Bank of Ireland to cut 260 jobs and reduce profit due to tariff-related charges

Bank of Ireland reported a 31% drop in net profit for the first half of the year due to a decline in net interest income and increased loan impairment charges related to US tariffs. The bank plans to cut 260 jobs in the second half of 2025 and expects further redundancies in 2026 to manage costs.

The bank slightly raised its full-year net interest income forecast and maintained its financial targets. Net profit fell to €608 million in the first half, with net interest income decreasing to €1.67 billion. The bank's impairment losses rose to €137 million, driven by a charge against its US acquisition finance book.

Bank of Ireland's economists upgraded Irish economic forecasts, contingent on a trade deal with the US. The bank anticipates net interest income of €3.3 billion for the full year and expects business income to rise by 5%.

The bank incurred one-off costs of €83 million, mainly due to restructuring expenses. It reaffirmed its full-year guidance for net profit and set aside a provision for a potential compensation scheme in the UK motor finance industry.

Bank of Ireland will pay an interim dividend of €243 million for the first half. Since 2023, the group has returned €2.6 billion to shareholders through buy-backs and dividends.

According to the source: The Irish Times.