk Framework.
Culture risk and conduct risks are monitored on a monthly basis via the
Group’s risk governance committees. This provides the GRC and the BRC
with relevant updates on the culture risk and conduct risk profile. The
profile update details the current status of the Group’s key culture risks
and conduct risks, includes an overview of current trends, an update on
recent significant events and any remediation actions or lessons identified
following events.
The Regulatory, Culture and Conduct Risk Committee (RCCR) is the forum
that provides risk oversight of regulatory culture, and conduct risks of the
Group including oversight of its subsidiaries. The RCCR was established
by, and is accountable to, the GRC to oversee regulatory, culture and
conduct risks across the Group. This includes monitoring and reviewing
the Group’s regulatory, culture and conduct risk profile, compliance with
risk appetite and other approved policy limits, reviewing risk policies and
recommending these for approval to the GRC.
From a prudential perspective the Group reports the financial impact of
culture risk and conduct risk events through the annual ICAAP, quarterly
COREP submissions and the biennial EBA Stress Testing exercise.
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Risk Management continued
2.11 Regulatory compliance risk
Regulatory compliance risk is defined as the risk of legal or regulatory
sanctions, material financial loss, or loss to reputation which the Group
may suffer as a result of its failure to comply with principal laws,
regulations, rules, related self-regulatory codes and related supervisory
expectations which relate to the Group’s regulated banking and financial
service activities i.e., those activities which the Group is licensed to
conduct business.
Identification and assessment
The Group’s MRA and RCA forms the basis for identifying the key drivers of
regulatory compliance risk. The associated sub risks include Prudential
Regulation Risk, Wholesale and Consumer Conduct of Business
Regulatory Risk, Financial Crime Regulatory Risk and Privacy and Data
Protection Regulatory Risk. The MRA process also identified that the
complexity and volume of regulatory change and the rapidly evolving
international sanctions environment, raises the risk of regulatory
compliance failure and/or regulatory sanction.
The key areas of focus of both the Central Bank of Ireland (CBI) and the
Joint Supervisory Teams (JST) includes:
• Ensuring that regulated firms, subject to CBI and JST oversight, are fully
compliant with their obligations and are treating their customers,
existing and new, in a fair and transparent way, including the
embedding of directives and regulations;
• Continued focus on the full implementation of the suite of prudential
requirements including Capital Requirements Directive (CRD) and
Capital Requirements Regulation (CRR), and the binding technical
standards and guidelines;
• Climate and ESG issues where the CBI has noted its expectations for
firms including the requirements relating to governance, risk
management frameworks, scenario analysis, disclosures as well as
strategy and business model risks.
Management and measurement
The Regulatory Compliance Risk Management Framework sets out the
principles, roles and responsibilities, and governance arrangements and
is supported by a number of key policies.
The compliance mandate aims to ensure that the Group understands the
external rules, laws, regulations and codes which apply to the Group’s
regulated activities and the implications of any non-compliance. In
addition, the mandate supports internal compliance with the Group’s suite
of Regulatory Compliance and Conduct Policies and Standards, promotes
the Group’s ethos of acting with integrity, honesty and fairly in all its
dealings with colleagues, customers, and stakeholders.
The Group Regulatory Compliance Risk Management Framework and the
regulatory compliance risk management lifecycle commences with
upstream regulation risk management. The Regulatory Change Team
(RCT) reside within the Regulatory Compliance Team and provide
oversight and support in respect of regulatory change risk management.
The approach to regulatory change has been designed to ensure
regulatory requirements are clearly understood from the outset with end-
to-end traceability monitored by the Regulatory Forum as part of Group
Programme Board (GPB). This involves an up-front partnership between
the RCT and Change Operations to ensure business stakeholders are
identified with roles and accountabilities assigned.
The process provides a platform for clear monitoring, communication,
effective oversight, robust challenge and the pursuit of regulatory
compliance in a collaborative manner across both the 1LOD and 2LOD.
The regulatory compliance risk management lifecycle is reviewed on
an annual basis by Compliance. In order to produce a comprehensive
holistic view of regulatory compliance risks across the Group, detailed
risk assessments are completed based on the premise of identifying the
regulatory compliance risks which pose the most significant threat to the
Group. Risk identification and assessment is carried out through a
combined top-down and bottom-up approach. The output of this risk
assessment process is to produce the Compliance & Risk Assurance Plan.
Monitoring, escalating and reporting
Regulatory compliance risks are monitored on a monthly basis via the Group’s
risk governance committees. This occurs initially at the RCCR and key items
are brought through to Group GRC and BRC for discussion and escalation
where appropriate. This includes an update on recent significant events and
any remediation actions or lessons identified following events.
The RCCR is the forum that provides risk oversight of regulatory and conduct
risks of the Group including oversight of its subsidiaries. The RCCR was
established by, and is accountable to, the GRC, to oversee regulatory and
conduct risks across the Group, including monitoring, reviewing the regulatory
and conduct risk profile, compliance with risk appetite and other approved
policy limits. It is also responsible for reviewing risk policies and
recommending these for approval to the GRC.
Regulatory Compliance establish written guidance to staff on the appropriate
implementation of relevant laws, rules and standards through relevant
regulatory compliance policies and support the first line business units in
understanding and implementing their regulatory compliance obligations and
management of the associated regulatory compliance risks in line with the
Regulatory Compliance and Conduct Risk Appetite Statements. As part of their
role engaging with the first line, Regulatory Compliance assist the business in
maintaining a positive and transparent relationship with the Regulators in
respect of regulatory compliance and conduct matters.
The 2LOD Assurance function provides independent review and objective
assurance on the quality and effectiveness of the Group’s internal control
system in the 1LOD and 2LOD, including assurance over the risk policies
and framework’s via a risk-based assurance plan.
Compliance Monitoring provides independent review and objective
compliance monitoring on the quality and effectiveness of the Group’s
internal control system, including policies and frameworks in line with its
Board approved annual compliance monitoring plan.
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Financial
Statements
In this section
Statement of Directors’ Responsibilities
242
Independent Auditors’ Report
243
Consolidated financial statements
253
Notes to the consolidated financial statements
259
AIB Group plc company financial statements
331
Notes to the AIB Group plc company financial statements
333
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The following statement, which should be read in conjunction with the
Statement of Auditor’s Responsibilities set out in their Audit Report, is
made with a view to distinguishing for shareholders the respective
responsibilities of the Directors and of the Auditors in relation to the
financial statements.
The Directors are responsible for preparing the Annual Financial Report
and the Group and Company financial statements, in accordance with
applicable law and regulations. The Directors’ responsibilities for the
Sustainability Statement are discussed in full on page 110.
Company law requires the Directors to prepare Group and Company
financial statements for each financial year. Under that law, the Directors
are required to prepare:
• The Group financial statements in accordance with International
Financial Reporting Standards (IFRSs) as adopted by the EU, Article 4 of
the IAS Regulation, the Asset Covered Securities Acts 2001 and 2007,
and those parts of the Companies Act 2014 and the European Union
(Credit Institutions: Financial Statements) Regulations 2015 applicable
to companies reporting under IFRS; and
• The Company financial statements in accordance with Irish Generally
Accepted Accounting Practice (accounting standards issued by
the UK Financial Reporting Council, including Financial Reporting
Standard 101 Reduced Disclosure Framework and Irish law) and the
Companies Act 2014.
In preparing both the Group and Company financial statements, the
Directors are required to:
• Select suitable accounting policies and then apply them consistently;
• Make judgements and estimates that are reasonable and prudent;
• State that the financial statements have been prepared in accordance
with applicable accounting standards and identify the standards in
question; and
• Prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Group and Company will continue
in business.
The Directors are responsible for keeping adequate accounting records
that disclose with reasonable accuracy at any time the financial position
of the Company and enable them to ensure that its financial statements
comply with the Companies Act 2014. They are also responsible for taking
such steps as are reasonably open to them to safeguard the assets of
the Group and Company and to prevent and detect fraud and other
irregularities. Under applicable law and corporate governance
requirements, the Directors are also responsible for preparing the
Directors’ Report and the reports relating to the Directors’ remuneration
and corporate governance that comply with that law and the relevant
listing rules of Euronext Dublin (the Irish Stock Exchange) and the UK
Listing Authority.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company’s website.
Legislation in Ireland governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
Each of the Directors whose names and functions are listed on pages 122
to 125 confirm, to the best of their knowledge and belief, that:
• They have complied with the above requirements in preparing the
financial statements;
• The Group financial statements, prepared in accordance with IFRSs as
adopted by the EU, Article 4 of the IAS Regulation, the Asset Covered
Securities Acts 2001 and 2007, and those parts of the Companies Act
2014 and the European Union (Credit Institutions: Financial
Statements) Regulations 2015 applicable to companies reporting under
IFRS and give a true and fair view of the state of the Group’s affairs as at
31 December 2025 and of its profit for the year then ended;
• The Company financial statements are prepared in accordance with
Irish Generally Accepted Accounting Practice (accounting standards
issued by the UK Financial Reporting Council, including Financial
Reporting Standard 101 Reduced Disclosure Framework and Irish law)
and the Companies Act 2014;
• The Directors’ Report provides a fair review of the development and
performance of the business and the financial position of the Group,
together with a description of the principal risks and uncertainties faced
by the Group; and
• The Annual Financial Report, taken as a whole, is fair, balanced and
understandable, and provides the information necessary for
shareholders to assess the Group’s and the Company’s position and
performance, business model and strategy.
For and on behalf of the Board
Jim Pettigrew
Chair
Colin Hunt
Chief Executive Officer
Donal Galvin
Chief Financial Officer
3 March 2026
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Statement of Directors’ Responsibilities
Independent auditors’ report to the members of AIB Group plc
Report on the audit of the financial statements
Opinion
In our opinion:
• AIB Group plc’s consolidated financial statements and Company financial statements (the ‘financial statements’) give a true and fair view of the
Group’s and the Company’s assets, liabilities and financial position as at 31 December 2025 and of the Group’s profit and the Group’s cash flows for
the year then ended;
• the consolidated financial statements have been properly prepared in accordance with International Financial Reporting Standards (IFRSs) as
adopted by the European Union;
• the Company financial statements have been properly prepared in accordance with Generally Accepted Accounting Practice in Ireland (accounting
standards issued by the Financial Reporting Council of the UK, including Financial Reporting Standard 101 Reduced Disclosure Framework and Irish
law); and
• the financial statements have been properly prepared in accordance with the requirements of the Companies Act 2014 and, as regards the
consolidated financial statements, Article 4 of the IAS Regulation.
We have audited the financial statements, included within the Annual Financial Report (the ‘Annual Report’), which comprise:
• the Consolidated and Company Statement of Financial Position as at 31 December 2025;
• the Consolidated Income Statement and Consolidated Statement of Comprehensive Income for the year then ended;
• the Consolidated Statement of Cash Flows for the year then ended;
• the Consolidated and Company Statement of Changes in Equity for the year then ended; and
• the notes to the Consolidated and Company financial statements, which include a description of the accounting policies.
Certain required disclosures have been presented elsewhere in the Annual Report, rather than in the notes to the financial statements. These are cross-
referenced from the financial statements and are identified as audited.
Our opinion is consistent with our reporting to the Board Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (Ireland) (ISAs (Ireland)) and applicable law. Our responsibilities under
ISAs (Ireland) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in Ireland,
which includes IAASA’s Ethical Standard as applicable to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance
with these requirements.
To the best of our knowledge and belief, we declare that other services prohibited by IAASA’s Ethical Standard were not provided.
Other than those disclosed in note 12 to the financial statements, we have provided no non-audit services to the Company or its controlled undertakings
in the period under audit.
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Independent auditors’ report
Our audit approach
Overview
Audit scope
• We completed a full scope audit of the financial information of Allied Irish Banks, p.l.c., EBS d.a.c. and AIB Mortgage
Bank Unlimited Company. In addition, we directly instructed the component audit team in the UK to conduct and
report to us on a full scope audit of the financial information of AIB Group (UK) p.l.c.
• Specific audit procedures on selected account balances, classes of transactions or disclosures were performed for
other entities within the Group based on our assessment of the risk of material misstatement and of the materiality of
the Group’s operations in these entities.
• The significant components subject to full scope audit accounted for in excess of 90% of both Profit before Tax and
Total Assets.
Key audit matters
• Expected credit loss (i) completeness and valuation of the post model adjustments (ii) judgements taken on
individually assessed exposures.
• IT (Privileged User Access).
• Recoverability of investment in subsidiary (Company only).
Materiality
Overall Group materiality
• €77.5 million (2024: €77.5 million) based on c. 3.2% (2024: c. 3.0%) of profit before tax.
Overall Company materiality
• €76.0 million (2024: €76.0 million) based on c. 0.5% (2024: c. 0.5%) of total equity.
Performance materiality
• €58.0 million (2024: €58.0 million) - Group
• €57.0 million (2024: €57.0 million) - Company
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we
looked at where the directors made subjective judgements, for example in respect of significant accounting estimates that involved making
assumptions and considering future events that are inherently uncertain. As in all of our audits we also addressed the risk of management override of
internal controls, including evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of the financial statements of
the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by the auditors,
including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the
engagement team. These matters, and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
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Independent auditors’ report continued
Key audit matter
How our audit addressed the key audit matter
Expected credit loss (i) completeness and
valuation of the post model adjustments
(ii) judgements taken on individually
assessed exposures
Refer to Note 1 (q) ’Impairment of financial assets' within Note 1
‘Accounting policies’, ‘Impairment of financial assets’ within Note 2
‘Critical accounting judgements and estimates’, Note 11 ‘Net credit
impairment charge’, Note 17 ‘Loans and advances to customers’, Note
19 ‘ECL allowance on financial assets’ and Section 2.1 ‘Risk
management - Credit risk’ of the Risk management report.
At 31 December 2025, the Group reported total gross loans to
customers classified at amortised cost of €72.3bn and €1.14bn of
expected credit loss (ECL).
The measurement of expected credit losses is required to reflect an
unbiased probability-weighted range of possible future outcomes.
Complex models and significant judgements are used to estimate the
probability of default (PD), loss given default (LGD) and exposure at
default (EAD) as well as in applying the staging criteria under IFRS 9.
The calculation of ECL requires a high degree of judgement to reflect
developments in credit quality and emerging macroeconomic risks.
The two key areas where we identified greater levels of management
judgement and therefore increased levels of audit focus in the Group's
compliance with IFRS 9 were
1. Completeness and valuation of post model adjustments (PMAs)
The judgement surrounding the completeness and valuation of PMA’s
represents a significant estimation risk. The modelling methodologies
used to estimate ECL are developed using historical experience.
Adjustments are made to model outcomes to address known model
and data limitations, and emerging or non-modelled risks. In addition,
modelling methodologies do not incorporate all factors that are relevant
to estimating ECL. The current economic environment continues to be
uncertain and volatile and differs from historical experience (including
the experience on which certain models were calibrated). As a result,
the judgements around if and when the Group recognise adjustments to
model outcomes to account for potential model weaknesses in coping
with the current economic environment, outlook and sectoral
weaknesses are highly judgemental and inherently uncertain.
2. Individually assessed ECL (Stage 3)
The judgements applied with respect to the measurement of
impairment of Stage 3 individually assessed loans represents a
significant estimation risk. For individual provision assessments of
larger exposures in Stage 3, the significant judgements in determining
provisions are the completeness and appropriateness of the potential
workout scenarios identified, the probability assigned to each identified
potential workout scenario and the valuation assumptions used in
determining expected recoveries.
Other assumptions
Management makes other assumptions which are less judgemental or
for which variations have a less significant impact on ECL. These
include:
• Conceptual soundness of the modelling methodologies;
• Quantitative and qualitative criteria used to assess significant
increases in credit risk which drives the allocation of assets to Stage
1, 2, or 3 using criteria in accordance with the accounting standards;
• Accounting interpretations, modelling assumptions and data used to
build and run the ECL models; and
• Inputs and assumptions used to reflect the impact of multiple economic
scenarios.
Controls
In conjunction with our credit modelling specialists, we performed
end-to-end process walkthroughs to understand and identify the key
systems, applications and key controls used in the ECL processes.
We tested the design and operating effectiveness of key controls across
the processes relevant to management’s ECL calculation, including
those relating to the key judgements and estimates involving our credit
modelling specialists where appropriate. We also tested the design and
operating effectiveness of key controls over the governance of the
estimation of ECL. We attended key executive committee meetings
where the inputs, assumptions and adjustments to the ECL were
discussed and approved. We observed management’s review and
challenge in these governance forums including the assessment of
model limitations and any resulting judgemental post model
adjustments.
Conceptual Soundness
We performed a risk assessment on the models involved in the ECL
calculation to determine the models to test and the nature of the testing
required in respect of the individual models. We involved credit
modelling specialists to assist us in testing the assumptions, inputs and
implementation of model formulae. This included a combination of
assessing the appropriateness of model design, performing sensitivity
analyses, recalculating the Probability of Default and Loss Given Default
and testing model implementation.
In conjunction with our credit modelling specialists, we assessed model
governance including model validation and monitoring. This included
assessing model performance by evaluating variations between
observed data and model predictions and developing an understanding
and assessment of model limitations and remedial actions. We
inquired of the model development and validation teams to assess
whether the basis for significant model enhancements introduced
during the year were reasonable.
Post Model Adjustments
In conjunction with our credit modelling specialists, we evaluated the
conceptual soundness of the PMAs by critically assessing
management’s rationale and methodology, including the limitation and /
or risk that the PMA is seeking to address. We inspected the PMA
calculation methodologies and tested, on a sample basis, the
completeness and accuracy of key data inputs into the PMA calculation.
We challenged the overall completeness and reasonableness of post
model adjustments by comparing the PMAs recognised by management
to the key model limitations and / or data limitations that we considered
to exist in the portfolio. We used managements own assessment of
novel risks within the portfolio to inform our assessment.
Individually assessed stage 3 assets
For a sample of credit-impaired loans, we assessed the exposures to
determine if they met the definition of credit impaired under IFRS 9. We
challenged the forecasts of future cash flows prepared by management
to support the calculation of the impairment loss allowance by
challenging the key assumptions and corroborating estimates to
external support where available. Our selection of credit impaired loans
was based on a number of factors, including both higher risk sectors
identified with reference to external sources, (such as commercial real
estate and the fibre portfolio within Climate and Infrastructure Capital
Division), and materiality.
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Key audit matter
How our audit addressed the key audit matter
Expected credit loss (i) completeness and
valuation of the post model adjustments
(ii) judgements taken on individually
assessed exposures continued
Quantitative and Qualitative criteria in determining specific
increases in credit risk
We challenged the appropriateness and application of the quantitative
and qualitative criteria used to assess significant increases in credit risk
which determine the allocation of an asset to Stage 1, 2 or 3 in
accordance with IFRS 9.
For a selection of performing loans, we critically assessed, by reference
to the underlying documentation and through inquiries with
management, whether the trigger for credit impaired classification had
occurred.
In conjunction with our credit modelling specialists, we reperformed key
aspects of the models underlying the calculation of expected credit
losses, including independent recalculation of the PD and LGD for a
sample of models and independent recalculation of ECL model
outcomes for a sample of models.
Economic Scenarios
In conjunction with our credit modelling specialists, we considered the
base case and alternative economic scenarios. We challenged and
assessed the reasonableness of the significant assumptions
underpinning management’s economic scenarios which we determined
to be GDP, unemployment and property price inflation by comparing to
independent and observable economic forecasts, leveraging a number
of external data points. We assessed whether forecasted
macroeconomic variables were reasonable and supportable.
With the support of our credit modelling specialists, we evaluated the
overall impact of the macroeconomic factors to the ECL. This
assessment considered the sensitivity of ECL to variations in the
severity and probability weighting of the economic forecasts.
We challenged the reasonableness of management’s forward-looking
information (FLI) upside / downside scenario weightings, having regard
to relevant available information.
Overall stand back
We performed an overall assessment of ECL provision levels by IFRS 9
stage to determine if they were reasonable by considering the overall
credit quality of the Group’s portfolios, risk profile, credit risk
management practices and the macroeconomic environment by
considering trends in the economy and sectors to which the Group is
exposed. We performed peer benchmarking where available to assess
overall staging and provision coverage levels.
Disclosures
We assessed the adequacy and appropriateness of disclosures for
compliance with the accounting standards and the process and
controls management had in place to prepare and approve the
disclosures.
Conclusion
On the basis of the work performed we have concluded the stock of
Expected Credit Loss reserves at year end is within the range of
acceptable outcomes.
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Independent auditors’ report continued
Key audit matter
How our audit addressed the key audit matter
IT (Privileged User Access)
The IT environment is complex and pervasive to the operations of the
Group due to the multiplicity of systems and the large volume of
transactions processed and its reliance on automated and IT dependent
manual controls. Appropriate IT controls are required to ensure that
applications process data as expected and that changes are made in a
controlled manner.
Our audit approach includes reliance on automated and IT dependent
manual controls and therefore on the effectiveness of controls over
IT systems impacting financial reporting. Privileged user access
management controls are an integral part of the IT environment to
ensure both system access and changes made to systems are
authorised and appropriate. An integral part of our audit testing is
therefore on the effectiveness of privileged user access management
controls.
In the context of our audit scope, we consider privileged user access
management controls at the application layer to be critical to ensuring
that only appropriately authorised changes are made to IT systems
deemed relevant to our audit. Moreover, appropriate privileged user
access management controls contribute to mitigating the risk of
potential fraud or error.
We considered this to be a key audit matter owing to the high level of
reliance on IT operations within the Group as well as the risk that key IT
Audit Dependencies such as automated controls and system generated
reports are not designed and operating effectively.
Through inquiries with management and inspection of internal
governance documents, we obtained an understanding of the Group’s
IT environment.
In conjunction with our Digital Audit specialists, we;
• Tested the design, implementation and where relevant, the operating
effectiveness of preventative and detective IT General Controls (ITGC)
over privileged user access management (i.e. those relating to
privileged user access provisioning, revocation, recertification and
authentication).
• Inquired of Group Internal Audit (GIA) and inspected IT related GIA
reports produced during the period to understand the nature of
findings, if any, and consider the impact on our audit.
• Where control deficiencies were identified at the design level, we
considered the compensating controls in place and sought to obtain
additional evidence for the in scope IT Dependencies to obtain
reasonable assurance that there were no unauthorised changes
made to these during the financial year.
• Our risk assessment procedures included an assessment of those
deficiencies to determine the impact on our audit plan and designed
and executed additional procedures where required.
Conclusion
Having completed the additional audit procedures we concluded that
we have obtained sufficient evidence for the purposes of our audit.
Recoverability of investment in subsidiary
(Company only)
Refer to ‘Investment in subsidiary’ within Note a ‘Accounting policies’
and Note d ‘Investment in subsidiary undertaking’ to the Company
financial statements.
The Company balance sheet includes a €13.96bn investment in Allied
Irish Banks, p.l.c., the main trading entity of the Group.
The accounting policy followed by the Company is to carry the
investment at cost less impairment. Impairment testing includes the
comparison of the carrying value with its recoverable amount. The
recoverable amount is the higher of the investment’s fair value less
costs of disposal or its value in use (VIU).
At 31 December 2025, the market capitalisation of AIB Group plc (the
ultimate parent of the group) exceeded the carrying value of the
investment by approximately €6bn. In addition, the VIU was determined
to exceed the carrying value of the investment. Accordingly, no
impairment charge was required.
We considered this to be a key audit matter due to the investment in
Allied Irish Banks p.l.c. being the most significant asset on the company
Balance Sheet.
We performed an end-to-end process walkthrough over the
recoverability of the carrying value of the investment by AIB Group plc in
Allied Irish Banks, p.l.c.
We checked the market capitalisation of the Group to external market
data sources as at 31 December 2025.
We assessed the VIU to confirm that it exceeded the carrying value of
the investment as at 31 December 2025.
We assessed the adequacy of the financial statement disclosures in the
AIB Group plc company only financial statements.
Conclusion
On the basis of the work performed we have concluded the carrying
value is reasonable.
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How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole, taking
into account the structure of the Group and the Company, the accounting processes and controls, and the industry in which they operate.
In establishing the overall approach to scoping the Group audit engagement, we identified components based on the Group’s legal entities and
determined that an audit of the complete financial information (a ‘full scope’ audit) should be performed by us on three legal entities due to their size or
risk characteristics and to ensure appropriate coverage. These are Allied Irish Banks, p.l.c., EBS d.a.c. and AIB Mortgage Bank Unlimited Company.
The significant majority of Group activity outside Ireland is in the UK and the component audit team in the UK was engaged to perform a full scope audit
on AIB Group (UK) p.l.c.. No other component audit team was engaged for the Group audit. In relation to audit procedures that were performed by the
component audit team in the UK, we arranged joint planning meetings and regular physical and virtual meetings throughout the audit and reviewed
certain audit working papers in their audit file to corroborate that their audit plan was appropriately executed. The meetings also involved discussing and
understanding the significant audit risk areas and other relevant matters. We interacted regularly during all stages of the audit. In addition to their formal
audit report, we received a detailed memorandum of examination on work performed and relevant findings that supplemented our understanding of the
individual component. The Group Engagement Leader also physically attended several of the AIB Group (UK) p.l.c. Audit Committee meetings.
In order to achieve the desired level of audit evidence on each account balance in the Consolidated and Company financial statements, specific audit
procedures on selected account balances, classes of transactions or disclosures were performed at two other legal entities within the Group.
The nature and extent of audit procedures was determined by our risk assessment. Together with additional procedures performed at the Group level,
this gave us the evidence we needed for our opinion on the financial statements as a whole. The significant components subject to full scope audit
accounted for in excess of 90% of both Profit before Tax and Total Assets.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with
qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual
financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial
statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Consolidated financial statements
Company financial statements
Overall materiality
€77.5 million (2024: €77.5 million).
€76.0 million (2024: €76.0 million).
How we determined it
c. 3.2% (2024: c. 3.0%) of profit before tax.
c. 0.5% (2024: c.0.5%) of total equity.
Rationale for benchmark applied
We applied this benchmark because in our
view this is a metric against which the recurring
performance of the Group is commonly
measured by its stakeholders to assess its
performance.
The Company is the ultimate holding company of
the Group and its activities are limited to its
investment in Allied Irish Banks, p.l.c. and the issue
of debt securities, subordinated liabilities and other
capital instruments. Hence a benchmark based on
total equity reflects the focus of the users of the
financial statements.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements
exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our audit and the nature and extent of our testing of
account balances, classes of transactions and disclosures, for example in determining sample sizes. Our performance materiality was 75% (2024:
75%) of overall materiality, amounting to €58.0 million (2024: €58.0 million) for the Group audit and €57.0 million (2024: €57.0 million) for the Company
audit.
In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment and aggregation risk and
the effectiveness of controls - and concluded that an amount at the upper end of our normal range was appropriate.
We agreed with the Board Audit Committee that we would report to them misstatements identified during our audit above €3.75 million (Group audit)
(2024: €3.75 million) and €3.75 million (Company audit) (2024: €3.75 million) as well as misstatements below those amounts that, in our view,
warranted reporting for qualitative reasons.
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Independent auditors’ report continued
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the Group’s and the Company’s ability to continue to adopt the going concern basis of accounting
included:
• Obtaining management’s going concern assessment;
• Performing a risk assessment to identify factors that could impact the going concern assessment;
• Considering the Group’s Financial Plan approved by the Board in December 2025. In evaluating management’s base case forecasts and alternative
stress scenarios we considered the Group’s financial position, historic performance, its past record of achieving strategic objectives and
management’s assessment of the likely impact on financial performance, capital and liquidity for a period of 12 months from the date on which the
financial statements are authorised for issue;
• Considering whether the assumptions underlying the base cases were consistent with related assumptions used in other areas of the Group’s and
Company’s business activities, for example, in testing for non-financial asset impairment;
• Reading relevant correspondence from the Central Bank of Ireland and the ECB Joint Supervisory Team with regards to regulatory capital and liquidity
requirements of the Group; and
• Considering the adequacy of relevant disclosures made in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively,
may cast significant doubt on the Group’s or the Company’s ability to continue as a going concern for a period of at least twelve months from the date
on which the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the
financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the Group’s or the Company’s ability to
continue as a going concern.
In relation to the directors’ reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or draw attention to
in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt the going concern basis
of accounting.
We are required to report if the directors’ statement relating to going concern in accordance with Rule 6.1.11(1) (a) of the Listing Rules of Euronext
Dublin and Rule 6.6.6(3) (a) of the Listing Rules of the UK Financial Conduct Authority is materially inconsistent with our knowledge obtained in the
audit. We have nothing to report in respect of this responsibility.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The
directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do
not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether
there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report
based on these responsibilities.
With respect to the Directors' Report, we also considered whether the disclosures required by the Companies Act 2014 (excluding the information
included in the ‘Non Financial Statement’ and the sustainability reporting required by that Act on which we are not required to report) have been
included.
Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs (Ireland) and the Companies Act 2014 require us
to also report certain opinions and matters as described below:
• In our opinion, based on the work undertaken in the course of the audit, the information given in the Directors' Report (excluding the information
included in the ‘Non Financial Statement’ and the sustainability reporting on which we are not required to report) for the year ended 31 December
2025 is consistent with the financial statements and has been prepared in accordance with the applicable legal requirements.
• Based on our knowledge and understanding of the Group and Company and their environment obtained in the course of the audit, we did not identify
any material misstatements in the Directors' Report (excluding the information included in the ‘Non Financial Statement’ and the sustainability
reporting on which we are not required to report).
• In our opinion, based on the work undertaken in the course of the audit of the financial statements,
– the description of the main features of the internal control and risk management systems in relation to the financial reporting process; and
– the information required by Section 1373(2)(d) of the Companies Act 2014;
included in the Corporate Governance Statement, is consistent with the financial statements and has been prepared in accordance with section
1373(2) of the Companies Act 2014.
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• Based on our knowledge and understanding of the Company and its environment obtained in the course of the audit of the financial statements, we
have not identified material misstatements in the description of the main features of the internal control and risk management systems in relation to
the financial reporting process and the information required by section 1373(2)(d) of the Companies Act 2014 included in the Corporate Governance
Statement.
• In our opinion, based on the work undertaken during the course of the audit of the financial statements, the information required by section
1373(2)(a),(b),(e) and (f) of the Companies Act 2014 and regulation 6 of the European Union (Disclosure of Non-Financial and Diversity Information by
certain large undertakings and groups) Regulations 2017 is contained in the Corporate Governance Statement.
Corporate Governance Statement
The Listing Rules and ISAs (Ireland) require us to review the directors’ statements in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK Corporate Governance Code (the ‘Code’)
specified for our review. Our additional responsibilities with respect to the Corporate Governance Statement as other information are described in the
Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is
materially consistent with the financial statements and our knowledge obtained during the audit, and we have nothing material to add or draw attention
to in relation to:
• The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
• The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify emerging risks and an explanation of
how these are being managed or mitigated;
• The directors’ statement in the financial statements about whether they considered it appropriate to adopt the going concern basis of accounting in
preparing them, and their identification of any material uncertainties to the Group’s and Company’s ability to continue to do so over a period of at
least twelve months from the date of approval of the financial statements;
• The directors’ explanation as to their assessment of the Group’s and Company’s prospects, the period this assessment covers and why the period is
appropriate; and
• The directors’ statement as to whether they have a reasonable expectation that the Company will be able to continue in operation and meet its
liabilities as they fall due over the period of its assessment, including any related disclosures drawing attention to any necessary qualifications or
assumptions.
Our review of the directors’ statement regarding the longer-term viability of the Group was substantially less in scope than an audit and only consisted of
making inquiries and considering the directors’ process supporting their statement; checking that the statement is in alignment with the relevant
provisions of the UK Corporate Governance Code; and considering whether the statement is consistent with the financial statements and our
knowledge and understanding of the Group and Company and their environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance
Statement is materially consistent with the financial statements and our knowledge obtained during the audit:
• The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable, and provides the information
necessary for the members to assess the Group’s and Company’s position, performance, business model and strategy;
• The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems; and
• The section of the Annual Report describing the work of the Board Audit Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the Company’s compliance with the Code
does not properly disclose a departure from a relevant provision of the Code specified under the Listing Rules for review by the auditors.
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Independent auditors’ report continued
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements in
accordance with the applicable framework and for being satisfied that they give a true and fair view.
The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the Company’s ability to continue as a going concern,
disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate
the Group or the Company or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due
to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that
an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities,
outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of
detecting irregularities, including fraud, is detailed below.
Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related
to breaches of banking laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial
statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the
Companies Act 2014. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the
risk of override of controls), and determined that the principal risks were related to the potential for management bias through judgement and
assumptions in significant accounting estimates and manual journal entries being recorded in order to affect performance. Audit procedures performed
by the engagement team included:
• Discussions with the Board Audit Committee, management and Group Legal including consideration of known or suspected instances of non-
compliance with laws and regulations or fraud;
• Reading the meeting minutes of the Board of Directors, Board Audit Committee, Board Risk Committee, Board Remuneration Committee and the
Board Nomination & Corporate Governance Committee;
• Consideration of the results of reporting from the component audit team in the UK relating to compliance with applicable laws and regulations and
procedures performed to address assessed fraud risk;
• Discussions with Group Internal Audit and consideration of internal audit reports in so far as they related to the financial statements;
• Evaluating whether there was evidence of management bias that represents a risk of material misstatement due to fraud;
• Inspection of relevant regulatory correspondence from the Central Bank of Ireland and the ECB Joint Supervisory Team;
• Challenging assumptions and judgements made by management in their accounting estimates, in particular in relation to the matters set out in our
key audit matters;
• Applying risk-based criteria to journal entries posted in the audit period to determine journal entries for testing purposes; and
• Designing audit procedures to incorporate elements of unpredictability around the nature and extent of audit procedures performed.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws
and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material
misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example,
forgery or intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing techniques. However, it
typically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek to target particular items
for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion about the population
from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on the IAASA website at:
https://iaasa.ie/wp-content/uploads/docs/media/IAASA/Documents/audit-standards/Description_of_auditors_responsibilities_for_audit.pdf
This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the Company’s members as a body in accordance with section 391 of the
Companies Act 2014 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other
person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
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Other required reporting
Companies Act 2014 opinions on other matters
• We have obtained all the information and explanations which we consider necessary for the purposes of our audit.
• In our opinion the accounting records of the Company were sufficient to permit the Company financial statements to be readily and properly audited.
• The Company Statement of Financial Position is in agreement with the accounting records.
Other exception reporting
Directors’ remuneration and transactions
Under the Companies Act 2014 we are required to report to you if, in our opinion, the disclosures of directors’ remuneration and transactions specified
by sections 305 to 312 of that Act have not been made. We have no exceptions to report arising from this responsibility.
Prior financial year Non-Financial Statement
We are required to report if the Company has not provided the information required by Regulation 5(2) to 5(7) of the European Union (Disclosure of Non-
Financial and Diversity Information by certain large undertakings and groups) Regulations 2017 in respect of the prior financial year. We have nothing to
report arising from this responsibility.
Prior financial year Remuneration Report
We are required to report if the Company has not provided the information required by Section 1110N of the Companies Act 2014 in respect of the prior
financial year. We have nothing to report arising from this responsibility.
Appointment
We were appointed by the members at the Annual General Meeting on 4 May 2023 to audit the financial statements for the year ended 31 December
2023 and subsequent financial periods. The period of total uninterrupted engagement is three years, covering the years ended 31 December 2023 to
31 December 2025.
Ronan Doyle
for and on behalf of PricewaterhouseCoopers
Chartered Accountants and Statutory Audit Firm
Dublin
3 March 2026
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Independent auditors’ report continued
2025
2024
Note
€ m
€ m
Interest income calculated using the effective interest rate method
4
4,826
5,273
Other interest income and similar income
4
103
103
Interest and similar income
4
4,929
5,376
Interest and similar expense
5
(1,181)
(1,247)
Net interest income
3,748
4,129
Fee and commission income
3
831
845
Fee and commission expense
3
(139)
(164)
Net trading income
6
9
50
Net gain on other financial assets measured at FVTPL
7
48
82
Net gain on derecognition of financial assets measured at amortised cost
8
8
2
Other income/(expense)
9
6
(16)
Total other income
763
799
Total operating income
4,511
4,928
Operating expenses
10
(1,823)
(1,894)
Impairment and amortisation of intangible assets
22
(222)
(224)
Impairment and depreciation of property, plant and equipment
23
(69)
(77)
Total operating expenses
(2,114)
(2,195)
Operating profit before impairment losses
2,397
2,733
Net credit impairment charge
11
(172)
(55)
Operating profit
2,225
2,678
Income from equity accounted investments (including gain on disposal)
21
174
26
Loss on disposal of business
—
(2)
Profit before taxation
2,399
2,702
Income tax charge
13
(260)
(351)
Profit for the year
2,139
2,351
Attributable to:
– Equity holders of the parent
2,141
2,354
– Non-controlling interests
(2)
(3)
Profit for the year
2,139
2,351
Earnings per share
€ cent
€ cent
Basic earnings per ordinary share
34
93.3
92.5
Diluted earnings per ordinary share
34
93.3
92.5
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253
Consolidated Income Statement
for the financial year ended 31 December 2025
2025
2024
Note
€ m
€ m
Profit for the year
2,139
2,351
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of retirement benefit assets/(liabilities), net of tax
13
(16)
(13)
Total items that will not be reclassified subsequently to profit or loss
(16)
(13)
Items that will be reclassified subsequently to profit or loss when specific conditions are met
Net change in foreign currency translation reserves, net of tax
13
(80)
69
Net change in cash flow hedges, net of tax
13
(200)
167
Net change in fair value of investment debt securities at FVOCI, net of tax
13
153
(57)
Total items that will be reclassified subsequently to profit or loss when specific conditions are met
(127)
179
Other comprehensive income for the year, net of tax
(143)
166
Total comprehensive income for the year
1,996
2,517
Attributable to:
– Equity holders of the parent
1,998
2,520
– Non-controlling interests
(2)
(3)
Total comprehensive income for the year
1,996
2,517
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254
Consolidated Statement of Comprehensive Income
for the financial year ended 31 December 2025
2025
2024
Note
€ m
€ m
Assets
Cash and balances at central banks
43
40,571
37,315
Trading portfolio financial assets
14
286
136
Derivative financial instruments
15
1,641
2,144
Loans and advances to banks
16
601
1,321
Loans and advances to customers
17
71,200
69,889
Securities financing
18
7,339
6,643
Investment securities
20
21,548
18,668
Investments accounted for using the equity method
21
196
348
Intangible assets and goodwill
22
987
934
Property, plant and equipment
23
517
516
Other assets
24
591
475
Current taxation
1
21
Deferred tax assets
25
2,074
2,303
Prepayments and accrued income
580
522
Retirement benefit assets
26
19
31
Total assets
148,151
141,266
Liabilities
Deposits and advances from banks
27
156
836
Deposits and advances from customers
28
117,671
109,883
Securities financing
18
682
196
Trading portfolio financial liabilities
14
525
262
Derivative financial instruments
15
1,408
1,807
Debt securities in issue
29
8,183
8,832
Lease liabilities
30
241
258
Fair value changes of hedged items in portfolio hedges of interest rate risk
15
(175)
64
Current taxation
9
2
Deferred tax liabilities
25
17
14
Retirement benefit liabilities
26
7
9
Other liabilities
31
1,232
1,111
Accruals and deferred income
740
735
Tier 2 subordinated liabilities and other capital instruments
32
2,626
1,627
Provisions for liabilities and commitments
33
138
203
Total liabilities
133,460
125,839
Equity
Share capital
34
1,335
1,455
Reserves
12,053
12,742
Total shareholders’ equity
13,388
14,197
Other equity interests
35
1,314
1,239
Non-controlling interests
(11)
(9)
Total equity
14,691
15,427
Total liabilities and equity
148,151
141,266
Jim Pettigrew
Chair
Colin Hunt
Chief Executive Officer
Donal Galvin
Chief Financial Officer
Conor Gouldson
Group Company Secretary
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255
Consolidated Statement of Financial Position
as at 31 December 2025
Attributable to equity holders of parent
Reserves
Share
capital
Revenue
Other
Other
equity
interests
Total
Non-
controlling
interests
Total
equity
Note
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January 2025
1,455
15,676
(2,934)
1,239
15,436
(9) 15,427
Profit for the year
—
2,141
—
—
2,141
(2) 2,139
Other comprehensive income
13
—
(16)
(127)
—
(143)
—
(143)
Total comprehensive income for the year
—
2,125
(127)
—
1,998
(2) 1,996
Transactions with owners, recorded directly
in equity
Issuance of Additional Tier 1 securities
35
—
—
—
694
694
—
694
Buyback of Additional Tier 1 securities
35
—
(6)
—
(619)
(625)
—
(625)
Dividends paid on ordinary shares
49
—
(1,124)
—
—
(1,124)
— (1,124)
Distributions paid to other equity interests
35
—
(85)
—
—
(85)
—
(85)
Buyback of ordinary shares
34
(120)
(1,200)
120
—
(1,200)
— (1,200)
Cancellation of warrants
34
—
(393)
—
—
(393)
—
(393)
Other movements
—
1
—
—
1
—
1
Total transactions with owners
(120)
(2,807)
120
75
(2,732)
— (2,732)
At 31 December 2025
1,335
14,994
(2,941)
1,314
14,702
(11) 14,691
Other reserves comprise the following:
Capital
reserves
Merger
reserves
Capital
redemption
reserves
Revaluation
reserves
Investment
securities
reserves
Cash flow
hedging
reserves
Foreign
currency
translation
reserves
Total
Note
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January 2025
1,133
(3,622)
255
12
(134)
(121)
(457) (2,934)
Profit for the year
—
—
—
—
—
—
—
—
Other comprehensive income
13
—
—
—
—
153
(200)
(80)
(127)
Comprehensive income for the year
—
—
—
—
153
(200)
(80)
(127)
Transactions with owners, recorded directly
in equity
Buyback of ordinary shares
34
—
—
120
—
—
—
—
120
Transactions with owners
—
—
120
—
—
—
—
120
At 31 December 2025
1,133
(3,622)
375
12
19
(321)
(537) (2,941)
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256
Consolidated Statement of Changes in Equity
for the financial year ended 31 December 2025
Attributable to equity holders of parent
Reserves
Share
capital
Revenue
Other
Other equity
interests
Total
Non-
controlling
interests
Total
equity
Note
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January 2024
1,637
15,618
(3,295)
1,115
15,075
(6) 15,069
Profit for the year
—
2,354
—
—
2,354
(3) 2,351
Other comprehensive income
13
—
(13)
179
—
166
—
166
Total comprehensive income for the year
—
2,341
179
—
2,520
(3) 2,517
Transactions with owners, recorded directly
in equity
Issuance of Additional Tier 1 securities
35
—
—
—
620
620
—
620
Buyback of Additional Tier 1 securities
35
—
(5)
—
(496)
(501)
—
(501)
Dividends paid on ordinary shares
49
—
(696)
—
—
(696)
—
(696)
Distributions paid to other equity interests
35
—
(80)
—
—
(80)
—
(80)
Buyback of ordinary shares
34
(182)
(1,502)
182
—
(1,502)
— (1,502)
Cancellation of warrants
34
—
—
—
—
—
—
—
Other movements
—
—
—
—
—
—
—
Total transactions with owners
(182)
(2,283)
182
124
(2,159)
— (2,159)
At 31 December 2024
1,455
15,676
(2,934)
1,239
15,436
(9)
15,427
Other reserves comprise the following:
Capital
reserves
Merger
reserves
Capital
redemption
reserves
Revaluation
reserves
Investment
securities
reserves
Cash flow
hedging
reserves
Foreign
currency
translation
reserves
Total
Note
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January 2024
1,133
(3,622)
73
12
(77)
(288)
(526) (3,295)
Profit for the year
—
—
—
—
—
—
—
—
Other comprehensive income
13
—
—
—
—
(57)
167
69
179
Comprehensive income for the year
—
—
—
—
(57)
167
69
179
Transactions with owners, recorded directly
in equity
Buyback of ordinary shares
34
—
—
182
—
—
—
—
182
Transactions with owners
—
—
182
—
—
—
—
182
At 31 December 2024
1,133
(3,622)
255
12
(134)
(121)
(457) (2,934)
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257
Consolidated Statement of Changes in Equity
for the financial year ended 31 December 2024
2025
2024
Note
€ m
€ m
Cash flows from operating activities
Profit before taxation for the year
2,399
2,702
Adjustments for:
– Non-cash and other items
44
632
1,023
– Change in operating assets
44
(3,384)
(4,176)
– Change in operating liabilities
44
8,981
3,938
– Taxation paid
(25)
(62)
Net cash flow from operating activities1
8,603
3,425
Cash flows from investing activities
Purchase of investment securities
20
(5,357)
(4,081)
Proceeds from sales, redemptions and maturity of investment securities
20
2,236
3,241
Additions to property, plant and equipment
23
(59)
(25)
Disposal of other assets and property plant and equipment
1
5
Additions to intangible assets
22
(276)
(232)
Investments accounted for using the equity method
21
(34)
(37)
Proceeds from disposal of equity accounted investments
21
340
—
Dividends received from equity accounted investments
21
—
25
Net cash flow from investing activities
(3,149)
(1,104)
Cash flows from financing activities
Proceeds on issue of other equity interests
35
694
620
Repurchase of other equity interests
35
(625)
(501)
Proceeds on issue of debt securities2
29
1,475
923
Maturity of debt securities2
29
(1,149)
(1,680)
Repurchase of debt securities2
29
(770)
—
Proceeds on issue of subordinated liabilities
32
1,000
650
Repurchase and redemption of subordinated liabilities
32
(1)
(565)
Dividends paid on ordinary shares
49
(1,124)
(696)
Buyback of ordinary shares
34
(1,200)
(1,502)
Cancellation of warrants
34
(393)
—
Distributions paid to other equity interests
35
(85)
(80)
Repayment of lease liabilities including interest
30
(30)
(34)
Interest paid on debt securities2
(350)
(350)
Interest paid on Tier 2 subordinated liabilities and other capital instruments
(59)
(34)
Net cash flow from financing activities
(2,617)
(3,249)
Change in cash and cash equivalents
2,837
(928)
Opening cash and cash equivalents
38,327
39,041
Effect of exchange translation adjustments
(287)
214
Closing cash and cash equivalents
43
40,877
38,327
1. Net cash flow from operating activities, includes interest received of €4,880m (2024: €5,354m) and interest paid of €637m (2024: €466m).
