Economic and Investment Outlook
Ireland's Banking Sector Overview
Less competition possible in decade to come
•
Banking sector well capitalised with sufficient liquidity buffers
.
Banks profitable as net interest margins will be helped by rising interest rate environment.
Ulster Bank and KBC - both of which have no govt. ownership have decided to leave Irish banking market. Reduced competition
is main impact.
The Irish Government has sold its share in BOI. This leaves just AIB and PTSB with government involvement.
Further tranches of AIB and PTSB shares were sold in 2023. The Government owned approx. 47% of AIB and 57% of PTSB. Sales
are likely to be ongoing as government divests from sector.
Net Interest Margin
4.0%
2
1
2.0%
0
AIB
-1
0.0%
AIB
BOI
PTSB
-2
2019
2020
■2021
2022 EH1 2023
Gníomhaireacht Bainistíochta an Chisteáin Náisiúnta
National Treasury Management Agency
Source: Annual reports of banks - BOI, AIB, PTSB
Profit before Tax (€bns)
BOI
2019 2020 2021 E2022 TH1 2023
PTSB
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