Bank of Ireland has upgraded most of its financial targets for this year after having what chief executive, Myles O’Grady described as an “excellent performance” in the first half. The group has increased its net interest income forecast by €100 million to about €3.5 million. It is projecting a return on shareholders’ equity – a key measure of profitability – of more than 14 per cent, up from about 12.5 per cent previously, and expects to take a smaller bad loans charge. Its pretax profit rose by a third in the first half to €960 million. Net interest income advanced 2 per cent to €1.7 billion and fee income jumped 6 per cent, helped by an 18 per cent increase in assets under management across its New Ireland and Davy divisions, to a record €65.5 billion. “We remain alert to geopolitical developments and the risks for the global economy. Notwithstanding this, a favourable Irish macroeconomic and demographic environment, combined with our unrivalled position as Ireland’s national champion bank, offers continued momentum and confidence for the remainder of 2026 and beyond,” O’Grady said. Bank of Ireland plans to pay €373 million of interim dividends – or 39 cent per share – to shareholders, up 56 per cent on the year. New Irish lending rose 7 per cent to €2.2 billion. However, lending fell in the UK, where the group has been prioritising “value over volume” for some years. When planned deleveraging of international corporate portfolios is also included, the group’s overall loan book has grown by 4 per cent so far this year to €84 billion. Customer deposits rose by €1 billion to €108.5 billion.Bank of Ireland also booked a net loan impairment charge of €32 million. “The group remains vigilant,” it said, noting that its story of provisions includes €122 million of rainy-day reserves – or what is called a post-model adjustment – after setting aside money to cover expected losses.