2. Relates to debt securities classified at origination as MREL.
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258
Consolidated Statement of Cash Flows
for the financial year ended 31 December 2025
Notes to the
Consolidated
Financial
Statements
In this section
1
Accounting policies
260
2
Critical accounting judgements and estimates
273
3
Segmental information
275
4
Interest and similar income
279
5
Interest and similar expense
279
6
Net trading income
279
7
Net gain on other financial assets measured at FVTPL
280
8
Net gain on derecognition of financial assets measured at
amortised cost
280
9
Other income/(expense)
280
10
Operating expenses
280
11
Net credit impairment charge
281
12
Auditor's remuneration
281
13
Taxation
282
14
Trading portfolio
283
15
Derivative financial instruments
284
16
Loans and advances to banks
290
17
Loans and advances to customers
290
18
Securities financing
291
19
ECL allowance on financial assets
292
20
Investment securities
293
21
Investments accounted for using the equity method
294
22
Intangible assets and goodwill
295
23
Property, plant and equipment
296
24
Other assets
297
25
Deferred taxation
298
26
Retirement benefits
299
27
Deposits and advances from banks
303
28
Deposits and advances from customers
303
29
Debt securities in issue
304
30
Lease liabilities
305
31
Other liabilities
305
32
Tier 2 subordinated liabilities and other capital instruments
306
33
Provisions for liabilities and commitments
307
34
Share capital
308
35
Other equity interests
310
36
Capital reserves, merger reserve and capital redemption
reserves
310
37
Offsetting financial assets and financial liabilities
311
38
Contingent liabilities and commitments
313
39
Subsidiaries and structured entities
314
40
Off-balance sheet arrangements and transferred financial
assets
315
41
Classification and measurement of financial assets and
financial liabilities
317
42
Fair value of financial instruments
318
43
Cash and balances at central banks
323
44
Statement of cash flows
324
45
Related party transactions
325
46
Employees
330
47
Regulatory compliance
330
48
Financial and other information
330
49
Dividends
330
50
Non-adjusting events after the reporting period
330
51
Approval of the financial statements
330
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259
1 Accounting policies
The material accounting policies that the Group applied in the preparation
of these financial statements are set out in this section. The Group, as a
pillar bank with diverse stakeholders, has considered both quantitative
and qualitative factors in its assessment of which accounting policies to
disclose as material.
(a) Reporting entity
AIB Group plc (the ‘parent company’ or the ‘Company’) is a company
domiciled in Ireland. The address of the Company’s registered office is
10 Molesworth Street, Dublin 2, Ireland. AIB Group plc is registered under
the Companies Act 2014 as a public limited company under the company
number 594283 and is the holding company of the Group.
The consolidated financial statements for the year ended 31 December
2025 include the financial statements of AIB Group plc and its subsidiary
undertakings, collectively referred to as ‘AIB Group’ or ‘the Group’, where
appropriate, including certain structured entities and the Group’s interest
in associates/joint ventures using the equity method of accounting and
are prepared to the end of the financial period. The Group is and has been
primarily involved in retail and corporate banking.
A full list of subsidiaries, joint ventures and associated undertakings will
be annexed to the Company’s Annual Return to be filed in the Companies
Registration Office in Ireland.
(b) Statement of compliance
The consolidated financial statements have been prepared in accordance
with International Accounting Standards and International Financial
Reporting Standards (collectively IFRSs) as adopted by the European
Union (EU) and applicable for the financial year ended 31 December
2025. The consolidated financial statements also comply with those parts
of the Companies Act 2014 and the European Union (Credit Institutions:
Financial Statements) Regulations 2015 applicable to companies
reporting under IFRS, and the Asset Covered Securities Acts 2001 and
2007 and Article 4 of the IAS Regulation. The accounting policies have
been consistently applied by Group entities and are consistent with the
previous year, unless otherwise described.
(c) Basis of preparation
Functional and presentation currency
The financial statements are presented in Euro, which is the functional
currency of the parent company and a significant number of its
subsidiaries, rounded to the nearest million.
Basis of measurement and presentation
The financial statements have been prepared under the historical cost
basis, with the exception of the following assets and liabilities which are
stated at their fair value: derivative financial instruments, financial
instruments at fair value through profit or loss, certain hedged financial
assets and financial liabilities and investment securities at fair value
through other comprehensive income (FVOCI). The carrying values of
recognised assets and liabilities that are hedged items in fair value
hedges, other than portfolio hedges, and otherwise carried at amortised
cost, are adjusted to record changes in fair value attributable to the risks
that are being hedged.
The financial statements comprise the consolidated income statement,
the consolidated statement of comprehensive income, the consolidated
statement of financial position, the consolidated statement of cash flows,
and the consolidated statement of changes in equity together with the
related notes. The financial statements include the information that is
described as being an integral part of the audited financial statements
contained in: (i) Sections 2.1, 2.2, 2.3 and 2.4 of the Risk Management
Report as described further on page 177 and (ii) the Directors'
remuneration section of the Corporate Governance Remuneration
Statement as described further on pages 161 and 162.
Changes in presentation to the financial statements
(i) Cash collateral payable to/receivable from derivative and repurchase
agreement counterparties
The Group places cash collateral with and receives cash collateral from
derivative and repurchase agreement counterparties. In the 2024 financial
statements cash collateral placed and received was presented in the
following line items:
• Loans and advances to banks;
• Loans and advances to customers;
• Deposits by central banks and banks; and
• Customer accounts.
To ensure a consistent naming convention is applied to the financial
statement line items, that include cash collateral, the Group has
renamed:
• ‘Deposits by central banks and banks’ as ‘Deposits and advances from
banks’; and
• ‘Customer accounts’ as ‘Deposits and advances from customers’.
The Group has also re-presented the notes to the financial statements,
that include cash collateral to consistently disclose cash collateral as a
line item within the note rather than presenting it separately as an ‘of
which’ amount.
(ii) Tier 2 subordinated liabilities and other capital instruments
The Group has renamed ‘Subordinated liabilities and other capital
instruments’ as ‘Tier 2 subordinated liabilities and other capital
instruments’ to better describe the nature of subordinated liabilities in this
line item.
(iii) Other notes to the financial statements
The Group has changed the presentation of certain tables in the notes to
the financial statements. For further information refer to ‘Segmental
information’ (note 3), ‘Derivative financial instruments’ (note 15) and
‘Retirement benefits’ (note 26).
Use of judgements and estimates
The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application of
policies and reported amounts of certain assets, liabilities, revenues and
expenses, and disclosures of contingent assets and liabilities. The
estimates and assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances. Since management’s judgement may involve making
estimates concerning the likelihood of future events, the actual results
could differ from those estimates. The estimates and assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future
period affected. The judgements that have a significant effect on the
consolidated financial statements and estimates with a significant risk of
material adjustment in the next year relate to:
• Impairment of financial assets;
• Deferred taxation; and
• Retirement benefit obligations.
A description of these judgements and estimates is set out in note 2.
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260
Notes to the Consolidated Financial Statements
1 Accounting policies continued
(c) Basis of preparation continued
Consideration of climate change
In preparing the financial statements, the Directors have considered the
impact of climate change, particularly in the context of the risks identified in
the Sustainability Statement in this Annual Financial Report. There has
been no material impact identified on the financial reporting judgements
and estimates of the Group. In particular, the Directors considered the
impact of climate change in respect of the following areas:
• Credit risk: The impact of climate risk on management escalation and
reporting of credit risk was considered by the Group. There is currently
no reasonable and supportable information that indicates a material
impact of climate change on expected credit losses (ECL) and the
Group’s approach to individual counterparty risk assessment
adequately captures climate risk where appropriate.
• Going concern and viability: The assessment of the Group’s going
concern and viability over the next three years did not identify material
climate-related risks, both in terms of our decarbonisation
commitments and the physical risks from climate change. This is set
out in further detail on page 168.
• Provisions and contingent liabilities: The Group’s publicly
announced commitment to reduce absolute Scope 1 greenhouse gas
(GHG) emissions to 34% by 2027 from a 2019 base year and to increase
annual sourcing of renewable electricity to 100% by 2030 from 1% in
2019, are not considered a constructive obligation or a contingent
liability. The timeframe allows opportunities for the Group to evolve its
plans for how the decarbonisation strategy will be met and therefore the
Group should not currently recognise a provision or a contingent liability
in relation to its commitment (i.e. as the Group does not have an
obligation as a result of a past event). IAS 37 Provisions, Contingent
Liabilities and Contingent Assets sets out that it is only those obligations
arising from past events existing independently of an entity's future
actions that are recognised as provisions or disclosed as contingent
liabilities.
• Impairment of non-financial assets: The Group applies the
requirements of IAS 36 Impairment of Assets in assessing whether
impacted assets are impaired at a reporting date. The Group has a
robust process to identify assets that may be impaired which requires
the identification of all material potential impairment triggers including
identification of climate-related impairment triggers. In addition, the
Group’s published decarbonisation commitments do not impact the
useful lives of the Group’s impacted assets as the Group proposes to
replace impacted assets as their useful lives expire. The Group’s
impairment charge for 2024 included the impact of the Greener
Branches Refurbishments Programme to improve branch and office
buildings’ energy efficiency.
Going concern
The financial statements for the year ended 31 December 2025 have been
prepared on a going concern basis as the Directors are satisfied, having
considered the risks and uncertainties impacting the Group, that it has the
ability to continue in business for the period of assessment. In making this
assessment, the Directors have considered a wide range of information
relating to present and future conditions. This includes capital forecasts and
internally generated macroeconomic scenarios that take account of
geopolitical risks, the impacts of tariffs, inflation, interest rates and related
impacts on unemployment and property prices. The period of assessment
used by the Directors is at least 12 months from the date of approval of
these annual financial statements.
(d) Basis of consolidation – Notes 21 and 39
The consolidated financial statements comprise the financial statements
of the Group and its subsidiaries including consolidated structured
entities.
Subsidiary undertakings
Subsidiary undertakings are all entities (including structured entities)
over which the group has control. The Group controls an entity where the
Group is exposed to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those returns through its power
to direct the activities of the entity. Subsidiary undertakings are fully
consolidated from the date on which control is transferred to the Group.
They are derecognised from the date that control ceases.
Inter-company transactions, balances and unrealised gains on
transactions between group companies are eliminated. Unrealised losses
are also eliminated, unless the transaction provides evidence of an
impairment of the transferred asset. Accounting policies of subsidiaries
have been updated where necessary to ensure consistency with the
policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are
shown separately in the consolidated income statement, statement of
comprehensive income, statement of changes in equity and consolidated
statement of financial position respectively.
If the Group loses control over a subsidiary undertaking, it derecognises
the related assets (including goodwill), liabilities, non-controlling interest
and other components of equity, while any resultant gain or loss is
recognised in profit or loss.
Investments accounted for using the equity method
The Group’s investments accounted for using the equity method comprise
its investments in associates and joint ventures.
An associated undertaking is an entity over which the Group has
significant influence, but not control, over the entity’s operating and
financial policy decisions. If the Group holds 20% or more of the voting
power of an entity, it is presumed that the Group has significant influence,
unless it can be clearly demonstrated that this is not the case.
A joint venture is a joint arrangement whereby the parties that have joint
control of the arrangement have rights to the net assets of
the arrangement.
Under the equity method of accounting, the investments are initially
recognised at cost and adjusted thereafter to recognise the Group’s share
of the post-acquisition profits or losses of the investee in profit or loss,
and the Group’s share of movements in other comprehensive income
of the investee in other comprehensive income. Dividends received or
receivable from associates and joint ventures are recognised as a
reduction in the carrying amount of the investment.
Where the Group’s share of losses in an equity-accounted investment
equals or exceeds its interest in the entity, including any other unsecured
long-term receivables, the Group does not recognise further losses, unless
it has incurred obligations or made payments on behalf of the other entity.
Unrealised gains on transactions between the Group and its associates
and joint ventures are eliminated to the extent of the Group’s interest in
these entities. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the asset transferred.
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1 Accounting policies continued
(e) Foreign currency translation
Items included in the financial statements of each of the Group’s entities
are measured using their functional currency, being the currency of the
primary economic environment in which the entity operates.
Transactions and balances
Foreign currency transactions are translated into the respective entity’s
functional currency using the exchange rates prevailing at the dates of the
transactions. Monetary assets and liabilities denominated in foreign
currencies are re-translated at the rate prevailing at the period-end.
Foreign exchange gains and losses resulting from the settlement of such
transactions and from the re-translation at period end exchange rates of
monetary assets and liabilities denominated in foreign currencies are
recognised in the income statement.
Exchange differences on equities and similar non-monetary items held at
fair value through profit or loss are reported as part of the fair value gain or
loss. Exchange differences on a financial instruments designated as a
hedge of the net investment in a foreign operation are reported in other
comprehensive income.
Foreign operations
The results and financial position of all Group entities that have
a functional currency different from the Euro are translated into Euro
as follows:
• Assets and liabilities including goodwill and fair value adjustments
arising on consolidation of foreign operations are translated at the
closing rate;
• Income and expenses are translated into Euro at the average rates
of exchange during the period where these rates approximate to
the foreign exchange rates ruling at the dates of the transactions;
• Foreign currency translation differences are recognised in other
comprehensive income; and
• Since 1 January 2004, the Group’s date of transition to IFRS, all such
exchange differences are included in the foreign currency cumulative
translation reserve within shareholders’ equity.
When a foreign operation is disposed of in full, the relevant amount of this
reserve is transferred to the income statement. When a subsidiary is partly
disposed, the relevant proportion of foreign currency translation reserve is
re-attributed to the non-controlling interest. In the case of a partial
disposal, a pro-rata amount of the foreign currency cumulative translation
reserve is transferred to the income statement. A partial disposal is also
considered to have occurred when a formal decision has been made to
wind down an entity and where capital is being repaid but there has not
been a reduction in the Group’s overall percentage holding.
(f) Interest income and expense recognition – Notes 4 and 5
Effective interest rate
The effective interest rate (EIR) is the rate that exactly discounts the
estimated future cash payments or receipts through the expected life of
the financial instrument to:
• The gross carrying amount of the financial asset; or
• The amortised cost of the financial liability.
The application of the method has the effect of recognising income
receivable and expense payable on the instrument evenly in proportion to
the amount outstanding over the period to maturity or repayment.
In calculating the effective interest rate for financial instruments, the
Group estimates cash flows (using projections based on its experience of
customers’ behaviour) considering all contractual terms of the financial
instrument but excluding expected credit losses (except, in the case of
purchased or originated credit impaired (POCI) financial assets where
expected credit losses are included in the calculation of a credit-adjusted
effective interest rate). The calculation takes into account all fees,
including those for any expected early redemption, and points paid or
received between parties to the contract that are an integral part of the
effective interest rate, as well as transaction costs and all other premiums
and discounts.
All costs associated with mortgage incentive schemes are included in the
effective interest rate calculation. Fees and commissions payable to third
parties in connection with lending arrangements, where these are direct
and incremental costs related to the issue of a financial instrument, are
included in interest income as part of the effective interest rate.
Amortised cost and gross carrying amount
The amortised cost of a financial asset or financial liability is the amount
at which the financial asset or financial liability is measured at initial
recognition minus the principal repayments, plus or minus the cumulative
amortisation using the effective interest rate method of any difference
between the initial amount and the maturity amount and, for financial
assets, adjusted for any loss allowance.
The gross carrying amount of a financial asset is the amortised cost before
adjusting for any loss allowance.
Calculation of interest income and interest expense
In calculating interest income and expense, the effective interest rate is
applied to the gross carrying amount of the asset (when the asset is not
credit impaired) or to the amortised cost of the liability.
For financial assets that have become credit impaired subsequent to
initial recognition, interest income is calculated by applying the effective
interest rate to the amortised cost of the financial asset. If the asset is no
longer credit impaired, the calculation of interest income reverts to the
gross basis.
However, for financial assets that were credit impaired on initial
recognition, interest income is calculated by applying the credit adjusted
effective interest rate to the amortised cost of the financial asset. The
calculation of interest income does not revert to a gross basis, even if the
credit risk of the asset improves.
When a financial asset is no longer credit impaired or has been repaid in
full (i.e. cured without financial loss), the Group presents previously
unrecognised interest income as a reversal of credit impairment/recovery
of amounts previously written-off.
Interest income and expense on financial assets and liabilities classified
as held for trading or at fair value through profit or loss (FVTPL) is
recognised in ‘net trading income’ or ‘net gain on other financial assets
measured at FVTPL’ in the income statement, as applicable.
Presentation
Interest income and expense presented in the consolidated income
statement include:
• Interest on financial assets and financial liabilities measured at
amortised cost calculated on an effective interest rate basis;
• Interest on investment debt securities measured at FVOCI calculated
on an effective interest rate basis;
• Net interest income and expense on qualifying hedge derivatives
designated as cash flow hedges or fair value hedges which are
recognised in interest income or interest expense;
• Net interest income or expense on derivatives that are held with
hedging intent, but for which hedge accounting is not applied;
• Interest income and funding costs of trading portfolio financial assets;
• Interest income and expense on leases and hire purchase contracts; and
• Interest income on financial assets at FVTPL.
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Notes to the Consolidated Financial Statements continued
1 Accounting policies continued
(g) Fee and commission income – Note 3
The measurement and timing of recognition of fee and commission
income is based on the core principles of IFRS 15 Revenue from Contracts
with Customers.
Fee and commission income is recognised when the performance
obligation in the contract has been performed, either at a ‘point in time’ or
‘over time’ if the performance obligation is performed over a period of time
unless the income has been included in the effective interest
rate calculation.
The Group includes in the transaction price, some or all of an amount of
variable consideration estimated only to the extent that it is highly
probable that a significant reversal in the amount of cumulative revenue
recognised will not occur when the uncertainty associated with the
variable consideration is subsequently resolved.
The majority of the Group’s fee and commission income arises from retail
banking activities. Loan syndication fees are recognised as revenue when
the syndication has been completed and the Group has retained no part
of the loan package for itself or retained a part at the same effective
interest rate as applicable to the other participants.
Customer related foreign exchange is fee income that is derived from
arranging foreign exchange transactions on behalf of customers.
Such income is recognised when the individual performance obligation
has been fulfilled.
Portfolio and other management advisory and service fees are recognised
based on the applicable service contracts. Asset management fees
relating to investment funds are recognised over time in line with the
performance obligation. The same principle is applied to the recognition of
income from wealth management, financial planning and custody
services that are continuously provided over an extended period of time.
Commitment fees together with related direct costs, for loan facilities
where drawdown is probable, are deferred and recognised as an
adjustment to the effective interest rate on the loan once drawn.
Commitment fees in relation to facilities where drawdown is not probable
are recognised over the term of the commitment on a straight line basis.
Other lending related fees are recognised over time in line with the
performance obligation except for arrangement fees where it is likely that
the facility will be drawn down, and which are included in the effective
interest rate calculation.
Fee income and fee expenses in respect of services and prepaid credits
for cellular phone and utilities sold to third parties are classified as
customer accounts and payment services and are recognised when the
performance obligation is satisfied.
(h) Employee benefits – Note 26
Retirement benefit obligations
The Group provides employees with post-retirement benefits mainly in the
form of pensions.
The Group operates a number of retirement benefit schemes including defined
benefit and defined contribution schemes. This includes benefits for some
members accrued from 2007 to 2013 under a hybrid scheme arrangement
that had both defined benefit and defined contribution elements.
Full actuarial valuations of defined benefit schemes are undertaken every
three years and are updated to reflect current conditions at each year end
reporting date.
Scheme assets are measured at fair value determined by using current bid
prices, except for insurance policies acquired as part of a buy-in. If the
policies are qualifying policies under IAS 19 Employee Benefits and if the
timing and amount of payments under the policies exactly match some or
all of the benefits payable under the scheme, then the present value of the
related obligation is determined and is deemed to be the fair value of the
insurance policies to be included in plan assets.
Scheme liabilities are measured on an actuarial basis by estimating the
amount of future benefit that employees have earned for their service in
current and prior periods and discounting that benefit at the market yield on
a high-quality corporate bond of equivalent term and currency to the liability.
The calculation is performed by a qualified actuary using the projected unit
credit method. The difference between the fair value of the scheme assets
and the present value of the defined benefit obligation at the year end
reporting date is recognised in the statement of financial position. Schemes
in surplus are shown as assets and schemes in deficit, together with
unfunded schemes, are shown as liabilities. A surplus is only recognised as
an asset to the extent that it is recoverable through a refund from the scheme
or through reduced contributions in the future. Actuarial gains and losses are
recognised immediately in other comprehensive income.
The cost of providing defined benefit pension schemes to employees,
comprising the net interest on the net defined benefit liability/(asset),
calculated by applying the discount rate to the net defined benefit liability/
(asset) at the start of the annual reporting period, taking into account
contributions and benefit payments during the period, is charged to the
income statement within personnel expenses.
Remeasurements of the net defined benefit liability/(asset), comprising
actuarial gains and losses and the return on scheme assets (excluding
amounts included in net interest on the net defined benefit liability/
(asset)) are recognised in other comprehensive income. Amounts
recognised in other comprehensive income in relation to remeasurements
of the net defined benefit liability/(asset) will not be reclassified to profit or
loss in a subsequent period.
The Group recognises the effect of an amendment to a defined benefit
scheme when the plan amendment occurs, which is when the Group
introduces or withdraws a defined benefit scheme, or changes the
benefits payable under existing defined benefit schemes. A curtailment is
recognised when a significant reduction in the number of employees
covered by a defined benefit scheme occurs. A settlement is a transaction
that eliminates all further legal or constructive obligations for part or all of
the benefits provided under a defined benefit scheme. Gains or losses on
plan amendments, curtailments and settlements are recognised in the
income statement.
Changes with regard to benefits payable to retirees which represent a
constructive obligation under IAS 37 Provisions, Contingent Liabilities and
Contingent Assets are accounted for as a past service cost. These are
recognised in the income statement.
The costs of managing the defined benefit scheme assets are deducted
from the return on scheme assets. All costs of running the defined benefit
schemes are recognised in the income statement when they are incurred.
The cost of the Group’s defined contribution schemes is charged to the
income statement in the accounting period in which it is incurred. Any
contributions unpaid at the year end reporting date are included as a
liability. The Group has no further obligation under these schemes once
these contributions have been paid.
Short-term employee benefits
Short-term employee benefits, such as salaries and other benefits,
are accounted for on an accruals basis over the period during which
employees have provided services. Bonuses are recognised to the extent
that the Group has a legal or constructive obligation to its employees that
can be measured reliably.
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1 Accounting policies continued
(i) Income tax, including deferred income tax – Notes 13 and 25
Income tax comprises current and deferred tax. Income tax is recognised in
the income statement except to the extent that it relates to items recognised
in other comprehensive income, in which case it is recognised in other
comprehensive income. Income tax relating to items in equity is recognised
directly in equity. However, the income tax consequences of payments on
financial instruments that are classified as equity but treated as liabilities for
tax purposes are recognised in profit or loss if those payments are
distributions of profits previously recognised in profit or loss.
Current tax is the expected tax payable on the taxable income for the year
using tax rates enacted or substantively enacted at the reporting date and
any adjustment to tax payable in respect of previous years.
Deferred income tax is provided on temporary differences between the tax
bases of assets and liabilities and their carrying amounts for financial
reporting purposes that exist at the balance sheet date. Deferred income
tax is determined using tax rates based on legislation enacted or
substantively enacted at the reporting date and is expected to apply when
the deferred tax asset is realised or the deferred tax liability is settled.
Deferred income tax assets are recognised when it is probable that future
taxable profits will be available against which the temporary differences
will be utilised. The deferred tax asset is reviewed at the end of each
reporting period and the carrying amount will reflect the extent that it is
probable that sufficient taxable profits will be available to allow all of the
asset to be recovered.
The tax effects of income tax losses available for carry forward are
recognised as an asset to the extent that it is probable that future taxable
profits will be available against which these losses can be utilised.
Deferred and current tax assets and liabilities are only offset when they
arise in the same tax reporting group and where there is both the legal right
and the intention to settle the current tax assets and liabilities on a net
basis or to realise the asset and settle the liability simultaneously.
The principal temporary differences arise from the depreciation of property,
plant and equipment, revaluation of certain financial assets and financial
liabilities including derivative contracts, provisions for expected credit
losses on financial instruments, provisions for pensions and other post-
retirement benefits, and in relation to acquisitions, on the difference
between the fair values of the net assets acquired and their tax base.
Deferred income tax is provided on temporary differences arising from
investments in subsidiaries and associates, except where the timing of the
reversal of the temporary difference is controlled by the Group and it is
probable that the difference will not reverse in the foreseeable future. In
addition, temporary differences are not provided for assets and liabilities
the initial recognition of which, in a transaction that is not a business
combination, affects neither accounting nor taxable profit.
Income tax payable on profits arising from investments in subsidiaries and
associates, based on the applicable tax law in each jurisdiction, is
recognised as an expense in the period in which the profits arise.
The Group adopted the amendments to IAS 12 International Tax Reform –
Pillar Two Model Rules. The amendments provide a mandatory temporary
exception from the requirement to recognise and disclose deferred taxes
arising from enacted or substantively enacted tax law that implements the
Pillar Two model rules. Accordingly, the Group has not recognised any
changes to its deferred tax assets or liabilities in respect of Pillar Two.
(j) Financial assets – Notes 6, 7, 8, 14, 16, 17, 18, 20, 24 and 41
Recognition and initial measurement
The Group initially recognises financial assets on the trade date, being the
date on which the Group commits to purchase the assets. Loan assets
are recognised when cash is advanced to borrowers. In a situation where
the Group commits to purchase financial assets under a contract which is
not considered a regular-way transaction, the assets to be acquired are
not recognised until the acquisition contract is settled. In this case, the
contract to acquire the financial asset is a derivative that is measured at
FVTPL in the period between the trade date and the settlement date.
Financial assets measured at amortised cost or at fair value through other
comprehensive income (FVOCI) are recognised initially at fair value adjusted
for direct and incremental transaction costs. Financial assets measured at
fair value through profit or loss (FVTPL) are recognised initially at fair value
and transaction costs are taken directly to the income statement.
Derivatives are measured initially at fair value on the date on which the
derivative contract is entered into. The best evidence of the fair value of a
derivative at initial recognition is the transaction price (i.e. the fair value of
the consideration given or received) unless the fair value of that
instrument is evidenced by comparison with other observable current
market transactions in the same instrument (i.e. without modification or
repackaging) or based on a valuation technique whose variables include
only data from observable markets. Profits or losses are only recognised
on the initial recognition of derivatives when there are observable current
market transactions or valuation techniques that are based on observable
market inputs.
Classification and subsequent measurement
On initial recognition, a financial asset is classified and subsequently
measured at amortised cost, FVOCI or FVTPL.
The classification and subsequent measurement of financial assets
depend on:
• The Group’s business model for managing the asset; and
• The cash flow characteristics of the asset (for assets in a
‘hold-to-collect’ or ‘hold-to-collect-and-sell’ business model).
Based on these factors, the Group classifies its financial assets into one
of the following categories:
– Amortised cost
Assets that have not been designated as at FVTPL, and are held within a
‘hold-to-collect’ business model whose objective is to hold assets to
collect contractual cash flows; and whose contractual terms give rise on
specified dates to cash flows that are solely payments of principal and
interest (SPPI). The carrying amount of these assets is calculated using the
effective interest rate method and is adjusted on each measurement date
by the expected credit loss allowance for each asset, with movements
recognised in profit or loss.
– Fair value through other comprehensive income (FVOCI)
Assets that have not been designated as at FVTPL, and are held within a
‘hold-to-collect-and-sell’ business model whose objective is achieved by
both collecting contractual cash flows and selling financial assets; and
whose contractual terms give rise on specified dates to cash flows that
are SPPI. Movements in the carrying amount of these assets are taken
through other comprehensive income (OCI), except for the recognition of
credit impairment gains or losses, interest revenue or foreign exchange
gains and losses, which are recognised in profit or loss. When a financial
asset is derecognised, the cumulative gain or loss previously recognised
in OCI is reclassified from equity to profit or loss other than in the case of
equity instruments designated at FVOCI.
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Notes to the Consolidated Financial Statements continued
1 Accounting policies continued
(j) Financial assets continued
– Fair value through profit or loss (FVTPL)
Financial assets that do not meet the criteria for amortised cost or FVOCI are
measured at FVTPL. Gains or losses (excluding interest income or expense)
on such assets are recognised in profit or loss on an ongoing basis.
In addition, the Group may irrevocably designate a financial asset as at
FVTPL that otherwise meets the requirements to be measured at
amortised cost or at FVOCI if doing so eliminates or significantly reduces
an accounting mismatch that would otherwise arise.
Business model assessment
The Group makes an assessment of the objective of the business model
at a portfolio level, as this reflects how portfolios of assets are managed to
achieve a particular objective, rather than management’s intentions for
individual assets.
The assessment considers the following:
• The strategy for the portfolio as communicated by management;
• How the performance of the portfolio is evaluated and reported to
senior management;
• The risks that impact the performance of the business model, and how
those risks are managed;
• How managers of the business are compensated (i.e. based on fair
value of assets managed or on the contractual cash flows collected);
and
• The frequency, value and timing of sales in prior periods, reasons for
those sales, and expectations of future sales activity.
Financial assets that are held for trading or managed within a business
model that is evaluated on a fair value basis are measured at FVTPL
because the business objective is neither hold-to-collect contractual cash
flows nor hold-to-collect-and-sell contractual cash flows.
Characteristics of the contractual cash flows
An assessment (SPPI test) is performed on all financial assets at
origination that are held within a ‘hold-to-collect’ or ‘hold-to-collect-and-
sell’ business model to determine whether the contractual terms of the
financial assets give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal outstanding. For the
purposes of this assessment, ‘principal’ is defined as the fair value of the
financial asset at initial recognition. ‘Interest’ is defined as consideration
for the time value of money, for the credit risk associated with the
principal amount outstanding, for other basic lending risks and costs (i.e.
liquidity, administrative costs) and profit margin.
The SPPI test requires an assessment of the contractual terms and
conditions to determine whether a financial asset contains any terms that
could modify the timing or amount of contractual cash flows of the asset,
to the extent that they could not be described as solely payments of
principal and interest. In making this assessment, the Group considers:
• Features that modify the time value of money element of interest (e.g.
tenor of the interest rate does not correspond with the frequency within
which it resets);
• Terms providing for prepayment and extension;
• Leverage features;
• Non-recourse features;
• Contingent events that could change the amount and timing of
cash flows;
• Terms that limit the Group’s claim to cash flows from specified assets;
and
• Contractually linked instruments.
Contractual terms that introduce exposure to risks or volatility in the
contractual cash flows that are unrelated to a basic lending arrangement
do not give rise to contractual cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Investments in equity instruments
Equity instruments are classified and measured at FVTPL with gains and
losses reflected in profit or loss.
(k) Financial liabilities and equity – Notes 6, 14, 27, 28, 29, 31, 32 and 41
The Group categorises financial liabilities as at amortised cost or as at FVTPL.
The Group recognises a financial liability when it becomes party to the
contractual provisions of the contract.
Issued financial instruments or their components are classified as
liabilities where the substance of the contractual arrangement results in
the Group having a present obligation to either deliver cash or another
financial asset to the holder, to exchange financial instruments on terms
that are potentially unfavourable or to satisfy the obligation otherwise than
by the exchange of a fixed amount of cash or another financial asset for a
fixed number of equity shares.
Financial liabilities are initially recognised at fair value, being their issue
proceeds (fair value of consideration received), net of transaction costs
incurred. Financial liabilities are subsequently measured at amortised
cost, with any difference between the proceeds net of transaction costs
and the redemption value recognised in the income statement using the
effective interest rate method.
Where financial liabilities are classified as trading they are also initially
recognised at fair value with the related transaction costs taken directly to
the income statement. Gains and losses arising from subsequent changes
in fair value are recognised directly in the income statement within net
trading income.
Issued financial instruments are classified as equity when the Group has
no contractual obligation to transfer cash, or other financial assets, or to
issue a variable number of its own equity instruments. Incremental costs
directly attributable to the issue of equity instruments are shown as a
deduction from the proceeds of issue, net of tax.
On the extinguishment of equity instruments, gains or losses arising are
recognised net of tax directly in the statement of changes in equity.
(l) Leases – Notes 23 and 30
The Group applies a single recognition and measurement approach for all
leases, except for short-term leases of 12 months or less or leases of low-
value assets (i.e. the value of the underlying asset, when new, is less than
€5,000/£5,000). The Group recognises lease liabilities that represent the
present value of lease payments to be made over the lease term and right-
of-use assets representing the right to use the underlying assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of
the lease (i.e. the date the underlying asset is available for use). Right-of-
use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred, an estimate of any costs to
dismantle and remove the asset at the end of the lease and lease payments
made at or before the commencement date less any lease incentives
received. Right-of-use assets are depreciated on a straight-line basis over
the lease term.
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1 Accounting policies continued
(l) Leases continued
Lease liabilities
At the commencement date of the lease, the Group recognises lease
liabilities measured at the present value of lease payments to be made
over the lease term. The lease payments include fixed payments (less any
lease incentives receivable), variable lease payments that depend on an
index or a rate, and amounts expected to be paid under residual value
guarantees. The lease payments also include the exercise price of a
purchase option reasonably certain to be exercised by the Group and
payments of penalties for terminating the lease, if the lease term reflects
exercising the option to terminate. Variable lease payments that do not
depend on an index or a rate are recognised as expenses in the period in
which the event or condition that triggers the payment occurs.
(m) Determination of fair value of financial instruments – Note 42
The fair value of a financial instrument is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date in the principal
market, or in its absence, the most advantageous market to which the
Group has access at that date. The Group considers the impact of non-
performance risk when valuing its financial liabilities.
Financial instruments are initially recognised at fair value and, with the
exception of financial assets at fair value through profit or loss, the initial
carrying amount is adjusted for direct and incremental transaction costs.
In the normal course of business, the fair value on initial recognition is the
transaction price (fair value of consideration given or received). If the
Group determines that the fair value at initial recognition differs from the
transaction price and the fair value is determined by a quoted price in an
active market for the same financial instrument, or by a valuation
technique which uses only observable market inputs, the difference
between the fair value at initial recognition and the transaction price is
recognised as a gain or loss. If the fair value is calculated by a valuation
technique that features significant market inputs that are not observable,
the difference between the fair value at initial recognition and the
transaction price is deferred. Subsequently, the difference is recognised in
the income statement on an appropriate basis over the life of the financial
instrument, but no later than when the valuation is supported by wholly
observable inputs; the transaction matures; or is closed out.
Subsequent to initial recognition, the methods used to determine the fair
value of financial instruments include quoted prices in active markets where
those prices are considered to represent actual and regularly occurring
market transactions. Where quoted prices are not available or are unreliable
because of market inactivity, and in the case of over-the-counter
derivatives, fair values are determined using valuation techniques.
The fair values of financial instruments are classified according to the
following fair value hierarchy that reflects the observability of significant
market inputs:
Level 1 – financial assets and liabilities measured using quoted market
prices from an active market (unadjusted);
Level 2 – financial assets and liabilities measured using valuation
techniques which use quoted market prices from an active market or
measured using quoted market prices unadjusted from an inactive
market; and
Level 3 – financial assets and liabilities measured using valuation
techniques which use unobservable market inputs.
Quoted prices in active markets
Valuations for negotiable instruments such as debt and equity securities
are determined using bid prices for asset positions and ask prices for
liability positions.
Where securities are traded on an exchange, the fair value is based on
prices from the exchange. The market for debt securities largely operates
on an ‘over-the-counter’ basis which means that there is not an official
clearing or exchange price for these security instruments. Therefore,
market makers and/or investment banks (contributors) publish bid and
ask levels which reflect an indicative price that they are prepared to buy
and sell a particular security. The Group’s valuation policy requires that
the prices used in determining the fair value of securities quoted in active
markets must be sourced from established market makers and/or
investment banks.
Valuation techniques
Valuation techniques maximise the use of relevant observable inputs and
minimise the use of unobservable inputs. The valuation techniques used
incorporate the factors that market participants would take into account
in pricing a transaction. Valuation techniques include the use of recent
orderly transactions between market participants, reference to other
similar instruments, option pricing models, discounted cash flow analysis
and other valuation techniques commonly used by market participants.
Fair value may be estimated using quoted market prices for similar
instruments, adjusted for differences between the quoted instrument and
the instrument being valued. Where the fair value is calculated using
discounted cash flow analysis, the methodology is to use, to the greatest
extent possible, market data that is either directly observable or is implied
from instrument prices, such as interest rate yield curves, equities and
commodities prices, credit spreads, option volatilities and currency rates.
In addition, the Group considers the impact of its own credit risk and
counterparty risk when valuing its derivative liabilities.
The valuation methodology is to calculate the expected cash flows under
the terms of each specific contract and then discount these values back
to a present value. The assumptions involved in these valuation
techniques include:
• The likelihood and expected timing of future cash flows of the
instrument. These cash flows are generally governed by the terms of the
instrument, although management judgement may be required when
the ability of the counterparty to service the instrument in accordance
with the contractual terms is in doubt. In addition, future cash flows
may also be sensitive to the occurrence of future events, including
changes in market rates; and
• Selecting an appropriate discount rate for the instrument, based on the
interest rate yield curves including the determination of an appropriate
spread for the instrument over the risk-free rate. The spread is adjusted
to take into account the specific credit risk profile of the exposure.
All adjustments in the calculation of the present value of future cash flows
are based on factors market participants would take into account in
pricing the financial instrument. Certain financial instruments
(both assets and liabilities) may be valued on the basis of valuation
techniques that feature one or more significant market inputs that are not
observable. When applying a valuation technique with unobservable data,
estimates are made to reflect uncertainties in fair values resulting from a
lack of market data, for example, as a result of illiquidity in the market. For
these instruments, the fair value measurement is less reliable. Inputs into
valuations based on non-observable data are inherently uncertain
because there is little or no current market data available from which to
determine the price at which an orderly transaction between market
participants would occur under current market conditions. However, in
most cases there is some market data available on which to base a
determination of fair value, for example historical data, and the fair values
of most financial instruments will be based on some market observable
inputs even where the non-observable inputs are significant. All
unobservable inputs used in valuation techniques reflect the assumptions
market participants would use when fair valuing the financial instrument.
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Notes to the Consolidated Financial Statements continued
1 Accounting policies continued
(m) Determination of fair value of financial instruments continued
The Group tests the outputs of the valuation model to ensure that it
reflects current market conditions. The calculation of fair value for any
financial instrument may require adjustment of the quoted price or the
valuation technique output to reflect the cost of credit risk and the
liquidity of the market, if market participants would include one, where
these are not embedded in underlying valuation techniques or prices
used. The choice of contributors, the quality of market data used for
pricing and the valuation techniques used are all subject to internal review
and approval procedures.
(n) Securities financing – Notes 18 and 40
When securities are purchased subject to a commitment to resell (reverse
repurchase agreement), or where the Group borrows securities, but does
not acquire the risks and rewards of ownership, the transactions are
treated as collateralised loans, and the securities are not usually included
in the statement of financial position. The exception to this is where these
are sold to third parties, at which point the obligation to repurchase the
securities is recorded as a trading liability at fair value and any subsequent
gain or loss included in trading income.
Similarly, financial assets may be lent or sold subject to a commitment to
repurchase them (repurchase agreement). Such securities are retained on
the statement of financial position when substantially all the risks and
rewards of ownership remain with the Group. The liability to the
counterparty is included separately on the statement of financial position.
The difference between the sale and repurchase price for securities
financing transactions is accrued over the life of the agreements using the
effective interest rate method.
(o) Derivatives and hedge accounting – Note 15
Derivatives, such as interest rate swaps, options and forward rate
agreements, futures, currency swaps and options, credit and equity
derivatives are used for trading purposes whereas interest rate swaps,
currency swaps, cross currency interest rate swaps and credit derivatives
are used for hedge accounting purposes.
The Group maintains trading positions in a variety of financial instruments
including derivatives. Trading transactions arise both as a result of activity
generated by customers and from proprietary trading with a view to
generating incremental income.
Non-trading derivative transactions comprise transactions held for
hedging purposes as part of the Group’s risk management strategy against
assets, liabilities, positions and cash flows.
Derivatives are measured initially at fair value on the date on which the
derivative contract is entered into and subsequently remeasured at fair
value. Fair values are obtained from quoted market prices in active
markets, including recent market transactions, and from valuation
techniques using discounted cash flow models and option pricing models
as appropriate. Derivatives are included in assets when their fair value is
positive, and in liabilities when their fair value is negative, unless there is
the legal ability and intention to settle an asset and liability on a net basis.
The best evidence of the fair value of a derivative at initial recognition is the
transaction price (i.e. the fair value of the consideration given or received)
unless the fair value of that instrument is evidenced by comparison with
other observable current market transactions in the same instrument (i.e.
without modification or repackaging) or based on a valuation technique
whose variables include only data from observable markets.
Profits or losses are only recognised on initial recognition of derivatives
when there are observable current market transactions or valuation
techniques that are based on observable market inputs.
Hedging
The Group avails of the hedge accounting requirements of IAS 39
Financial Instruments: Recognition and Measurement (IAS 39) as adopted
by the EU, until Dynamic Risk Management is addressed by the IASB, as
permitted as an accounting policy choice under IFRS 9 Financial
Instruments (IFRS 9).
All derivatives are carried at fair value and the accounting treatment of the
resulting fair value gain or loss depends on whether the derivative is
designated as a hedging instrument, and if so, the nature of the item being
hedged. Where derivatives are held for risk management purposes, and
where transactions meet the criteria specified in IAS 39, the Group
designates certain derivatives as either:
• Hedges of the fair value of recognised assets or liabilities or firm
commitments (fair value hedge); or
• Hedges of the exposure to variability of cash flows attributable to a
recognised asset or liability, or a highly probable forecasted transaction
(cash flow hedge); or
• Hedges of a net investment in a foreign operation.
When a financial instrument is designated as a hedge, the Group formally
documents the relationship between the hedging instrument and hedged
item as well as its risk management objectives and its strategy for
undertaking the various hedging transactions. The Group also documents its
assessment, both at hedge inception and on an ongoing basis, of whether
the derivatives that are used in hedging transactions are highly effective in
offsetting changes in fair values or cash flows of the hedged items.
The Group discontinues hedge accounting when:
(a) it is determined that a derivative is not, or has ceased to be, highly
effective as a hedge;
(b) the derivative expires, or is sold, terminated or exercised;
(c) the hedged item matures or is sold or repaid; or
(d) a forecast transaction is no longer deemed highly probable.
To the extent that the changes in the fair value of the hedging derivative
differ from changes in the fair value of the hedged risk in the hedged item,
or the cumulative change in the fair value of the hedging derivative differs
from the cumulative change in the fair value of expected future cash flows
of the hedged item, ineffectiveness arises. The amount of ineffectiveness,
taking into account the timing of the expected cash flows where relevant,
provided that it is not so great as to disqualify the entire hedge for hedge
accounting, is recorded in the income statement.
In certain circumstances, the Group may decide to cease hedge
accounting even though the hedge relationship continues to be highly
effective by no longer designating the financial instrument as a hedge.
Fair value hedge accounting
Changes in fair value of derivatives that qualify and are designated as fair
value hedges are recorded in the income statement, together with
changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk.
For micro fair value hedges, the hedge adjustment is presented as an
adjustment to the carrying amount of the hedged item. For portfolio fair
value hedges, the aggregated fair value changes in the portfolio of hedged
items are recognised in a single separate line item within liabilities when
the hedged portfolio consists of liabilities, or within assets when the
hedged portfolio consists of assets.
If the hedge no longer meets the criteria for hedge accounting, the fair value
hedging adjustment, for items carried at amortised cost, is amortised to
profit or loss using the effective interest rate method over the remaining
maturity of the hedged item for micro hedges, and on a straight-line basis
over the relevant repricing period for portfolio hedges. For debt securities
measured at FVOCI, the fair value adjustment for hedged items is recognised
in the income statement using the effective interest rate method.
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1 Accounting policies continued
(o) Derivatives and hedge accounting continued
When a hedged item held at amortised cost that is designated in a micro
fair value hedge or included in the repricing time-period of a portfolio
hedge is derecognised, the unamortised fair value adjustment is
recognised immediately in the income statement.
Cash flow hedge accounting
The Group enters into portfolio cash flow hedges. The effective portion of
changes in the fair value of derivatives that are designated and qualify as
cash flow hedges is initially recognised directly in other comprehensive
income and included in the cash flow hedging reserve in the statement
of changes in equity. The amount recognised in other comprehensive
income is reclassed to profit or loss as a reclassification adjustment in the
same period as the hedged cash flows affect profit or loss, and in the
same line item in the statement of comprehensive income. Any ineffective
portion of the gain or loss on the hedging instrument is recognised in the
income statement immediately.
When a hedging instrument expires or is sold, or when a hedge no longer
meets the criteria for hedge accounting, any cumulative gain or loss
recognised in other comprehensive income from the time when the
hedge was effective remains in equity and is reclassified to the income
statement as a reclassification adjustment as the forecast transaction
affects profit or loss. When a forecast transaction is no longer expected
to occur, the cumulative gain or loss that was recognised in other
comprehensive income from the period when the hedge was effective is
reclassified to the income statement.
The cash flow hedging reserves are adjusted to the lower of either the
cumulative gain or loss on the hedging instrument or the cumulative
change in fair value (present value) of the hedged item from inception of
the hedge. The portion that is offset by the change in the cash flow hedging
reserves is recognised in other comprehensive income with any hedge
ineffectiveness recognised in the income statement.
Net investment hedge
Hedges of net investments in foreign operations, including monetary items
that are accounted for as part of the net investment, are accounted for
similarly to cash flow hedges. The effective portion of the gain or loss on
the hedging instrument is recognised in other comprehensive income and
the ineffective portion is recognised immediately in the income statement.
The cumulative gain or loss previously recognised in other comprehensive
income is recognised in the income statement on the disposal or partial
disposal of the foreign operation. Hedges of net investments may include
non-derivative liabilities as well as derivative financial instruments.
Derivatives that do not qualify for hedge accounting
Certain derivative contracts entered into as economic hedges do not
qualify for hedge accounting and are classified as trading derivatives.
Changes in the fair value of these derivative instruments are recognised
immediately in the income statement.
(p) Derecognition
Financial assets
The Group derecognises a financial asset when the contractual rights to
the cash flows from the financial asset expire or it transfers the rights to
receive the contractual cash flows in a transaction in which substantially
all of the risks and rewards of ownership of the financial asset are
transferred or in which the Group neither transfers nor retains
substantially all of the risks and rewards of ownership and it does not
retain control of the financial asset.
On derecognition of a financial asset, the difference between the carrying
amount of the asset and the sum of (i) the consideration received
(including any new asset obtained less any new liability assumed) and (ii)
any cumulative gain or loss that had been recognised in OCI is recognised
in profit or loss. Relevant costs incurred with the disposal of a financial
asset are deducted in computing the gain or loss on disposal.
The Group enters into transactions whereby it transfers assets recognised
on its statement of financial position, but retains either all or substantially
all of the risks and rewards of the transferred assets or a portion of them.
In such cases, the transferred assets are not derecognised. Examples of
such transactions are securities sold under agreements to repurchase.
In transactions in which the Group neither retains nor transfers
substantially all of the risks and rewards of ownership of a financial asset
and it retains control over the asset, the Group continues to recognise the
asset to the extent of its continuing involvement, determined by the extent
to which it is exposed to changes in the value of the transferred asset.
In certain transactions, the Group retains the obligation to service the
transferred financial asset for a fee. The transferred asset is derecognised
if it meets the derecognition criteria. An asset or liability is recognised for
the servicing contract if the servicing fee is more than adequate or is less
than adequate for performing the servicing.
The write-off of a financial asset constitutes a derecognition event. Where
a financial asset is partially written-off, and the portion written-off
comprises specifically identified cash flows, this will constitute a
derecognition event for that part written-off.
Financial liabilities
The Group derecognises a financial liability when its contractual
obligations are discharged, cancelled or expired. Any gain or loss on the
extinguishment or remeasurement of a financial liability is recognised in
profit or loss.
(q) Impairment of financial assets – Notes 11, 19 and 33
The Group recognises loss allowances for expected credit losses at each
balance sheet date for the following financial instruments that are not
measured at FVTPL:
• Financial assets at amortised cost;
• Financial assets at FVOCI (except for equity instruments);
• Lease receivables;
• Financial guarantee contracts issued; and
• Loan commitments issued.
Investments in equity instruments are recognised at fair value and
accordingly, expected credit losses (ECLs) are not recognised separately
for equity instruments.
ECLs are the weighted average of credit losses. When measuring ECLs,
the Group takes into account:
• Probability weighted outcomes;
• The time value of money so that ECLs are discounted to the reporting
date; and
• Reasonable and supportable information that is available without
undue cost or effort at the reporting date about past events, current
conditions and forecasts of future economic conditions.
The amount of ECLs recognised as a loss allowance depends on the
extent of credit deterioration since initial recognition. There are two
measurement bases:
• 12-month ECLs (Stage 1), which applies to all items as long as there is
no significant deterioration in credit quality since initial recognition; and
• Lifetime ECLs (Stages 2 and 3), which applies when a significant
increase in credit risk has occurred on an individual or collective basis.
The 12-month ECL is the portion of lifetime expected credit losses that
represent the expected credit losses that result from default events on
a financial instrument that are possible within the 12 months after the
reporting date. Lifetime ECL is the expected credit losses that result from all
possible default events over the expected life of a financial instrument.
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Notes to the Consolidated Financial Statements continued
1 Accounting policies continued
(q) Impairment of financial assets continued
In the case of Stage 2, credit risk on the financial instrument has increased
significantly since initial recognition but the instrument is not considered
credit impaired. For a financial instrument in Stage 3, credit risk has
increased significantly since initial recognition and the instrument is
considered credit impaired.
Financial assets are allocated to stages dependent on credit quality
relative to when the asset was originated.
A financial asset can only originate in either Stage 1 or as a POCI. The ECL
held against an asset depends on a number of factors, one of which is its
stage allocation. Assets allocated to Stage 2 and Stage 3 have lifetime
ECLs. Collateral and other credit enhancements are not considered as
part of stage allocation. Collateral is reflected in the Group’s loss given
default models (LGD).
Purchased or originated credit impaired
POCI financial assets are those that are credit-impaired on initial
recognition. The Group may originate a credit-impaired financial asset
following a substantial modification of a distressed financial asset that
resulted in derecognition of the original financial asset.
POCIs are financial assets originated credit impaired that have a discount
to the contractual value when measured at fair value. The Group uses an
appropriate discount rate for measuring ECL in the case of POCIs which is
the credit-adjusted EIR. This rate is used to discount the expected cash
flows of such assets to fair value on initial recognition.
POCIs remain outside of the normal stage allocation process for the
lifetime of the obligation. The ECL for POCIs is always measured at
an amount equal to lifetime expected credit losses. The amount
recognised as a loss allowance for these assets is the cumulative changes
in lifetime expected credit losses since the initial recognition of the assets
rather than the total amount of lifetime expected credit losses.
At each reporting date, the Group recognises the amount of the change in
lifetime expected credit losses as a credit impairment gain or loss in the
income statement. Favourable changes in lifetime expected credit losses
are recognised as a credit impairment gain, even if the favourable changes
exceed the amount previously recognised in profit or loss as a credit
impairment loss.
Modification
From time to time, the Group will modify the original terms of a customer’s
loan either as part of the ongoing relationship or arising from changes in
the customer’s circumstances such as when that customer is unable to
make the agreed original contractual repayments. A modification refers to
either:
• A change to the previous terms and conditions of a debt contract; or
• A total or partial refinancing of a debt contract.
Modifications may occur for both customers in distress and for those not
in distress. Any financial asset that undergoes a change or renegotiation of
cash flows and is not derecognised is a modified financial asset.
When modification does not result in derecognition, the modified assets
are treated as the same continuous lending agreement and a modification
gain or loss is taken to profit or loss immediately. The gross carrying
amount of the financial asset is recalculated as the present value of the
renegotiated or modified contractual cash flows discounted at the
financial asset’s original effective interest rate. Any costs or fees incurred
adjust the carrying amount of the modified financial asset and are
amortised over the remaining term of the modified financial asset.
The stage allocation for modified assets which are not derecognised is by
reference to the credit risk at initial recognition of the original, unmodified
contractual terms, i.e. the date of initial recognition is not reset.
Where renegotiation of the terms of a financial asset leads to a customer
granting equity to the Group in exchange for any loan balance outstanding,
the new instrument is recognised at fair value with any difference to the
loan carrying amount recognised in the income statement.
Derecognition occurs if a modification or restructure is substantial on
a qualitative or quantitative basis. Accordingly, certain forborne assets are
derecognised. The modified/restructured asset (derecognised forborne
asset (DFA)) is considered a ‘new financial instrument’ and the date that
the new asset is recognised is the date of initial recognition from this point
forward. DFAs are allocated to Stage 1 on origination and follow the
normal staging process thereafter.
If there is evidence of credit impairment at the time of initial recognition
of a DFA, the asset is deemed to be a POCI. POCIs are not allocated to
stages but are assigned a lifetime PD and ECL for the duration of the
obligation’s life. Where the modification/restructure of a non-forborne
credit obligation results in derecognition, the new loan is originated in
Stage 1 and follows the normal staging process thereafter.
Collateralised financial assets – Repossessions
The ECL calculation for a collateralised financial asset reflects the cash
flows that may result from foreclosure, costs for obtaining and settling the
collateral, and whether or not foreclosure is probable.
For loans that are credit impaired, the Group may repossess collateral
previously pledged as security in order to achieve an orderly realisation of
the loan. The Group will then offer this repossessed collateral for sale.
However, if the Group believes the proceeds of the sale will comprise only
part of the recoverable amount of the loan with the customer remaining
liable for any outstanding balance, the loan continues to be recognised
and the repossessed asset is not recognised. However, if the Group
believes that the sale proceeds of the asset will comprise all or
substantially all of the recoverable amount of the loan, the loan is
derecognised and the acquired asset is accounted for in accordance with
the applicable accounting standard. Any further impairment of the
repossessed asset is treated as an impairment of that asset and not as a
credit impairment of the original loan.
Financial assets at FVOCI
The ECL allowance for financial assets measured at FVOCI does not
reduce the carrying amount in the statement of financial position because
the carrying amount of these assets is fair value. However, an amount
equal to the ECL allowance that would arise if the assets were measured
at amortised cost is recognised in other comprehensive income (OCI) as
an accumulated credit impairment amount, with a corresponding charge
to profit or loss. The accumulated loss recognised in OCI is recycled to the
profit or loss upon derecognition of the assets (together with other
accumulated gains and losses in OCI).
Write-offs and debt forgiveness
The Group reduces the gross carrying amount of a financial asset either
partially or fully when there is no reasonable expectation of recovery.
Where there is no formal debt forgiveness agreed with the customer,
the Group may write off a loan either partially or fully when there is no
reasonable expectation of recovery. This is considered a non-contracted
write-off. In this case, the borrower remains fully liable for the credit
obligation and is not advised of the write-off.
Once a financial asset is written-off either partially or fully, the amount
written-off cannot subsequently be recognised on the balance sheet.
It is only when cash is received in relation to the amount written-off that
income is recognised in the income statement as a ‘recovery of bad debt
previously written-off’.
Debt forgiveness arises where there is a formal contract agreed with the
customer for the write-off of a loan.
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1 Accounting policies continued
(r) Collateral and netting – Note 37
The Group enters into master netting agreements with counterparties, to
ensure that if an event of default occurs, all amounts outstanding with
those counterparties will be settled on a net basis.
Collateral
The Group obtains collateral in respect of customer advances where this
is considered appropriate. The collateral normally takes the form of a lien
over the customer’s assets and gives the Group a claim on these assets
for both existing and future customer liabilities. The collateral is, in
general, not recorded on the statement of financial position.
The Group also receives collateral in the form of cash or securities in
respect of other credit instruments, such as securities borrowing
contracts and derivative contracts in order to reduce credit risk. Collateral
received in the form of securities is not recorded on the statement of
financial position. Collateral received in the form of cash is recorded on
the statement of financial position with a corresponding liability.
Therefore, in the case of cash collateral, these amounts are assigned to
deposits received from banks or other counterparties. Any interest
payable or receivable arising is recorded as interest expense or interest
income respectively.
In certain circumstances, the Group will pledge collateral in respect of its
own liabilities or borrowings. Collateral pledged in the form of securities or
loans and advances continues to be recorded on the statement of financial
position. Collateral paid away in the form of cash is recorded in loans and
advances to banks or customers. Any interest payable or receivable arising is
recorded as interest expense or interest income respectively.
Netting
Financial assets and financial liabilities are offset and the net amount
reported on the statement of financial position if, and only if, there is a
currently enforceable legal right to set off the recognised amounts and
there is an intention to settle on a net basis, or to realise the asset and
settle the liability simultaneously. This is not generally the case with
master netting agreements, therefore, the related assets and liabilities are
presented gross on the statement of financial position.
(s) Financial guarantees and loan commitment contracts – Note 38
Financial guarantees provided by the Group
Financial guarantees are given to banks, financial institutions and other
bodies on behalf of customers to secure loans, overdrafts and other
banking facilities (facility guarantees) and to other parties in connection
with the performance of customers under obligations relating to
contracts, advance payments made by other parties, tenders, retentions
and the payment of import duties. In its normal course of business, Allied
Irish Banks, p.l.c. (the principal operating company) may issue financial
guarantees to other Group entities.
A loan commitment is a contract with a borrower to provide a loan or
credit on specified terms at a future date. The contract may or may not be
cancelled unconditionally at any time without notice depending on the
terms of the contract.
The origination date for financial guarantees and loan commitment
contracts is the date when the contracts become irrevocable. The credit
risk at this date is used to determine if a significant increase in credit risk
has subsequently occurred.
Financial guarantees and loan commitments are initially recognised in the
financial statements at fair value on the origination date. Subsequent to
initial recognition, the Group applies the impairment provisions of IFRS 9
and calculates an ECL allowance for financial guarantees and loan
commitment contracts (i.e. those that are not measured at FVTPL).
The ECL allowance calculated on financial guarantees and loan
commitment contracts is reported within ‘Provisions for liabilities
and commitments’.
Financial guarantees purchased by the Group
The Group enters into financial guarantee contracts which require the
counterparty to the contract to reimburse the Group for a loss when the
credit risk of the borrower significantly deteriorates. Any associated
reimbursement asset is settled periodically by the Guarantor or when the
Group has issued credit linked notes which include the guarantee it is
settled by reducing the liability associated with the credit linked notes.
(t) Property, plant and equipment – Note 23
Property, plant and equipment are stated at cost, or deemed cost,
less accumulated depreciation and provisions for impairment, if any.
Additions and subsequent expenditures are capitalised only to the extent
that they enhance the future economic benefits expected to be derived
from the asset. No depreciation is provided on freehold land. Property,
plant and equipment are depreciated on a straight line basis over their
estimated useful economic lives. Depreciation is calculated based on the
gross carrying amount, less the estimated residual value at the end of the
assets’ economic lives.
The Group uses the following useful lives when calculating depreciation:
Asset type
Useful life
Freehold buildings and long-leasehold
property
50 years
Short leasehold property
life of lease, up to 50 years
Costs of adaptation of freehold and
leasehold property
Branch properties
up to 10 years1
Office properties
up to 15 years1
Computers and similar equipment
3 – 7 years
Fixtures and fittings and other equipment
5 – 10 years
1. Subject to the maximum remaining life of the lease.
The Group depreciates right-of-use assets arising under lease obligations
from the commencement date of a lease to the earlier of the end of the
useful life of the right-of-use asset and the end of the lease term on a
straight-line basis.
The Group reviews its depreciation rates, at least annually, to take
account of any change in circumstances. When deciding on useful lives
and methods, the principal factors that the Group takes into account are
the expected rate of technological developments and expected market
requirements for, and the expected pattern of usage of, the assets. When
reviewing residual values, the Group estimates the amount that it would
currently obtain for the disposal of the asset, after deducting the
estimated cost of disposal if the asset was already of the age and
condition expected at the end of its useful life.
Gains and losses on disposal of property, plant and equipment are
included in the income statement. It is Group policy not to revalue its
property, plant and equipment.
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Notes to the Consolidated Financial Statements continued
1 Accounting policies continued
(u) Intangible assets – Note 22
Computer software and other intangible assets
Computer software and other intangible assets are stated at cost,
less amortisation on a straight line basis and provisions for impairment, if
any. The identifiable and directly associated external and internal costs of
acquiring and developing software are capitalised where the software is
controlled by the Group, and where it is probable that future economic
benefits that exceed its cost will flow from its use over more than one year.
Costs associated with maintaining software are recognised as an expense
when incurred. Capitalised computer software is amortised over 3 to 9
years. Other intangible assets are amortised over the life of the asset.
Computer software and other intangible assets are reviewed for
impairment when there is an indication that the asset may be impaired.
Intangible assets not yet available for use are reviewed for impairment on
an annual basis.
Acquired intangible assets
Customer related intangible assets and brands acquired in a business
combination are recognised at fair value at acquisition date.
Customer related intangible assets and brands have a finite useful life and
are carried at cost less accumulated amortisation and provision for
impairment, if any. Amortisation is calculated using the straight line basis
to allocate the cost over their estimated useful life (6 years).
(v) Non-credit risk provisions – Note 33
Provisions are recognised for present legal or constructive obligations
arising as consequences of past events where it is probable that a transfer
of economic benefit will be necessary to settle the obligation, and it can
be reliably estimated.
When the effect is material, provisions are determined by discounting
expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks
specific to the liability. Payments are deducted from the present value of
the provision, and interest at the relevant discount rate is charged
annually to interest expense using the effective interest rate method.
These are reported within ‘Provisions for liabilities and commitments’ in
the statement of financial position.
(w) Share capital and reserves – Notes 34, 35, 36 and 49
Share capital
Share capital comprises the ordinary shares of the entity. Share capital
represents funds raised by issuing shares in return for cash or other
consideration.
Dividends and distributions
Final dividends on ordinary shares are recognised as a liability in the
Group’s financial statements in the period in which they are approved by
the shareholders of the Company. Proposed dividends that are declared
after the end of the reporting date are not recognised as a liability, they are
disclosed in note 49.
Other equity interests
Other equity interests comprises Additional Tier 1 Perpetual Contingent
Temporary Write-down Securities (AT1s). Distributions on the AT1s are
recognised in equity when approved for payment by the Board of Directors.
Capital contributions
Capital contributions represent the receipt of non-refundable
considerations arising from transactions with the Irish Government (note
45). These contributions comprise both financial and non-financial net
assets. The contributions are classified as equity and may be either
distributable or non-distributable.
Investment securities reserves
Investment securities reserves represent the net unrealised gain or loss,
net of tax, arising from the recognition in the statement of financial
position of investment securities at FVOCI.
On disposal of equity securities which had been designated at FVOCI on
initial recognition, any amounts held in the investment securities reserves
account is transferred directly to revenue reserves without recycling
through profit or loss.
Cash flow hedging reserves
Cash flow hedging reserves represent the net gains or losses, net of tax,
on effective cash flow hedging instruments that will be reclassified to the
income statement when the hedged transaction affects profit or loss.
Revenue reserves
Revenue reserves include the following:
• Retained earnings of the parent company and its subsidiaries;
• The Group’s share of its joint venture and associated undertakings
post-acquisition profits or losses;
• Amounts transferred from issued share capital, share premium,
revaluation reserves and capital redemption reserves following Irish
High Court approval;
• Amounts arising from the capital reduction which followed the
‘Scheme of Arrangement’ undertaken by the Group in December 2017;
• Remeasurements of defined benefit pension schemes; and
• Transactions with owners including distributions and buybacks.
Merger reserve
The merger reserve arose following the Scheme of Arrangement approved by
the Irish High Court in December 2017 where a new company, AIB Group
plc, was introduced as the holding company of AIB Group (note 36).
In the consolidated financial statements of AIB Group plc, the carrying
value of the investment in Allied Irish Banks, p.l.c. by AIB Group plc was
eliminated against the share capital and share premium account in Allied
Irish Banks, p.l.c. and the merger reserve in AIB Group plc resulting in
a negative merger reserve.
(x) Cash and cash equivalents – Notes 43 and 44
For the purposes of the cash flow statement, cash comprises cash
on hand and demand deposits, and cash equivalents comprise highly
liquid investments that are convertible into cash with an insignificant risk
of changes in value and with a maturity of less than three months from the
date of acquisition.
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1 Accounting policies continued
(y) Adoption of new accounting standards and amendments to standards
The table below outlines the new standards and amendments to standards that have been adopted by the Group for the year ended 31 December 2025.
The Group has not early adopted any standard or amendment that has been issued but is not yet effective.
Accounting standard update
Effective date
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of
Exchangeability
Annual reporting periods beginning on or after 1 January 2025.
Nature of change
Impact
Clarifies whether a currency is exchangeable into another currency, and which spot
exchange rate to use when it is not.
The amendments had no material impact on the Group’s financial statements.
(z) Prospective accounting changes
The table below outlines the amendments to existing standards which have been approved by the IASB, but not early adopted by the Group, that will
impact the Group’s financial reporting in future periods. The Group will consider the impact of these amendments as the situation requires. The
amendments which are most relevant to the Group are as follows:
Accounting standard update
• Add new disclosures for certain instruments with contractual terms that can
change cash flows (such as some financial instruments with contingent
features); and
• Update the disclosures for equity instruments designated at FVOCI.
Amendments to IFRS 9 and IFRS 7 Financial Instruments: Disclosures: Classification
and Measurements of Financial Instruments
Nature of change
The amendments:
• Clarify the date of recognition and derecognition of some financial assets and
liabilities, with a new exception for some financial liabilities settled through an
electronic cash transfer system;
• Clarify and add further guidance for assessing whether a financial asset meets the
SPPI criterion;
Effective date
Annual reporting periods beginning on or after 1 January 2026 and will apply
retrospectively.
Impact
The amendments are not expected to have an impact on the Group’s financial
statements because the amendments are in line with the Group’s existing
accounting policies and practices.
Accounting standard update
Effective date
Amendments to IFRS 9 and IFRS 7: Nature-dependent Electricity
Annual reporting periods beginning on or after 1 January 2026.
Nature of change
Impact
The amendments:
• Clarify the application of the ‘own-use’ requirements for in-scope contracts;
• Amend the designation requirements for a hedged item in a cash flow hedging
relationship for in-scope contracts; and
• Add new disclosure requirements.
The amendments are not expected to have a material impact on the Group’s
financial statements.
Accounting standard update
Effective date
Annual Improvements to IFRS – Volume 11
Annual reporting periods beginning on or after 1 January 2026.
Nature of change
Impact
Limited amendments to IFRS 1 First-time Adoption of International Financial Reporting
Standards, IFRS 7, IFRS 9, IFRS 10 Consolidated Financial Statements and IAS 7
Statement of Cash Flows that either clarify the wording of an IFRS standard or correct
relatively minor unintended consequences, oversights or conflicts between
requirements in the standards.
The amendments are not expected to have a material impact on the Group’s
financial statements.
Accounting standard update
Effective date
IFRS 18 Presentation and Disclosure in Financial Statements
Annual reporting periods beginning on or after 1 January 2027.
Nature of change
Impact
Introduces new requirements to present specified categories and defined subtotals in
the statement of profit or loss, provide disclosures on management-defined
performance measures (MPMs) in the notes to the financial statements.
The Group is currently evaluating the impact that IFRS 18 will have on its financial
statements.
Accounting standard update
Effective date
IFRS 19 Subsidiaries without Public Accountability: Disclosures
When endorsed by the EU it is expected to be effective for annual reporting periods
beginning on or after 1 January 2027.
Nature of change
Optional for certain eligible subsidiaries of parent entities that report under IFRS
Accounting Standards to apply reduced disclosure requirements.
Impact
The Group is not eligible to apply IFRS 19 in its consolidated or company financial
statements.
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Notes to the Consolidated Financial Statements continued
2 Critical accounting judgements and
estimates
The accounting judgements that have the most significant effect on the
amounts recognised in the financial statements, and the estimates that have a
significant risk of material adjustment in the next year, are set out below.
Significant judgements
The significant judgements made by the Group in applying its accounting
policies are as follows:
• Deferred taxation; and
• Impairment of financial assets.
The application of some of these judgements also involves estimations
which are discussed separately.
Deferred taxation
The Group’s accounting policy for deferred tax is set out in accounting
policy (i) in note 1. Details of the Group’s deferred tax assets and liabilities
are set out in note 25.
The Group’s key judgement in relation to the recoverability of deferred tax
assets for unused tax losses is that it is probable that there will be
sufficient future taxable profits against which those losses can be used:
• The disclosed estimated utilisation period for those losses in Ireland
is within the timeframe that taxable profits are considered probable;
and
• Taxable profits are considered more likely than not in the UK for
a period of 15 years.
Deferred tax assets are recognised for unused tax losses to the extent that it is
probable that there will be sufficient future taxable profits against which the
losses can be used. For a company with a history of recent losses, there must
be other convincing evidence to underpin this assessment.
The recognition of these deferred tax assets relies on the assessment of
future profitability and the sufficiency of those profits to absorb losses
carried forward. It requires significant judgements to be made about the
projection of long-term future profitability because of the period over
which recovery extends.
In assessing the future profitability of the Group, the Board has considered
a range of positive and negative evidence for this purpose. Among this
evidence, the principal positive factors include:
• AIB as a pillar bank with a strong Irish franchise;
• The absence of any expiry dates for Irish and UK tax losses;
• The turnaround evident in the Group's financial performance over the
years 2021-2025;
• The changing banking landscape in Ireland;
• The Irish economy remained robust in 2025, with growth accelerating
sharply mostly due to developments in the export sector;
• External economic forecasts for Ireland, with growth forecasted for
2026;
• The introduction of the bank resolution framework under the BRRD and
the establishment in 2017 of AIB Group plc as the new holding
company of the Group. This provides greater confidence in relation to
the future viability of Allied Irish Banks, p.l.c. (as the principal operating
bank subsidiary) as there are now effective tools in place that should
facilitate its recapitalisation in a future crisis; and
• The non-enduring nature of the loan impairments at levels which
resulted in the losses between 2009 and 2013.
The Board also considered negative evidence and the inherent
uncertainties in any long-term financial assumptions and projections,
including:
• The absolute level of deferred tax assets compared to the Group’s
equity;
• The quantum of profits required to be earned and the extended period
over which it is projected that the tax losses will be utilised;
• The challenge of forecasting over a long period, taking account of the
changing level of competition, and the evolving interest rate environment;
• The globalised nature of the Irish economy and its exposure to
macroeconomic headwinds and geopolitical issues; and
• Taxation changes (including Organisation for Economic Co-operation
and Development (OECD) tax reform) and the likelihood of future
developments and their impact on profitability.
Taking account of all relevant factors, and in the absence of any expiry
date for tax losses in Ireland, it is more likely than not that there will be
future profits in the medium term, and beyond, in the relevant Irish Group
companies against which to use the tax losses. In this regard, the Group
has carried out an exercise to determine the likely number of years
required to utilise the deferred tax asset under the following scenario.
Using the Group’s financial plan 2026 to 2028 as a base and a profit
growth rate of 2% from 2028, it was assessed that it will take less than 7
years for the Irish deferred tax asset to be utilised. If the growth rate
assumption was decreased by 1%, then the utilisation period would
increase by less than 1 year. The Group’s analysis of this and other
scenarios examined would not alter the basis of recognition or the current
carrying value. In 2024, the Group reported that it expected that it would
take less than 10 years for the deferred tax asset to be utilised.
Given the relative size of the Group’s operations in the UK compared
to the role that the Irish operations play in supporting a functioning
banking environment, a different judgement has been applied to the
period that taxable profits are considered more likely than not in the UK.
Despite the absence of any expiry date for tax losses in the UK, the Group
has concluded that the recognition of deferred tax assets in its UK
subsidiary be limited to the amount projected to be realised within a time
period of 15 years. This is the timescale within which the Group believes
that it can assess the likelihood of its UK profits arising as being more
likely than not.
Impairment of financial assets
The Group’s accounting policy for impairment of financial assets is set out
in accounting policy (q) in note 1. Details of the Group’s net credit
impairment charge are set out in note 11 and ECL allowance on financial
assets are set out in note 19.
The calculation of the ECL allowance is complex and requires the use of a
number of accounting judgements.
The most significant judgements applied by the Group in determining the
ECL allowance are as follows:
• Determining the criteria for a significant increase in credit risk and for
being classified as credit impaired; and
• Determining the need for and an appropriate methodology for
post-model adjustments.
The significant management judgement and the governance process,
relating to ECL, are set out on pages 182 to 189 in the Risk Management
section.
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2 Critical accounting judgements and
estimates continued
Critical accounting estimates
The accounting estimates with a significant risk of material adjustment to
the carrying amounts of assets and liabilities within the next financial year
were in relation to:
• Impairment of financial assets; and
• Retirement benefit obligations.
Impairment of financial assets
The Group’s accounting policy for impairment of financial assets is set out
in accounting policy (q) in note 1. Details of the Group’s ECL allowance
are set out in note 19.
The key estimates and assumptions that the Group have used in
determining the ECL allowance are as follows:
• Establishing the number and relative weightings for forward looking
scenarios;
• Inputs into discounted cash flows (DCFs) for certain Stage 3 credit
impaired obligors;
• The assumptions for measuring ECL (e.g. PD, LGD and EAD and the
parameters to be included within the models for modelled ECL); and
• The estimation of post model adjustments where required.
The calculation of the ECL allowance is complex and therefore the Group
must consider large amounts of information in its determination. This
process requires significant use of estimates and assumptions, some of
which by their nature are highly subjective and very sensitive to risk factors
such as changes to economic conditions. Changes in the ECL allowance
can materially affect net income.
On an ongoing basis, the various estimates and assumptions are reviewed
in light of differences between actual and previously calculated expected
losses. These are then recalibrated and refined to reflect current and
evolving economic conditions. The ECL allowance is, in turn, reviewed and
approved by the Group Credit Committee on a quarterly basis with final
Group levels being approved by the Board Audit Committee. Further detail
on the ECL governance process is set out on page 189.
The macroeconomic variables used in models to calculate ECL allowance
are based on assumptions, forecasts and estimates against a backdrop of
an evolving economic landscape. Accordingly, developments in local and
international factors could have a material bearing on the ECL allowance
within the next financial year. The Group’s sensitivity to a range of
macroeconomic factors under the (i) base forecast; (ii) upside; and (iii)
downside scenarios is set out on pages 190 to 194 of the Risk
Management section of this report.
DCFs are used as an input to the ECL calculation for Stage 3
credit-impaired exposures where gross credit exposure is ≥ €1 million in
the Republic of Ireland or ≥ £500,000 in the UK. For higher-value cases,
multiple DCFs are prepared to ensure that expected losses appropriately
reflect forward looking outcomes. This approach is required where gross
credit exposure is ≥ €5 million (Republic of Ireland), ≥ £5 million (UK), or
where exposures fall within the Group Leveraged Lending Policy. This
approach captures borrower specific impacts under base, downside and
upside conditions, with each scenario probability weighted to derive the
final scenario weighted ECL. Collateral valuation assumptions and the
estimated time to realisation of collateral are key drivers of the DCF
approach. Forward looking information is incorporated through the
Group’s credit assessment process and applied consistently across
scenarios. Where the calculated ECL is very low, a minimum ECL floor is
applied. This is benchmarked against relevant model outputs to ensure
consistency and prudence in ECL recognition.
The Group has developed a standard approach for the measurement of
ECL for the majority of the Group’s exposures where each ECL input
parameter (e.g. PD, LGD and EAD) is developed in line with standard
modelling methodology. These are discussed further on pages 187 to 189
of the Risk Management section. When considering changes in these
assumptions collectively, there is a significant risk of a material
adjustment to the Group’s ECL allowance within the next financial year.
Where the estimate of ECL does not adequately capture all available
forward looking information about the range of possible outcomes, or
where there is a significant degree of uncertainty, management may
consider it appropriate for an adjustment to ECL. These are referred to as
post model adjustments and are set out in detail on pages 195 and 196.
The sensitivity of the carrying amounts of the ECL to changes in
assumptions and estimates relating to inputs into DCFs for certain Stage 3
credit impaired obligors, the assumptions for measuring ECL, and the
estimation of post model adjustments where required have not been
provided given their diverse nature, their interrelationship and the number
of estimates and assumptions involved.
Retirement benefit obligations
The Group’s accounting policy for retirement benefit obligations is set out
in accounting policy (h) in note 1. Details of the Group’s retirement benefit
obligations are set out in note 26.
The key estimates and assumptions that the Group have used in
determining the retirement benefit obligation are as follows:
• In a situation where the Group believes the Trustee can grant
discretionary increases without any funding being provided by the
Group, the Group has assumed that the Trustee will grant increases and
as a result the scheme’s liabilities include an estimate for this matter;
and
• The significant demographic and financial actuarial assumptions used
to determine the present value of the retirement benefit obligation.
The Trustee of the Irish Scheme has awarded an increase, in certain years,
in respect of pensions eligible for discretionary pension in payment
increases notwithstanding a decision by the Group not to fund such
increases. This reflected the ability of the Trustee to grant an increase
when the financial position of the scheme would enable such an increase
at that point in time. Taking these decisions by the Trustee into
consideration, the long-term assumption for future increases in pension in
payment reflects an assessment of the Trustee’s ability to grant further
increases without any funding from the Group, capped at the lower of our
long-term inflation assumption or the surplus available to the Trustee.
Having taken actuarial advice, the Group has adopted a rate of 2.10%
(31 December 2024: 1.90%) for the long-term assumption for future
discretionary increases in pensions in payment. This increased the
scheme liabilities by €748 million at 31 December 2025 (31 December
2024: €808 million). A sensitivity analysis for the rate of increase in
pensions in payment is not provided, as this rate is dependent on the
surplus available to the Trustee to distribute and the advice of the actuary.
The actuarial valuation of the schemes’ liabilities is dependent upon a
number of financial and demographic assumptions which are inherently
uncertain. Changes to those assumptions could materially impact the
reported amount for schemes’ liabilities and the actuarial gains/losses
reported in equity. Details of the assumptions adopted by the Group
in calculating the schemes’ liabilities and a sensitivity analysis for the
principal assumptions used to measure the schemes’ liabilities are
set out in note 26 to the financial statements.
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Notes to the Consolidated Financial Statements continued
3 Segmental information
Segment overview
The Group has identified reportable segments on the basis of internal
reports about components of the Group that are regularly reviewed by the
Chief Operating Decision Maker (CODM) in order to allocate resources to
the segment and assess its performance. Based on this identification, the
reportable segments are the operating segments within the Group. The
Executive Leadership Team is the CODM and it relies primarily on the
management accounts to assess performance of the reportable
segments and when making resource allocation decisions.
During 2025, the Group announced a change in its management structure
and the integration of AIB UK into the Retail Banking business line. The
Group’s performance for the 12 months to 31 December 2025 was
managed and reported, in the management accounts, across Retail
Banking, AIB Capital Markets (Capital Markets), Climate & Infrastructure
Capital, AIB UK and Group segments and therefore the announcement did
not impact the Group’s disclosure of its reportable segments.
Transactions between operating segments are on normal commercial
terms and conditions, with internal charges and transfer pricing
adjustments reflected in the performance of each operating segment.
Revenue sharing agreements are used to allocate external
customer revenues to an operating segment on a reasonable basis.
The geographical distribution of total revenue is based primarily on
the location of the office recording the transaction.
Retail Banking
Retail Banking is the Group’s leading Irish retail franchise which provides a
comprehensive range of products and services through branch, digital and
phone banking channels. The aim is to provide our customers with a
seamless and transparent experience across all channels, while
supporting the development of sustainable businesses within their local
communities.
Capital Markets
Capital Markets provides institutional, corporate, business banking
services and specialised products to the Group’s larger customers and
customers requiring specific sector or product expertise. Goodbody offers
further capabilities in wealth management, asset management and
investment banking.
Climate & Infrastructure Capital
In 2025, the Group’s Climate Capital segment was renamed as Climate &
Infrastructure Capital (C&IC) as the name better reflects the nature of its
lending activity. C&IC which serves the Irish, UK, European and North
American markets, specialises in lending to large scale renewable energy
and infrastructure projects, which are key drivers for sustainable
economic growth.
AIB UK
AIB UK provides lending, treasury, trade facilities, asset finance and
invoice discounting services to large corporates in Great Britain and
Northern Ireland and operates a full-service retail franchise in Northern
Ireland with a focus on everyday banking, mortgage and business banking.
Group
Group comprises wholesale treasury activities as well as Group control
and support functions. Treasury manages the Group’s liquidity and
funding positions and provides customer treasury services and economic
research while the control and support functions oversee the Group’s
strategy, establish clear governance and control frameworks and provide
management services to the Group.
Segment allocations
Under the Group's cost allocation methodology, substantially all of the
costs of the Group's control, support and Treasury functions are allocated
to Retail Banking, Capital Markets, C&IC and AIB UK. In addition, certain
Bank levies and regulatory fees, such as the Irish bank levy, are allocated
to the Retail Banking, Capital Markets and C&IC segments.
Funding and liquidity income/charges are based on each segment’s
funding requirements and the Group’s funding cost profile, which
is informed by wholesale and retail funding costs. Income attributable
to capital is allocated to segments based on each segment’s
capital requirement.
Change in presentation of net fee and commission income
The Group has introduced new categories of fee income and expense for
2025 to separately identify the nature of those items in the Group's
disclosures. The Group now discloses Customer accounts and payment
services; Wealth and insurance and Investment banking as separate
categories of fee income and fee expense and has re-presented the
comparatives on this basis. For the 2024 comparatives:
• €128 million of Specialised payments services (Payzone) income and
€108 million of Specialised payments services (Payzone) expense were
re-presented as Customer accounts and payment services;
• €43 million of Stockbroking client fees and commissions income,
€39 million of Other fees and commissions income and €3 million
of Other fees and commissions expense were re-presented as
Wealth and insurance; and
• €14 million of Stockbroking client fees and commissions income,
€6 million of Other fees and commissions income, and €2 million
of Other fees and commissions expense were re-presented as
Investment banking.
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3 Segmental information continued
2025
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Exceptional
items
1
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Operations by business segment
Net interest income
2,380
787
140
340
101
3,748
—
3,748
Net fee and commission income*
465
171
16
41
(1)
692
—
692
Other
28
38
1
(8)
5
64
7
2
71
Total other income
493
209
17
33
4
756
7
763
Total operating income
2,873
996
157
373
105
4,504
7
4,511
Personnel expenses
(589)
(237)
(31)
(102)
(7)
(966)
(16) 3
(982)
General and administrative expenses
(543)
(106)
(11)
(69)
(6)
(735)
8
4
(727)
Depreciation, impairment and amortisation
(224)
(37)
(4)
(22)
(4)
(291)
—
(291)
Other operating expenses
(1,356)
(380)
(46)
(193)
(17) (1,992)
(8)
(2,000)
Bank levies and regulatory fees
(104)
(16)
(1)
(1)
8
(114)
—
(114)
Total operating expenses
(1,460)
(396)
(47)
(194)
(9) (2,106)
(8)
(2,114)
Operating profit/(loss) before impairment losses
1,413
600
110
179
96
2,398
(1)
2,397
Net credit impairment charge
(47)
(12)
(71)
(42)
—
(172)
—
(172)
Operating profit/(loss)
1,366
588
39
137
96
2,226
(1)
2,225
Income from equity accounted investments
14
—
—
3
—
17
157
5
174
Loss on disposal of business
—
—
—
—
—
—
—
—
Profit before taxation
1,380
588
39
140
96
2,243
156
2,399
1. Exceptional items are shown separately above. These are items that Management view as distorting comparability of performance year-on-year. Exceptional items are set out in footnotes 2 to 5 below.
2. Gain on disposal of loan portfolios.
3. Restructuring costs.
4. Legal claims and customer redress writeback.
5. Sale of AIB Merchant Services.
2025
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Exceptional
items
Total
*Net fee and commission income
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Customer accounts and payment services
325
26
1
11
1
364
—
364
Card income
169
9
—
12
—
190
—
190
Customer related foreign exchange
45
33
—
8
1
87
—
87
Wealth and insurance1
39
51
—
—
—
90
—
90
Lending related fees
8
26
11
13
—
58
—
58
Investment banking2
—
32
—
—
—
32
—
32
Other fees and commissions
3
1
4
—
2
10
—
10
Fee and commission income
589
178
16
44
4
831
—
831
Customer accounts and payment services
(99)
(1)
—
—
—
(100)
—
(100)
Card expenses
(21)
(1)
—
(3)
—
(25)
—
(25)
Wealth and insurance1
(3)
(3)
—
—
—
(6)
—
(6)
Investment banking2
—
(1)
—
—
—
(1)
—
(1)
Other fees and commissions
(1)
(1)
—
—
(5)
(7)
—
(7)
Fee and commission expense
(124)
(7)
—
(3)
(5)
(139)
—
(139)
Total net fee and commission income
465
171
16
41
(1)
692
—
692
1. Wealth refers to fees and commissions from financial planning and investment management services. Insurance refers to fees and commissions from selling insurance products, such as home,
car and travel insurance on behalf of the Group's insurance partners.
2. Investment banking relates to fees and commissions earned from advisory, corporate research and transactional services for debt or equity raising.
Fees and commissions which are an integral part of the effective interest rate are recognised as part of interest and similar income (note 4) or interest
and similar expense (note 5).
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Notes to the Consolidated Financial Statements continued
3 Segmental information continued
2024
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Exceptional
items
1
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Operations by business segment
Net interest income
2,633
906
110
379
101
4,129
—
4,129
Net fee and commission income*
455
158
13
37
3
666
15 2
681
Other
54
65
8
(11)
(3)
113
5 3
118
Other income
509
223
21
26
—
779
20
799
Total operating income
3,142
1,129
131
405
101
4,908
20
4,928
Personnel expenses
(611)
(239)
(29)
(95)
(6)
(980)
(4) 4
(984)
General and administrative expenses
(510)
(97)
(12)
(66)
(5)
(690)
(82) 5-7
(772)
Depreciation, impairment and amortisation
(232)
(39)
(6)
(21)
(3)
(301)
—
(301)
Other operating expenses
(1,353)
(375)
(47)
(182)
(14) (1,971)
(86)
(2,057)
Bank levies and regulatory fees
(104)
(19)
(2)
(2)
(11)
(138)
—
(138)
Total operating expenses
(1,457)
(394)
(49)
(184)
(25) (2,109)
(86)
(2,195)
Operating profit/(loss) before impairment losses
1,685
735
82
221
76
2,799
(66)
2,733
Net credit impairment (charge)/writeback
(28)
83
(22)
(90)
2
(55)
—
(55)
Operating profit/(loss)
1,657
818
60
131
78
2,744
(66)
2,678
Income/(loss) from equity accounted investments
21
—
—
6
(1)
26
—
26
Loss on disposal of business
—
—
—
—
(2)
(2)
—
(2)
Profit/(loss) before taxation
1,678
818
60
137
75
2,768
(66)
2,702
1. Exceptional items are shown separately above. These are items that Management view as distorting comparability of performance year-on-year. Exceptional items are set out in footnotes 2 to 7 below.
2. Run-off fee receivable on exit of a servicing arrangement.
3. Gain on disposal of loan portfolios and other operating income.
4. Restructuring costs.
5. Customer redress costs.
6. Inorganic transaction costs.
7. Other costs.
2024
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Exceptional
items
1
Total
*Net fee and commission income
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Customer accounts and payment services
338
26
1
12
1
378
—
378
Card income
169
8
—
12
—
189
—
189
Customer related foreign exchange
47
36
1
6
1
91
—
91
Wealth and insurance2
37
45
—
—
—
82
—
82
Lending related fees
8
28
9
11
—
56
—
56
Investment banking3
—
20
—
—
—
20
—
20
Other fees and commissions
6
1
2
—
5
14
15
4
29
Fee and commission income
605
164
13
41
7
830
15
845
Customer accounts and payment services
(109)
(1)
—
—
—
(110)
—
(110)
Card expenses
(36)
(1)
—
(4)
—
(41)
—
(41)
Wealth and insurance2
(3)
—
—
—
—
(3)
—
(3)
Investment banking3
—
(2)
—
—
—
(2)
—
(2)
Other fees and commissions
(2)
(2)
—
—
(4)
(8)
—
(8)
Fee and commission expense
(150)
(6)
—
(4)
(4)
(164)
—
(164)
Total net fee and commission income
455
158
13
37
3
666
15
681
1. Exceptional items are shown separately above. These are items that Management view as distorting comparability of performance year-on-year.
2. Wealth refers to fees and commissions from financial planning and investment management services. Insurance refers to fees and commissions from selling insurance products, such as home,
car and travel insurance on behalf of the Group's insurance partners.
3. Investment banking relates to fees and commissions earned from advisory, corporate research and transactional services for debt or equity raising.
4. Run-off fee receivable on exit of a servicing arrangement.
5. Wealth refers to fees and commissions from financial planning and investment management services. Insurance refers to fees and commissions from selling insurance
products, such as home, car and travel insurance on behalf of the Group's insurance partners.
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3 Segmental information continued
31 December 2025
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Other amounts – statement of financial position
€ m
€ m
€ m
€ m
€ m
€ m
Loans and advances to customers:
– measured at amortised cost
42,231
16,518
6,248
6,028
91
71,116
– measured at FVTPL
—
84
—
—
—
84
Total loans and advances to customers
42,231
16,602
6,248
6,028
91
71,200
Deposits and advances from customers
89,893
17,561
305
8,440
1,472
117,671
31 December 2024
Retail
Banking
Capital
Markets
C&IC
AIB UK
Group
Total
Other amounts – statement of financial position
€ m
€ m
€ m
€ m
€ m
€ m
Loans and advances to customers:
– measured at amortised cost
41,570
16,885
5,483
5,837
50
69,825
– measured at FVTPL
—
64
—
—
—
64
Total loans and advances to customers
41,570
16,949
5,483
5,837
50
69,889
Deposits and advances from customers
84,206
15,555
365
8,575
1,182
109,883
Year to 31 December 2025
Ireland
United
Kingdom
Rest of the
World
Total
Geographic information1
€ m
€ m
€ m
€ m
Gross external revenue
3,868
557
86
4,511
Inter-geographical segment revenue
171
(111)
(60)
—
Total revenue
4,039
446
26
4,511
Year to 31 December 2024
Ireland
United
Kingdom
Rest of the
World
Total
Geographic information1
€ m
€ m
€ m
€ m
Gross external revenue
4,410
483
35
4,928
Inter-geographical segment revenue
21
31
(52)
—
Total revenue
4,431
514
(17)
4,928
Revenue comprises all items included within total operating income as disclosed in the consolidated income statement.
31 December 2025
Ireland
United
Kingdom
Rest of the
World
Total
Geographic Information
€ m
€ m
€ m
€ m
Non-current assets2
1,447
51
6
1,504
31 December 2024
Ireland
United
Kingdom
Rest of the
World
Total
Geographic Information
€ m
€ m
€ m
€ m
Non-current assets2
1,387
55
8
1,450
1. For details of significant geographic concentrations, see the Risk Management section.
2. Non-current assets comprise intangible assets, goodwill and property, plant and equipment.
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Notes to the Consolidated Financial Statements continued
4 Interest and similar income
2025
2024
€ m
€ m
Interest on loans and advances to customers
3,026
2,715
Interest on loans and advances to banks
970
1,445
Interest on securities financing
198
271
Interest on investment securities
268
545
Total interest income on financial assets measured at amortised cost
4,462
4,976
Interest on investment securities at FVOCI
364
297
Interest income calculated using the effective interest rate method
4,826
5,273
Interest income on finance leases and hire purchase contracts
103
94
Interest income on financial assets at FVTPL
—
9
Other interest and similar income
103
103
Total interest and similar income
4,929
5,376
of which relates to cash flow hedges transferred from other comprehensive income
(82)
(618)
of which relates to fair value hedges of interest rate risk
153
407
5 Interest and similar expense
2025
2024
€ m
€ m
Interest on deposits and advances from customers
523
468
Interest on deposits and advances from banks
17
35
Interest on securities financing
28
25
Interest on debt securities in issue
439
540
Interest on lease liabilities
10
9
Interest on Tier 2 subordinated liabilities and other capital instruments
88
111
Interest expense on financial liabilities measured at amortised cost
1,105
1,188
Negative interest on financial assets
—
2
Interest expense calculated using the effective interest rate method
1,105
1,190
Non-trading derivatives (not in hedge accounting relationships – economic hedges)
76
57
Other interest and similar expense
76
57
Total interest and similar expense
1,181
1,247
of which relates to cash flow hedges transferred from other comprehensive income
(25)
(49)
of which relates to fair value hedges of interest rate risk
61
220
of which relates to portfolio fair value hedges of interest rate risk
(45)
12
6 Net trading income
2025
2024
€ m
€ m
Foreign exchange contracts
1
23
Interest rate contracts and debt securities
9
12
Credit derivative contracts
(1)
(1)
Equity investments, index contracts and warrants
(1)
(8)
Forward contract to acquire loans
—
27
Virtual corporate power purchase agreement
1
(3)
Total net trading income
9
50
of which relates to hedging ineffectiveness on cash flow hedges
(1)
(6)
of which relates to hedging ineffectiveness on fair value hedges
(9)
(2)
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7 Net gain on other financial assets measured at FVTPL
2025
2024
€ m
€ m
Loans and advances to customers
13
12
Investment securities – equity
32
70
Other
3
—
Total net gain on other financial assets measured at FVTPL
48
82
8 Net gain on derecognition of financial assets measured at amortised cost
2025
2024
Carrying value of
derecognised
financial assets
measured at
amortised cost
Gain from
derecognition
Carrying value of
derecognised
financial assets
measured at
amortised cost
Gain from
derecognition
€ m
€ m
€ m
€ m
Loans and advances to customers
520
8
284
2
Derecognition relates to the sale of portfolios of performing and non-performing loans and the sale of individual loans (for credit management purposes)
where credit deterioration had occurred.
9 Other income/(expense)
2025
2024
€ m
€ m
Loss on disposal of investment securities at FVOCI – debt
(76)
(77)
Gain on termination of hedging swaps1
76
41
Dividend income
—
1
Miscellaneous operating income
6
19
Total other income/(expense)
6
(16)
of which relates to cash flow hedges transferred from other comprehensive income
1
—
1. The majority of the gain on termination of hedging swaps relates to the disposal of debt securities at FVOCI.
10 Operating expenses
2025
2024
€ m
€ m
Personnel expenses:
Wages and salaries
770
777
Retirement benefits1
117
110
Social security costs
85
83
Other personnel expenses
32
29
Termination benefits2
17
19
1,021
1,018
Less: staff costs capitalised to intangible assets
(39)
(34)
Total personnel expenses3
982
984
General and administrative expenses
729
720
Customer redress
(2)
52
727
772
Bank levies and regulatory fees
114
138
Total operating expenses
1,823
1,894
1. Comprises a defined contribution charge of €99m (2024: a charge of €96m), a defined benefit expense charge of €7m (2024: a charge of €3m), and a long-term disability payments/death in service
benefit charge of €11m (2024: a charge of €11m). For details of retirement benefits, see note 26.
2. Represents charges for voluntary severance programmes.
3. The Group implemented a new ‘Save As You Earn’ (SAYE) scheme in September 2025. The scheme is available to eligible employees in Ireland and the UK and is classified as an equity-settled share-
based payment arrangement under IFRS 2 Share-based payment. The expense related to the SAYE scheme is not material for the year.
The average number of employees for 2025 and 2024 is set out in note 46.
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Notes to the Consolidated Financial Statements continued
11 Net credit impairment charge
The following table analyses the income statement net credit impairment charge on financial instruments for the years to 31 December 2025 and 2024.
2025
2024
Net remeasurement of ECL allowance
Measured
at amortised
cost
Measured
at FVOCI
Total
Measured
at amortised
cost
Measured
at FVOCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
Loans and advances to banks
—
—
—
—
—
—
Loans and advances to customers
(204)
—
(204)
(92)
—
(92)
Securities financing
1
—
1
—
—
—
Loan commitments
3
—
3
1
—
1
Financial guarantee contracts
5
—
5
2
—
2
Investment securities – debt
—
(3)
(3)
2
—
2
Net remeasurement of ECL allowance
(195)
(3)
(198)
(87)
—
(87)
Recoveries of amounts previously written-off
26
—
26
32
—
32
Net credit impairment charge
(169)
(3)
(172)
(55)
—
(55)
12 Auditor's remuneration
The disclosure of auditor’s remuneration is in accordance with Section 322 of the Companies Act 2014. This mandates disclosure of remuneration paid/
payable to the Group Auditor only (PricewaterhouseCoopers), for services relating to the audit of the Group and relevant subsidiary financial statements
in the categories set out below.
2025
2024
Auditor’s remuneration (excluding VAT)
Ireland
Overseas
Total
Ireland
Overseas
Total
€ m
€ m
€ m
€ m
€ m
€ m
Audit of Group financial statements
3.4
0.9
4.3
3.9
0.9
4.8
Other assurance services
1.2
0.1
1.3
1.5
0.1
1.6
Other non-audit services
—
—
—
—
—
—
Total auditor’s remuneration
4.6
1.0
5.6
5.4
1.0
6.4
The amounts in the table above relate to fees payable to PricewaterhouseCoopers, split between those payable to the statutory auditors,
PricewaterhouseCoopers in Ireland and fees paid to overseas auditors, PricewaterhouseCoopers LLP in the UK.
Other assurance services include remuneration for additional assurance issued by the firms outside of the audit of the statutory financial statements of
the Group and its subsidiaries such as sustainability reporting, letters of comfort and other regulatory reporting. This remuneration includes
assignments where the Auditor, in Ireland, provides assurance to third parties.
The Group policy on the provision of non-audit services to the parent and its subsidiary companies includes the prohibition on the provision of certain
services and the pre-approval by the Board Audit Committee of the engagement of the Auditor in other instances. The Board Audit Committee has
reviewed the level of non-audit services remuneration and is satisfied that it has not affected the independence of the Auditor. It is Group policy to
subject all large consultancy assignments to competitive tender, where appropriate.
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13 Taxation
2025
2024
€ m
€ m
Current tax
Corporation tax in Ireland
Current tax on income for the year
(8)
(8)
Adjustments in respect of prior years
—
1
(8)
(7)
Foreign tax
Current tax on income for the year
(44)
(52)
Adjustments in respect of prior years
—
(1)
(44)
(53)
Current tax charge for the year
(52)
(60)
Deferred tax
Origination and reversal of temporary differences
(4)
4
Adjustments in respect of prior years
(2)
(1)
Recognition of deferred tax assets in respect of current and prior period losses
64
25
Reduction in carrying value of deferred tax assets in respect of carried forward losses
(266)
(319)
Deferred tax charge for the year
(208)
(291)
Total tax charge for the year
(260)
(351)
Effective tax rate
10.8 %
13.0 %
Factors affecting the effective tax rate
The following table sets out the difference between the tax charge that would result from applying the standard corporation tax rate in Ireland of 12.5%
and the actual tax charge for the year:
2025
2024
€ m
%
€ m
%
Profit before tax
2,399
2,702
Tax charge at standard corporation tax rate in Ireland of 12.5%
(300)
12.5
(338)
12.5
Effects of:
Foreign profits taxed at other rates
(36)
1.5
(34)
1.3
Expenses not deductible for tax purposes
(16)
0.7
(20)
0.6
Exempted income, income at reduced rates and tax credits
28
(1.2)
1
—
Share of results of equity accounted investments shown post tax in the income statement
3
(0.1)
5
(0.2)
Income taxed at higher tax rates
(5)
0.2
(7)
0.3
Tax legislation on equity distributions
12
(0.5)
11
(0.4)
Deferred tax assets not recognised/reversal of amounts previously not recognised
64
(2.7)
30
(1.1)
Other tax adjustments
(8)
0.3
1
—
Adjustments to tax charge in respect of prior years
(2)
0.1
—
—
Tax charge
(260)
10.8
(351)
13.0
The Group is within the scope of the global minimum top-up tax under Pillar Two tax legislation from 1 January 2024, however the Group is not liable to
any additional top-up tax expense for the period in Ireland nor in any of the other jurisdictions in which it operates. This is because the Pillar Two effective
tax rate in each of those jurisdictions is above 15% or transitional exemptions apply.
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Notes to the Consolidated Financial Statements continued
13 Taxation continued
Recognised within other comprehensive income in the Consolidated Statement of Comprehensive Income
The following table sets out the movements recognised in other comprehensive income in the period before and after the effect of tax.
2025
2024
Gross
Tax
Net
Gross
Tax
Net
€ m
€ m
€ m
€ m
€ m
€ m
Revenue reserves
Remeasurement of retirement benefit assets/(liabilities)
(23)
7
(16)
(18)
5 (13)
Total
(23)
7
(16)
(18)
5 (13)
Foreign currency translation reserves
Net gains/(losses) on net investment hedges
69
(9)
60
(66)
8 (58)
Net exchange differences on translation of foreign operations
(140)
—
(140)
127
— 127
Total
(71)
(9) (80)
61
8
69
Cash flow hedging reserves
Amounts reclassified from the cash flow hedging reserves to the income statement as a
reclassification adjustment when the hedged item affects the income statement
56
(7)
49
569 (71) 498
Hedging (losses)/gains recognised in other comprehensive income
(271)
22
(249)
(382)
51 (331)
Total
(215)
15
(200)
187 (20) 167
Investment debt securities at FVOCI reserves
Fair value losses reclassified to income statement
76
(8)
68
77
(4)
73
Fair value gains/(losses) recognised in other comprehensive income
98
(13)
85
(148)
18 (130)
Total
174
(21) 153
(71)
14 (57)
Total movements recognised in other comprehensive income
(135)
(8) (143)
159
7 166
14 Trading portfolio
2025
2024
Trading
portfolio
assets
Trading
portfolio
liabilities
Trading
portfolio
assets
Trading
portfolio
liabilities
€ m
€ m
€ m
€ m
Equity securities
10
(3)
15
(5)
Debt securities
276
(522)
121
(257)
Total
286
(525)
136
(262)
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15 Derivative financial instruments
Derivatives are entered into to service customer requirements, to manage the Group’s interest rate, exchange rate, equity and credit exposures and for
trading purposes. Derivative instruments are contractual agreements whose value is derived from price movements in underlying assets, interest rates,
foreign exchange rates or indices. All hedging instruments are included within derivative financial instruments on the statement of financial position and
ineffectiveness is included within net trading income in the income statement.
Market risk is the exposure to potential loss through holding interest rate, exchange rate and equity positions in the face of absolute and relative price
movements, interest rate volatility, movements in exchange rates and shifts in liquidity. Credit risk is the exposure to loss should the counterparty to a
financial instrument fail to perform in accordance with the terms of the contract.
Credit risk in derivative contracts is the risk that the Group’s counterparty in the contract defaults prior to maturity at a time when the Group has a claim
on the counterparty under the contract (i.e. contracts with a positive fair value). The Group would then have to replace the contract at the current market
rate, which may result in a loss. For risk management purposes, consideration is taken of the fact that not all counterparties to derivative positions are
expected to default at the point where the Group is most exposed to them. While notional principal amounts are used to express the volume of
derivative transactions, the amounts subject to credit risk are much lower because derivative contracts typically involve payments based on the net
differences between specified prices or rates.
The following table presents the notional principal amount of interest rate, exchange rate, equity, credit and commodity derivative contracts together
with the positive and negative fair values attaching to those contracts at 31 December 2025 and 2024:
2025
2024
Notional
principal
amount
Fair values
Notional
principal
amount
Fair values
Assets
Liabilities
Assets
Liabilities
Derivative financial instruments
€ m
€ m
€ m
€ m
€ m
€ m
Interest rate contracts
100,910
1,582
(1,366)
86,671
2,109
(1,689)
Exchange rate contracts
17,460
59
(38)
8,685
35
(112)
Equity contracts
24
—
(1)
41
—
—
Credit derivatives
35
—
(1)
83
—
(3)
Virtual corporate power purchase agreement
2
—
(2)
2
—
(3)
Total
118,431
1,641
(1,408)
95,482
2,144
(1,807)
The Group uses the same credit control and risk management policies in undertaking all off-balance sheet commitments as it does for on-balance sheet
lending including counterparty credit approval, limit setting and monitoring procedures. In addition, derivative instruments are subject to the market risk
policy and control framework as described in the Risk Management section of this report.
The Group has the following concentration of exposures in respect of notional principal amount and positive fair value of derivative financial
instruments. The concentrations are based primarily on the location of the office recording the transaction.
Notional principal amount
Positive fair value
2025
2024
2025
2024
Geographical information
€ m
€ m
€ m
€ m
Ireland
114,588
91,221
1,598
2,064
United Kingdom
3,737
4,174
41
78
United States of America
106
87
2
2
Total
118,431
95,482
1,641
2,144
Trading book activities
The Group maintains trading positions in a variety of financial instruments including derivatives. These derivative financial instruments include interest
rate, foreign exchange, equity and credit derivatives. Most of these positions arise as a result of activity generated by corporate customers while the
remainder represent trading decisions of the Group’s derivative and foreign exchange traders with a view to generating incremental income.
All trading activity is conducted within risk limits approved by the Board. Systems are in place which measure risks and profitability associated with
derivative trading positions as market movements occur. Independent risk control units monitor these risks.
Banking book activities
In addition to meeting customer needs, the Group’s principal objective in holding or transacting derivatives is the management of interest rate and
foreign exchange risks which arise within the banking book through the operations of the Group as outlined below. Market risk within the banking book is
also controlled through limits approved by the Board and monitored by an independent second line risk function.
The operations of the Group are exposed to interest rate risk arising from the fact that assets and liabilities mature or reprice at different times or
in differing amounts. Derivatives are used to modify the repricing or maturity characteristics of assets and liabilities in a cost-efficient manner. This
flexibility helps the Group to achieve interest rate risk management objectives. Similarly, foreign exchange derivatives can be used to hedge the Group’s
exposure to foreign exchange risk.
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Notes to the Consolidated Financial Statements continued
15 Derivative financial instruments continued
Banking book activities continued
The fair values of derivatives fluctuate as the underlying market interest rates or foreign exchange rates change. If the derivatives are purchased or sold
as hedges of statement of financial position items, the change in fair value of the derivatives will generally be offset by the change in fair value of the
hedged items.
To achieve its risk management objectives, the Group uses a combination of derivative financial instruments, particularly interest rate swaps, cross
currency interest rate swaps, futures, options and currency swaps, as well as other contracts. The risk that counterparties to derivative contracts (both
trading and banking book) might default on their obligations is monitored on an ongoing basis. The level of credit risk is minimised by dealing with
counterparties of good credit standing, by the use of Credit Support Annexes and ISDA Netting Agreements and increased clearing of derivatives through
Central Clearing Counterparties (CCPs). As the traded instruments are recognised at fair value, any changes in fair value directly affect reported income
for a given period.
The following table shows the notional principal amount and the fair value of derivative financial instruments analysed by product and purpose at
31 December 2025 and 2024. A description of how the fair values of derivatives is determined is set out in note 42.
2025
2024
Notional
principal
amount
Fair values
Notional
principal
amount
Fair values
Assets
Liabilities
Assets
Liabilities
Derivatives held for trading
€ m
€ m
€ m
€ m
€ m
€ m
Interest rate swaps – over-the-counter (OTC)
4,773
61
(238)
5,700
107
(321)
Interest rate swaps – OTC CCPs
4,917
235
(37)
5,111
274
(36)
Interest rate options bought and sold – OTC
3,044
6
(5)
3,701
9
(10)
Interest rate futures bought and sold – exchange traded
362
—
(1)
221
—
—
Total interest rate derivatives
13,096
302
(281)
14,733
390
(367)
Foreign exchange contracts – OTC
16,061
46
(34)
7,246
35
(88)
Total foreign exchange derivatives
16,061
46
(34)
7,246
35
(88)
Equity total return swaps – OTC
24
—
(1)
41
—
—
Credit derivatives – OTC CCPs
35
—
(1)
83
—
(3)
Virtual corporate power purchase agreement
2
—
(2)
2
—
(3)
Total equity, credit and other derivatives
61
—
(4)
126
—
(6)
Total derivatives held for trading
29,218
348
(319)
22,105
425
(461)
Derivatives held for hedging
Interest rate swaps – OTC
—
—
—
183
5
—
Interest rate swaps – OTC CCPs
52,492
909
(339)
29,783
1,050
(363)
Total derivatives designated as fair value hedges
52,492
909
(339)
29,966
1,055
(363)
Interest rate swaps – OTC
58
—
(1)
222
—
(5)
Interest rate swaps – OTC CCPs
34,629
332
(745)
41,110
664
(915)
Cross currency interest rate swaps - OTC
635
39
—
640
—
(39)
Total derivatives designated as cash flow hedges
35,322
371
(746)
41,972
664
(959)
Forward exchange contracts – OTC
1,399
13
(4)
1,439
—
(24)
Total derivatives designated as net investment hedges
1,399
13
(4)
1,439
—
(24)
Total derivatives held for hedging
89,213
1,293
(1,089)
73,377
1,719
(1,346)
Total derivative financial instruments
118,431
1,641
(1,408)
95,482
2,144
(1,807)
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15 Derivative financial instruments continued
Nominal values and average interest rates by residual maturity
At 31 December 2025 and 2024, the Group held the following hedging instruments of interest rate risk and foreign exchange rate risk in fair value, cash
flow and net investment hedges respectively. The Group has disclosed, by risk category, the profile of the timing of the nominal amount of the hedging
instruments in line with the requirements of IFRS 7. In 2024 additional voluntary disclosures were provided for the cash flows by hedged item. The 2024
comparatives have been re-presented to align with the disclosure in 2025.
2025
Up to 1 year
1 to 2 years
2 to 5 years
5 years +
Total
Fair value hedges – Interest rate risk
Assets
Interest rate swaps – nominal principal amount (€ m)
1,600
1,844
5,726
9,297
18,467
Average interest rate (%)1
0.77
0.90
1.21
2.29
1.69
Liabilities
Interest rate swaps – nominal principal amount (€ m)
2,283
4,097
10,121
17,524
34,025
Average interest rate (%)1
1.84
2.41
3.56
2.69
2.86
Total nominal amount of fair value hedges – Interest rate risk
3,883
5,941
15,847
26,821
52,492
Cash flow hedges – Interest rate risk
Assets
Interest rate and cross currency swaps – nominal principal amount (€ m)
7,659
3,161
8,444
14,159
33,423
Average interest rate (%)2
3.27
2.72
1.33
2.67
2.47
Liabilities
Interest rate and cross currency swaps – nominal principal amount (€ m)
405
239
1,003
252
1,899
Average interest rate (%)2
2.48
2.87
2.93
2.55
2.78
Total nominal amount of cash flow hedges – Interest rate risk
8,064
3,400
9,447
14,411
35,322
Net investment hedges – Forward exchange risk
Nominal principal amount (€ m)
1,399
—
—
—
1,399
Forward FX rate (%)3
0.87
—
—
—
0.87
2024
Up to 1 year
1 to 2 years
2 to 5 years
5 years +
Total
Fair value hedges – Interest rate risk
Assets
Interest rate swaps – nominal principal amount (€ m)
785
1,617
5,949
7,818
16,169
Average interest rate (%)1
0.94
0.77
1.02
1.86
1.39
Liabilities
Interest rate swaps – nominal principal amount (€ m)
1,972
1,750
6,083
3,992
13,797
Average interest rate (%)1
4.73
1.86
3.82
4.18
3.80
Total nominal amount of fair value hedges – Interest rate risk
2,757
3,367
12,032
11,810
29,966
Cash flow hedges – Interest rate risk
Assets
Interest rate and cross currency swaps – nominal principal amount (€ m)
4,430
10,627
7,182
17,526
39,765
Average interest rate (%)2
3.06
3.27
1.78
2.34
2.57
Liabilities
Interest rate and cross currency swaps – nominal principal amount (€ m)
213
459
962
573
2,207
Average interest rate (%)2
2.29
2.39
2.61
2.76
2.57
Total nominal amount of cash flow hedges – Interest rate risk
4,643
11,086
8,144
18,099
41,972
Net investment hedges – Forward exchange risk
Nominal principal amount (€ m)
1,231
208
—
—
1,439
Forward FX rate (%)3
0.85
0.87
—
—
0.85
1. Represents the fixed rate on the hedged item which is being swapped for a variable rate.
2. This is the average interest rate on the fixed leg of swap agreements where the variable rate on the assets and liabilities in cash flow hedges is being swapped for a fixed rate. Pay fixed cash flow hedges
are used to hedge the cash flows on variable rate liabilities and receive fixed cash flow hedges are used to hedge the cash flows on variable rate assets.
3. Being the forward FX rates on the hedging derivatives which are being used to hedge the Group’s net investment in foreign operations.
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Notes to the Consolidated Financial Statements continued
15 Derivative financial instruments continued
Fair value hedges of interest rate risk
The tables below set out the amounts relating to items designated as (a) hedging instruments and (b) hedged items in fair value hedges of interest rate
risk together with the related hedge ineffectiveness at 31 December 2025 and 2024. The Group has disclosed, by risk category, tabular information in
relation to the hedging instrument for fair value hedges in line with the requirements of IFRS 7. In 2024 additional voluntary disclosures were provided in
relation to hedged items. The 2024 comparatives have been re-presented to align with the disclosure in 2025.
2025
Nominal
amount of
hedging
instrument
Carrying amount of
hedging instrument
Change in fair
value used for
calculating
hedge
ineffectiveness
for the year
Hedge
ineffectiveness
recognised in the
income
statement
Assets
Liabilities
Hedging instrument
€ m
€ m
€ m
€ m
€ m
Interest rate swaps
52,492
909
(339)
(96)
(9)
2025
Line item in Statement of Financial Position where hedged
item is included
Carrying amount
of hedged item
recognised in
Statement of Financial
Position
Accumulated amount of fair
value hedge adjustments on
the hedged item included in
the carrying amount of the
hedged item or presented
separately on the face of the
Statement of Financial
Position
Change in fair
value of hedged
item used for
calculating
hedge
ineffectiveness
for the year
Remaining
adjustments
for
discontinued
hedges
Assets
Liabilities
Assets
Liabilities
€ m
€ m
€ m
€ m
€ m
€ m
Investment securities
17,871
—
—
(643)
(93)
—
Debt securities in issue
—
(7,197)
—
(37)
(57)
—
Tier 2 subordinated liabilities and other capital instruments
—
(2,625)
25
—
—
—
Deposits and advances from customers
—
(24,209)
175
—
239
—
Loans and advances to customers
15
—
—
(1)
(2)
—
17,886
(34,031)
200
(681)
87
—
2024
Nominal
amount of
hedging
instrument
Carrying amount of
hedging instrument
Change in fair
value used for
calculating
hedge
ineffectiveness for
the year
Hedge
ineffectiveness
recognised in
the income
statement
Assets
Liabilities
Hedging instrument
€ m
€ m
€ m
€ m
€ m
Interest rate swaps
29,966
1,055
(363)
(177)
—
2024
Line item in Statement of Financial Position where hedged item
is included
Carrying amount
of hedged item
recognised in Statement
of Financial Position
Accumulated amount of fair
value hedge adjustments on the
hedged item included in
the carrying amount of the
hedged item or presented
separately on the face of the
Statement of Financial Position
Change in fair
value of hedged
item used for
calculating
hedge
ineffectiveness for
the year
Remaining
adjustments for
discontinued
hedges
Assets
Liabilities
Assets
Liabilities
€ m
€ m
€ m
€ m
€ m
€ m
Investment securities
15,172
—
—
(555)
373
—
Debt securities in issue
—
(7,900)
18
—
(69)
—
Tier 2 subordinated liabilities and other capital instruments
—
(1,625)
25
—
(63)
—
Deposits and advances from customers
—
(4,225)
—
(64)
(64)
—
Loans and advances to customers
15
—
1
—
—
—
15,187
(13,750)
44
(619)
177
—
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15 Derivative financial instruments continued
Cash flow hedges of interest rate risk
The tables below set out the amounts relating to (a) items designated as hedging instruments and (b) the hedged items in cash flow hedges of interest
rate risk together with the related hedge ineffectiveness at 31 December 2025 and 2024. The Group has disclosed, by risk category, tabular information
in relation to the hedging instrument for cash flow hedges in line with the requirements of IFRS 7. In 2024 additional voluntary disclosures were provided
in relation to hedged items. The 2024 comparatives have been re-presented to align with the disclosure in 2025.
2025
Carrying amount of the
hedging instrument
Nominal
amount of
the
hedging
instrument
Assets
Liabilities
Change in fair
value of hedging
instrument used
for calculating
hedge
ineffectiveness
in the year
Change in fair
value of
hedging
instrument
recognised in
OCI in the year
Hedge
Ineffectiveness
recognised in
the income
statement
Amounts
reclassified
from the cash
flow hedge
reserve to the
income
statement
Hedging instrument
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Interest rate and cross currency swaps
35,322
371
(746)
(179)
(178)
(1)
(56) 1
2025
Line item in Statement of Financial
Position in which hedged item is included
Change in fair
value of hedged
item used for
calculating hedge
ineffectiveness
for the year
Amounts in the
cash flow
hedging reserves
for continuing
hedges
pre tax
Amounts in the
cash flow hedging
reserves for
continuing hedges
post tax
Amounts remaining
in the cash flow hedging
reserves from any
hedging relationship for
which hedge accounting
is no longer applied
pre tax
Amounts remaining
in the cash flow hedging
reserves from any
hedging relationship for
which hedge accounting
is no longer applied
post tax
€ m
€ m
€ m
€ m
€ m
Loans and advances to customers
149
(437)
(351)
12
10
Deposits and advances from customers
29
23
20
—
—
2024
Carrying amount of the
hedging instrument
Hedging instrument
Nominal
amount of the
hedging
instrument
Assets
Liabilities
Change in fair
value of hedging
instrument used
for calculating
hedge
ineffectiveness
in the year
Change in fair
value of the
hedging
instrument
recognised in
OCI
in the year
Hedge
Ineffectiveness
recognised in
the income
statement
Amounts
reclassified
from the cash
flow hedge
reserve to the
income
statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Interest rate and cross currency swaps
41,972
664
(959)
167
173
(6)
(569) 1
2024
Line item in Statement of Financial Position in
which hedged item is included
Change in fair
value of hedged
item used for
calculating hedge
ineffectiveness
for the year
Amounts
in the cash
flow hedging
reserves for
continuing hedges
pre tax
Amounts
in the cash
flow hedging
reserves for
continuing
hedges
post tax
Amounts remaining
in the cash flow hedging
reserves from any
hedging relationship for
which hedge accounting
is no longer applied
pre tax
Amounts remaining
in the cash flow hedging
reserves from any
hedging relationship for
which hedge accounting is
no longer applied
post tax
€ m
€ m
€ m
€ m
€ m
Loans and advances to customers
(173)
(264)
(189)
25
22
Deposits and advances from customers
—
52
46
—
—
1. Included in the income statement as follows: debit of €82m (2024: debit of €618m) in interest and similar income, credit of €25m (2024: credit of €49m) in interest and similar expense, and a credit of
€1m (2024: Nil) in other income/(expense) transferred from other comprehensive income in respect of cash flow hedges.
Forecast cash flows
The table below sets out the hedged cash flows, including the amortisation of terminated cash flow hedges, which are expected to occur and impact the
income statement in the following periods:
2025
2024
<1 year
1-2 years
2-5 years
>5 years
Total
<1 year
1-2 years
2-5 years
>5 years
Total
Cash flows
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Forecast receivable cash flows
743
570
1,681
1,011
4,005
991
696
1,545
1,016
4,248
Forecast payable cash flows
51
36
57
8
152
77
53
93
29
252
Forecast payable cash flows (including amortisation of
terminated cash flow hedges)
59
35
58
12
164
87
60
91
35
273
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Notes to the Consolidated Financial Statements continued
15 Derivative financial instruments continued
Hedges of net investment in foreign operations
The tables below set out the amounts relating to (a) items designated as hedging instruments and (b) the hedged items in hedges of the net investment
in foreign operations together with the related hedge ineffectiveness at 31 December 2025 and 2024. The Group has disclosed, by risk category, tabular
information in relation to the hedging instrument for hedges of net investment in foreign operations in line with the requirements of IFRS 7. In 2024
additional voluntary disclosures were provided in relation to hedged items. The 2024 comparatives have been re-presented to align with the disclosure
in 2025.
2025
Carrying amount of the
hedging instrument
Hedging Instrument
Nominal
amount of
hedging
instrument
Assets
Liabilities
Change in fair
value of hedging
instrument used
for calculating
hedge
ineffectiveness
in the year
Change in fair
value of hedging
instrument
recognised in
OCI in the year
Hedge
Ineffectiveness
recognised in the
income
statement1
Amounts that have
been transferred
because the
hedged item has
affected the
income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Foreign exchange contracts
1,399
13
(4)
69
69
—
— 1
2025
Line item in
Statement of Financial
Position in which hedged
item is included
Change in fair
value of hedged
item used for
calculating hedge
ineffectiveness
for the year
Amount in the
foreign currency
translation reserves for
continuing hedges
pre tax
Amounts in the foreign
currency translation
reserves for
continuing hedges
post tax
Amounts remaining
in the foreign currency
translation reserves
from any hedging
relationship for which
hedge accounting is no
longer applied
pre tax
Amounts remaining
in the foreign currency
translation reserves from
any hedging relationship for
which hedge
accounting is no
longer applied
post tax
€ m
€ m
€ m
€ m
€ m
Reserves2
(69)
(39)
(34)
(8)
(7)
2024
Carrying amount of the hedging
instrument
Hedging Instrument
Nominal
amount of
hedging
instrument
Assets
Liabilities
Change in fair
value of hedging
instrument used
for calculating
hedge
ineffectiveness
in the year
Change in fair
value of
hedging
instruments
recognised in OCI
in the year
Hedge
Ineffectiveness
recognised in
the income
statement1
Amounts that have
been transferred
because the
hedged item has
affected the
income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Foreign exchange contracts
1,439
—
(24)
(66)
(66)
—
— 1
2024
Line item in
Statement of Financial
Position in which hedged
item is included
Change in fair value
of hedged item used
for calculating hedge
ineffectiveness
for the year
Amount in the foreign
currency translation
reserves for continuing
hedges
pre tax
Amounts in the foreign
currency translation
reserves for continuing
hedges
post tax
Amounts remaining
in the foreign currency
translation reserves from
any hedging relationship
for which hedge
accounting is
no longer applied
pre tax
Amounts remaining in the
foreign currency
translation reserves from any
hedging relationship for which
hedge accounting is no longer
applied
post tax
€ m
€ m
€ m
€ m
€ m
Reserves2
66
(108)
(94)
(8)
(7)
1. Included in other (expense)/income in the income statement.
2. Relates to the net investment in AIB Group (UK) p.l.c.
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16 Loans and advances to banks
2025
2024
€ m
€ m
At amortised cost
Funds placed with central banks
229
241
Funds placed with other banks1
325
400
Loans to central banks and banks1
554
641
Cash collateral advanced to other banks1,2
47
680
Loans and advances to central banks and banks1
601
1,321
ECL
—
—
Total loans and advances to banks1
601
1,321
of which comprises restricted balances held in respect of certain payables3
7
6
of which comprises reserve balances maintained with the Bank of England as required by law
229
241
1. Refer to note 1 (c) for further information about the change in presentation to the financial statements.
2. Relates to cash collateral payable to derivative and repurchase agreement counterparties.
3. Included in other liabilities in the Consolidated Statement of Financial Position are customer funds held for Payzone’s parking solution.
Loans and advances to banks by geographical area1
2025
2024
€ m
€ m
Ireland
276
989
United Kingdom
311
317
United States of America
14
15
Total loans and advances to banks by geographical area
601
1,321
1. The classification of loans and advances to banks by geographical area is based primarily on the location of the office recording the transaction.
17 Loans and advances to customers
2025
2024
€ m
€ m
At amortised cost
Loans to customers1
70,277
69,403
Amounts receivable under finance leases and hire purchase contracts
1,891
1,716
Gross loans to customers1
72,168
71,119
Cash collateral advanced to customers1,2
91
50
Gross loans and advances to customers1
72,259
71,169
ECL allowance
(1,143)
(1,344)
Net loans and advances to customers1
71,116
69,825
Mandatorily at fair value through profit or loss
Loans and advances to customers
84
64
Total loans and advances to customers
71,200
69,889
of which comprises amounts repayable on demand
1,814
2,319
of which comprises amounts due from equity accounted investments3
56
66
1. Refer to note 1 (c) for further information about the change in presentation to the financial statements.
2. Relates to cash collateral placed with derivative counterparties.
3. Undrawn commitments amount to €16m and are less than one year (31 December 2024: €208m).
For details of credit quality of loans and advances to customers, including forbearance, refer to the sections denoted as ‘audited’ in 2.1.2 to 2.1.6 of the
Risk Management report.
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Notes to the Consolidated Financial Statements continued
17 Loans and advances to customers continued
Amounts receivable under finance leases and hire purchase contracts
The following balances principally comprise leasing arrangements and hire purchase agreements of vehicles, plant, machinery and equipment:
2025
2024
€ m
€ m
Gross receivables
Not later than 1 year
703
647
Later than 1 year and not later than 2 years
539
493
Later than 2 years and not later than 3 years
406
361
Later than 3 years and not later than 4 years
242
222
Later than 4 years and not later than 5 years
122
109
Later than 5 years
29
24
Total
2,041
1,856
Unearned future finance income
(160)
(151)
Deferred costs incurred on origination
10
11
Present value of minimum payments
1,891
1,716
ECL allowance for uncollectible minimum payments receivable1
40
39
1. Included in ECL allowance on loans and advances to customers in note 19.
18 Securities financing
2025
2024
Banks
Customers
Total
Banks
Customers
Total
€ m
€ m
€ m
€ m
€ m
€ m
Assets
Reverse repurchase agreements
4,185
267
4,452
3,380
175
3,555
Securities borrowing transactions
1,374
1,513
2,887
1,848
1,240
3,088
Total1
5,559
1,780
7,339
5,228
1,415
6,643
Liabilities
Securities sold under agreements to repurchase
682
—
682
191
5
196
Total
682
—
682
191
5
196
1. Classified as ECL Stage 1 and have a Nil ECL at 31 December 2025 (31 December 2024: €1m).
In accordance with the terms of the reverse repurchase agreements and securities borrowing agreements, the Group accepts collateral that it is
permitted to sell or repledge in the absence of default by the owner of the collateral. At 31 December 2025, the total fair value of the collateral received
was €7,339 million (2024: €6,643 million), none of which had been resold or repledged. These transactions were conducted under terms that are usual
and customary to standard reverse repurchase agreements and securities borrowing agreements.
Securities sold under agreements to repurchase mature within six months and are secured by debt securities and eligible assets. At 31 December 2025, in
relation to securities sold under agreements to repurchase, the Group had pledged collateral with a fair value of €682 million (2024: €196 million). These
transactions were conducted under terms that are usual and customary to standard securities sold under repurchase transactions.
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19 ECL allowance on financial assets
The following table shows the movements on the ECL allowance on financial assets. Further information is disclosed in the Gross Loans and ECL
movement tables in the Risk Management section of this report. See pages 205 to 209.
2025
2024
€ m
€ m
At 1 January
1,347
1,525
Net remeasurement of ECL allowance – investment securities – debt
—
(2)
Net remeasurement of ECL allowance – banks
—
—
Net remeasurement of ECL allowance – customers
204
92
Net remeasurement of ECL allowance – securities financing
(1)
—
Changes in ECL allowance due to write-offs
(114)
(126)
Changes in ECL allowance due to disposals
(286)
(173)
Exchange translation adjustments
(13)
16
Other
8
15
At 31 December
1,145
1,347
Amount included in financial assets measured at amortised cost:
Investment securities – debt
1
1
Loans and advances to banks
—
—
Loans and advances to customers
1,143
1,344
Securities financing
—
1
Other assets – stockbroking client debtors
1
1
At 31 December
1,145
1,347
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Notes to the Consolidated Financial Statements continued
20 Investment securities
The following table analyses the carrying value of investment securities at 31 December 2025 and 2024.
2025
2024
€ m
€ m
Debt securities at FVOCI
Government securities
4,156
3,013
Supranational banks and government agencies securities
4,421
3,132
Asset backed securities
107
153
Bank securities
6,584
6,532
Corporate securities
933
738
Total debt securities at FVOCI1
16,201
13,568
of which provided as collateral
2,392
1,963
Debt securities at amortised cost
Government securities
2,206
2,226
Supranational banks and government agencies securities
241
237
Asset backed securities
2,329
2,113
Bank securities
80
79
Corporate securities
187
148
Total debt securities at amortised cost
5,043
4,803
of which provided as collateral
1,234
859
Total debt securities
21,244
18,371
of which provided as collateral
3,626
2,822
Equity securities
Equity securities at FVTPL
304
297
Total equity securities
304
297
Total investment securities
21,548
18,668
The following table analyses the carrying amount of debt securities by ECL stage:
2025
2024
€ m
€ m
Gross amount
Stage 1
21,245
18,372
Stage 2
—
—
Total debt securities
21,245
18,372
ECL on debt securities at amortised cost
(1)
(1)
Carrying value
21,244
18,371
1. The ECL of €5m (2024: €2m) on debt securities at FVOCI does not reduce the carrying amount, but an amount equal to the allowance is recognised in OCI as an accumulated impairment amount, with
corresponding impairment gains or losses recognised in the income statement.
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21 Investments accounted for using the equity method
2025
2024
Associates
Joint
venture
Total
Associates
Joint
venture
Total
€ m
€ m
€ m
€ m
€ m
€ m
Share of net assets including goodwill
At 1 January
243
105
348
208
102
310
Investment during the year
27
7
34
27
10
37
Disposal during the year1
(203)
—
(203)
—
—
—
Dividends received
—
—
—
(25)
—
(25)
Share of results of equity accounted investments (after tax)
22
(5)
17
33
(7)
26
At 31 December
89
107
196
243
105
348
Amounts recognised in the income statement
Profit on disposal of associate1
157
—
157
—
—
—
Share of results of equity accounted investments (after tax)2
22
(5)
17
33
(7)
26
Income from equity accounted investments
179
(5)
174
33
(7)
26
1. In 2025, the Group disposed of its 49.9% shareholding in its principal associate, AIB Merchant Services.
2. Share of results of equity accounted investments includes €22m (2024: €34m) relating to AIB Merchant Services up to the date of disposal.
Details of the Group’s associates and joint venture
Investments in associates at 31 December 2025 comprise the Group’s investment in Vianova DAC (formerly Clearpay DAC), First Homes Scheme DAC
and Autolease Fleet Management Ltd. The investment in joint venture comprises the Group’s investment in AIB life, being the Group’s joint venture with
Great-West Lifeco Inc. None of the investments are considered individually material to the Group.
Transactions with the Group’s associates and joint venture
Banking transactions between the Group and its associates and joint venture are entered into in the normal course of business. For further information
see notes 17 and 28. There was no unrecognised share of losses of associates or joint ventures at 31 December 2025 or 2024.
Significant restrictions
There is no significant restriction on the ability of the associates or joint ventures to transfer funds to the Group in the form of cash or dividends, or to
repay loans or advances made by the Group.
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Notes to the Consolidated Financial Statements continued
22 Intangible assets and goodwill
Software
externally
purchased
Software
internally
generated
Software
under
construction
Goodwill
Other
Total
€ m
€ m
€ m
€ m
€ m
€ m
Cost
At 1 January
216
1,899
164
128
42
2,449
Additions
4
117
155
—
—
276
Transfers in/(out)
—
92
(92)
—
—
—
Amounts written-off1
(51)
(10)
(2)
—
—
(63)
Exchange translation adjustments
—
(3)
—
—
—
(3)
At 31 December
169
2,095
225
128
42
2,659
Accumulated amortisation/impairment
At 1 January
191
1,288
—
—
36
1,515
Amortisation for the year2
11
203
—
—
5
219
Impairment for the year2
—
1
2
—
—
3
Amounts written-off1
(51)
(10)
(2)
—
—
(63)
Exchange translation adjustments
—
(2)
—
—
—
(2)
At 31 December
151
1,480
—
—
41
1,672
Carrying value at 31 December
18
615
225
128
1
987
2025
2024
Software
externally
purchased
Software
internally
generated
Software
under
construction
Goodwill
Other
Total
€ m
€ m
€ m
€ m
€ m
€ m
Cost
At 1 January
237
1,805
158
128
42
2,370
Additions
13
106
113
—
—
232
Transfers in/(out)
—
105
(105)
—
—
—
Amounts written-off1
(34)
(120)
(2)
—
—
(156)
Exchange translation adjustments
—
3
—
—
—
3
At 31 December
216
1,899
164
128
42
2,449
Accumulated amortisation/impairment
At 1 January
214
1,201
—
—
30
1,445
Amortisation for the year2
11
205
—
—
6
222
Impairment for the year2
—
—
2
—
—
2
Amounts written-off1
(34)
(120)
(2)
—
—
(156)
Exchange translation adjustments
—
2
—
—
—
2
At 31 December
191
1,288
—
—
36
1,515
Carrying value at 31 December
25
611
164
128
6
934
1. Relates to assets which are no longer in use with a Nil carrying value.
2. Included in ‘Impairment and amortisation of intangible assets’ in the consolidated income statement.
Future capital expenditure in relation to both intangible assets and property, plant and equipment is set out in note 23.
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23 Property, plant and equipment
2025
Owned assets
Leased assets
Property
Equipment
Assets under
construction
Right-of-use assets
Total
Freehold
Long
leasehold
Leasehold
under
50 years
Property
Other
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Cost
At 1 January
176
37
120
353
10
421
5
1,122
Transfers in/(out)
4
—
4
1
(9)
—
—
—
Additions
5
—
3
31
20
14
1
74
Transfers to held for sale
—
—
—
—
—
—
—
—
Amounts written-off1
(3)
—
(10)
(105)
—
(12)
(1)
(131)
Exchange translation adjustments
(1)
—
—
(1)
—
(3)
—
(5)
At 31 December
181
37
117—
279
21
420
5
1,060
Accumulated depreciation/impairment
At 1 January
60
15
67
288
—
174
2
606
Depreciation charge for the year2
6
—
8
21
—
33
1
69
Impairment charge for the year2
—
—
—
—
—
—
—
—
Amounts written-off1
(3)
—
(10)
(105)
—
(12)
(1)
(131)
Transfers to held for sale
—
—
—
—
—
—
—
—
Exchange translation adjustments
—
—
—
—
—
(1)
—
(1)
At 31 December
63
15
65
204
—
194
2
543
Carrying value at 31 December
118
22
52
75
21
226
3
517
2024
Owned assets
Leased assets
Property
Equipment
Assets under
construction
Right-of-use assets
Total
Freehold
Long
leasehold
Leasehold
under
50 years
Property
Other
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Cost
At 1 January
173
39
109
370
17
443
5
1,156
Transfers in/(out)
1
—
13
2
(16)
—
—
—
Additions
1
—
2
13
9
8
1
34
Transfers to held for sale
—
(2)
—
—
—
—
—
(2)
Amounts written-off1
—
—
(4)
(33)
—
(32)
(1)
(70)
Exchange translation adjustments
1
—
—
1
—
2
—
4
At 31 December
176
37
120
353
10
421
5
1,122
Accumulated depreciation/impairment
At 1 January
54
14
61
298
—
171
—
598
Depreciation charge for the year2
5
1
9
22
—
34
2
73
Impairment charge for the year2
1
1
1
1
—
—
—
4
Amounts written-off1
—
—
(4)
(33)
—
(32)
(1)
(70)
Transfers to held for sale
—
(1)
—
—
—
—
—
(1)
Exchange translation adjustments
—
—
—
—
—
1
1
2
At 31 December
60
15
67
288
—
174
2
606
Carrying value at 31 December
116
22
53
65
10
247
3
516
1. Relates to assets which are no longer in use with a Nil carrying value.
2. Included in ‘Impairment and depreciation of property, plant and equipment’ in the consolidated income statement.
The net carrying value of property occupied by the Group for its own activities was €183 million (2024: €182 million) in relation to owned assets and
€226 million in relation to right-of-use assets (2024: €247 million), excluding those held as disposal groups and non-current assets held for sale.
Property leased to others by the Group had a net carrying value of €9 million (2024: €9 million).
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Notes to the Consolidated Financial Statements continued
23 Property, plant and equipment continued
Future capital expenditure
The table below shows future capital expenditure in relation to both property, plant and equipment and intangible assets (excluding right-of-use assets).
2025
2024
€ m
€ m
Estimated outstanding commitments for capital expenditure not provided for in the financial statements1
58
2
Capital expenditure authorised but not yet contracted for1
—
14
1. At 31 December 2025, the Group had a higher level of contractual commitments for capital expenditure compared to the previous year. As a result of these increased commitments, there was no
outstanding authorised capital expenditure that had been approved that had not yet been contracted for.
Leased assets
Property
The Group leases property for its offices and retail branch outlets. Lease terms are negotiated on an individual basis and contain a wide range of
different terms and conditions. Most of these leases carry statutory renewal rights, or include an option to renew the lease for an additional period after
the end of the contract term. Where the Group is likely to exercise these options, this has been taken into account in determining the lease liability and
the right-of-use asset.
Other
The Group leases motor vehicles, ATM offsite locations and IT equipment.
Lease liabilities
A maturity analysis of lease liabilities is shown in note 30.
Amounts recognised in income statement
2025
2024
€ m
€ m
Depreciation expense on right-of-use assets
34
36
Interest on lease liabilities (note 5)
10
9
Amounts recognised in statement of cash flows
2025
2024
€ m
€ m
Total cash outflow for leases during the year
40
43
of which comprises interest expense on lease liabilities (note 30)
10
9
of which comprises principal repayments on lease liabilities (note 30)
30
34
24 Other assets
2025
2024
€ m
€ m
Proceeds due from disposal of loan portfolio1
286
133
Proceeds due from the issuance of debt securities1
—
105
Stockbroking client debtors2
21
11
Items in transit
143
114
Items in course of collection
27
35
Other3
114
77
Total other assets
591
475
Other assets are analysed as follows:
Less than 1 year
569
475
Greater than 1 year
22
—
591
475
1. ECL: Nil (2024: Nil).
2. ECL: €1m (2024: €1m).
3. Includes sundry debtors €28m (2024: €32m) and deferred consideration for the disposal of AIB Merchant Services €26m (2024: Nil).
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25 Deferred taxation
2025
2024
€ m
€ m
Deferred tax assets:
Unutilised tax losses
1,975
2,203
Cash flow hedges
81
73
Transition to IFRS 9
2
3
Assets used in the business
44
47
Retirement benefits
2
3
Assets leased to customers
15
15
Investment securities
—
15
Other
2
3
Total gross deferred tax assets
2,121
2,362
Deferred tax liabilities:
Cash flow hedges
—
(7)
Retirement benefits
(2)
(6)
Assets used in the business
(49)
(51)
Investment securities
(6)
—
Acquisition of subsidiary
—
(1)
Other
(7)
(8)
Total gross deferred tax liabilities
(64)
(73)
Net deferred tax assets
2,057
2,289
Represented on the statement of financial position:
Deferred tax assets
2,074
2,303
Deferred tax liabilities
(17)
(14)
2,057
2,289
Net deferred tax assets at 31 December 2025 of €1,826 million (2024: €2,076 million) are expected to be recovered after more than 12 months. For each
of the years ended 31 December 2025 and 2024, full provision has been made for capital allowances and other temporary differences.
Analysis of movements in deferred taxation
2025
2024
€ m
€ m
At 1 January
2,289
2,558
Exchange translation and other adjustments
(16)
15
Deferred tax through other comprehensive income (note 13)
(8)
7
Income statement1 (note 13)
(208)
(291)
At 31 December
2,057
2,289
1. During 2025 the Group recognised a net charge of €202m to the income statement in respect of deferred tax assets arising from unutilised tax losses (2024: €294m). In addition, the carrying value
decreased by €26m (2024: increase of €23m) due to exchange translation differences and other adjustments. As a result the recognised deferred tax asset relating to unutilised tax losses amounted to
€1,975m at the reporting date (2024: €2,203m).
Commentary on the basis of recognition of deferred tax assets on unused tax losses is included in note 2. The Group's deferred tax asset for unutilised
losses at 31 December 2025 and 2024 comprises the following:
Unutilised tax losses
2025
2024
€ m
€ m
Irish tax losses
1,729
1,995
UK tax losses
219
191
US tax losses
27
17
At 31 December
1,975
2,203
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Notes to the Consolidated Financial Statements continued
25 Deferred taxation continued
For certain other subsidiaries and branches, the Group has concluded that it is more likely than not that there will be insufficient profits to support the
recognition of deferred tax assets. The Group has not recognised deferred tax assets for the following unutilised losses and foreign tax credits at
31 December 2025 and 2024.
Tax losses and foreign tax credits for which no deferred tax asset is recognised
2025
2024
€ m
€ m
Irish tax on unused tax losses
152
155
Foreign tax (UK and USA) on unused tax losses
2,687
3,078
Foreign tax credits for Irish tax purposes
19
19
At 31 December1
2,858
3,252
1. None of these tax losses and foreign tax credits for which no deferred tax asset is recognised have an expiry date.
The aggregate amount of temporary differences associated with investments in subsidiaries, branches and associates for which deferred tax liabilities
have not been recognised amounted to Nil (2024: Nil). Deferred tax recognised directly in equity amounted to Nil (2024: Nil).
26 Retirement benefits
The Group operates a number of defined contribution and defined benefit schemes for employees.
Defined contribution
From 1 January 2014, all Group staff accrue future pension benefits on a defined contribution (DC) basis with a standard employer contribution of 10%.
An additional matched employer contribution, subject to limits based on age bands of 2%, 5% or 8% is also paid into the schemes.
The amount included in operating expenses in respect of DC schemes is €99 million (2024: €96 million) (note 10).
Defined benefit schemes
All defined benefit schemes operated by the Group closed to future accrual no later than 31 December 2013 and staff transferred to defined
contribution schemes for future pension benefits. The most significant defined benefit schemes operated by the Group are the AIB Group Irish Pension
Scheme (the Irish scheme) and the AIB Group UK Pension Scheme (the UK scheme).
Retirement benefits for the defined benefit schemes are calculated by reference to service and final pensionable salary at 31 December 2013. The final
pensionable salary used in the calculation of this benefit for staff is based on their average pensionable salary in the period between 30 June 2009 and
31 December 2013. This calculation of benefit for each staff member will revalue between 1 January 2014 and retirement date in line with the statutory
requirement to revalue deferred benefits. There is no link to any future changes in salaries.
In the main Irish scheme, there are 15,325 members comprising 4,876 pensioners and 10,449 deferred members at 31 December 2025. 7,363
members have benefits accrued from 2007 to 2013 under a hybrid arrangement. In addition, there are 918 members comprising 167 pensioners and
751 deferred members at 31 December 2025 in EBS Defined Benefit Schemes.
(i) Responsibilities for governance
The Trustees of each Group pension scheme are ultimately responsible for the governance of the schemes. In respect of the Irish schemes, the scheme
actuary reviews the statutory minimum funding requirement annually. In the event of a deficit on the statutory funding basis either the Group can meet
the deficit over an agreed period through agreeing a funding proposal with the Trustees and pensions regulator or making a contribution to meet the
deficit. There are currently no funding proposals or contribution requirements in respect of the Irish schemes and the scheme actuary's most recent
review confirmed that the schemes met their statutory funding obligations. Funding arrangements for the UK scheme are described in the asset-liability
matching strategies within this note.
(ii) Risks
Details of the pension risk to which the Group is exposed are set out in the Risk Management section on pages 225 and 226 of this report.
(iii) Valuations
Independent actuarial valuations for the Irish scheme and the UK scheme are carried out on a triennial basis by the schemes’ actuary, Mercer. The most
recent valuation of the Irish scheme was carried out at 30 June 2024 and reported the scheme to be in surplus. The next actuarial valuation of the Irish
scheme will be prepared with an effective date of 30 June 2027 with the results expected by 31 March 2028. No deficit funding is required at this time as
the Irish scheme continues to meet the minimum funding standard. The most recent valuation of the UK scheme was carried out at 31 December 2023.
The next actuarial valuation of the UK scheme will be carried out for 31 December 2026 with the results expected by 31 March 2028.
(iv) Contributions
Total contributions to all defined benefit pension schemes operated by the Group in 2025 amounted to €19 million (2024: €24 million). There were no
contributions made to the Irish scheme in 2025 (2024: Nil). Contributions of £16.1 million were made to the UK scheme (2024: £18.5 million) with
further detail on this provided in the Asset-liability matching strategies within this note. Total contributions to all defined benefit pension schemes
operated by the Group for the year to 31 December 2026 are estimated to be €3 million.
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26 Retirement benefits continued
(v) Financial assumptions
The following table summarises the financial assumptions adopted in the preparation of these financial statements in respect of the main schemes at
31 December 2025 and 2024. The assumptions have been set based upon the advice of the Group’s actuary.
2025
2024
Financial assumptions
%
%
Irish scheme
Rate of increase of pensions in payment
2.10
1.90
Discount rate
4.21
3.52
Inflation assumptions that apply to deferred members’ benefits up to their retirement date
1.70
1.90
UK scheme
Rate of increase of pensions in payment1
2.95
3.20
Discount rate
5.50
5.50
Inflation assumptions (RPI)
2.90
3.10
1. The UK scheme’s long-term inflation (RPI) assumption considers both projected inflation and deflation. The pension increase assumption considers increases in line with RPI but has a floor of 0%.
– Funding of increases in pensions in payment for the Irish scheme
The Board previously determined that the funding of discretionary increases to pensions in payment is a decision to be made by the Board each year. A
process, taking account of all relevant interests and factors was implemented by the Board. These interests and factors include: the advice of the
Actuary; the interests of the members of the scheme; the interests of the employees; the Group’s financial circumstances and ability to pay; the views of
the Trustees and the Group’s commercial interests. As a result of this process, the Group’s judgement is that a constructive obligation to fund future
discretionary pension in payment increases does not exist. The Group decided in February 2025 and 2026 that the funding of discretionary increases
was not appropriate in either year in relation to the Irish scheme.
– Rate of increase of pensions in payment – Irish scheme
Notwithstanding the decisions by the Board not to fund discretionary increases, the Trustee of the Irish scheme awarded an increase of 1.80% in 2025
(2024: increase of 3.40%). Taking this decision by the Trustee into consideration and the financial position of the scheme, the long-term assumption for
future discretionary increases in pensions in payment continues to reflect an assessment of the Trustee’s ability to grant further discretionary increases
without funding from the Group. Having taken actuarial advice, this amount was estimated to increase scheme liabilities by €748 million at 31
December 2025 (31 December 2024: €808 million). This is equivalent to a rate of 2.10% (31 December 2024: 1.90%) for the long-term assumption for
future discretionary increases in pensions in payment (which is the lower of the surplus available to the Trustee to distribute or the long-term inflation
assumption).
(vi) Demographic assumptions
Demographic assumptions include assumptions for mortality, proportions married, commutation and retirement age. The mortality assumption has the
most material impact on changes in demographic assumptions and further details on this assumption are set out below. The life expectancies
underlying the value of the scheme liabilities for the Irish and UK schemes at 31 December 2025 and 2024 are shown in the following table.
Life expectancy – years
Irish scheme
UK scheme
2025
2024
2025
2024
Retiring today age 63
Males
25.2
25.1
24.3
24.2
Females
27.1
27.0
25.9
26.2
Retiring in 10 years at age 63
Males
25.8
25.8
24.2
24.5
Females
27.8
27.8
26.6
27.2
The mortality assumptions for the Irish and UK schemes were updated in 2021 to reflect emerging market experience. The table shows that a member of
the Irish scheme retiring at age 63 on 31 December 2025 is assumed to live on average for 25.2 years for a male (24.3 years for the UK scheme) and 27.1
years for a female (25.9 years for the UK scheme). There will be variation between members but these assumptions are expected to be appropriate for
all members. The table also shows the life expectancy for members aged 53 on 31 December 2025 who will retire in ten years. Younger members are
expected to live longer in retirement than those retiring now, reflecting a decrease in mortality rates in future years due to advances in medical science
and improvements in standards of living.
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Notes to the Consolidated Financial Statements continued
26 Retirement benefits continued
(vii) Movement in defined benefit obligation and scheme assets
The following table sets out the movement in the defined benefit obligation and scheme assets during 2025 and 2024:
2025
2024
Defined
benefit
obligation
Fair
value of
scheme
assets
Asset
ceiling/
minimum
funding1
Net defined
benefit
(liabilities)
assets
Defined
benefit
obligation
Fair
value of
scheme
assets
Asset
ceiling/
minimum
funding1
Net defined
benefit
(liabilities)
assets
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January
(4,950)
5,586
(614)
22
(5,023)
5,690
(650)
17
Included in profit or loss
Past service cost
(4)
—
—
(4)
(1)
—
—
(1)
Interest (cost)/income
(184)
206
(21)
1
(183)
209
(23)
3
Administration costs
—
(4)
—
(4)
—
(5)
—
(5)
(188)
202
(21)
(7)
(184)
204
(23)
(3)
Included in other comprehensive income
Remeasurement loss:
– Actuarial (loss)/gain arising from:
– Experience adjustments2
(70)
—
—
(70)
(45)
—
—
(45)
– Changes in demographic assumptions
6
—
—
6
1
—
—
1
– Changes in financial assumptions
376
—
—
376
84
—
—
84
– Return on scheme assets excluding interest
income
—
(219)
—
(219)
—
(117)
—
(117)
– Asset ceiling/minimum funding adjustments
—
—
(116)
(116)
—
—
59
59
Total remeasurement loss
(23) 3
(18) 3
Translation adjustment on non-Euro schemes
41
(40)
—
1
(36)
38
—
2
353
(259)
(116)
(22)
4
(79)
59
(16)
Other
Contributions by employer
—
19
—
19
—
24
—
24
Benefits paid
264
(264)
—
—
253
(253)
—
—
264
(245)
—
19
253
(229)
—
24
At 31 December
(4,521)
5,284
(751)
12
(4,950)
5,586
(614)
22
Ireland4
UK
Other
31 December
2025
Ireland4
UK
Other
31 December
2024
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Recognised on the statement of financial
position as:
Retirement benefit assets
—
7
12
19
—
20
11
31
Retirement benefit liabilities
—
—
(7)
(7)
—
—
(9)
(9)
Net pension surplus
—
7
5
12
—
20
2
22
1. In recognising the net surplus or deficit on a pension scheme, the funded status of each scheme is adjusted to reflect any minimum funding requirement and any ceiling on the amount that the
sponsor has a right to recover from a scheme.
2. The effects of differences between the previous actuarial assumptions and what has actually occurred.
3. After tax €16m (2024: €13m), see note 13.
4. Includes the Irish and EBS schemes.
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26 Retirement benefits continued
Scheme assets
The Group has disclosed an analysis of scheme assets by asset class in accordance with the requirements of IAS 19. In 2024 additional voluntary
disclosures were provided for certain asset classes. The 2024 comparatives have been re-presented to align with the disclosure in 2025.
2025
2024
€ m
€ m
Cash and cash equivalents
528
148
Quoted equity instruments
710
995
Quoted debt instruments
1,044
1,801
Real estate1,2
282
278
Derivatives
2
(14)
Quoted investment funds
2,069
1,585
Mortgage backed securities2
—
115
Insurance contracts3
649
678
Fair value of scheme assets at 31 December
5,284
5,586
1. Located in Europe.
2. A quoted market price in an active market is not available.
3. Further details on these contracts are set out in the Asset-liability matching strategies section within this note.
Sensitivity analysis for principal assumptions used to measure scheme liabilities
There are inherent uncertainties surrounding the assumptions adopted in calculating the liabilities of the pension schemes. Set out in the table below is
a sensitivity analysis of the key assumptions for the Irish scheme and the UK scheme at 31 December 2025. A sensitivity analysis for the rate of increase
of pensions in payment is not provided for the Irish scheme, as this rate is dependent on the surplus available to the Trustee to distribute and the advice
of the actuary (see page 300). The inflation sensitivities for the UK Scheme are a combination of those relating to deferred members and pensioners.
In the table below, changes in assumptions are independent of each other (i.e. the effect of the reflected change in the discount rate assumes that there
has been no change in the rate of mortality assumption and vice versa).
2025
2024
Irish scheme
defined benefit
obligation
UK scheme
defined benefit
obligation
Irish scheme
defined benefit
obligation
UK scheme
defined benefit
obligation
Increase
Decrease
Increase
Decrease
Increase
Decrease
Increase
Decrease
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Discount rate (0.25% movement)
(82)
86
(18)
16
(101)
106
(19)
18
Inflation (0.25% movement)
25
(24)
15
(18)
39
(37)
17
(19)
Future mortality (1 year change in life expectancy)
79
(79)
22
(19)
106
(106)
16
(18)
Maturity of the defined benefit obligation
The weighted average duration of the Irish scheme at 31 December 2025 is 12 years (2024: 13 years) and of the UK scheme at 31 December 2025 is 11
years (2024: 11 years).
Asset-liability matching strategies
UK scheme
The Group and the Trustee began a substantial de-risking process of the UK scheme in 2019, with the initial purchase of a buy-in for the pensioner
members and an assured payment policy for the deferred pensioner members. The de-risking was completed in 2025 and all members’ benefits are
now substantially covered by buy-in policies which match the amount and timing of the benefits payable to the members covered. Therefore, the value
of the buy-in contract will be equal to the value of the insured liabilities, using the same IAS 19 assumptions. There are liabilities in respect of
Guaranteed Minimum Pension (GMP) equalisation and data true-ups of the buy-in transactions that are expected to be covered by the buy-ins over 2026
and 2027.
To complete the conversion to buy-in, the Group made total payments of £16.1 million in 2025. This was made up of £2 million contributions to meet
scheme expenses and £14.1 million to cover the final buy-in transaction, the expected cost of insuring GMP equalisation and data true-up liabilities, and a
cash buffer to ensure the scheme has sufficient liquidity to pay benefits as they fall due. The Group expects to make payments of £2.6 million in 2026, which
includes £2 million for expected Trustee expenses and an additional £0.6 million in respect of the difference between the initial and final buy-in pricing from
Legal and General Assurance Society (LGAS). These payments and any other related costs are subject to change prior to finalising the buy-in.
Irish scheme
The Irish scheme continued to de-risk in 2025, with further sales of equities and additional investments in its Liability Driven Investment (LDI) portfolio,
which is in place to hedge its interest rate and inflation risk. The LDI portfolio comprises a mixture of nominal bonds, inflation linked bonds and interest
rate and inflation derivatives.
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302
Notes to the Consolidated Financial Statements continued
26 Retirement benefits continued
Other long-term employee benefits
Other long-term employee benefits include additional benefits which the Group provides to employees who suffer prolonged periods of sickness,
subject to the qualifying terms of the insurer. It provides for the partial replacement of income in the event of illness or injury resulting in the employee’s
long-term absence from work.
Furthermore, on the death of an employee before their normal retirement date, the Group has in place insurance policies to cover the additional
financial costs to the Group under the terms of the schemes.
In 2025, the Group contributed €11 million (2024: €11 million) towards insuring these benefits which are included in 'Operating expenses' (note 10).
27 Deposits and advances from banks
2025
2024
€ m
€ m
Central bank – secured
—
6
Other bank – unsecured1
21
27
Deposits by central banks and banks1
21
33
Cash collateral advanced by other banks1,2
135
803
Total deposits and advances from banks1
156
836
1. Refer to note 1 (c) for further information about the change in presentation to the financial statements.
2. Relates to cash collateral received from derivative and repurchase agreement counterparties.
Financial assets pledged for secured borrowings
Financial assets pledged for secured borrowings and providing access to future funding facilities with central banks and banks are detailed in the
following table.
2025
2024
Central
banks
Banks
Total
Central
banks
Banks
Total
€ m
€ m
€ m
€ m
€ m
€ m
Government securities
10
—
10
9
—
9
Other securities1
460
—
460
78
—
78
Total carrying value of financial assets pledged
470
—
470
87
—
87
1. Securities pledged as collateral include third party securities held by the Group and covered bonds secured on pools of residential mortgages that have been issued by and are held by the Group.
28 Deposits and advances from customers
2025
2024
€ m
€ m
Current accounts
64,871
62,657
Demand deposits
32,392
31,126
Time deposits1
19,976
16,033
Customer deposits1
117,239
109,816
Cash collateral advanced from customers1,2
432
67
Total deposits and advances from customers1
117,671
109,883
Deposits and advances from customers are analysed as follows:
Non-interest bearing current accounts
60,950
58,454
Interest bearing deposits, current accounts and short term borrowings
56,721
51,429
Total deposits and advances from customers1
117,671
109,883
of which comprises amounts due to equity accounted investments
19
320
1. Refer to note 1 (c) for further information about the change in presentation to the financial statements.
2. Relates to cash collateral received from derivative and repurchase agreement counterparties.
At 31 December 2025, the Group’s five largest customer deposits amounted to 1% (2024: 1%) of total deposits and advances from customers.
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303
29 Debt securities in issue
2025
2024
€ m
€ m
Issued by AIB Group plc
Euro Medium Term Note Programme
(a)
4,799
5,245
Global Medium Term Note Programme
(a)
2,368
2,628
7,167
7,873
Issued by subsidiaries
Credit linked notes
(b)
114
95
Bonds and other medium term notes
26
27
Commercial paper
(c)
876
837
1,016
959
Total debt securities in issue
8,183
8,832
2025
2024
Analysis of movements in debt securities in issue
€ m
€ m
At 1 January
8,832
8,423
Issued during the year
6,183
4,011
Repurchased
(770)
—
Matured
(5,742)
(3,886)
Amortisation
52
22
Other1
(372)
262
At 31 December
8,183
8,832
1. Includes a positive fair value hedge adjustment of €55m (2024: positive €70m), negative foreign exchange of €428m (2024: positive €192m).
(a) Euro and Global Medium Term Note Programme
All the issuances by AIB Group plc are initially eligible to meet the Group’s MREL requirements. These instruments are redeemable for tax or for
regulatory reasons, subject to the permission of the relevant regulation authority.
Issuances
During 2025, AIB Group plc issued the following senior unsecured notes:
Issue date
Nominal amount
Optional redemption date
Maturity date
Interest rate1
March 2025
€500m
March 2032
March 2033
3.75% Fixed Rate
March 2025
€300m
March 2035
March 2036
4% Fixed Rate
May 2025
$750m
May 2030
May 2031
5.32% Fixed Rate
1. Interest is payable annually, or semi-annually in arrears.
Repurchases
During 2025, AIB Group plc repurchased the following senior unsecured notes:
Repurchase date
Nominal amount
Repurchased nominal
Maturity date
Interest rate
Outstanding nominal
March 2025
€750m
€343m
July 2026
3.625% Fixed Rate
Nil1
May 2025
$750m
$469m
October 2026
7.583% Fixed Rate
Nil2
1. The remaining nominal of €407m was redeemed in July on the call date.
2. The remaining nominal of $281m was redeemed in October on the call date.
(b) Credit linked notes
The following table shows the amortising credit linked notes issued by the Group as part of credit risk transfer transactions. For further information on
Significant Risk Transfer, refer to ‘credit risk mitigants’ on page 185 in the Risk Management section of this report.
Issue date
Initial nominal amount
Optional redemption date
Maturity date
Interest rate1
Reference portfolio
November 2024
€97.5m
January 2028
January 2033
Floating Rate
Corporate loans
December 2025
€49.81m
January 2039
January 2044
Floating Rate
Residential mortgages2
1. Interest is payable quarterly in arrears.
2. During 2025, AIB Group plc executed a significant risk transfer transaction on a reference portfolio of €1.97bn of residential mortgages.
(c) Commercial paper
Allied Irish Banks, p.l.c. introduced a short-term commercial paper programme in 2024. This programme is used as an additional liquidity mechanism
whereby short-term debt, with maturities of typically less than six months, is issued in EUR, GBP and USD.
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Notes to the Consolidated Financial Statements continued
30 Lease liabilities
Analysis of movements in lease liabilities
2025
2024
€ m
€ m
At 1 January
258
282
Lease payments1
(40)
(43)
Interest expense1
10
9
Additions
15
9
Foreign exchange translation adjustments
(2)
1
At 31 December
241
258
1. Comprises principal payments of €30m (2024: €34m) and interest payments of €10m (2024: €9m).
2025
2024
Maturity analysis – contractual undiscounted cash flows:
€ m
€ m
Not later than one year
41
41
Later than one year and not later than five years
121
127
Later than five years
139
160
Total undiscounted lease liabilities at end of year
301
328
31 Other liabilities
2025
2024
€ m
€ m
Notes in circulation
30
33
Items in transit
126
65
Creditors
36
40
Stockbroking client creditors
32
11
Bank drafts
249
252
Items in course of collection
377
321
Other1
382
389
Total other liabilities
1,232
1,111
Other liabilities are analysed as follows:
Less than 1 year
1,158
1,047
Greater than 1 year
74
64
1,232
1,111
1. Includes invoice discounting credit balances on deposits and advances from customers €141m (2024: €120m) and debt securities awaiting settlement Nil (2024: €32m).
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32 Tier 2 subordinated liabilities and other capital instruments
2025
2024
€ m
€ m
Dated loan capital – European Medium Term Note Programme:
Issued by AIB Group plc
€1bn Subordinated Tier 2 Notes
(a)
990
963
€650m Subordinated Tier 2 Notes
(b)
655
662
€1bn Subordinated Tier 2 Notes
(c)
980
—
2,625
1,625
Issued by subsidiaries
€500m Callable Step-up Floating Rate Notes (nominal value €0.2m) due 2035
—
—
£368m 12.5% Subordinated Notes (nominal value £1.715m) due 2035
1
2
£500m Callable Fixed/Floating Rate Notes (nominal value £0.136m) due 2035
—
—
1
2
Total Tier 2 subordinated liabilities and other capital instruments
2,626
1,627
Dated loan capital outstanding is repayable as follows:
5 years or more
2,626
1,627
2025
2024
Analysis of movements in Tier 2 subordinated liabilities and other capital instruments
€ m
€ m
At 1 January
1,627
1,473
Issued during the year
1,000
650
Repurchased
(1)
(502)
Matured
—
(94)
Amortisation
—
3
Other
—
97
At 31 December
2,626
1,627
Dated loan capital issued by AIB Group plc
The following table shows the dated loan capital at 31 December 2025 and 2024:
Nominal
amount
Issue
date
Optional
redemption date
Maturity
date
Interest
rate1
Interest rate reset on
optional redemption date
(a) €1bn
September 2020
May 2026
May 2031
2.875% Fixed Rate
Euro 5 year Mid Swap rate plus a margin of 330bps
(b) €650m
May 2024
May 2030
May 2035
4.625% Fixed Rate
Euro 5 year Mid Swap rate plus a margin of 190bps
(c) €1bn
December 2025
December 2031
December 2036 3.75% Fixed Rate
Euro 5 year Mid Swap rate plus a margin of 140bps
1. Interest is payable annually in arrears.
The Notes may be redeemed in whole, but not in part, at the option of the Group on the optional redemption date, subject to the approval of the
regulatory authorities, with approval being conditional on meeting the requirements of the EU Capital Requirements Regulation.
Dated subordinated loan capital issued by subsidiaries
Following liability management exercises and the Subordinated Liabilities Order (SLO) in 2011, residual balances remained on the dated loan capital
instruments above. The SLO, which was effective from 22 April 2011, changed the terms of all of those outstanding dated loan capital instruments. The
original liabilities were derecognised and new liabilities were recognised, with their initial measurement based on the fair value at the SLO effective date.
The contractual maturity date changed to 2035 as a result of the SLO, and payment of coupons became optional at the discretion of the Group. The
Board of Allied Irish Banks, p.l.c. has considered the matter and as at the date of this report, the Group’s position is that coupons are not paid on these
instruments. These instruments will amortise to their nominal value in the period to their maturity in 2035. In 2025, Allied Irish Banks, p.l.c. repurchased
€1 million (2024: €118 million) nominal of these notes, at a discount to par.
Additional information
The dated loan capital in this section is subordinated in right of payment to senior creditors, including depositors, of the respective issuing entities.
Following the implementation in Ireland of the EU (Bank Recovery and Resolution) Regulations 2015, these notes are loss absorbing at the point
of non-viability.
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Notes to the Consolidated Financial Statements continued
33 Provisions for liabilities and commitments
2025
Legal
claims
Customer
redress
Other
provisions
Total
€ m
€ m
€ m
€ m
At 1 January 2025
23
94
29
146
Charged to income statement
6
2
2
10 1
Released to income statement
(8)
(4)
—
(12) 1
Provisions utilised
(5)
(45)
(4)
(54)
At 31 December 2025
16
47
27
90 2
ECLs on loan commitments and financial guarantees contracts
At 1 January 2025
57
Net writeback to income statement
(8) 3
Disposals
—
Exchange translation adjustments
(1)
At 31 December 2025
48
Total provisions for liabilities and commitments
138
2024
Legal claims
Customer
redress
Other
provisions
Total
€ m
€ m
€ m
€ m
At 1 January 2024
23
82
33
138
Charged to income statement
3
68
7
78 1
Released to income statement
(1)
(16)
(5)
(22) 1
Provisions utilised
(2)
(40)
(6)
(48)
At 31 December 2024
23
94
29
146 2
ECLs on loan commitments and financial guarantees contracts
At 1 January 2024
59
Net writeback to income statement
(3) 3
Disposals
—
Exchange translation adjustments
1
At 31 December 2024
57
Total provisions for liabilities and commitments
203
1. Included in note 10.
2. Amounts expected to be settled within one year are €51m ( 2024: €99m). Amounts expected to be settled outside of one year amount to €39m (31 December 2024: €47m).
3. Included in note 11.
The ECL allowance on loan commitments and financial guarantee contracts are presented as a provision in the balance sheet (i.e. as a liability under
IFRS 9) and separate from the ECL allowance on financial assets. For details of the geographic concentration of contingent liabilities and commitments
and internal credit ratings, see pages 199 and 208 in the Risk Management section of this report.
Legal claims
In the ordinary course of business, legal claims (claims which have resulted in legal cases commencing in the Courts) are frequently served on the
Group. There is always a level of uncertainty with legal claims given the range of potential outcomes. The Group considers many factors, including the
background facts of the legal claim, legal advice and the stage of the legal claim to determine the appropriate provision.
Customer redress
Customer redress relates to remediation payments to customers and associated costs for certain legacy matters such as investment property funds;
the 2020 Financial Services and Pensions Ombudsman decision; and other customer redress provisions. The provision represents the Group’s best
estimate of the costs of remediation of any remaining impacted customers, addressing customer appeals and closing out other related matters. Due to
the complex nature of these legacy matters, they can take some time to resolve and the final outcome may be higher or lower depending on the
finalisation of all associated matters.
Other provisions
Other provisions, which are individually immaterial, include provisions for right-of-use commitments, onerous contracts and other miscellaneous
provisions.
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34 Share capital
The following table shows the authorised and fully paid issued share capital:
31 December 2025
31 December 2024
Number of
shares
Number of
shares
m
€ m
m
€ m
Authorised
Ordinary share capital
Ordinary shares of €0.625 each
4,000.0
2,500
4,000.0
2,500
Issued and fully paid
Ordinary share capital
Ordinary shares of €0.625 each
2,136.7
1,335
2,328.4
1,455
All AIB Group plc ordinary shares in issue confer identical rights, including in respect of capital, dividends and voting.
Movement in ordinary shares
The following table shows the movement in the number of ordinary shares:
2025
2024
Number of
shares
Number of
shares
m
m
At 1 January
2,328.4
2,618.7
Repurchase and cancellation of shares1
(191.7)
(290.3)
At 31 December
2,136.7
2,328.4
1. In May 2025, AIB Group plc completed a directed share buyback from the Minister for Finance. This buyback resulted in the repurchase of 191,671,857 ordinary shares with a nominal value of €0.625
each for a total consideration of €1,200m. Following repurchase, these shares were cancelled and €120m, which represents the nominal value of the acquired shares, was transferred from share
capital to capital redemption reserves.
Warrants
In 2017, warrants were issued to the Minister for Finance to subscribe for 271,166,685 ordinary shares of AIB Group plc. On 30 October 2025, the Group
entered into a Warrant Cancellation Deed with the Minister to cancel the warrants in consideration for a cash payment of €390 million. The Group also
incurred costs of €3 million in relation to this transaction.
Structure of the Company’s share capital
The following table shows the structure of the Company’s share capital:
31 December 2025
31 December 2024
Authorised
share capital
%
Issued share
capital
%
Authorised
share capital
%
Issued share
capital
%
Class of share
Ordinary share capital
100
100
100
100
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Notes to the Consolidated Financial Statements continued
34 Share capital continued
Capital resources
The following table shows the Group’s capital resources:
31 December
2025
2024
€ m
€ m
Equity1
14,691
15,427
Dated capital notes (note 32)
2,626
1,627
Total capital resources
17,317
17,054
1. Includes other equity interests of €1,314m (2024: €1,239m); for further information see note 35.
The objectives of the Group’s capital management policy are to at all times comply with regulatory capital requirements and to ensure that the Group
has sufficient capital to cover the current and future risk inherent in its business and to support its future development
Earnings per share
The calculation of basic earnings per ordinary shares is based on the profit attributable to ordinary shareholders divided by the weighted average number
of ordinary shares in issue, excluding own shares held. The ordinary shares are included in the weighted average number of shares on a time
apportioned basis.
The diluted earnings per share is based on the profit attributable to ordinary shareholders divided by the weighted average number of ordinary shares in
issue, excluding own shares held, adjusted for the effect of dilutive potential ordinary shares.
There was no material difference in the weighted average number of shares used for basic and diluted earnings per share for 2025 and 2024. Warrants
issued to the Minister of Finance were not included in calculating the diluted earnings per share as they were antidilutive in 2025 (up to the date of
cancellation) and in 2024. Share options issued under the Group's SAYE scheme in 2025 were dilutive, however they did not materially impact the
weighted average number of shares used for the diluted earnings per share calculation for 2025.
The following table shows the profit attributable to ordinary shareholders of the parent:
2025
2024
Profit attributable to ordinary shareholders of the parent
€ m
€ m
Profit attributable to equity holders of the parent
2,141
2,354
Distributions on other equity interests (note 35)
(85)
(80)
Profit attributable to ordinary shareholders of the parent
2,056
2,274
The following table shows the basic and diluted earnings per share:
31 December 2025
31 December 2024
Profit
Number of shares1
Earnings per share
Profit
Number of shares1
Earnings per share
€ m
m
€ cent
€ m
m
€ cent
Basic and diluted
2,056
2,202.9
93.3
2,274
2,459.4
92.5
1. Weighted average number of ordinary shares in issue during the year.
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35 Other equity interests
2025
2024
€ m
€ m
Issued by AIB Group plc
€625m Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities1
(a)
—
619
€625m Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities2
(b)
620
620
€700m Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities2
(c)
694
—
Total other equity interests
1,314
1,239
1. Included in the Group’s capital base in 2024, subsequently redeemed in 2025.
2. Included in the Group’s capital base.
The following table shows the securities issued by the Group at 31 December 2025 and 2024:
Nominal
amount
Issue
date
Optional
redemption date
Interest
rate1
Interest rate
reset date
Interest
reset
(a) €625m
June 2020
June 20252
6.250% Fixed Rate December 2025
Relevant 5 year fixed rate plus a margin of 662.9bps
(b) €625m
April 2024
October 2029
7.125% Fixed Rate April 2030
Relevant 5 year fixed rate plus a margin of 438.7bps
(c) €700m
January 2025
July 2031
6% Fixed Rate
January 2032
Relevant 5 year fixed rate plus a margin of 370.5bps
1. Interest is payable semi-annually in arrears. The interest payment is fully discretionary and non-cumulative and conditional upon the Company being solvent at the time of payment, having sufficient
distributable reserves and not being required by the regulatory authorities to cancel an interest payment.
2. The Group exercised a call option to redeem this security on 23 June 2025.
The securities are perpetual securities with no fixed redemption date. The Company may, in its sole and full discretion, subject to regulatory approval,
redeem all (but not some only) of the securities on any day falling in the period commencing on (and including) the optional redemption date and ending
on (and including) the first reset date or on any interest payment date thereafter at the prevailing principal amount together with accrued but unpaid
interest. In addition, the securities are redeemable at the option of the Company for certain regulatory or tax reasons, subject to regulatory approval.
The securities, which do not carry voting rights, rank pari passu with holders of other Tier 1 instruments (excluding the Company’s ordinary shares). They
rank ahead of the holders of ordinary share capital of the Company but junior to the claims of senior creditors and to Tier 2 capital of the Company.
Under the EU (Bank Recovery and Resolution) Regulations 2015, these securities are loss absorbing at the point of non-viability.
Furthermore, if the CET1 ratio of the Group at any time falls below 7%, subject to certain conditions, the Company shall write down the securities by the
write-down amount and irrevocably cancel any accrued and unpaid interest up to (but excluding) the write-down date. To the extent permitted, in order
to comply with regulatory capital and other requirements, the Company may reinstate any previously written down amount.
Distributions
Distributions amounting to €85 million (2024: €80 million) were paid on these instruments by the Group.
36 Capital reserves, merger reserve and capital redemption reserves
2025
2024
Capital reserves
Capital
contribution
reserves
Other
capital
reserves
Total
Capital
contribution
reserves
Other
capital
reserves
Total
€ m
€ m
€ m
€ m
€ m
€ m
At beginning and end of year
955 1
178 2
1,133
955 1
178 2
1,133
1. Relates to the acquisition of EBS d.a.c.
2. Other capital reserves represent transfers from retained earnings in accordance with relevant legislation.
For details regarding the capital contribution reserves, refer to accounting policy (w) in note 1.
Merger reserve
2025
2024
€ m
€ m
At beginning and end of year
(3,622)
(3,622)
The following table shows the movement on capital redemption reserves:
Capital redemption reserves
2025
2024
€ m
€ m
At 1 January
255
73
Transfer from ordinary share capital (note 34)
120
182
At 31 December
375
255
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Notes to the Consolidated Financial Statements continued
37 Offsetting financial assets and financial liabilities
The disclosures set out in the following tables include financial assets and financial liabilities that:
• Are offset in the Group’s statement of financial position; or
• Are subject to enforceable master netting arrangements or similar agreements that cover similar financial instruments, irrespective of whether they
are offset in the statement of financial position.
The similar agreements include derivative clearing agreements, global master repurchase agreements and global master securities lending agreements.
Similar financial instruments include derivatives, sales and repurchase agreements, reverse sale and repurchase agreements, and securities borrowing
and lending agreements. Financial instruments such as loans and advances and deposits and advances from customers are not included in the
following tables unless they are offset in the statement of financial position.
The Group has a number of ISDA Master Agreements (netting agreements) in place which allow it to net the termination values of derivative contracts
upon the occurrence of an event of default with respect to its counterparties. Additionally, the Group has agreements in place which may allow it to net
the termination values of cross currency swaps upon the occurrence of an event of default. The enforcement of netting agreements would
potentially reduce the statement of financial position carrying amount of derivative assets and liabilities by €1,173 million at 31 December 2025 (2024:
€1,385 million).
The Group’s sale and repurchase and reverse sale-and-repurchase transactions and securities borrowing and lending are covered by netting
agreements with terms similar to those of ISDA Master Agreements. The ISDA Master Agreements and similar master netting arrangements do not meet
the criteria for offsetting in the statement of financial position where a right of set-off of recognised amounts becomes enforceable only following an
event of default, insolvency or bankruptcy of the Group or the counterparties. Offsetting in the statement of financial position is applied where the
Group has a legally enforceable right to set-off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.
The Group provides and accepts collateral in the form of cash and marketable securities in respect of the following transactions:
• Derivatives;
• Sale and repurchase agreements;
• Reverse sale and repurchase agreements; and
• Securities lending and borrowing.
Collateral is subject to the standard industry terms of Credit Support Annexes (CSAs), which enable the Group to pledge or sell securities received
during the term of the transaction. The collateral must be returned on the maturity of the transaction. The terms also give each counterparty the right to
terminate the related transactions where the counterparty fails to post collateral. The CSAs in place provide financial collateral for derivative contracts,
which refers to cash and non-cash collateral obtained. At 31 December 2025, €111 million (2024: €698 million) of cash collateral is included within
financial assets and €497 million (2024: €814 million) of cash collateral is included within financial liabilities relating to CSAs.
The following table shows financial assets and financial liabilities subject to offsetting, enforceable master netting arrangements and similar
agreements and those amounts not subject to offsetting at 31 December 2025 and 2024. The effects of over-collateralisation have not been taken into
account in the following table.
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37 Offsetting financial assets and financial liabilities continued
Amounts subject to enforceable netting arrangements
2025
Gross
amounts of
recognised
financial
assets
Gross
amounts of
recognised
financial
liabilities
offset in the
statement
of financial
position
Net
amounts of
financial
assets
presented
in the
statement
of financial
position
Related amounts not
offset in the statement
of financial position
Amounts not
subject to
enforceable
netting
arrangements
Total
amount of
financial
assets
presented
in the
statement
of financial
position
Financial
instruments
Financial
collateral1
Net
amount
Financial assets
Note
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Derivative financial instruments
15
1,634
—
1,634
(1,173)
(406)
55
7
1,641
Securities financing
Reverse repurchase agreements
18
6,024
(1,572)
4,452
(4,407)
(45)
—
—
4,452
Securities borrowings
18
2,887
—
2,887
(2,887)
—
—
—
2,887
Total
10,545
(1,572)
8,973
(8,467)
(451)
55
7
8,980
Amounts subject to enforceable netting arrangements
2025
Gross
amounts of
recognised
financial
liabilities
Gross
amounts of
recognised
financial
assets offset
in the
statement
of financial
position
Net
amounts of
financial
liabilities
presented
in the
statement
of financial
position
Related amounts not
offset in the statement of
financial position
Amounts not
subject to
enforceable
netting
arrangements
Total
amount of
financial
liabilities
presented
in the
statement
of financial
position
Financial
instruments
Financial
collateral1
Net
amount
Financial liabilities
Note
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Derivative financial instruments
15
1,397
—
1,397
(1,173)
(224)
—
11
1,408
Securities financing
Securities sold under
agreements to repurchase
18
2,254
(1,572)
682
(674)
(8)
—
—
682
Total
3,651
(1,572)
2,079
(1,847)
(232)
—
11
2,090
Amounts subject to enforceable netting arrangements
2024
Gross
amounts of
recognised
financial
assets
Gross
amounts of
recognised
financial
liabilities
offset in the
statement
of financial
position
Net
amounts of
financial
assets
presented
in the
statement of
financial
position
Related amounts not offset in
the statement of financial
position
Amounts not
subject to
enforceable
netting
arrangements
Total
amount of
financial
assets
presented
in the
statement
of financial
position
Financial
instruments
Financial
collateral1
Net
amount
Financial assets
Note
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Derivative financial instruments
15
2,134
—
2,134
(1,385)
(251)
498
10
2,144
Securities financing
Reverse repurchase agreements
18
5,215
(1,660)
3,555
(3,538)
(17)
—
—
3,555
Securities borrowings
18
3,088
—
3,088
(3,088)
—
—
—
3,088
Total
10,437
(1,660)
8,777
(8,011)
(268)
498
10
8,787
Amounts subject to enforceable netting arrangements
2024
Gross
amounts of
recognised
financial
liabilities
Gross
amounts of
recognised
financial
assets
offset in the
statement
of financial
position
Net
amounts of
financial
liabilities
presented
in the
statement of
financial
position
Related amounts not offset in
the statement of financial
position
Amounts not
subject to
enforceable
netting
arrangements
Total
amount of
financial
liabilities
presented
in the
statement
of financial
position
Financial
instruments
Financial
collateral1
Net
amount
Financial liabilities
Note
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Derivative financial instruments
15
1,779
—
1,779
(1,385)
(135)
259
28
1,807
Securities financing
Securities sold under
agreements to repurchase
18
1,856
(1,660)
196
(187)
(9)
—
—
196
Total
3,635
(1,660)
1,975
(1,572)
(144)
259
28
2,003
1. Financial collateral of €406m (2024: €251m) was received in respect of derivative assets, all of which was cash collateral. Financial collateral of €224m (2024: €135m) was placed in respect of
derivative liabilities, including €20m (2024: €135m) of cash collateral and €204m (2024: Nil) of non-cash collateral.
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Notes to the Consolidated Financial Statements continued
38 Contingent liabilities and commitments
The following table gives the nominal or contract amounts of contingent liabilities and commitments:
Contract amount
2025
2024
€ m
€ m
Contingent liabilities1 – credit related
Guarantees and assets pledged as collateral security:
Guarantees and irrevocable letters of credit
1,182
952
Other contingent liabilities
24
24
1,206
976
Commitments2
Documentary credits and short term trade-related transactions
167
276
Undrawn formal standby facilities, credit lines and other commitments to lend:
Less than 1 year
10,474
10,443
1 year and over
6,392
6,104
17,033
16,823
Total contingent liabilities and commitments
18,239
17,799
1. Contingent liabilities are off-balance sheet products and include guarantees, irrevocable letters of credit and other contingent liability products.
2. A commitment is an off-balance sheet product where there is an agreement to provide an undrawn credit facility.
For details of the geographic concentration of contingent liabilities and commitments and internal credit ratings, see pages 199 and 208 in the Risk
Management section of this report. Provisions for ECLs on loan commitments and financial guarantee contracts are set out in note 33.
Legal proceedings
The Group, in the course of its business, is frequently involved in litigation cases. However, it is not, nor has been, involved in, nor are there, so far as the
Group is aware, pending or threatened by or against the Group, any legal or arbitration proceedings, including governmental proceedings, which may
have, or have had during the previous twelve months, a material effect on the financial position, profitability or cash flows of the Group.
TARGET-Ireland – Gross Settlement System
TARGET-Ireland is a real-time gross settlement system for large volume interbank payments in euro. As part of its participation in TARGET-Ireland, on 16
March 2023 Allied Irish Banks, p.l.c. (AIB) granted a first floating charge in favour of the Central Bank of Ireland (CBI), giving over all present and future
credit balances in AIB’s TARGET-Ireland accounts, securing AIB’s liabilities to the CBI. AIB also has access to intra-day credit in TARGET2-Ireland (now
TARGET-Ireland) in relation to Eurosystem Operations. To support this, on 7 April 2014, AIB granted the CBI a fixed charge over eligible assets held in a
designated collateral account, and a floating charge over other eligible assets.
Without the CBI’s prior written consent, AIB may not create encumbrances over, or dispose of, the charged assets other than in the ordinary course of
business. Financial assets pledged under the first fixed charge are disclosed in note 27.
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39 Subsidiaries and structured entities
The material Group subsidiary companies at 31 December 2025 and 2024 are:
Name of company
Principal activity
Place of
incorporation
Registered
Office
Allied Irish Banks, p.l.c.
A direct subsidiary of AIB Group plc and
the principal operating company of the Group and
holds the majority of the subsidiaries within the
Group. Its activities include banking and financial
services – a licensed bank
Ireland
10 Molesworth Street,
Dublin 2,
Ireland.
AIB Mortgage Bank Unlimited Company
Issue of Irish residential mortgages and
mortgage covered securities – a licensed bank
Ireland
10 Molesworth Street,
Dublin 2,
Ireland.
EBS d.a.c.
Mortgages and savings – a licensed bank
Ireland
10 Molesworth Street,
Dublin 2,
Ireland.
AIB Group (UK) p.l.c. trading as Allied Irish Bank (GB)
in Great Britain and AIB (NI) in Northern Ireland
Banking and financial services – a licensed bank
Northern Ireland
92 Ann Street,
Belfast BT1 3HH.
The proportion of ownership interest and voting power held by AIB Group plc in Allied Irish Banks, p.l.c. is 100% of the ordinary share capital. All
subsidiaries of Allied Irish Banks, p.l.c., being the immediate subsidiary of AIB Group plc, are wholly owned apart from Augmentum Limited
(Augmentum), in which there are non-controlling interests. Practically all subsidiaries in the Group are involved in the provision of financial services or
ancillary services.
Significant restrictions
Each of the licensed banks listed above are required by its respective financial regulator to maintain capital ratios above a certain minimum level. These
minimum ratios restrict the payment of dividend by the subsidiary and, where the ratios fall below the minimum requirement, will require the parent
company to inject capital to make up the shortfall.
Consolidated structured entities
The Group considers itself a sponsor of a structured entity when it facilitates the establishment of the structured entity. A structured entity is
consolidated in the financial statements when the substance of the relationship between the Group and the structured entity indicates that the
structured entity is controlled by the entity and meets the criteria set out in IFRS 10.
(i) Consolidated structured entities used for funding activities
The Group is a sponsor for a number of structured entities which were established in order to generate funding for the Group’s lending activities. The
following structured entities, which are used for this activity, are consolidated by the Group:
Burlington Mortgages No. 1 DAC
In 2020, the Group securitised €4 billion of its residential mortgage portfolio held in two of its subsidiaries, EBS d.a.c. and Haven Mortgages Limited.
These mortgages were transferred to a securitisation vehicle, Burlington Mortgages No. 1 DAC (Burlington 1). In order to fund the acquired mortgages,
Burlington 1 issued eleven classes of notes to EBS d.a.c. and Haven in the same proportion as the mortgages securitised. The transferred mortgages
have not been derecognised as the Group retains substantially all the risks and rewards of ownership and continue to be reported in the Group’s
financial statements. Burlington 1 is consolidated into the Group’s financial statements with all the notes being eliminated on consolidation. At 31
December 2025, the carrying amount of the transferred financial assets which the Group continues to recognise is €1.9 billion (2024: €2.2 billion) (fair
value €2.0 billion (2024: €2.2 billion)) and the carrying amount of the associated liabilities is Nil (2024: Nil).
Burlington Mortgages No. 2 DAC
In 2023, the Group securitised c. €5 billion of its residential mortgage portfolio held in two of its subsidiaries, EBS d.a.c. and Haven Mortgages Limited.
These mortgages were transferred to a securitisation vehicle, Burlington Mortgages No. 2 DAC (Burlington 2). In order to fund the acquired mortgages,
Burlington 2 issued seven classes of notes to EBS d.a.c. and Haven in the same proportion as the securitised mortgages. The transferred mortgages
have not been derecognised as the Group retains substantially all the risks and rewards of ownership and continue to be reported in the Group’s
financial statements. Burlington 2 is consolidated into the Group’s financial statements with all the notes being eliminated on consolidation. At 31
December 2025, the carrying amount of the transferred financial assets which the Group continues to recognise is €4.5 billion (fair value €4.7 billion)
(2024: €5.0 billion (fair value €4.9 billion)) and the carrying amount of the associated liabilities is Nil (2024: Nil).
(ii) Consolidated structured entity used for funding of the deficit in the UK pension scheme
The Group is a sponsor for AIB PFP Scottish Limited Partnership (SLP) which was established to fund future deficit payments of the UK scheme. The
general partner in the partnership, AIB PFP (General Partner) Limited, which is an indirect subsidiary of Allied Irish Banks, p.l.c., has controlling power
over the partnership. In addition, the pension scheme has a priority right to cash flows from the partnership, up to the SLP’s maximum potential liability
limit, and any risks and rewards thereafter are expected to be borne by the Group.
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Notes to the Consolidated Financial Statements continued
39 Subsidiaries and structured entities continued
(iii) Consolidated structured entity used for credit risk transfer transactions
The Group has entered into transactions to transfer a portion of credit risk on a reference portfolio of financial assets. The funded protection in respect
of these transactions is held with Setanta Finance 2024 Designated Activity Company (Setanta). No assets or liabilities were transferred to Setanta
under the terms of these transactions. The transactions have cash collateralised on the exposures through the issue of credit linked notes to third party
investors. Further details on these transactions are set out in note 29 and page 185 in the Risk Management section of this report.
There are no contractual arrangements that could require AIB Group plc or its subsidiaries to provide financial support to the consolidated structured
entities listed above. During the year, neither AIB Group plc nor any of its subsidiaries provided financial support to a consolidated structured entity and
there is no current intention to provide financial support.
Unconsolidated structured entities
The Group acts as a fund or investment manager for a number of unconsolidated structured entities for which it receives investment or fund
management fees. The Group acts as sponsor of these entities. The Group has no units within these funds. Therefore the carrying amount of assets and
liabilities in relation to these entities in the Group’s statement of financial position is Nil (2024: Nil).
The Group’s maximum exposure to loss is equal to the value of outstanding fees owed from these entities of €1 million at 31 December 2025 (2024: Nil).
These entities are financed by investors in the entities. During the year the Group has not provided any non-contractual financial or other support to
these entities and has no current intention of providing any financial or other support.
Non-controlling interests in subsidiary undertaking
On 31 October 2019, Augmentum of which 75% is owned by the Group and 25% by a non-controlling interest, First Data Global Services Limited (part of
First Data Corporation which is owned by Fiserv Inc.), acquired 97.93% of the equity share capital and voting rights of Semeral Limited (Semeral), the
holding company for Payzone Ireland Limited (Payzone). Semeral/Payzone place of business is based in 4 Heather Road, Sandyford Industrial Estate,
Dublin 18.
40 Off-balance sheet arrangements and transferred financial assets
Securitisations
The Group utilises securitisations primarily to support the following business objectives:
• As an investor, the Group has primarily invested in securitisations issued by other credit institutions as part of the management of its interest rate and
liquidity risks and has also invested in securitisations to pursue transactions that offer appropriate risk-adjusted return opportunities.
• As an originator, to support the funding and credit risk management activities of the Group.
The Group controls certain structured entities which were set up to support its funding and credit risk management activities as well as the funding of
certain Group pension schemes. Details of these structured entities are set out in note 39.
Transfer of financial assets
The Group enters into transactions in the normal course of business in which it transfers previously recognised financial assets. Transferred financial
assets may, in accordance with IFRS 9:
(i) Continue to be recognised in their entirety; or
(ii) Be derecognised in their entirety but the Group retains some continuing involvement.
The most common transactions where the transferred assets are not derecognised in their entirety are securities sold under an agreement to
repurchase and the issuance of covered bonds.
(i) Transferred financial assets not derecognised in their entirety
Securities sold under agreements to repurchase and securities lending
The Group enters into transactions where it sells a financial asset to another party, with an obligation to repurchase it at a fixed price on a certain later
date. The Group continues to recognise the financial assets in full in the statement of financial position as it retains substantially all the risks and
rewards of ownership. The Group’s sale and repurchase agreements are with banks and customers. The obligation to pay the repurchase price is
recognised within securities financing (note 18). As the Group sells the contractual rights to the cash flows of the financial assets, it does not have the
ability to use or pledge the transferred assets during the term of the sale and repurchase agreement. The Group remains exposed to credit risk and
interest rate risk on the financial assets sold. The obligation arising as a result of sale and repurchase agreements together with the carrying value of the
financial assets pledged are set out in the following table.
The Group enters into securities lending in the form of collateral swap agreements with other parties. The Group continues to recognise the financial
assets in full in the statement of financial position as it retains substantially all the risks and rewards of ownership. As a result of these transactions, the
Group is unable to use, sell or pledge the transferred assets for the duration of the transaction. A fee is generated for the Group under this transaction.
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40 Off-balance sheet arrangements and transferred financial assets continued
Issuance of covered bonds
Covered bonds, which the Group issues, are debt securities backed by cash flows from mortgages for the purpose of financing loans secured on
residential property through its wholly owned subsidiary, AIB Mortgage Bank Unlimited Company. The Group retains all the risks and rewards of these
mortgage loans, including credit risk and interest rate risk, and therefore, the loans continue to be recognised on the Group’s statement of financial
position with the related covered bonds held by external investors included within debt securities in issue (note 29). As the Group segregates the assets
which back these debt securities into 'cover asset pools' it does not have the ability to otherwise use such segregated financial assets during the term of
these debt securities. However, of the total debt securities of this type issued amounting to €12.07 billion (2024: €10.6 billion), AIB Group companies
hold €12.05 billion (2024: €10.58 billion) which are eliminated on consolidation.
The following table summarises as at 31 December 2025 and 2024, the carrying value and fair value of financial assets which did not qualify for
derecognition together with their associated financial liabilities.
2025
Carrying
amount of
transferred
assets
Carrying
amount of
associated
liabilities
Fair
value of
transferred
assets
Fair
value of
associated
liabilities
Net fair
value
position
€ m
€ m
€ m
€ m
€ m
Securities sold under agreements to repurchase/similar products
3,672
2
682
1
3,675
682
2,993
Covered bond programmes
Residential mortgage backed
33
3
26
4
34
27
7
2024
Carrying
amount of
transferred
assets
Carrying
amount of
associated
liabilities
Fair
value of
transferred
assets
Fair
value of
associated
liabilities
Net fair
value
position
€ m
€ m
€ m
€ m
€ m
Securities sold under agreements to repurchase/similar products
2,822
1,2
196
1
2,821
196
2,625
Covered bond programmes
Residential mortgage backed
36
3
27
4
35
28
7
1. See note 18.
2. Includes €2,995m of assets pledged in relation to securities lending arrangements (2024: €2,630m).
3. The asset pools of €16bn (2024: €15bn) in the covered bond programme have been apportioned on a pro-rata basis in relation to the value of bonds held by external investors and those held by the
Group companies. The €33m (2024: €36m) above refers to those assets apportioned to external investors.
4. Included in bonds and other medium term notes issued by subsidiaries (note 29).
(ii) Transferred financial assets derecognised in their entirety but the Group retains some continuing involvement
The Group has no material continuing involvement in transferred financial assets where it retains any of the risks and rewards of ownership of the
transferred financial assets.
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Notes to the Consolidated Financial Statements continued
41 Classification and measurement of financial assets and financial liabilities
Financial assets and financial liabilities are measured on an ongoing basis either at fair value or at amortised cost. The accounting policy for financial
assets in note 1 (j) and financial liabilities in note 1 (k), describes how the classes of financial instruments are measured, and how income and
expenses, including fair value gains and losses, are recognised. The following table analyses the carrying amounts of the financial assets and financial
liabilities by measurement category and by statement of financial position heading at 31 December 2025 and 2024.
2025
At fair value through
profit or loss
At fair value through other
comprehensive income
At amortised
cost
Total
Mandatorily
Debt
investments
Hedging
derivatives
€ m
€ m
€ m
€ m
€ m
Financial assets
Cash and balances at central banks
—
—
—
40,571 1
40,571
Trading portfolio financial assets
286
—
—
—
286
Derivative financial instruments
1,257 2
—
384
—
1,641
Loans and advances to banks
—
—
—
601
601
Loans and advances to customers
84
—
—
71,116
71,200
Securities financing
—
—
—
7,339
7,339
Investment securities
304
16,201
—
5,043
21,548
Other financial assets
26
—
—
1,012
1,038
Total
1,957
16,201
384
125,682
144,224
Financial liabilities3
Deposits and advances from banks
—
—
—
156
156
Deposits and advances from customers
—
—
—
117,671
117,671
Securities financing
—
—
—
682
682
Trading portfolio financial liabilities
525
—
—
—
525
Derivative financial instruments
658 4
—
750
—
1,408
Debt securities in issue
—
—
—
8,183
8,183
Tier 2 subordinated liabilities and other capital instruments
—
—
—
2,626
2,626
Other financial liabilities5
—
—
—
1,661
1,661
Total
1,183
—
750
130,979
132,912
2024
At fair value through
profit or loss
At fair value through other
comprehensive income
At amortised
cost
Total
Mandatorily
Debt
investments
Hedging
derivatives
€ m
€ m
€ m
€ m
€ m
Financial assets
Cash and balances at central banks
—
—
—
37,315 1
37,315
Trading portfolio financial assets
136
—
—
—
136
Derivative financial instruments
1,480 2
—
664
—
2,144
Loans and advances to banks
—
—
—
1,321
1,321
Loans and advances to customers
64
—
—
69,825
69,889
Securities financing
—
—
—
6,643
6,643
Investment securities
297
13,568
—
4,803
18,668
Other financial assets
—
—
—
894
894
Total
1,977
13,568
664
120,801
137,010
Financial liabilities3
Deposits and advances from banks
—
—
—
836
836
Deposits and advances from customers
—
—
—
109,883
109,883
Securities financing
—
—
—
196
196
Trading portfolio financial liabilities
262
—
—
—
262
Derivative financial instruments
824 4
—
983
—
1,807
Debt securities in issue
—
—
—
8,832
8,832
Tier 2 subordinated liabilities and other capital instruments
—
—
—
1,627
1,627
Other financial liabilities5
—
—
—
1,792
1,792
Total
1,086
—
983
123,166
125,235
1. Includes cash on hand €651m (2024: €664m).
2. Held for trading €348m and fair value hedges €909m (2024: €425m and €1,055m).
3. At 31 December 2025, the Group has also recognised an ECL allowance of €48m (2024: €57m) relating to financial guarantees and loan commitments which is reported within provisions for liabilities
and commitments.
4. Held for trading €319m and fair value hedges €339m (2024: €461m and €363m).
5. Includes a debit of €175m (2024: credit of €64m) of fair value changes of hedged items in portfolio hedges of interest rate risk.
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42 Fair value of financial instruments
The Group’s accounting policy for the ‘determination of the fair value of financial instruments’ is set out in note 1 accounting policy (m).
All valuations are carried out within the Finance function and valuation methodologies are validated by the independent Risk function within the Group.
Readers of these financial statements are advised to use caution when using the data in the following tables to evaluate the Group’s financial position or
to make comparisons with other institutions. Fair value information is not provided for items that do not meet the definition of a financial instrument.
Methodologies used for the calculation of fair value
The methods used for calculation of fair value are as follows:
Financial instruments measured at fair value in the financial statements
(i) Trading portfolio financial instruments
The fair value of trading debt securities, together with quoted equity shares, is based on quoted prices or bid/offer quotations sourced from external
securities dealers, where these are available on an active market. Where securities and equities are traded on an exchange, the fair value is based on
prices from the exchange.
(ii) Derivative financial instruments
Where derivatives are traded on an exchange, the fair value is based on prices from the exchange. The fair value of over-the-counter derivative financial
instruments is estimated based on standard market discounting and valuation methodologies which use reliable observable inputs including yield
curves and market rates. Where there is uncertainty around the inputs to a derivative’s valuation model, the fair value is estimated using inputs which
provide the Group’s view of the most likely outcome in a disposal transaction between willing counterparties in a functioning market. Where an
unobservable input is material to the outcome of the valuation, a range of potential outcomes from favourable to unfavourable is estimated.
Counterparty valuation adjustment (CVA) and Funding valuation adjustment (FVA) are applied to all uncollateralised over-the-counter derivatives. The
combination of CVA and FVA is referred to as XVA. Where XVA valuation adjustments have been applied to a derivative instrument, the instrument is
classified as Level 3 in the fair value hierarchy where 10% of the instrument’s valuation (including the interest accrual) is represented by XVA.
CVA is calculated as: Expected positive exposure (EPE) multiplied by probability of default (PD) multiplied by loss given default (LGD). EPE profiles are
generated at a counterparty netting set through simulation. PDs are derived from market based credit default swaps (CDS) information. As most
counterparties do not have a quoted CDS, PDs are derived by mapping each counterparty to an index CDS credit grade. LGDs are based on the specific
circumstances of the counterparty and take into account valuation of offsetting security, where applicable. For smaller exposures where security
valuations are not individually assessed, an LGD of 60% is applied (2024: 60%).
FVA is calculated as: Expected exposure (EE) multiplied by funding spread (FS) multiplied by counterpart survival probability (1-PD). EE profiles (net of
expected positive and negative exposures) are generated at a counterparty netting set through simulation. Funding spreads used are an average implied
by CDSs for the Group’s most active external derivative counterparties. The rationale in applying these spreads is to best estimate the FVA which a
counterparty would apply in a transaction to close out the Group’s existing positions.
Within the range of estimates and fair value sensitivity measurements, a favourable and an adverse scenario have been selected for PDs and LGDs for
CVA. The favourable/adverse scenario for customer PDs are (i) a single rating upgrade and (ii) a single rating downgrade, respectively. Customer LGDs
are shifted according to estimates of improvement in value of security compared with potential derivatives market values. Within the combination of
LGD and PD, both are shifted together yielding positive and negative valuations which are disclosed as potential alternative valuations. See 'Significant
unobservable inputs' within this note. For FVA, an adverse scenario is the use of the bond yields of the Group’s most active derivative counterparties
while a favourable scenario is an upgrade in the CDS of the reference entities used to derive funding spreads.
(iii) Virtual corporate power purchase agreement
The Group has entered into a virtual corporate power purchase agreement (VPPA) associated with the sourcing of solar electricity for the Group from
two farms in Co. Wexford. The VPPA hedges the volatility in electricity prices guaranteeing a forward electricity price which is subject to inflation changes
only. This VPPA meets the definition of a derivative. The fair value of the virtual corporate power purchase agreement is estimated using discounted cash
flows applying market rates when available and rates offered by other data providers, in particular for unobservable forward Irish electricity solar pricing
curves.
(iv) Loans and advances to customers
The Group provides lending facilities of varying rates and maturities to corporate and personal customers. Valuation techniques are used in estimating
the fair value of loans, primarily using discounted cash flows and applying market rates where practicable and taking into account market risk and the
changes in credit quality of its borrowers.
The majority of loans and advances to customers are held at amortised cost, however the Group has a small number of loans and advances which are
required to be measured at FVTPL having failed the SPPI test. The valuation techniques used apply equally to those held at FVTPL and those held at
amortised cost. A key assumption for determining the fair value of loans and advances is that the carrying amount of variable rate loans (excluding
mortgage products) approximates to market value. For fixed rate loans, the fair value is calculated by discounting expected cash flows using discount
rates that reflect the interest rate risk in that portfolio.
The fair value of mortgage products, including tracker mortgages, is calculated by discounting expected cash flows using discount rates that reflect the
interest rate/credit risk in the portfolio.
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Notes to the Consolidated Financial Statements continued
42 Fair value of financial instruments continued
Financial instruments measured at fair value in the financial statements continued
(v) Investment securities
The fair value of investment securities has been estimated based on expected sale proceeds. The expected sale proceeds are based on bid prices which
have been analysed and compared across multiple sources for reliability. Where bid prices are unavailable, fair values are estimated by valuation
techniques using observable market data for similar instruments. Where there is no market data for a directly comparable instrument, management
judgement on an appropriate credit spread to similar or related instruments with market data available is used within the valuation technique. This is
supported by cross referencing other similar or related instruments.
(vi) Other financial assets
The fair value of the deferred contingent consideration receivable arising from the disposal of AIB Merchant Services is calculated using an expected
discounted cashflow approach. The amount of consideration receivable is dependent on the number of referrals that the Group makes to AIB Merchant
Services over a ten-year period. The referral rates are unobservable and have been estimated based on historical referral rates.
Financial instruments not measured at fair value but with fair value information presented separately in the notes to the
financial statements
(i) Loans and advances to banks
The fair value of loans and advances to banks is estimated using discounted cash flows applying either market rates, where practicable, or rates
currently offered by other financial institutions for placings with similar characteristics.
(ii) Loans and advances to customers at amortised cost
See methodology above under the heading (iv) Loans and advances to customers.
(iii) Securities financing
The fair value of securities financing assets and liabilities approximate their carrying amount as these balances are generally short-dated and
fully collateralised.
(iv) Deposits and advances from banks and deposits and advances from customers
The fair value of current accounts and deposit liabilities which are repayable on demand, or which re-price frequently, approximates to their book value.
The fair value of all other deposits and other borrowings is estimated using discounted cash flows and applying applicable market rates as appropriate.
(v) Debt securities in issue and tier 2 subordinated liabilities and other capital instruments
The estimated fair value of debt securities in issue and tier 2 subordinated liabilities and other capital instruments, is based on quoted prices where
available, or where these are unavailable, are estimated using valuation techniques using observable market data for similar instruments. Where there is
no market data for a directly comparable instrument, management judgement, on an appropriate credit spread to similar or related instruments with
market data available, is used within the valuation technique. This is supported by cross-referencing other similar or related instruments.
(vi) Other financial assets and other financial liabilities
This caption includes accrued interest receivable and payable and other receivables (including amounts awaiting settlement and accounts payable).
The carrying amount is considered representative of fair value.
(vii) Commitments pertaining to credit-related instruments
Details of the various credit-related commitments and other off-balance sheet financial guarantees entered into by the Group are included in note 38.
The ECL is considered a reasonable approximation of fair value of these credit-related financial instruments.
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42 Fair value of financial instruments continued
The table below sets out the carrying amount and fair value of financial instruments across the three levels of the fair value hierarchy at 31 December
2025 and 2024:
2025
2024
Carrying
amount
Fair Value
Carrying
amount
Fair Value
Fair value hierarchy
Fair value hierarchy
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Financial assets measured at fair value
Trading portfolio financial assets
286
286
—
—
286
136
136
—
—
136
Derivative financial instruments:
Interest rate derivatives
1,582
—
1,564
18
1,582
2,109
—
2,020
89
2,109
Exchange rate derivatives
59
—
59
—
59
35
—
35
—
35
Loans and advances to customers at FVTPL
84
—
—
84
84
64
—
—
64
64
Investment debt securities at FVOCI
16,201
16,094
107
—
16,201
13,568
13,468
100
—
13,568
Equity investments at FVTPL
304
1
—
303
304
297
1
—
296
297
Other financial assets
26
—
—
26
26
—
—
—
—
—
18,542
16,381
1,730
431
18,542
16,209
13,605
2,155
449
16,209
Financial assets not measured at fair value
Cash and balances at central banks1
40,571
651
39,920
—
40,571
37,315
664
36,651
—
37,315
Loans and advances to banks
601
—
229
372
601
1,321
—
241
1,080
1,321
Loans and advances to customers:
Mortgages2,3
37,372
—
—
38,614
38,614
36,722
—
—
35,832
35,832
Non-mortgages3
33,653
—
—
33,612
33,612
33,053
—
—
32,993
32,993
Cash collateral advanced to customers3
91
—
—
91
91
50
—
—
50
50
Securities financing
7,339
—
—
7,339
7,339
6,643
—
—
6,643
6,643
Investment debt securities measured at
amortised cost
5,043
2,675
—
2,382
5,057
4,803 —
2,633
—
2,168
4,801
Other financial assets
1,012
—
—
1,012
1,012
894
—
—
894
894
125,682
3,326
40,149
83,422
126,897
120,801
3,297
36,892
79,660
119,849
Financial liabilities measured at fair value
Trading portfolio financial liabilities
525
525
—
—
525
262
262
—
—
262
Derivative financial instruments:
Interest rate derivatives
1,366
1
1,347
18
1,366
1,689
—
1,391
298
1,689
Exchange rate derivatives
38
—
38
—
38
112
—
112
—
112
Equity derivatives
1
—
1
—
1
—
—
—
—
—
Credit derivatives
1
—
1
—
1
3
—
3
—
3
Virtual corporate power purchase agreement
2
—
—
2
2
3
—
—
3
3
1,933
526
1,387
20
1,933
2,069
262
1,506
301
2,069
Financial liabilities not measured at fair value
Deposits and advances from banks
156
—
—
156
156
836
—
6
830
836
Deposits and advances from customers:
Current accounts3
64,871
—
—
64,871
64,871
62,657
—
—
62,657
62,657
Demand deposits3
32,392
—
—
32,392
32,392
31,126
—
—
31,126
31,126
Time deposits3
19,976
—
—
20,000
20,000
16,033
—
—
16,083
16,083
Cash collateral advanced from customers3
432
—
—
432
432
67
—
—
67
67
Securities financing
682
—
—
682
682
196
—
—
196
196
Debt securities in issue
8,183
7,394
—
1,011
8,405
8,832
8,074
—
957
9,031
Tier 2 subordinated liabilities and other capital
instruments
2,626
2,661
—
—
2,661
1,627
1,662
—
—
1,662
Other financial liabilities4
1,661
—
—
1,661
1,661
1,792
—
—
1,792
1,792
Loan commitments and other credit related
commitments
38
—
—
38
38
44
—
—
44
44
Financial guarantees
10
—
—
10
10
13
—
—
13
13
131,027
10,055
—
121,253
131,308
123,223
9,736
6
113,765
123,507
1. Includes cash on hand of €651m (2024: €664m).
2. Includes residential and commercial mortgages..
3. Refer to note 1 (c) for further information about the change in presentation to the financial statements.
4. Includes a debit of €175m (2024: credit of €64m) of fair value changes of hedged items in portfolio hedges of interest rate risk.
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Notes to the Consolidated Financial Statements continued
42 Fair value of financial instruments continued
Significant transfers between Level 1 and Level 2 of the fair value hierarchy
There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy for the years ended 31 December 2025 and 2024.
Reconciliation of balances in Level 3 of the fair value hierarchy
The following table shows (i) a reconciliation from the opening balances to the closing balances for fair value measurements in Level 3 of the fair value
hierarchy and (ii) total unrealised gains or losses included in profit or loss that is attributable to the assets and liabilities categorised as Level 3 in the fair
value hierarchy at the end of the year.
2025
Financial assets
Financial liabilities
Derivative
Loans and
advances
at FVTPL
Equities
at FVTPL
Other
financial
assets
Total
Derivatives
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Movement in Level 3 assets and liabilities
At 1 January 2025
89
64
296
—
449
301
301
Transfers into/(out of) Level 31,2
(27)
—
—
—
(27)
(244)
(244)
Total gains or (losses) in:
Profit or loss:
Net trading income – losses
(44)
—
—
—
(44)
(37)
(37)
Net change in FVTPL
—
11
32
3
46
—
—
(44)
11
32
3
2
(37)
(37)
Purchases/additions
—
22
45
23
90
—
—
Sales/disposals/redemptions
—
—
(70)
—
(70)
—
—
Cash received: Principal
—
(13)
—
—
(13)
—
—
At 31 December 2025
18
84
303
26
431
20
20
Total unrealised gains or (losses) included in profit or loss for
assets and liabilities classified as Level 3 at the end of the year
Net trading income – (losses)/income
(5)
—
—
—
(5)
4
4
Gains on equity investments at FVTPL
—
—
19
—
19
—
—
(Losses)/gains on financial assets at FVTPL
—
(3)
—
3
—
—
—
(5)
(3)
19
3
14
4
4
2024
Financial assets
Financial liabilities
Derivatives
Loans and
advances at
FVTPL
Equities at
FVTPL
Other
financial
assets
Total
Derivatives
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Movement in Level 3 assets and liabilities
At 1 January 2024
129
42
340
—
511
307
307
Transfers into/(out of) Level 31
—
—
—
—
—
—
—
Total gains or (losses) in:
Profit or loss:
Net trading income – losses
(40)
—
—
—
(40)
(6)
(6)
Net change in FVTPL
—
11
76
—
87
—
—
(40)
11
76
—
47
(6)
(6)
Purchases/additions
—
26
46
—
72
—
—
Sales/disposals
—
—
(166)
—
(166)
—
—
Cash received: Principal
—
(15)
—
—
(15)
—
—
At 31 December 2024
89
64
296
—
449
301
301
Total unrealised gains or (losses) included in profit or loss for
assets and liabilities classified as Level 3 at the end of the year
Net trading income – losses
(15)
—
—
—
(15)
(35)
(35)
Gains on equity investments at FVTPL
—
—
35
—
35
—
—
Losses on loans and advances at FVTPL
—
(3)
—
—
(3)
—
—
(15)
(3)
35
—
17
(35)
(35)
1. Transfers between levels of the fair value hierarchy are recognised at the end of the reporting period during which the change occurred.
2. In 2025, €27m derivative assets and €244m derivative liabilities were reclassified to Level 2 following a reassessment of the threshold for determining whether an unobservable input is significant to
the classification of a fair value measurement within the hierarchy.
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42 Fair value of financial instruments continued
Significant unobservable inputs
The following table sets out information about significant unobservable inputs used in measuring financial instruments categorised as Level 3 in the fair
value hierarchy:
Fair value
Range of estimates
Financial instrument
2025
€ m
2024
€ m
Valuation
technique
Significant
unobservable input
31 December
2025
31 December
2024
Derivative financial instruments
Interest rate derivatives
Asset
18
89 CVA
LGD
35% – 51%
38% – 56%
Liability
18
298
(Base 41%)
(Base 46%)
PD
0.3% – 2.2%
0.4% – 1.8%
(Base 0.7% 1-year PD)
(Base 0.8% 1-year PD)
FVA
Funding spreads
(0.1%) – 0.2%
(0.2%) – 0.3%
Virtual corporate power purchase agreement
Liability
2
3 Discounted Expected
Future Cash flows
Irish electricity solar
capture prices
(20%) – 10%
(10%) – 20%
Equity investments at FVTPL
Visa Inc. Series B Preferred Stock
Asset
14
16 Quoted market price
(to which a discount
has been applied)
Final conversion
rate
0% – 90%
0% – 90%
Other financial assets
Deferred consideration
Asset
26
— Discounted Expected
Future Cash flows
Referral rate
70% – 90%
—
Derivative financial instruments
Interest rate derivatives
Derivatives (assets and liabilities) include negative XVA valuation adjustments amounting to net €1 million (2024: €8 million). The sensitivity to
unobservable inputs for this XVA valuation adjustment at 31 December 2025 ranges from (i) negative €1 million to Nil for CVA (2024: negative €5 million
to positive €3 million) and (ii) Nil for FVA (2024: negative €1 million to positive €1 million).
Virtual corporate power purchase agreement
The fair value sensitivity to unobservable forward Irish electricity solar capture prices ranges from negative €5 million to positive €2 million (2024:
negative €4 million to positive €2 million).
Equity investments at FVTPL
Visa Inc. Series B Preferred Stock
The Group received Series B Preferred Stock in Visa Inc. as part consideration for its holding of shares in Visa Europe. The preferred stock will be
convertible into Class A Common Stock of Visa Inc. over time. The remaining conversion is subject to certain Visa Europe litigation risks that may affect
the ultimate conversion rate which is unobservable. In addition, the stock, being denominated in US Dollars, is subject to foreign exchange risk.
These instruments are valued at the quoted market price of Visa Inc. Class A Common Stock to which a discount has been applied for the illiquidity and
the conversion rate variability of the preferred stock of Visa Inc. 43% haircut (2024: 62%). This was converted at the year end exchange rate.
The fair value measurement sensitivity to unobservable discount rates ranges from negative €14 million to positive €8 million at 31 December 2025
(2024: negative €16 million to positive of €21 million).
Other equity investments
Sensitivity information has not been provided for other equity investments as the portfolio comprises several investments, none of which is individually material.
Other financial assets
Deferred consideration
The fair value sensitivity to unobservable referral rates ranges from negative €3 million to positive €3 million at 31 December 2025.
Loans and advances to customers at FVTPL
For loans and advances to customers measured at FVTPL of €84 million (2024: €64 million), the Group does not believe that a reasonably possible
change to alternative assumptions would change fair value significantly and therefore has not disclosed those amounts in the table above or provided
the related disclosures.
Fair value is also applied in respect of secondary facilities arising on restructured loans subject to forbearance measures, on the likelihood that
additional cash flows, in excess of their primary facilities, will be received from customers. Given the significant uncertainty with regard to such cash
flows, the Group does not attribute a fair value unless it is reasonably certain that this value will be realised.
Day 1 gain or loss
No difference existed between the fair value at initial recognition of financial instruments and the amount that was determined at that date using a
valuation technique incorporating significant unobservable data.
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Notes to the Consolidated Financial Statements continued
43 Cash and balances at central banks
Cash and balances at central banks (net of ECL allowance of Nil) comprises:
2025
2024
€ m
€ m
Central Bank of Ireland
35,824
31,526
Bank of England
3,801
4,931
Federal Reserve Bank of New York
295
194
Other (cash on hand)
651
664
Total cash and balances at central banks
40,571
37,315
For the purposes of the statement of cash flows, cash and cash equivalents comprise the following balances with less than three months maturity from
the date of origination:
2025
2024
€ m
€ m
Cash and balances at central banks
40,571
37,315
Loans and advances to banks1
306
1,012
Total cash and cash equivalents
40,877
38,327
of which comprises restricted cash balances
241
219
of which comprises cash held in trust in respect of certain payables
7
6
1. Included in loans and advances to banks total of €601m (2024: €1,321m) set out in note 16.
There are certain regulatory restrictions on the ability of subsidiaries to transfer funds to the parent company in the form of cash dividends, loans or
advances. The impact of such restrictions is not expected to have a material effect on the Group’s ability to meet its cash obligations.
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44 Statement of cash flows
Non-cash and other items included in profit before taxation
Non-cash items
2025
2024
€ m
€ m
Loss on disposal of business
—
2
Net gain on derecognition of financial assets measured at amortised cost
(8)
(2)
Dividend income from equity accounted investments
—
(1)
Investments accounted for using the equity method
(174)
(26)
Net remeasurement of ECL allowance
198
87
Change in other provisions
(2)
56
Retirement benefits – defined benefit expense
7
3
Depreciation, amortisation and impairment
291
301
Interest on Tier 2 subordinated liabilities and other capital instruments
62
55
Interest on debt securities1
343
352
Interest on other debt securities
61
22
Loss on disposal of investment securities
76
77
Gain on termination of hedging swaps
(76)
(41)
Amortisation of premiums and discounts
11
22
Net gain on equity investments at FVTPL
(32)
(70)
Net loss on loans and advances to customers at FVTPL
—
3
Change in prepayments and accrued income
(65)
23
Change in accruals and deferred income
18
101
Effect of exchange translation and other adjustments2
(59)
82
Total non-cash items
651
1,046
Contributions to defined benefit pension schemes
(19)
(24)
Dividends received on equity investments
—
1
Total other items
(19)
(23)
Non-cash and other items included in profit before taxation for the year ended 31 December
632
1,023
Change in operating assets2
2025
2024
€ m
€ m
Change in trading portfolio financial assets
(150)
(43)
Change in net derivative financial instruments
(10)
49
Change in loans and advances to banks
(1)
12
Change in loans and advances to customers
(2,503)
(4,034)
Change in securities financing
(773)
(137)
Change in other assets
53
(23)
(3,384)
(4,176)
Change in operating liabilities2
2025
2024
€ m
€ m
Change in deposits and advances from banks
(679)
(988)
Change in deposits and advances from customers
8,459
4,558
Change in securities financing
494
(406)
Change in trading portfolio liabilities
263
123
Change in debt securities in issue
115
777
Change in notes in circulation
(3)
(1)
Change in other liabilities
332
(125)
8,981
3,938
1. Relates to debt securities classified at origination as MREL.
2. The impact of foreign exchange translation for each line of the statement of financial position is removed in order to show the underlying cash impact.
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Notes to the Consolidated Financial Statements continued
45 Related party transactions
Related parties in the Group include the parent company and controlling party (AIB Group plc), subsidiary undertakings, associated undertakings, joint
arrangements, post-employment benefits, Key Management Personnel and connected parties. The registered office of AIB Group plc is at 10
Molesworth Street, Dublin 2.
(a) Transactions with subsidiary undertakings
AIB Group plc is the ultimate parent company of the Group. Banking transactions between the parent company and its subsidiaries and between
subsidiaries are entered into in the normal course of business. These include loans, deposits, provision of derivative contracts, foreign currency
contracts and the provision of guarantees on an ‘arm’s length basis’. Furthermore, pricing arrangements between Allied Irish Banks, p.l.c. and certain
Irish subsidiaries, and between certain Irish subsidiaries reflect revised OECD guidelines on transfer pricing, which are the internationally accepted
principles in this area, and take account of the functions, risks and assets involved. Transactions between the parent company and its subsidiaries and
between subsidiaries have been eliminated on consolidation.
(b) Associated undertakings and joint venture
From time to time, the Group provides certain banking and financial services for associated undertakings. These transactions are made in the ordinary
course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions
with other persons and do not involve more than the normal risk of collectability or present other unfavourable features. Details of loans to associates
and joint venture are set out in notes 17 and 28 to the consolidated financial statements.
(c) Provision of banking and related services and funding to Group pension schemes
The Group provides certain banking and financial services including money transmission services for the AIB Group pension schemes and a UK pension
funding partnership, AIB PFP Scottish Limited Partnership (SLP). Such services are provided in the ordinary course of business, on substantially the
same terms, including interest rates, as those prevailing at the time for comparable transactions with other persons.
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45 Related party transactions continued
(d) Companies Act 2014 disclosures
(i) Loans to Directors
The following information is presented in accordance with the Companies Act 2014. For the purposes of the Companies Act disclosures, any Director
means a current member of the Board of Directors and individual who was a Director during the relevant period.
Where no amount is shown in the tables below, this indicates either a credit balance, a balance of Nil, or a balance of less than €500. Balances and
repayments include principal and interest.
Details of transactions with Directors for the year ended 31 December 2025 and 2024 are as follows:
2025
2024
Balance at
1 January
2025
Amounts
advanced
during
2025
Amounts
repaid
during
2025
Balance at
31 December
2025
Balance at
1 January
2024
Amounts
advanced
during
2024
Amounts
repaid
during
2024
Balance at
31 December
2024
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
Tanya Horgan
Loans
41
—
(7)
34
43
—
(2)
41
Overdraft/credit card1
—
—
—
—
—
—
—
—
Total
41
—
(7)
34
43
—
(2)
41
Interest charged during the year
2
3
Maximum debit balance during the year2
41
43
Colin Hunt
Loans
550
—
(48)
502
597
—
(47)
550
Overdraft/credit card1
16
—
—
7
15
—
—
16
Total
566
—
(48)
509
612
—
(47)
566
Interest charged during the year
14
15
Maximum debit balance during the year2
576
620
Ann O'Brien
Loans
—
—
—
—
—
—
—
—
Overdraft/credit card1
1
—
—
—
—
—
—
1
Total
1
—
—
—
—
—
—
1
Interest charged during the year
—
—
Maximum debit balance during the year2
1
2
Helen Normoyle
Loans
—
—
—
—
—
264
(264)
—
Overdraft/credit card1
—
—
—
—
—
—
—
—
Total
—
—
—
—
—
264
(264)
—
Interest charged during the year
—
2
Maximum debit balance during the year2
—
267
Basil Geoghegan
Loans
627
—
(627)
—
—
663
(37)
627
Overdraft/credit card1
—
—
—
—
—
—
—
—
Total
627
—
(627)
—
—
663
(37)
627
Interest charged during the year
15
13
Maximum debit balance during the year2
627
669
1. Amounts advanced and repaid are not shown for overdraft/credit card facilities as these are revolving in nature (i.e. they may be drawn, repaid and redrawn up to their limit over the course of the year).
2. The maximum debit balance is calculated by aggregating the maximum debit balance drawn on each facility during the year.
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Notes to the Consolidated Financial Statements continued
45 Related party transactions continued
(d) Companies Act 2014 disclosures continued
(i) Loans to Directors continued
Anik Chaumartin, Donal Galvin, Sandy Kinney Pritchard, Andy Maguire, Elaine MacLean, Brendan McDonagh, Jim Pettigrew, Jan Sijbrand, Fergal
O’Dwyer, Raj Singh and Anne Sheehan had no credit facilities with the Group in 2025.
All loans to Directors and their connected persons are made in the ordinary course of business on substantially the same terms, including interest rates
and collateral, as those prevailing at the time for similar transactions with other persons unconnected with the Group and of similar financial standing
and do not involve more than normal risk of collectability. All facilities are performing to their terms and conditions.
An expected credit loss allowance is held for all loans and advances. A total expected credit loss allowance of less than €500 was held on the facilities
disclosed in the preceding table at 31 December 2025 (2024: less than €500).
(ii) Connected persons
The aggregate of loans to connected persons of Directors in office during the year ended 31 December 2025 and 2024 are set out in the table below. Loans
to connected persons of Directors in office during the year have not been disclosed if their balance did not exceed €7,500 in the year.
2025
2024
Balance at
31 December
2025
Maximum
amount
outstanding
during the
year
Number of
persons at
31 December
2025
Maximum
number of
persons
during the
year
Balance at
31 December
2024
Maximum
amount
outstanding
during the
year
Number of
persons at
31 December
2024
Maximum
number of
persons
during the
year
€ 000
€ 000
€ 000
€ 000
Tanya Horgan
391
410
4
4
407
428
2
4
Brendan McDonagh
9
9
1
1
9
11
1
1
Helen Normoyle
50
56
3
3
48
53
2
3
Ann O’Brien
29
68
1
1
68
73
1
1
Fergal O’Dwyer1
—
—
—
—
1
27
1
3
Basil Geoghegan
—
—
—
—
1
9
2
2
Andy Maguire
20
23
1
1
23
25
1
1
Donal Galvin
127
145
1
1
140
165
1
1
1. As at 31 December 2025, a guarantee entered into by a connected person of Fergal O’Dwyer in favour of the Group amounted to €20,000. No amounts were paid or liability incurred in fulfilling the
guarantee.
An expected credit loss allowance is held for all loans and advances. A total expected credit loss allowance of less than €3,000 was held on the facilities
disclosed in the table above at 31 December 2025 (2024: less than €20,000).
The value of arrangements at the beginning and end of the financial year as stated above in accordance with Section 307 of the Companies Act 2014,
expressed as a percentage of the net assets of the Group at the beginning and end of the financial year, is less than 1%.
(e) IAS 24 Related Party Disclosures
The following disclosures are made in accordance with the provisions of IAS 24 Related Party Disclosures. Under IAS 24, Key Management Personnel
(KMP) are defined as comprising Executive and Non-Executive Directors together with Senior Executive Officers, namely, the members of the Executive
Committee. As at 31 December 2025, the Group had 23 KMP (2024: 27 KMP).
(i) Transactions with Key Management Personnel
Loans to KMP and their close family members (CFM) are made in the ordinary course of business on substantially the same terms, including interest
rates and collateral, as those prevailing at the time for comparable transactions with other persons of similar standing not connected with the Group,
and do not involve more than the normal risk of collectability or present other unfavourable features. Loans to Directors and Senior Executive Officers
are made on terms available to other employees in the Group generally, in accordance with established policy, within limits set on a case by case basis.
2025
2024
Balance at
1 January
2025
Balance at
31 December
20251
Total number
of relevant
KMP/CFM at
1 January
2025
Total number
of relevant
KMP/CFM at
31 December
20251
Balance at
1 January
2024
Balance at
31 December
2024
Total number
of relevant
KMP/CFM at
1 January
2024
Total number
of relevant
KMP/CFM at
31 December
2024
€ 000
€ 000
€ 000
€ 000
Loans
2,281
1,373
15
15
1,975
2,281
13
15
Deposits
2,211
1,581
33
32
2,084
2,211
29
33
1. Excludes the KMP not in role, and their CFM, as at 31 December 2025.
Total commitments outstanding refers to the total of any undrawn amounts on credit cards and/or overdraft facilities provided to KMP and their CFM. Total
commitments outstanding as at 31 December 2025 were €0.08 million (2024: €0.09 million). An expected credit loss allowance is held for all loans and
advances. A total expected credit loss allowance of less than €500 was held on the facilities disclosed in the table above at 31 December 2025 (2024: €1,000).
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45 Related party transactions continued
(e) IAS 24 Related Party Disclosures continued
(ii) Compensation of Key Management Personnel
Details of compensation paid to KMP are provided below. The figures shown include the figures separately reported in respect of Directors’
remuneration on pages 161 and 162.
2025
2024
€ m
€ m
Short term benefits (salaries, fees and other short-term benefits)
8.2
8.4
Post-employment benefits1
1.1
1.1
Termination benefits
0.6
—
Total compensation of key management personnel
9.9
9.5
1. Comprises payments to defined contribution pension schemes, in accordance with actuarial advice, to provide post-retirement pensions.
(f) Transactions with the Irish Government
The Irish Government ceased to be a related party in July 2025 following the reduction of its shareholding to zero and the execution of a deed of release.
This deed released the Group from the undertakings, covenants, and commitments contained in certain agreements, including the Relationship
Framework. The Group is required to disclose related party transactions occurring during 2025 up to the date on which the Irish Government was no
longer a related party, as well as any outstanding balances as at 31 December 2024. These disclosures are presented under the following headings:
– Directed share buyback
The Group has disclosed details of the directed share buyback in note 34.
– Guarantee schemes
European Communities (Deposit Guarantee Scheme) Regulations 2015
Eligible deposits (including credit balances in current accounts, demand deposit accounts and term deposit accounts) of up to €100,000 per
depositor per credit institution are covered under this scheme. The scheme is administered by the CBI and is funded by the credit institutions covered
by the scheme.
Strategic Banking Corporation of Ireland Scheme
The Group through its participation in the Strategic Banking Corporation of Ireland (SBCI) Support loan Schemes (the Schemes) benefited from
a government guarantee against losses on qualifying finance agreements on amounts advanced under the Schemes during the period when the Irish
Government was a related party. At 31 December 2024, €481 million was outstanding across individual schemes of which the Future Growth Loan
Scheme, Brexit/COVID-19 Working Capital Loan Schemes, Growth & Sustainability Loan Schemes, Covid-19 and Ukraine Credit Guarantee Scheme
benefited from up to 80% Government guarantee.
Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009
The Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 was one of various stabilisation measures implemented by the State to support the Irish
banking system including the Group. The Group no longer has any guaranteed liabilities under the scheme, however certain of the covenants in the scheme
continue to apply to the Group including reporting covenants, until the scheme is terminated by the Minister for Finance.
– NAMA
The General Scheme of the Conclusion of IBRC Special Liquidation and Dissolution of NAMA Bill 2024 (the Bill) was approved by Government on 2 July 2024
and has not been enacted to date. Its purpose is to effect the conclusion of the IBRC Special Liquidation and the dissolution of NAMA. It also makes provision
for the implementation of appropriate arrangements to manage any remaining residual activity of IBRC and NAMA following the conclusion of their work
mandates, including through the creation of a new Resolution Unit within the National Treasury Management Agency (NTMA) to manage any remaining residual
activity. As of December 2025, NAMA had substantially completed its wind-down. The final, formal dissolution is subject to and contingent upon the enactment
of the Bill.
– Irish bank levy
The bank levy was calculated based on each financial institution’s deposits at December 2022 which were either covered under the Deposit
Guarantee Scheme or were not so covered but had preferential status under Article 108 of the BRRD. The annual levy paid by the Group for 2025 and
reflected in operating expenses (note 10) in the income statement amounted to €94 million (2024: €94 million).
– Other transactions with the Irish Government and entities under its control
In addition to the above matters, the Group also entered into other normal banking transactions with the Irish Government, while it was a related
party, its agencies and entities under its control. This included transactions with (i) Irish Government and related entities, (ii) local government and
commercial semi-state bodies and (iii) financial institutions under Irish Government control/significant influence. Other transactions included the
payment of taxes, pay related social insurance, local authority rates, and the payment of regulatory fees, as appropriate.
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Notes to the Consolidated Financial Statements continued
45 Related party transactions continued
(f) Transactions with the Irish Government continued
(i) Irish Government and related entities
Related entities include departments of the Irish Government located in the State and embassies, consulates and other institutions of the Irish
Government located outside the State. The Post Office Savings Bank (POSB) and the National Treasury Management Agency (NTMA) are also included.
The following table outlines the amounts outstanding at 31 December 2024 with the Irish Government and related entities which are considered
individually significant (excluding accrued interest). As the Irish Government is no longer a related party, the outstanding balances at 31 December 2025
are not disclosed:
2024
€ m
Assets
Cash and balances at central banks1
31,525
Trading portfolio financial assets
71
Investment securities2
4,088
Liabilities
Trading portfolio financial liabilities
257
Deposits and advances from customers
402
1. Cash and balances at central banks represent the placements which the Group holds with the Central Bank.
2. Investment securities comprise €4,088m in Irish Government securities held in the normal course of business.
(ii) Local government1 and Commercial semi-state bodies2
During 2025, while the Irish Government was a related party, and 2024, the Group entered into banking transactions in the normal course of business
with local government bodies and semi-state bodies. These transactions include the granting of loans and the acceptance of deposits, as well as
derivative and clearing transactions.
1. This category includes county councils, city councils, non-commercial public sector entities, public voluntary hospitals and schools.
2. Semi-state bodies is the name given to organisations within the public sector operating with some autonomy. They include commercial organisations or companies in which the State is the sole or
main shareholder.
(iii) Financial institutions under Irish Government control/significant influence
The Irish Government has a controlling interest in Permanent tsb plc. The Minister for Finance (on behalf of the Irish Government) is the shareholder of Irish
Bank Resolution Corporation Limited and has statutory powers of direction under the Irish Bank Resolution Corporation Act 2013 but operational control rests
with the Special Liquidators. While the Irish Government was a related party, balances between these financial institutions and the Group were
considered related party transactions in accordance with IAS 24. The transactions with these institutions included the short-term placing and
acceptance of deposits, derivative transactions, investment debt securities and repurchase agreements.
The following balances were outstanding in total to these financial institutions at 31 December 2024. As the Irish Government is no longer a related
party, the outstanding balances at 31 December 2025 are not disclosed.
2024
€ m
Assets
Trading portfolio financial assets
5
(g) Indemnities
The Group has indemnified the Directors of Allied Irish Banks Pensions Limited and AIB DC Pensions (Ireland) Limited, the trustees of the Group’s
Ireland defined benefit pension scheme and defined contribution pension scheme, respectively, against any actions, claims or demands arising out
of their actions as Directors of the trustee companies, other than by reason of wilful default.
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46 Employees
The following table shows the geographical analysis of the average number of employees for 2025 and 2024:
Average number of staff (Full time equivalents)
2025
2024
Ireland
9,591
9,902
United Kingdom
720
718
United States of America
36
35
Total
10,347
10,655
The following table shows the segmental analysis of the average number of employees for 2025 and 2024:
2025
2024
Retail Banking
4,104
4,084
Capital Markets
1,348
1,676
Climate & Infrastructure Capital
107
76
AIB UK
618
625
Group
4,170
4,194
Total1
10,347
10,655
1. The average number of employees excludes employees on career breaks and other unpaid long-term leaves.
Actual full time equivalent numbers at 31 December 2025 were 10,207 (2024: 10,469).
47 Regulatory compliance
The Group’s policy is that the Group and its regulated subsidiaries must comply at all times with their externally imposed capital ratios.
48 Financial and other information
Rates of exchange
2025
2024
€/$*
Closing
1.1750
1.0389
Average
1.1305
1.0823
€/£*
Closing
0.8726
0.8292
Average
0.8569
0.8466
*Throughout this report, US Dollar is denoted by $ and Pound Sterling is denoted by £.
49 Dividends
A final dividend for the year ended 31 December 2024 of 36.984 cent per ordinary share, amounting to €861 million (for the year ended 31 December
2023: €696 million), was approved at the Annual General Meeting on 1 May 2025 and subsequently paid on 9 May 2025. An interim dividend of 12.328
cent per ordinary share, equivalent to €263 million was paid on 11 November 2025. Final dividends are not accounted for until they have been approved
at the Annual General Meeting of shareholders.
50 Non-adjusting events after the reporting period
No significant non-adjusting events have taken place since 31 December 2025.
51 Approval of the Financial Statements
The financial statements were approved by the Board of Directors on 3 March 2026.
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Notes to the Consolidated Financial Statements continued
2025
2024
Note
€ m
€ m
Assets
Loans and advances to banks – subsidiary
c
9,797
9,554
Investment in subsidiary undertaking
d
13,958
13,883
Prepayments and accrued income
186
186
Total assets
23,941
23,623
Liabilities
Debt securities in issue
e
7,135
7,894
Tier 2 subordinated liabilities and other capital instruments
f
2,650
1,650
Accruals and deferred income
175
178
Total liabilities
9,960
9,722
Equity
Share capital
g
1,335
1,455
Merger reserve
6,235
6,234
Reserves
5,086
4,962
Total shareholders’ equity
12,656
12,651
Other equity interests
h
1,325
1,250
Total equity
13,981
13,901
Total liabilities and equity
23,941
23,623
The Company recorded a profit after taxation of €2,807 million for the year ended 31 December 2025 (2024: profit of €2,283 million).
Jim Pettigrew
Chair
Colin Hunt
Chief Executive Officer
Donal Galvin
Chief Financial Officer
Conor Gouldson
Group Company Secretary
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AIB Group plc Company Statement of Financial Position
as at 31 December 2025
2025
Attributable to equity holders of the parent
Share capital
Other equity
interests
Merger
reserve
Revenue
reserves
Capital
redemption
reserves
Total
Note
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January 2025
1,455
1,250
6,234
4,721
241
13,901
Total comprehensive income for the year
Profit after tax
—
—
—
2,807
—
2,807
Other comprehensive income
—
—
—
—
—
—
Total comprehensive income for the year
—
—
—
2,807
—
2,807
Transactions with owners, recorded
directly in equity
Issuance of Additional Tier 1 securities
h
—
700
—
—
—
700
Buyback of Additional Tier 1 securities
h
—
(625)
—
—
—
(625)
Dividends paid on ordinary shares
i
—
—
—
(1,124)
—
(1,124)
Distributions paid to other equity interests
h
—
—
—
(85)
—
(85)
Buyback of ordinary shares
g
(120)
—
—
(1,200)
120
(1,200)
Cancellation of warrants
g
—
—
—
(393)
—
(393)
Other movements
—
—
1
(1)
—
—
Total contributions by and distribution
to owners
(120)
75
1
(2,803)
120
(2,727)
At 31 December 2025
1,335
1,325
6,235
4,725
361
13,981
2024
Attributable to equity holders of the parent
Share capital
Other
equity interests
Merger reserve
Revenue
reserves
Capital
redemption
reserves
Total
Note
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January 2024
1,637
1,125
6,234
4,716
59
13,771
Total comprehensive income for the year
Profit after tax
—
—
—
2,283
—
2,283
Other comprehensive income
—
—
—
—
—
—
Total comprehensive income for the year
—
—
—
2,283
—
2,283
Transactions with owners, recorded
directly in equity
Issuance of Additional Tier 1 securities
—
625
—
—
—
625
Buyback of Additional Tier 1 securities
—
(500)
—
—
—
(500)
Dividends paid on ordinary shares
i
—
—
—
(696)
—
(696)
Distributions paid to other equity interests
h
—
—
—
(80)
—
(80)
Buyback of ordinary shares
g
(182)
—
—
(1,502)
182
(1,502)
Cancellation of warrants
g
—
—
—
—
—
—
Other movements
—
—
—
—
—
—
Total contributions by and distributions
to owners
(182)
125
—
(2,278)
182
(2,153)
At 31 December 2024
1,455
1,250
6,234
4,721
241
13,901
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AIB Group plc Company Statement of Changes in Equity
for the financial year ended 31 December 2025
Background
AIB Group plc (‘the parent company’ or ‘the Company’) is a company
domiciled in Ireland with its registered office address at 10 Molesworth
Street, Dublin 2, Ireland. AIB Group plc is registered under the Companies
Act 2014 as a public limited company under the company number 594283
and is the holding company of the Group.
a Accounting policies
Statement of Compliance
The parent company financial statements and related notes have been
prepared in accordance with Financial Reporting Standard 101 Reduced
Disclosure Framework (FRS 101) and comply with those parts of the
Companies Act 2014 and with the European Union (Credit Institutions:
Financial Statements) Regulations 2015 applicable to companies
reporting under FRS 101.
In preparing these financial statements, the Company applies the
recognition, measurement and disclosure requirements of IFRS as
adopted by the EU, but makes amendments where necessary in order to
comply with the Companies Act 2014 and has set out below where
advantage of the FRS 101 disclosure exemptions has been taken.
In these financial statements, the Company has applied the exemptions
available under FRS 101 in respect of the following disclosures:
• A statement of cash flows and related notes;
• The effects of new but not yet effective IFRS; and
• Disclosures in respect of transactions with wholly owned subsidiaries
of the Group.
Material accounting policies
Where applicable, the accounting policies adopted by the Company are
the same as those of the Group as set out in note 1 to the consolidated
financial statements.
Investment in subsidiary
The Company accounts for its investment in subsidiary at cost less
provisions for impairment. The Company reviews its investment for
impairment at the end of each reporting period if there are indications that
impairment may have occurred.
The testing for possible impairment involves comparing the estimated
recoverable amount of an investment with its carrying amount. Where the
recoverable amount is less than the carrying amount, the difference is
recognised as an impairment provision in the Company’s financial
statements. The recoverable amount is the higher of fair value less costs
to sell and value-in-use (VIU).
Dividends from a subsidiary are recognised in the income statement when
the Company’s right to receive the dividend is established.
Merger reserve
Impairment losses which arise from the Company’s investment in Allied
Irish Banks, p.l.c. will be charged to the profit or loss account and
transferred to the merger reserve in so far as a credit balance remains in
the merger reserve. Reversal of impairments will be credited to the profit
or loss account and transferred to the merger reserve in so far as it does
not exceed the impairment charged.
Use of judgements and estimates
The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application of
policies and reported amounts of certain assets, liabilities, revenues and
expenses, and disclosures of contingent assets and liabilities. The
estimates and assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances. Since management’s judgement may involve making
estimates concerning the likelihood of future events, the actual results
could differ from those estimates. The estimates and assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future
period affected. The Company did not have any significant judgements or
material sources of estimation uncertainty which required separate
disclosure under IFRS.
Parent Company Income Statement
In accordance with Section 304(2) of the Companies Act 2014, the parent
company is availing of the exemption to omit the income statement,
statement of comprehensive income and related notes from its financial
statements; from presenting them to the Annual General Meeting and
from filing them with the Registrar of Companies. The Company’s profit
after taxation for the financial year is €2,807 million (2024: €2,283 million).
The profit primarily arose due to the receipt of dividends from subsidiaries
of the Company.
b Auditor's remuneration
Section 322 of the Companies Act 2014 mandates disclosure of
remuneration paid/payable to the Group Auditor only
(PricewaterhouseCoopers) for services relating to the audit of the Group
and relevant subsidiary financial statements. €5,000 was paid to the
Group Auditor for services relating to the audit of the financial statements
of AIB Group plc during the year to 31 December 2025 (2024: €5,000). No
fees were paid/payable to overseas auditors (2024: Nil).
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Notes to AIB Group plc Company Financial Statements
c Loans and advances to banks
2025
2024
€ m
€ m
At amortised cost
Funds placed with subsidiary, Allied Irish Banks, p.l.c.
9,799
9,557
ECL allowance
(2)
(3)
Total loans and advances to banks
9,797
9,554
Issuances
During 2025, AIB Group plc (Lender) entered into the following loan agreements with Allied Irish Banks, p.l.c. (Borrower) whereby the obligation was
unsecured and subordinated.
Issue date
Nominal amount
Optional redemption date
Maturity date
Interest rate1
March 2025
€500m
March 2032
March 2033
3.875% Fixed Rate
March 2025
€300m
March 2035
March 2036
4.125% Fixed Rate
May 2025
$750m
May 2030
May 2031
5.445% Fixed Rate
December 2025
€1bn
December 2031
December 2036
3.9% Fixed Rate
1. Interest is payable annually, or semi-annually in arrears.
Repurchases
Repurchase
Nominal amount
Repurchased nominal
Maturity date
Interest rate
Outstanding nominal
March 2025
€750m
€343m
July 2026
3.75% Fixed Rate
Nil1
May 2025
$750m
$469m
October 2026
7.708% Fixed Rate
Nil2
1. The outstanding nominal of €407m was redeemed in July on the call date.
2. The outstanding nominal of $281m was redeemed in October on the call date.
Maturities
Maturity date
Nominal amount
Interest rate
Outstanding nominal
July 2025
€500m
2.375% Fixed Rate
Nil
d Investment in subsidiary undertaking
2025
2024
€ m
€ m
At 1 January
13,883
13,758
Additions – Additional Tier 1 Securities
700
625
Redemption – Additional Tier 1 Securities
(625)
(500)
At 31 December
13,958
13,883
of which comprises the ordinary share capital of Allied Irish Banks, p.l.c.
12,633
12,633
of which comprises the Additional Tier 1 Securities (AT1) of Allied Irish Banks, p.l.c.
1,325
1,250
Details of the Company’s subsidiary
Allied Irish Banks, p.l.c. (the Subsidiary) is a financial services company incorporated and registered in Ireland with a registered office at 10 Molesworth
Street, Dublin 2. It is the parent company of a number of subsidiaries, both credit institutions and others, all of which are 100% owned apart from
Augmentum Limited in which there are non-controlling interests. It operates predominantly in Ireland, providing a comprehensive range of services to
retail customers, as well as business and corporate customers. Allied Irish Banks, p.l.c. and its subsidiaries offer a full suite of products for retail
customers, including mortgages, personal loans, credit cards, current accounts, insurance, pensions, financial planning, investments, savings and
deposits. Its products for business and corporate customers include finance and loans, business current accounts, deposits, foreign exchange
and interest rate risk management products, trade finance products, invoice discounting, leasing, credit cards, merchant services, payments and
corporate finance.
Allied Irish Banks, p.l.c. together with its principal subsidiaries in Ireland, AIB Mortgage Bank Unlimited Company and EBS d.a.c., are regulated by the
Central Bank of Ireland/Single Supervisory Mechanism. Its principal subsidiary outside the Republic of Ireland, AIB Group (UK) p.l.c., is regulated by the
Financial Conduct Authority and the Prudential Regulation Authority.
Impairment of investment in subsidiary
The Company reviews its investment in the Subsidiary for impairment at the end of each reporting period if there are indications that impairment may
have occurred. The testing for possible impairment involves comparing the estimated recoverable amount of the investment with its carrying amount.
Where the recoverable amount is less than the carrying amount, the difference is recognised as an impairment loss in the Company’s financial
statements. The recoverable amount is the higher of fair value less costs to sell and value in use (VIU). The Subsidiary’s fair value is calculated as the
market capitalisation of AIB Group less the Company’s net assets (excluding the investment in subsidiary).
At 31 December 2025, AIB Group plc’s market capitalisation less the Company’s net assets, excluding its investment in subsidiary, was €19.7 billion
(2024: €12.4 billion). This was above the carrying value of its investment of €13.9 billion and therefore there is no indicator of impairment at 31
December 2025 and there is no requirement to estimate the VIU.
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Notes to AIB Group plc Company Financial Statements continued
e Debt securities in issue
2025
2024
€ m
€ m
Euro Medium Term Note Programme
4,800
5,250
Global Medium Term Note Programme
2,335
2,644
Total debt securities in issue
7,135
7,894
For details of debt securities issued and repurchased by the Company during 2025, refer to note 29 of the consolidated financial statements. The
instruments issued by AIB Group plc were issued for the purpose of meeting the Group MREL requirements.
f Tier 2 subordinated liabilities and other capital instruments
2025
2024
€ m
€ m
Dated loan capital – European Medium Term Note Programme:
€1bn Subordinated Tier 2 Notes
1,000
1,000
€650m Subordinated Tier 2 Notes
650
650
€1bn Subordinated Tier 2 Notes
1,000
—
Total Tier 2 subordinated liabilities and other capital instruments
2,650
1,650
For details of Tier 2 subordinated liabilities issued by the Company, refer to note 32 of the consolidated financial statements.
g Share capital
For details of the ordinary share capital of the Company, refer to note 34 of the consolidated financial statements.
h Other equity interests
2025
2024
€ m
€ m
Issued by AIB Group plc
€625m Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities issued 2020
—
625
€625m Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities issued 2024
625
625
€700m Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities issued 2025
700
—
Total other equity interests
1,325
1,250
For details of other equity interests issued by the Company, refer to note 35 of the consolidated financial statements.
i Dividends
The dividends of AIB Group plc are detailed in note 49 of the consolidated financial statements.
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j Credit risk information
The following table sets out the maximum exposure to credit risk for financial assets all of which are carried at amortised cost1 at 31 December 2025
and 2024:
2025
2024
€ m
€ m
Loans and advances to banks
9,797
9,554
Included elsewhere:
Accrued interest
186
186
Total
9,983
9,740
1. All amortised cost items are loans and advances which are in a ‘held to collect’ business model.
k Liquidity and funding risk
Financial assets and financial liabilities by contractual residual maturity
The following table analyses financial assets and financial liabilities by contractual residual maturity at 31 December 2025 and 2024:
2025
On demand
<3 months
but not on
demand
3 months
to 1 year
1–5 years
Over
5 years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Financial assets
Loans and advances to banks1
8
—
—
4,101
5,690
9,799
Other financial assets
—
186
—
—
—
186
8
186
—
4,101
5,690
9,985
Financial liabilities
Debt securities in issue2
—
—
—
4,101
3,040
7,141
Tier 2 subordinated liabilities and other capital instruments
—
—
—
—
2,650
2,650
Other financial liabilities
175
—
—
—
—
175
175
—
—
4,101
5,690
9,966
2024
On demand
<3 months but
not on demand
3 months
to 1 year
1–5 years
Over
5 years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Financial assets
Loans and advances to banks1
10
—
500
5,684
3,363
9,557
Other financial assets
—
186
—
—
—
186
10
186
500
5,684
3,363
9,743
Financial liabilities
Debt securities in issue2
—
—
500
5,684
1,713
7,897
Tier 2 subordinated liabilities and other capital instruments
—
—
—
—
1,650
1,650
Other financial liabilities
178
—
—
—
—
178
178
—
500
5,684
3,363
9,725
1. Shown gross of expected credit losses.
2. Shown gross of transaction costs.
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Notes to AIB Group plc Company Financial Statements continued
Country
by Country
Report
In this section
Basis of preparation
338
Parent company and material subsidiaries
339
Turnover, Profit before taxation, Taxation and Employees
339
Independent Auditors’ Report
340
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Basis of preparation
The disclosures contained in this report have been prepared in
accordance with Country by Country Reporting (CBCR) requirements
under the Capital Requirements Directive (CRD IV) which were transposed
into Irish legislation as Regulation 77 of Statutory Instrument 158 of 2014
(Regulation 77).
The disclosures required under Regulation 77 are presented on a
consolidated basis for AIB Group plc and its subsidiaries. In 2024,
CBCR disclosures were presented for Allied Irish Banks, p.l.c and its
subsidiaries, as Allied Irish Banks, p.l.c. prepared consolidated statutory
financial statements for that year whereas in 2025 it availed of an
exemption provided under the Companies Act 2014 from preparing
consolidated statutory financial statements. Prior year information has
been re-presented for comparative purposes.
AIB Group plc is the listed holding company of the Group and the parent
company of Allied Irish Banks, p.l.c. For purposes of this report, AIB Group
plc and its subsidiaries are collectively referred to as the ‘Group’. CBCR
disclosures are prepared under International Financial Reporting
Standards (collectively IFRSs) as adopted by the European Union (EU)
except in relation to the scope of consolidation which is prepared on
a prudential basis. The principal differences between the consolidated
statutory financial statements of AIB Group plc and the prudential scope
of consolidation are as follows:
• The Group’s subsidiary Semeral Ltd, a holding company for Payzone
Ireland, is fully consolidated in the statutory financial statements but
treated as an investment under the prudential scope of consolidation; and
• The Group’s securitisation special purpose vehicles are excluded from
the prudential scope of consolidation.
Regulation 77 requires each institution to disclose annually, specifying,
by Member State and by third country in which it has an establishment,
the following information on a consolidated basis for the financial year.
(a) Name(s), nature of activities and geographical location
This information is provided based on the locations of operations of AIB
Group plc and its subsidiary companies.
(b) Turnover
Turnover is reported for each country and comprises all items included
within total operating income as disclosed in the consolidated income
statement of the Group.
The geographical distribution of turnover is based primarily on the location
of the office recording the transaction. In deriving turnover by country,
inter-company turnover arising within a country is eliminated, but inter-
company turnover between countries is reported.
(c) Number of employees on a full-time equivalent basis
The number of employees on a full-time equivalent (FTE) basis is reported
as an average number of employees, analysed by geography.
(d) Profit or loss before tax
Profit before tax is reported for each country.
(e) Tax on profit or loss
Tax on profit or loss, for the purposes of country by country reporting,
is interpreted as the corporation tax paid/refunded in each geographical
jurisdiction in the year.
(f) Public subsidies received
The definition of ‘public subsidies’ has been interpreted as direct support
by the Government. It does not include central bank operations that are
designed for financial stability purposes or operations that aim to facilitate
the functioning of the monetary policy transmission. No public subsidies
were received by the Group during the year ended 31 December 2025.
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Country by Country Report
Parent company
Country
Parent company
Nature of activities
Republic of Ireland
AIB Group plc
The holding company of the Group, quoted on the Euronext
Dublin and London Stock Exchange.
Material subsidiaries1
Country
Principal subsidiary or branch
Nature of activities
Republic of Ireland
Allied Irish Banks, p.l.c.
A direct subsidiary of AIB Group plc and the principal operating
company of the Group and holds the majority of the
subsidiaries within the Group. Its activities include banking and
financial services – a licensed bank
Republic of Ireland
AIB Mortgage Bank Unlimited Company
Issue of Irish residential mortgages and mortgage covered
securities – a licensed bank
Republic of Ireland
EBS d.a.c.
Mortgages and savings – a licensed bank
United Kingdom
AIB Group (UK) p.l.c. trading as Allied
Irish Bank (GB) in Great Britain and AIB
(NI) in Northern Ireland
Banking and financial services – a licensed bank
1. The material subsidiaries which are included in the prudential basis of consolidation are in line with those set out in the consolidated financial statements of AIB Group plc at 31 December 2025.
Turnover, Profit before taxation, Taxation and Employees
Group1
For the year ended 31 December 2025
For the year ended 31 December 2024
Turnover
Profit
before tax2
Taxation
paid
Average
FTEs
Turnover
Profit/(loss)
before tax2
Taxation
paid
Average
FTEs
€ m
€ m
€ m
€ m
€ m
€ m
Country
Republic of Ireland
4,020
2,122
4
9,484
4,411
2,451
7
9,790
United Kingdom
446
271
20
719
514
273
53
718
Rest of the World3
26
4
—
36
(17)
(24)
—
35
Total
4,492
2,397
24
10,239
4,908
2,700
60
10,543
1. AIB Group plc and its subsidiaries on a group consolidated basis. Any differences with items reported in this table and those reported in AIB Group plc consolidated financial statements are due to the
scope of consolidation noted in the basis of preparation.
2. The amount of accrued current tax expense recorded on taxable profits in 2025 was €51m (€7m ROI, €44m UK) (2024: €59m (€7m ROI, €52m UK)).
3. The turnover is derived from the operations of smaller branches and entities of AIB Group plc primarily in North America. In 2024, the Group recognised a net total operating loss of €17m.
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Independent auditors’ report to the Directors
of AIB Group plc Report on the audit of the
Country-by-Country Reporting Schedule
Opinion
In our opinion, AIB Group plc and its subsidiaries (the ‘Group’) Country-
by-Country Reporting Schedule for the year ended 31 December 2025 has
been properly prepared, in all material respects, in accordance with the
Basis of Preparation set out on page 338.
We have audited the Country-by-Country Reporting Schedule for the year
ended 31 December 2025 which comprises the Country by Country reporting
for the year ended 31 December 2025 and the Basis of Preparation.
Basis for opinion
We conducted our audit in accordance with International Standards on
Auditing (Ireland) (‘ISAs (Ireland)’), including ISA (Ireland) 800 and ISA
(Ireland) 805, and applicable law. Our responsibilities under ISAs (Ireland)
are further described in the Auditors’ responsibilities for the audit of the
Country-by-Country Reporting Schedule section of our report. We believe
that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independence
We remained independent of the Group in accordance with the ethical
requirements that are relevant to our audit of the Country-by-Country
Reporting Schedule in Ireland, which includes IAASA’s Ethical Standard,
and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
Emphasis of matter – Basis of preparation
In forming our opinion on the Country-by-Country Reporting Schedule,
which is not modified, we draw attention to the Basis of Preparation. The
Country-by-Country Reporting Schedule is prepared by the directors for
the purpose of meeting the requirements of Regulation 77 of Statutory
Instrument 158 of 2014. The Country-by- Country Reporting Schedule has
therefore been prepared in accordance with a special purpose framework
and, as a result, the Country-by-Country Reporting Schedule may not be
suitable for another purpose.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the Group’s ability to
continue to adopt the going concern basis of accounting included:
• Obtaining management’s going concern assessment;
• Performing a risk assessment to identify factors that could impact the
going concern assessment;
• Considering the Group’s Financial Plan approved by the Board in
December 2025. In evaluating management’s base case forecasts and
alternative stress scenarios we considered the Group’s financial
position, historic performance, its past record of achieving strategic
objectives and management’s assessment of the likely impact on
financial performance, capital and liquidity for a period of 12 months
from the date on which the Country-by-Country Reporting Schedule is
authorised for issue;
• Considering whether the assumptions underlying the base cases were
consistent with related assumptions used in other areas of the Group’s
business activities, for example, in testing for non-financial asset
impairment; and
• Reading relevant correspondence from the Central Bank of Ireland and
the ECB Joint Supervisory Team with regards to regulatory capital and
liquidity requirements of the Group.
Based on the work we have performed, we have not identified any material
uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the Group’s ability to continue
as a going concern for a period of at least twelve months from the date on
which the Country-by-Country Reporting Schedule is authorised for issue.
In auditing the Country-by-Country Reporting Schedule, we have
concluded that the directors’ use of the going concern basis of accounting
in the preparation of the Country-by-Country Reporting Schedule is
appropriate.
However, because not all future events or conditions can be predicted,
this conclusion is not a guarantee as to the Group’s ability to continue as
a going concern.
Our responsibilities and the responsibilities of the directors with respect
to going concern are described in the relevant sections of this report.
Responsibilities for the Country-by-Country Reporting Schedule and
the audit
Responsibilities of the directors for the Country-by-Country
Reporting Schedule
The directors are responsible for the preparation of the Country-by-
Country Reporting Schedule and for the appropriateness of the basis of
preparation. The directors are also responsible for such internal control
as they determine is necessary to enable the preparation of a country-by-
country reporting schedule that is free from material misstatement,
whether due to fraud or error.
In preparing the Country-by-Country Reporting Schedule, the directors are
responsible for assessing the Group’s ability to continue as a going
concern, disclosing as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either
intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditors’ responsibilities for the audit of the country-by-country
reporting schedule
It is our responsibility to report on whether the Country-by-Country
Reporting Schedule has been properly prepared in accordance with the
Basis of Preparation.
Our objectives are to obtain reasonable assurance about whether the
Country-by-Country Reporting Schedule as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance
with ISAs (Ireland) will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis
of this Country-by- Country Reporting Schedule.
Irregularities, including fraud, are instances of non-compliance with laws
and regulations. We design procedures in line with our responsibilities,
outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are
capable of detecting irregularities, including fraud, is detailed below.
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Country by Country Report continued
Independent auditors’ report to the Directors
of AIB Group plc Report on the audit of the
Country-by-Country Reporting Schedule
continued
Auditors’ responsibilities for the audit of the country-by-country
reporting schedule continued
Based on our understanding of the Group and its industry, we identified
that the principal risks of non- compliance with laws and regulations
related to breaches of banking laws and regulations, and we considered
the extent to which non-compliance might have a material effect on the
Country-by-Country Reporting Schedule. We also considered those laws
and regulations that have a direct impact on the preparation of the
Country-by-Country Reporting Schedule such as the Companies Act
2014. We evaluated management’s incentives and opportunities for
fraudulent manipulation of the Country-by-Country Reporting Schedule
(including the risk of override of controls), and determined that the
principal risks were related to the potential for management bias through
judgement and assumptions in significant accounting estimates and
manual journal entries being recorded in order to affect performance.
Audit procedures performed by the engagement team included:
• Discussions with the Board Audit Committee, management and Group
Legal including consideration of known or suspected instances of non
compliance with laws and regulations or fraud;
• Reading the meeting minutes of the Board of Directors, Board Audit
Committee, Board Risk Committee, Board Remuneration Committee
and the Board Nomination & Corporate Governance Committee;
• Consideration of the results of reporting from the component audit
team in the UK relating to compliance with applicable laws and
regulations and procedures performed to address assessed fraud risk;
• Discussions with Group Internal Audit and consideration of internal
audit reports in so far as they related to the financial statements;
• Evaluating whether there was evidence of management bias that
represents a risk of material misstatement due to fraud;
• Inspection of relevant regulatory correspondence from the Central
Bank of Ireland and the ECB Joint Supervisory Team;
• Challenging assumptions and judgements made by management in
their accounting estimates;
• Applying risk-based criteria to journal entries posted in the audit period
to determine journal entries for testing purposes; and
• Designing audit procedures to incorporate elements of unpredictability
around the nature and extent of audit procedures performed.
There are inherent limitations in the audit procedures described above.
We are less likely to become aware of instances of non-compliance
with laws and regulations that are not closely related to events and
transactions reflected in the Country-by-Country Reporting Schedule.
Also, the risk of not detecting a material misstatement due to fraud is
higher than the risk of not detecting one resulting from error, as fraud may
involve deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain
transactions and balances, possibly using data auditing techniques.
However, it typically involves selecting a limited number of items for testing,
rather than testing complete populations. We will often seek to target
particular items for testing based on their size or risk characteristics.
In other cases, we will use audit sampling to enable us to draw a
conclusion about the population from which the sample is selected.
A further description of our responsibilities for the audit of the Country-by-
Country Reporting Schedule is located on IAASA’s website at: https://
www.iaasa.ie/getmedia/b2389013-1cf6-458b-9b8f- a98202dc9c3a/
Description_of_auditors_responsibilities_for_audit.pdf. This description
forms part of our auditors’ report.
Use of this report
This report, including the opinion, has been prepared for and only for the
Group’s directors. We do not, in giving this opinion, accept or assume
responsibility for any other purpose or to any other person to whom this
report is shown or into whose hands it may come, save where expressly
agreed by our prior consent in writing.
Ronan Doyle
For and on behalf of
PricewaterhouseCoopers
Chartered Accountants and Statutory Auditors
Dublin
3 March 2026
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342
General
Information
1
EU Taxonomy Disclosure Tables1
344
2
Shareholder Information
381
3
Forward Looking Statement
382
4
Principal Addresses
383
In this section
1. The pages from 344 to 380 are subject to limited assurance, other than the tables with a
disclosure reference date of 31 December 2024.
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Total environmentally
sustainable assets (€m)
KPI1
KPI2
% coverage
(over total assets)3
% of assets excluded from the
numerator of the GAR (Article
7(2) and (3) and Section 1.1.2. of
Annex V)
% of assets excluded from the
denominator of the GAR (Article
7(1) and Section 1.2.4 of Annex
V)
Main KPI
Green asset ratio (GAR) stock
4,390
4.45 %
4.51 %
66.02 %
22.55 %
33.98 %
Total environmentally
sustainable activities
KPI
KPI
% coverage (over total assets)
% of assets excluded from the
numerator of the GAR (Article
7(2) and (3) and Section 1.1.2. of
Annex V)
% of assets excluded from the
denominator of the GAR (Article
7(1) and Section 1.2.4 of Annex
V)
Additional KPIs
GAR (flow)
601
2.88 %
3.16 %
88.24 %
34.73 %
11.76 %
Trading book4
Financial guarantees
—
— %
— %
Assets under management
—
— %
— %
Fees and commissions income4
1. Based on the Turnover KPI that the underlying counterparty has disclosed for each environmental objective in accordance with this Regulation.
2. Based on the CapEx KPI that the underlying counterparty has disclosed for each environmental objective in accordance with this Regulation.
3. % of assets covered by the KPI over banks´ total assets.
4. For the 2025 financial year, AIB has applied the transitional option permitted under Article 4, third subparagraph, of Commission Delegated Regulation (EU) 2026/73 (Omnibus Delegated Act), thereby continuing to report in accordance with the Disclosure Delegated Act as it applied until 31 December 2025. In line with Article 10(5) of the
Disclosures Delegated Act, as amended by Article 1(8) of the Omnibus Delegated Act, AIB will not report the Trading Book KPI or the Fees and Commission KPI (Sections 1.2.3 and 1.2.4 of Annex V) until their revised application date of 1 January 2028.
5. Due to rounding, numbers presented in template 1 may not add up precisely to the totals provided.
6. Certain EU Taxonomy templates retain references to undertakings subject to the NFRD. For FY25 reporting, AIB has applied the CSRD scope and included only counterparties that reported under CSRD in their latest Annual Financial Report, consistent with the legislative framework.
7. Flow exposures in template 4 are calculated in accordance with the clarification in the Third Commission Notice (C/2024/6691) and reflect only newly incurred exposures on a gross basis.
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0. Summary of KPIs to be disclosed by credit institutions
under Article 8 Taxonomy Regulation
(Pages 344 – 380 are subject to limited assurance)
GAR – Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
64,961
38,532
4,390
4,361
24
0
2
0
—
—
—
—
—
—
3
—
—
—
21
—
—
—
49
—
—
—
38,606
4,390
4,361
24
0
2
Financial
undertakings
21,516
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3
Credit institutions
13,557
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4
Loans and
advances
5,616
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5
Debt securities,
including UoP
7,941
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
7
Other financial
corporations
7,959
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
8
of which
investment firms
478
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
9
Loans and
advances
478
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
10
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
11
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
12
of which
management
companies
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
13
Loans and
advances
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
14
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
15
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
16
of which
insurance
undertakings
20
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
17
Loans and
advances
20
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
18
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
19
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
20
Non-financial
undertakings
570
192
29
—
24
0
2
0
—
—
—
—
—
—
3
—
—
—
21
—
—
—
49
—
—
—
266
29
—
24
0
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
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1. Assets for the calculation of GAR (revenue)
Disclosure reference date 31 December 2025
21
Loans and
advances
570
192
29
—
24
0
2
0
—
—
—
—
—
—
3
—
—
—
21
—
—
—
49
—
—
—
266
29
—
24
0
22
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
23
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
24
Households
42,843
38,340
4,361
4,361
—
—
—
—
—
—
—
—
—
—
38,340
4,361
4,361
—
—
25
of which loans
collateralised by
residential
immovable
property
37,347
37,347
4,361
4,361
—
—
—
—
—
—
—
—
—
—
37,347
4,361
4,361
—
—
26
of which building
renovation loans
13
13
—
—
—
—
—
—
—
—
—
—
—
—
13
—
—
—
—
27
of which motor
vehicle loans
980
980
—
—
—
—
980
—
—
—
—
28
Local
governments
financing
32
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
29
Housing financing
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
30
Other local
government
financing
32
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
2
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
32
Assets excluded
from the
numerator for
GAR calculation
(covered in the
denominator)
33,689
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
33
Financial and
Non-financial
undertakings
26,855
34
SMEs and NFCs
(other than SMEs)
not subject to
NFRD disclosure
obligations
14,521
35
Loans and
advances
13,794
36
of which loans
collateralised by
commercial
immovable
property
4,723
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
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1. Assets for the calculation of GAR (revenue)
Disclosure reference date 31 December 2025 continued
37
of which building
renovation loans
—
38
Debt securities
726
39
Equity
instruments
1
40
Non-EU country
counterparties
not subject to
NFRD disclosure
obligations
12,334
41
Loans and
advances
12,002
42
Debt securities
332
43
Equity
instruments
—
44
Derivatives
1,294
45
On demand
interbank loans
325
46
Cash and cash-
related assets
651
47
Other categories
of assets (e.g.
Goodwill,
commodities
etc.)
4,564
48
Total GAR assets
98,651
38,532
4,390
4,361
24
0
2
0
—
—
—
—
—
—
3
—
—
—
21
—
—
—
49
—
—
—
38,606
4,390
4,361
24
0
49
Assets not
covered for GAR
calculation
50,773
50
Central
governments and
Supranational
issuers
9,981
51
Central banks
exposure
40,157
52
Trading book
635
53
Total assets
149,425
38,532
4,390
4,361
24
0
2
0
—
—
—
—
—
—
3
—
—
—
21
—
—
—
49
—
—
—
38,606
4,390
4,361
24
0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial
guarantees
1,208
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
55
Assets under
management
9,024
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
56
Of which debt
securities
3,016
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
57
Of which equity
instruments
3,745
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
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347
GAR – Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
63,206
39,280
4,150
4,132
—
18
6
—
—
—
—
—
—
—
0
—
—
—
35
—
—
—
6
—
—
—
39,328
4,150
4,132
—
18
2
Financial
undertakings
19,953
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3
Credit institutions
13,399
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4
Loans and
advances
5,928
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5
Debt securities,
including UoP
7,471
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
7
Other financial
corporations
6,554
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
8
of which
investment firms
370
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
9
Loans and
advances
370
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
10
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
11
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
12
of which
management
companies
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
13
Loans and
advances
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
14
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
15
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
16
of which
insurance
undertakings
25
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
17
Loans and
advances
25
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
18
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
19
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
20
Non-financial
undertakings
882
200
18
—
—
18
6
—
—
—
—
—
—
—
0
—
—
—
35
—
—
—
6
—
—
—
248
18
—
—
18
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
348
1. Assets for the calculation of GAR (revenue)
Disclosure reference date 31 December 2024
21
Loans and
advances
882
200
18
—
—
18
6
—
—
—
—
—
—
—
0
—
—
—
35
—
—
—
6
—
—
—
248
18
—
—
18
22
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
23
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
24
Households
42,342
39,080
4,132
4,132
—
—
—
—
—
—
—
—
—
—
39,080
4,132
4,132
—
—
25
of which loans
collateralised by
residential
immovable
property
36,369
36,331
4,132
4,132
—
—
—
—
—
—
—
—
—
—
36,331
4,132
4,132
—
—
26
of which building
renovation loans
4
4
—
—
—
—
—
—
—
—
—
—
—
—
4
—
—
—
—
27
of which motor
vehicle loans
827
827
—
—
—
827
—
—
—
—
28
Local
governments
financing
30
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
29
Housing financing
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
30
Other local
government
financing
30
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
2
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
32
Assets excluded
from the
numerator for
GAR calculation
(covered in the
denominator)
33,990
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
33
Financial and
Non-financial
undertakings
26,445
34
SMEs and NFCs
(other than SMEs)
not subject to
NFRD disclosure
obligations
15,178
35
Loans and
advances
14,537
36
of which loans
collateralised by
commercial
immovable
property
5,078
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
349
37
of which building
renovation loans
—
38
Debt securities
640
39
Equity
instruments
1
40
Non-EU country
counterparties
not subject to
NFRD disclosure
obligations
11,267
41
Loans and
advances
11,034
42
Debt securities
232
43
Equity
instruments
—
44
Derivatives
1,719
45
On demand
interbank loans
401
46
Cash and cash-
related assets
664
47
Other categories
of assets (e.g.
Goodwill,
commodities
etc.)
4,762
48
Total GAR assets
97,199
39,280
4,150
4,132
—
18
6
—
—
—
—
—
—
—
0
—
—
—
35
—
—
—
6
—
—
—
39,328
4,150
4,132
—
18
49
Assets not
covered for GAR
calculation
45,410
50
Central
governments and
Supranational
issuers
7,945
51
Central banks
exposure
36,904
52
Trading book
561
53
Total assets
142,608
39,280
4,150
4,132
—
18
6
—
—
—
—
—
—
—
0
—
—
—
35
—
—
—
6
—
—
—
39,328
4,150
4,132
—
18
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial
guarantees
978
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
55
Assets under
management
8,395
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
56
Of which debt
securities
2,526
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
57
Of which equity
instruments
3,675
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
350
1. Assets for the calculation of GAR (revenue)
Disclosure reference date 31 December 2024 continued
GAR – Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
64,961
38,595
4,449
4,361
19
2
7
0
—
—
0
0
—
—
3
—
—
—
12
—
—
—
3
—
—
—
38,621
4,449
4,361
19
2
2
Financial
undertakings
21,516
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3
Credit institutions
13,557
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4
Loans and
advances
5,616
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5
Debt securities,
including UoP
7,941
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
7
Other financial
corporations
7,959
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
8
of which
investment firms
478
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
9
Loans and
advances
478
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
10
Debt securities,
including UoP
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
11
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
12
of which
management
companies
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
13
Loans and
advances
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
14
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
15
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
16
of which
insurance
undertakings
20
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
17
Loans and
advances
20
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
18
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
19
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
351
1. Assets for the calculation of GAR (capex)
Disclosure reference date 31 December 2025
20
Non-financial
undertakings
570
256
88
—
19
2
7
0
—
—
0
0
—
—
3
—
—
—
12
—
—
—
3
—
—
—
281
88
—
19
2
21
Loans and
advances
570
256
88
—
19
2
7
0
—
—
0
0
—
—
3
—
—
—
12
—
—
—
3
—
—
—
281
88
—
19
2
22
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
23
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
24
Households
42,843
38,340
4,361
4,361
—
—
—
—
—
—
—
—
—
—
38,340
4,361
4,361
—
—
25
of which loans
collateralised by
residential
immovable
property
37,347
37,347
4,361
4,361
—
—
—
—
—
—
—
—
—
—
37,347
4,361
4,361
—
—
26
of which building
renovation loans
13
13
—
—
—
—
—
—
—
—
—
—
—
—
13
—
—
—
—
27
of which motor
vehicle loans
980
980
—
—
—
—
980
—
—
—
—
28
Local
governments
financing
32
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
29
Housing financing
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
30
Other local
government
financing
32
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
2
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
32
Assets excluded
from the
numerator for
GAR calculation
(covered in the
denominator)
33,689
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
33
Financial and
Non-financial
undertakings
26,855
34
SMEs and NFCs
(other than SMEs)
not subject to
NFRD disclosure
obligations
14,521
35
Loans and
advances
13,794
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
352
1. Assets for the calculation of GAR (capex)
Disclosure reference date 31 December 2025 continued
36
of which loans
collateralised by
commercial
immovable
property
4,723
37
of which building
renovation loans
—
38
Debt securities
726
39
Equity
instruments
1
40
Non-EU country
counterparties
not subject to
NFRD disclosure
obligations
12,334
41
Loans and
advances
12,002
42
Debt securities
332
43
Equity
instruments
—
44
Derivatives
1,294
45
On demand
interbank loans
325
46
Cash and cash-
related assets
651
47
Other categories
of assets (e.g.
Goodwill,
commodities
etc.)
4,564
48
Total GAR assets
98,651
38,595
4,449
4,361
19
2
7
0
—
—
0
0
—
—
3
—
—
—
12
—
—
—
3
—
—
—
38,621
4,449
4,361
19
2
49
Assets not
covered for GAR
calculation
50,773
50
Central
governments and
Supranational
issuers
9,981
51
Central banks
exposure
40,157
52
Trading book
635
53
Total assets
149,425
38,595
4,449
4,361
19
2
7
0
—
—
0
0
—
—
3
—
—
—
12
—
—
—
3
—
—
—
38,621
4,449
4,361
19
2
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial
guarantees
1,208
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
353
55
Assets under
management
9,024
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
56
Of which debt
securities
3,016
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
57
Of which equity
instruments
3,745
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
354
1. Assets for the calculation of GAR (capex)
Disclosure reference date 31 December 2025 continued
GAR – Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
63,206
39,279
4,146
4,132
—
14
27
—
—
—
—
—
—
—
0
—
—
—
20
—
—
—
4
—
—
—
39,329
4,146
4,132
—
14
2
Financial
undertakings
19,953
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3
Credit institutions
13,399
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4
Loans and
advances
5,928
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5
Debt securities,
including UoP
7,471
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
7
Other financial
corporations
6,554
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
8
of which
investment firms
370
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
9
Loans and
advances
370
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
10
Debt securities,
including UoP
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
11
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
12
of which
management
companies
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
13
Loans and
advances
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
14
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
15
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
16
of which
insurance
undertakings
25
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
17
Loans and
advances
25
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
18
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
19
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
20
Non-financial
undertakings
882
199
14
—
—
14
27
—
—
—
—
—
—
—
0
—
—
—
20
—
—
—
4
—
—
—
249
14
—
—
14
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
355
1. Assets for the calculation of GAR (capex)
Disclosure reference date 31 December 2024
21
Loans and
advances
882
199
14
—
—
14
27
—
—
—
—
—
—
—
0
—
—
—
20
—
—
—
4
—
—
—
249
14
—
—
14
22
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
23
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
24
Households
42,342
39,080
4,132
4,132
—
—
—
—
—
—
—
—
—
—
39,080
4,132
4,132
—
—
25
of which loans
collateralised by
residential
immovable
property
36,369
36,331
4,132
4,132
—
—
—
—
—
—
—
—
—
—
36,331
4,132
4,132
—
—
26
of which building
renovation loans
4
4
—
—
—
—
—
—
—
—
—
—
—
—
4
—
—
—
—
27
of which motor
vehicle loans
827
827
—
—
—
—
827
—
—
—
—
28
Local
governments
financing
30
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
29
Housing financing
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
30
Other local
government
financing
30
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
2
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
32
Assets excluded
from the
numerator for
GAR calculation
(covered in the
denominator)
33,990
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
33
Financial and
Non-financial
undertakings
26,445
34
SMEs and NFCs
(other than SMEs)
not subject to
NFRD disclosure
obligations
15,178
35
Loans and
advances
14,537
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
356
1. Assets for the calculation of GAR (capex)
Disclosure reference date 31 December 2024 continued
36
of which loans
collateralised by
commercial
immovable
property
5,078
37
of which building
renovation loans
—
38
Debt securities
640
39
Equity
instruments
1
40
Non-EU country
counterparties
not subject to
NFRD disclosure
obligations
11,267
41
Loans and
advances
11,034
42
Debt securities
232
43
Equity
instruments
—
44
Derivatives
1,719
45
On demand
interbank loans
401
46
Cash and cash-
related assets
664
47
Other categories
of assets (e.g.
Goodwill,
commodities
etc.)
4,762
48
Total GAR assets
97,199
39,279
4,146
4,132
—
14
27
—
—
—
—
—
—
—
0
—
—
—
20
—
—
—
4
—
—
—
39,329
4,146
4,132
—
14
49
Assets not
covered for GAR
calculation
45,410
50
Central
governments and
Supranational
issuers
7,945
51
Central banks
exposure
36,904
52
Trading book
561
53
Total assets
142,608
39,279
4,146
4,132
—
14
27
—
—
—
—
—
—
—
0
—
—
—
20
—
—
—
4
—
—
—
39,329
4,146
4,132
—
14
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial
guarantees
978
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
55
Assets under
management
8,395
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
357
56
Of which debt
securities
2,526
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
57
Of which equity
instruments
3,675
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable (Taxonomy-
aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
358
1. Assets for the calculation of GAR (capex)
Disclosure reference date 31 December 2024 continued
Breakdown by sector – NACE 4 digits level (code and label)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally
sustainable (CCM)
Mn EUR
Of which environmentally
sustainable (CCM)
Mn EUR
Of which environmentally
sustainable (CCA)
Mn EUR
Of which environmentally
sustainable (CCA)
1
C10.51 - Operation of dairies and cheese making
29.24
—
—
—
2
C10.89 - Manufacture of other food products n.e.c.
4.87
—
—
—
3
C21.1 - Manufacture of basic pharmaceutical products
36.20
—
—
—
4
C28.29 - Manufacture of other general-purpose machinery n.e.c.
26.23
—
—
—
5
C32.99 - Other manufacturing n.e.c.
54.23
—
—
—
6
F41.2 - Construction of residential and non-residential buildings
92.54
—
—
—
7
G45.31 - Wholesale trade of motor vehicle parts and accessories
0.09
—
—
—
8
G46.9 - Non-specialised wholesale trade
135.71
—
—
—
9
H51.1 - Passenger air transport
8.77
—
—
—
10
I55.1 - Hotels and similar accommodation
31.13
—
—
—
11
J61.9 - Other telecommunications activities
14.89
0.73
0.06
0.06
12
K64.99 - Other financial service activities, except insurance and pension funding
99.78
3.99
—
—
13
N82.99 - Other business support service activities n.e.c.
35.89
24.04
—
—
14
Q86.9 - Other human health activities
0.06
—
—
—
Breakdown by sector – NACE 4 digits level (code and label)
Water and marine resources (WTR)
Circular economy (CE)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally
sustainable (WTR)
Mn EUR
Of which environmentally
sustainable (WTR)
Mn EUR
Of which environmentally
sustainable (CE)
Mn EUR
Of which environmentally
sustainable (CE)
1
C10.51 - Operation of dairies and cheese making
—
—
—
—
2
C10.89 - Manufacture of other food products n.e.c.
—
—
—
—
3
C21.1 - Manufacture of basic pharmaceutical products
—
—
—
—
4
C28.29 - Manufacture of other general-purpose machinery n.e.c.
—
—
—
—
5
C32.99 - Other manufacturing n.e.c.
—
—
—
—
6
F41.2 - Construction of residential and non-residential buildings
—
—
—
—
7
G45.31 - Wholesale trade of motor vehicle parts and accessories
—
—
—
—
8
G46.9 - Non-specialised wholesale trade
—
—
—
—
9
H51.1 - Passenger air transport
—
—
—
—
10
I55.1 - Hotels and similar accommodation
—
—
—
—
11
J61.9 - Other telecommunications activities
—
—
—
—
12
K64.99 - Other financial service activities, except insurance and pension funding
—
—
—
—
13
N82.99 - Other business support service activities n.e.c.
—
—
—
—
14
Q86.9 - Other human health activities
—
—
—
—
Annual
Review
Business
Review
Sustainability
Reporting
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Report
Risk
Management
Financial
Statements
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General
Information
AIB Group plc
Annual Financial Report 2025
359
2. GAR sector information (revenue)
Disclosure reference date 31 December 2025
Breakdown by sector – NACE 4 digits level (code and label)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally
sustainable (PPC)
Mn EUR
Of which environmentally
sustainable (PPC)
Mn EUR
Of which environmentally
sustainable (BIO)
Mn EUR
Of which environmentally
sustainable (BIO)
1
C10.51 - Operation of dairies and cheese making
—
—
—
—
2
C10.89 - Manufacture of other food products n.e.c.
—
—
—
—
3
C21.1 - Manufacture of basic pharmaceutical products
—
—
—
—
4
C28.29 - Manufacture of other general-purpose machinery n.e.c.
—
—
—
—
5
C32.99 - Other manufacturing n.e.c.
—
—
—
—
6
F41.2 - Construction of residential and non-residential buildings
—
—
—
—
7
G45.31 - Wholesale trade of motor vehicle parts and accessories
—
—
—
—
8
G46.9 - Non-specialised wholesale trade
—
—
—
—
9
H51.1 - Passenger air transport
—
—
—
—
10
I55.1 - Hotels and similar accommodation
—
—
—
—
11
J61.9 - Other telecommunications activities
—
—
—
—
12
K64.99 - Other financial service activities, except insurance and pension funding n.e.c.
—
—
—
—
13
N82.99 - Other business support service activities n.e.c.
—
—
—
—
14
Q86.9 - Other human health activities
—
—
—
—
Breakdown by sector – NACE 4 digits level (code and label)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally sustainable (CCM
+ CCA + WTR + CE + PPC + BIO)
Mn EUR
Of which environmentally sustainable (CCM
+ CCA + WTR + CE + PPC + BIO)
1
C10.51 - Operation of dairies and cheese making
29.24
—
2
C10.89 - Manufacture of other food products n.e.c.
4.87
—
3
C21.1 - Manufacture of basic pharmaceutical products
36.20
—
4
C28.29 - Manufacture of other general-purpose machinery n.e.c.
26.23
—
5
C32.99 - Other manufacturing n.e.c.
54.23
—
6
F41.2 - Construction of residential and non-residential buildings
92.54
—
7
G45.31 - Wholesale trade of motor vehicle parts and accessories
0.09
—
8
G46.9 - Non-specialised wholesale trade
135.71
—
9
H51.1 - Passenger air transport
8.77
—
10
I55.1 - Hotels and similar accommodation
31.13
—
11
J61.9 - Other telecommunications activities
14.95
0.79
12
K64.99 - Other financial service activities, except insurance and pension funding n.e.c.
99.78
3.99
13
N82.99 - Other business support service activities n.e.c.
35.89
24.04
14
Q86.9 - Other human health activities
0.06
—
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
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Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
360
2. GAR sector information (revenue)
Disclosure reference date 31 December 2025 continued
Breakdown by sector – NACE 4 digits level (code and label)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally
sustainable (CCM)
Mn EUR
Of which environmentally
sustainable (CCM)
Mn EUR
Of which environmentally
sustainable (CCA)
Mn EUR
Of which environmentally
sustainable (CCA)
1
C10.51 - Operation of dairies and cheese making
29.24
0.15
—
—
2
C10.89 - Manufacture of other food products n.e.c.
4.87
0.13
—
—
3
C21.1 - Manufacture of basic pharmaceutical products
36.20
—
—
—
4
C28.29 - Manufacture of other general-purpose machinery n.e.c.
26.23
—
—
—
5
C32.99 - Other manufacturing n.e.c.
54.23
—
—
—
6
F41.2 - Construction of residential and non-residential buildings
92.54
0.00
—
—
7
G45.31 - Wholesale trade of motor vehicle parts and accessories
0.09
—
—
—
8
G46.9 - Non-specialised wholesale trade
135.71
—
—
—
9
H51.1 - Passenger air transport
8.77
—
—
—
10
I55.1 - Hotels and similar accommodation
31.13
—
—
—
11
J61.9 - Other telecommunications activities
14.93
5.41
0.01
0.01
12
K64.99 - Other financial service activities, except insurance and pension funding
99.78
62.96
—
—
13
N82.99 - Other business support service activities n.e.c.
35.89
19.38
—
—
14
Q86.9 - Other human health activities
0.06
—
—
—
Breakdown by sector – NACE 4 digits level (code and label)
Water and marine resources (WTR)
Circular economy (CE)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally
sustainable (WTR)
Mn EUR
Of which environmentally
sustainable (WTR)
Mn EUR
Of which environmentally
sustainable (CE)
Mn EUR
Of which environmentally
sustainable (CE)
1
C10.51 - Operation of dairies and cheese making
—
—
—
—
2
C10.89 - Manufacture of other food products n.e.c.
—
—
—
—
3
C21.1 - Manufacture of basic pharmaceutical products
—
—
—
—
4
C28.29 - Manufacture of other general-purpose machinery n.e.c.
—
—
—
—
5
C32.99 - Other manufacturing n.e.c.
—
—
—
—
6
F41.2 - Construction of residential and non-residential buildings
—
—
—
—
7
G45.31 - Wholesale trade of motor vehicle parts and accessories
—
—
—
—
8
G46.9 - Non-specialised wholesale trade
—
—
—
—
9
H51.1 - Passenger air transport
—
—
—
—
10
I55.1 - Hotels and similar accommodation
—
—
—
—
11
J61.9 - Other telecommunications activities
—
—
—
—
12
K64.99 - Other financial service activities, except insurance and pension funding
—
—
—
—
13
N82.99 - Other business support service activities n.e.c.
—
—
—
—
14
Q86.9 - Other human health activities
—
—
—
—
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
361
2. GAR sector information (capex)
Disclosure reference date 31 December 2025
Breakdown by sector – NACE 4 digits level (code and label)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally
sustainable (PPC)
Mn EUR
Of which environmentally
sustainable (PPC)
Mn EUR
Of which environmentally
sustainable (BIO)
Mn EUR
Of which environmentally
sustainable (BIO)
1
C10.51 - Operation of dairies and cheese making
—
—
—
—
2
C10.89 - Manufacture of other food products n.e.c.
—
—
—
—
3
C21.1 - Manufacture of basic pharmaceutical products
—
—
—
—
4
C28.29 - Manufacture of other general-purpose machinery n.e.c.
—
—
—
—
5
C32.99 - Other manufacturing n.e.c.
—
—
—
—
6
F41.2 - Construction of residential and non-residential buildings
—
—
—
—
7
G45.31 - Wholesale trade of motor vehicle parts and accessories
—
—
—
—
8
G46.9 - Non-specialised wholesale trade
—
—
—
—
9
H51.1 - Passenger air transport
—
—
—
—
10
I55.1 - Hotels and similar accommodation
—
—
—
—
11
J61.9 - Other telecommunications activities
—
—
—
—
12
K64.99 - Other financial service activities, except insurance and pension funding n.e.c.
—
—
—
—
13
N82.99 - Other business support service activities n.e.c.
—
—
—
—
14
Q86.9 - Other human health activities
—
—
—
—
Breakdown by sector – NACE 4 digits level (code and label)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally sustainable (CCM
+ CCA + WTR + CE + PPC + BIO)
Mn EUR
Of which environmentally sustainable (CCM
+ CCA + WTR + CE + PPC + BIO)
1
C10.51 - Operation of dairies and cheese making
29.24
0.15
2
C10.89 - Manufacture of other food products n.e.c.
4.87
0.13
3
C21.1 - Manufacture of basic pharmaceutical products
36.20
0.00
4
C28.29 - Manufacture of other general-purpose machinery n.e.c.
26.23
—
5
C32.99 - Other manufacturing n.e.c.
54.23
0.00
6
F41.2 - Construction of residential and non-residential buildings
92.54
0.00
7
G45.31 - Wholesale trade of motor vehicle parts and accessories
0.09
—
8
G46.9 - Non-specialised wholesale trade
135.71
—
9
H51.1 - Passenger air transport
8.77
—
10
I55.1 - Hotels and similar accommodation
31.13
—
11
J61.9 - Other telecommunications activities
14.95
5.43
12
K64.99 - Other financial service activities, except insurance and pension funding n.e.c.
99.78
62.96
13
N82.99 - Other business support service activities n.e.c.
35.89
19.38
14
Q86.9 - Other human health activities
0.06
—
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
362
2. GAR sector information (capex)
Disclosure reference date 31 December 2025 continued
GAR - Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
59 %
7 %
7 %
0 %
0 %
0 %
0 %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
59 %
7 %
7 %
0 %
0 %
43 %
2
Financial
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14 %
3
Credit institutions
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
9 %
4
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
4 %
5
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
6
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7
Other financial
corporations
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
8
of which
investment firms
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
9
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
10
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
11
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
12
of which
management
companies
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
16
of which
insurance
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
17
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
18
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
19
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
363
3. GAR KPI stock (revenue)
Disclosure reference date 31 December 2025
20
Non-financial
undertakings
34 %
5 %
— %
4 %
0 %
0 %
0 %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
4 %
— %
— %
— %
9 %
— %
— %
— %
47 %
5 %
— %
4 %
0 %
0 %
21
Loans and
advances
34 %
5 %
— %
4 %
0 %
0 %
0 %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
4 %
— %
— %
— %
9 %
— %
— %
— %
47 %
5 %
— %
4 %
0 %
0 %
22
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
23
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
24
Households
89 %
10 %
10 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
89 %
10 %
10 %
— %
— %
29 %
25
of which loans
collateralised by
residential
immovable
property
100 %
12 %
12 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
12 %
12 %
— %
— %
25 %
26
of which building
renovation loans
100 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
0 %
27
of which motor
vehicle loans
100 %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
1 %
28
Local
governments
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
29
Housing financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
30
Other local
government
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
32
Total GAR assets
39 %
4 %
4 %
0 %
0 %
0 %
0 %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
39 %
4 %
4 %
0 %
0 %
66 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
364
3. GAR KPI stock (revenue)
Disclosure reference date 31 December 2025 continued
GAR - Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
62 %
7 %
7 %
— %
0 %
0 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
62 %
7 %
7 %
— %
0 %
44 %
2
Financial
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14 %
3
Credit institutions
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
9 %
4
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
4 %
5
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
6
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7
Other financial
corporations
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
8
of which
investment firms
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
9
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
10
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
11
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
12
of which
management
companies
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
16
of which
insurance
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
17
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
18
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
19
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
365
3. GAR KPI stock (revenue)
Disclosure reference date 31 December 2024
20
Non-financial
undertakings
23 %
2 %
— %
— %
2 %
1 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
4 %
— %
— %
— %
1 %
— %
— %
— %
28 %
2 %
— %
— %
2 %
1 %
21
Loans and
advances
23 %
2 %
— %
— %
2 %
1 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
4 %
— %
— %
— %
1 %
— %
— %
— %
28 %
2 %
— %
— %
2 %
1 %
22
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
23
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
24
Households
92 %
10 %
10 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
92 %
10 %
10 %
— %
— %
30 %
25
of which loans
collateralised by
residential
immovable
property
100 %
11 %
11 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
11 %
11 %
— %
— %
26 %
26
of which building
renovation loans
100 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
— %
27
of which motor
vehicle loans
100 %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
1 %
28
Local
governments
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
29
Housing financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
30
Other local
government
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
32
Total GAR assets
40 %
4 %
4 %
— %
0 %
0 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
40 %
4 %
4 %
— %
0 %
68 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
366
3. GAR KPI stock (revenue)
Disclosure reference date 31 December 2024 continued
GAR - Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
59 %
7 %
7 %
0 %
0 %
0 %
0 %
— %
— %
0 %
0 %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
59 %
7 %
7 %
0 %
0 %
43 %
2
Financial
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14 %
3
Credit institutions
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
9 %
4
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
4 %
5
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
6
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7
Other financial
corporations
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
8
of which
investment firms
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
9
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
10
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
11
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
—% — %
— %
— %
12
of which
management
companies
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
16
of which
insurance
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
17
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
18
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
19
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
367
3. GAR KPI stock (capex)
Disclosure reference date 31 December 2025
20
Non-financial
undertakings
45 %
15 %
— %
3 %
0 %
1 %
0 %
— %
— %
0 %
0 %
— %
— %
0 %
— %
— %
— %
2 %
— %
— %
— %
1 %
— %
— %
— %
49 %
15 %
— %
3 %
0 %
0 %
21
Loans and
advances
45 %
15 %
— %
3 %
0 %
1 %
0 %
— %
— %
0 %
0 %
— %
— %
0 %
— %
— %
— %
2 %
— %
— %
— %
1 %
— %
— %
— %
49 %
15 %
— %
3 %
0 %
0 %
22
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
23
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
24
Households
89 %
10 %
10 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
89 %
10 %
10 %
— %
— %
29 %
25
of which loans
collateralised by
residential
immovable
property
100 %
12 %
12 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
12 %
12 %
— %
— %
25 %
26
of which building
renovation loans
100 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
0 %
27
of which motor
vehicle loans
100 %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
1 %
28
Local
governments
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
29
Housing financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
30
Other local
government
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
32
Total GAR assets
39 %
5 %
4 %
0 %
0 %
0 %
0 %
— %
— %
0 %
0 %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
39 %
5 %
4 %
0 %
0 %
66 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
368
3. GAR KPI stock (capex)
Disclosure reference date 31 December 2025 continued
GAR - Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
62 %
7 %
7 %
— %
0 %
0 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
62 %
7 %
7 %
— %
0 %
44 %
2
Financial
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14 %
3
Credit institutions
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
9 %
4
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
4 %
5
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
6
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7
Other financial
corporations
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
8
of which
investment firms
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
9
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
10
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
11
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
12
of which
management
companies
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
16
of which
insurance
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
17
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
18
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
19
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
369
3. GAR KPI stock (capex)
Disclosure reference date 31 December 2024
20
Non-financial
undertakings
23 %
2 %
— %
— %
2 %
3 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
2 %
— %
— %
— %
0 %
— %
— %
— %
28 %
2 %
— %
— %
2 %
1 %
21
Loans and
advances
23 %
2 %
— %
— %
2 %
3 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
2 %
— %
— %
— %
0 %
— %
— %
— %
28 %
2 %
— %
— %
2 %
1 %
22
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
23
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
24
Households
92 %
10 %
10 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
92 %
10 %
10 %
— %
— %
30 %
25
of which loans
collateralised by
residential
immovable
property
100 %
11 %
11 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
11 %
11 %
— %
— %
26 %
26
of which building
renovation loans
100 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
— %
27
of which motor
vehicle loans
100 %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
1 %
28
Local
governments
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
29
Housing financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
30
Other local
government
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
32
Total GAR assets
40 %
4 %
4 %
— %
0 %
0 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
40 %
4 %
4 %
— %
0 %
68 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
370
3. GAR KPI stock (capex)
Disclosure reference date 31 December 2024 continued
GAR - Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
40 %
5 %
5 %
0 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
41 %
5 %
5 %
0 %
— %
54 %
2
Financial
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
26 %
3
Credit institutions
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
21 %
4
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15 %
5
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
6 %
6
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7
Other financial
corporations
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
8
of which
investment firms
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
9
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
10
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
11
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
12
of which
management
companies
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
16
of which
insurance
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
17
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
18
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
19
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
Country by
Country Report
General
Information
AIB Group plc
Annual Financial Report 2025
371
4. GAR KPI flow (revenue)
Disclosure reference date 31 December 2025
20
Non-financial
undertakings
36 %
6 %
— %
4 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
28 %
— %
— %
— %
64 %
6 %
— %
4 %
— %
1 %
21
Loans and
advances
36 %
6 %
— %
4 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
28 %
— %
— %
— %
64 %
6 %
— %
4 %
— %
1 %
22
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
23
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
24
Households
80 %
9 %
9 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
80 %
9 %
9 %
— %
— %
26 %
25
of which loans
collateralised by
residential
immovable
property
100 %
13 %
13 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
13 %
13 %
— %
— %
19 %
26
of which building
renovation loans
100 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
0 %
27
of which motor
vehicle loans
100 %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
2 %
28
Local
governments
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
29
Housing financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
30
Other local
government
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
32
Total GAR assets
24 %
3 %
3 %
0 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
25 %
3 %
3 %
0 %
— %
88 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Annual
Review
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372
4. GAR KPI flow (revenue)
Disclosure reference date 31 December 2025 continued
GAR - Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
41 %
5 %
5 %
0 %
0 %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
41 %
5 %
5 %
0 %
0 %
54 %
2
Financial
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
26 %
3
Credit institutions
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
21 %
4
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15 %
5
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
6 %
6
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7
Other financial
corporations
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
8
of which
investment firms
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
9
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
10
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
11
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
12
of which
management
companies
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
16
of which
insurance
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
17
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
18
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
19
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Annual
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373
4. GAR KPI flow (capex)
Disclosure reference date 31 December 2025
20
Non-financial
undertakings
66 %
41 %
— %
3 %
1 %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
66 %
41 %
— %
3 %
1 %
1 %
21
Loans and
advances
66 %
41 %
— %
3 %
1 %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
66 %
41 %
— %
3 %
1 %
1 %
22
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
23
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
24
Households
80 %
9 %
9 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
80 %
9 %
9 %
— %
— %
26 %
25
of which loans
collateralised by
residential
immovable
property
100 %
13 %
13 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
13 %
13 %
— %
— %
19 %
26
of which building
renovation loans
100 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
0 %
27
of which motor
vehicle loans
100 %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
2 %
28
Local
governments
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
29
Housing financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
30
Other local
government
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
32
Total GAR assets
25 %
3 %
3 %
0 %
0 %
0 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
25 %
3 %
3 %
0 %
0 %
88 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
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374
4. GAR KPI flow (capex)
Disclosure reference date 31 December 2025 continued
1
Financial
guarantees
(FinGuar KPI)
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
2
Assets under
management
(AuM KPI)
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
eligible
off-balance sheet
assets)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Notes:
•
As at 31 December 2025 no taxonomy eligible or aligned exposure has been identified within financial guarantees or assets under management.
5. KPI off-balance sheet exposures (flow)
Disclosure reference date 31 December 2025
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE + PPC +
BIO)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy relevant
sectors (Taxonomy-eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
eligible
off-balance sheet
assets)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding taxonomy
relevant
sectors (Taxonomy-
aligned)
1
Financial
guarantees
(FinGuar KPI)
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
2
Assets under
management
(AuM KPI)
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
Notes:
•
As at 31 December 2025 no taxonomy eligible or aligned exposure has been identified within financial guarantees or assets under management.
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5. KPI off-balance sheet exposures (stock)
Disclosure reference date 31 December 2025
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available
technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.
No
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.
Yes
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
No
Notes:
•
AIB does not lend to nuclear energy related activities in accordance with the Group exclusion policy and as such there is no exposure to activities outlined under sections 4.26, 4.27 and 4.28 of Annexes I and II to Delegated Regulation 2021/2139.
•
The Group has an exposure to facilities that produce electricity using fossil gaseous fuel under section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 and have been disclosed in accordance with Annex XII of the Delegated Act.
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Template 1: Nuclear and fossil gas related activities
Row
Economic activities based on Revenue KPI
Amount and proportion (the information is to be
presented in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
—
— %
—
— %
—
— %
2
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
—
— %
—
— %
—
— %
3
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
—
— %
—
— %
—
— %
4
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
—
— %
—
— %
—
— %
5
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
—
— %
—
— %
—
— %
6
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
—
— %
—
— %
—
— %
7
Amount and proportion of other taxonomy-
aligned economic activities not referred to in
rows 1 to 6 above in the denominator of the
applicable KPI
4,390
4 %
4,390
4 %
0
0 %
8
Total applicable KPI
4,390
4 %
4,390
4 %
0
0 %
Row
Economic activities based on CapEx KPI
Amount and proportion (the information is to be
presented in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
—
— %
—
— %
—
— %
2
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
—
— %
—
— %
—
— %
3
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
—
— %
—
— %
—
— %
4
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
—
— %
—
— %
—
— %
5
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
—
— %
—
— %
—
— %
6
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
—
— %
—
— %
—
— %
7
Amount and proportion of other taxonomy-
aligned economic activities not referred to in
rows 1 to 6 above in the denominator of the
applicable KPI
4,449
5 %
4,449
5 %
0
0 %
8
Total applicable KPI
4,449
5 %
4,449
5 %
0
0 %
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Template 2: Taxonomy-aligned economic activities (denominator)
Row
Economic activities based on Revenue KPI
Amount and proportion (the information is to be
presented in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
—
— %
—
— %
—
— %
2
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
—
— %
—
— %
—
— %
3
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
—
— %
—
— %
—
— %
4
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
—
— %
—
— %
—
— %
5
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
—
— %
—
— %
—
— %
6
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
—
— %
—
— %
—
— %
7
Amount and proportion of other taxonomy-
aligned economic activities not referred to in
rows 1 to 6 above in the numerator of the
applicable KPI
4,390
100 %
4,390
100 %
0
0 %
8
Total amount and proportion of taxonomy-
aligned economic activities in the numerator
of the applicable KPI
4,390
100 %
4,390
100 %
0
0 %
Row
Economic activities based on CapEx KPI
Amount and proportion (the information is to be
presented in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
—
— %
—
— %
—
— %
2
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
—
— %
—
— %
—
— %
3
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
—
— %
—
— %
—
— %
4
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
—
— %
—
— %
—
— %
5
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
—
— %
—
— %
—
— %
6
Amount and proportion of taxonomy- aligned
economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
—
— %
—
— %
—
— %
7
Amount and proportion of other taxonomy-
aligned economic activities not referred to in
rows 1 to 6 above in the numerator of the
applicable KPI
4,449
100 %
4,449
100 %
0
0 %
8
Total amount and proportion of taxonomy-
aligned economic activities in the numerator
of the applicable KPI
4,449
100 %
4,449
100 %
0
0 %
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Template 3: Taxonomy-aligned economic activities (numerator)
Row
Economic activities based on Revenue KPI
Amount and proportion (the information is to be
presented in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1
Amount and proportion of taxonomy- eligible but
not taxonomy-aligned economic activity referred
to in Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
—
— %
—
— %
—
— %
2
Amount and proportion of taxonomy- eligible but
not taxonomy-aligned economic activity referred
to in Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
—
— %
—
— %
—
— %
3
Amount and proportion of taxonomy- eligible but
not taxonomy-aligned economic activity referred
to in Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
—
— %
—
— %
—
— %
4
Amount and proportion of taxonomy- eligible but
not taxonomy-aligned economic activity referred
to in Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
—
— %
—
— %
—
— %
5
Amount and proportion of taxonomy- eligible but
not taxonomy-aligned economic activity referred
to in Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
—
— %
—
— %
—
— %
6
Amount and proportion of taxonomy- eligible but
not taxonomy-aligned economic activity referred
to in Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
—
— %
—
— %
—
— %
7
Amount and proportion of other taxonomy-
eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above
in the denominator of the applicable KPI
34,144
35 % 34,142
35 %
2
0 %
8
Total amount and proportion of taxonomy
eligible but not taxonomy- aligned economic
activities in the denominator of the
applicable KPI
34,144
35 % 34,142
35 %
2
0 %
Row
Economic activities on CapEx KPI
Amount and proportion (the information is to be
presented in monetary amounts and as percentages)
CCM + CCA
Climate change
mitigation (CCM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1
Amount and proportion of taxonomy- eligible but
not taxonomy-aligned economic activity referred
to in Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
—
— %
—
— %
—
— %
2
Amount and proportion of taxonomy- eligible but
not taxonomy-aligned economic activity referred
to in Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
—
— %
—
— %
—
— %
3
Amount and proportion of taxonomy- eligible but
not taxonomy-aligned economic activity referred
to in Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
—
— %
—
— %
—
— %
4
Amount and proportion of taxonomy- eligible but
not taxonomy-aligned economic activity referred
to in Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
—
— %
—
— %
—
— %
5
Amount and proportion of taxonomy- eligible but
not taxonomy-aligned economic activity referred
to in Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
—
— %
—
— %
—
— %
6
Amount and proportion of taxonomy- eligible but
not taxonomy-aligned economic activity referred
to in Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
—
— %
—
— %
—
— %
7
Amount and proportion of other taxonomy-
eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above
in the denominator of the applicable KPI
34,153
35 % 34,146
35 %
7
0 %
8
Total amount and proportion of taxonomy
eligible but not taxonomy- aligned economic
activities in the denominator of the
applicable KPI
34,153
35 % 34,146
35 %
7
0 %
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Template 4: Taxonomy-eligible but not taxonomy-aligned economic activities
Row
Economic activities based on Revenue KPI
Amount
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
—
— %
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
—
— %
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
—
— %
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
24
0 %
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
—
— %
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
—
— %
7
Amount and proportion of other taxonomy-non-eligible economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
60,021
61 %
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
60,045
61 %
Row
Economic activities based on CapEx KPI
Amount
%
1
Amount and proportion of economic activity referred to in row 1 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
—
— %
2
Amount and proportion of economic activity referred to in row 2 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
—
— %
3
Amount and proportion of economic activity referred to in row 3 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
—
— %
4
Amount and proportion of economic activity referred to in row 4 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
24
0 %
5
Amount and proportion of economic activity referred to in row 5 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
—
— %
6
Amount and proportion of economic activity referred to in row 6 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
—
— %
7
Amount and proportion of other taxonomy-non-eligible economic activities
not referred to in rows 1 to 6 above in the denominator of the applicable KPI
60,007
61 %
8
Total amount and proportion of taxonomy-non-eligible economic activities
in the denominator of the applicable KPI
60,030
61 %
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Template 5: Taxonomy non-eligible economic activities
Stock Exchange Listings
AIB Group plc is an Irish registered company. Its ordinary shares are
traded on the main securities market of Euronext Dublin and the main
market of the London Stock Exchange.
Registrar & Shareholder Enquiries
The Company’s Registrar is:
Computershare Investor Services (Ireland) Limited,
3100 Lake Drive, Citywest Business Campus,
Dublin 24, D24 AK82
Telephone: +353-1-247 5411
Website: computershare.com
All enquiries concerning shareholdings should be addressed to the
Company’s Registrar.
Shareholder services
Shareholders may view their shareholding at any time by logging into
Computershare’s investor platform via investorcentre.com/ie.
Shareholders can access the above platform by registering their details
using their Shareholder Reference Number (SRN). Once registered,
shareholders can check their balance or download a Statement of Holding
(as required), and view and amend their account details, including changing
their address, adding their bank account details for the electronic payment
of dividends, and registering for electronic communications.
Shareholders who are unable to access Investor Centre can contact
Computershare to obtain a confirmation of the up-to-date balance of their
shareholding, and update their details as required.
Amalgamating your shareholdings
If you receive more than one copy of a shareholder mailing with similar
details on your accounts, it may be because the Company has more than
one record of shareholdings in your name. To ensure that you do not
receive duplicate mailings in future, please have all your shareholdings
amalgamated into one account by contacting the Company’s Registrar
(joint accounts cannot be merged with sole accounts or vice versa).
Communication
It is the policy of the Company to communicate with shareholders by
electronic means or through the Group's website aib.ie. In the interest of
protecting the environment, we encourage shareholders receiving
communications in paper form to register for electronic communications
on Computershare’s website.
Major shareholdings
The issued share capital of the AIB Group plc is 2,136,766,718 ordinary
shares of €0.625 each.
Financial calendar
Annual General Meeting:
30 April 2026, at 10 Molesworth Street, Dublin 2.
Interim results
The unaudited Half-Yearly Financial Report 2026 will be announced on
30 July 2026 and will be available on the Company’s website: aib.ie.
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Shareholder Information
This document contains certain forward looking statements with respect to the financial condition, results of operations and business of AIB Group and
certain of the plans and objectives of the Group. These forward looking statements can be identified by the fact that they do not relate only to historical
or current facts. Forward looking statements sometimes use words such as ‘aim’, ‘anticipate’, ‘target’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’,
‘believe’, ‘may’, ‘could’, ‘will’, ‘seek’, ‘continue’, ‘should’, ‘assume’, or other words of similar meaning. Examples of forward looking statements include,
among others, statements regarding the Group’s future financial position, capital structure, income growth, loan losses, business strategy, projected
costs, capital ratios, estimates of capital expenditures, and plans and objectives for future operations. Because such statements are inherently subject
to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking information. By their nature,
forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There
are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward looking
statements. These are set out in the Principal risks on pages 17 to 18 in the 2025 Annual Financial Report. In addition to matters relating to the Group’s
business, future performance will be impacted by the Group’s ability along with governments and other stakeholders to measure, manage and mitigate
the impacts of climate change effectively. Future performance could also be impacted by macroeconomic uncertainty, tariffs, geopolitical tensions and
global conflict. Any forward looking statements made by or on behalf of the Group speak only as of the date they are made. The Group cautions that the
list of important factors on pages 17 to 18 of the 2025 Annual Financial Report is not exhaustive. Investors and others should carefully consider the
foregoing factors and other uncertainties and events when making an investment decision based on any forward looking statement.
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Forward Looking Statement
AIB Group plc
10 Molesworth Street,
Dublin 2 D02 R126.
Telephone: + 353 1 660 0311
Allied Irish Banks, p.l.c.
10 Molesworth Street,
Dublin 2 D02 R126.
Telephone: + 353 1 660 0311
AIB Mortgage Bank Unlimited
Company
10 Molesworth Street,
Dublin 2 D02 R126.
Telephone: +353 1 660 0311
EBS d.a.c.
10 Molesworth Street,
Dublin 2 D02 R126.
Telephone: + 353 1 665 9000
AIB Group (UK) p.l.c.
92 Ann Street,
Belfast BT1 3HH.
Telephone: + 44 345 600 5925
AIB (NI)
92 Ann Street,
Belfast BT1 3HH.
Telephone: + 44 345 600 5925
Allied Irish Bank (GB)
13th Floor, 70 St Mary Axe,
London EC3A 8BE.
Telephone: + 44 345 600 5925
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Principal Addresses
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AIB Group plc
10 Molesworth Street, Dublin 2, D02 R126
+353 (1) 660 0311
aib.ie/investorrelations