Financial services group AIB said its net interest margin came under pressure in the third quarter, owing to a negative interest rate environment.

Net interest margin fell 11 basis points to 2.32% due to average euro excess liquidity of about â¬4bn in the quarter, the company said.

Gross loans at the end of September were â¬62.7bn, down from â¬62.9bn in December. The performing loan book increased 2% or â¬1.3bn from â¬56.8bn in December 2018 to â¬58.1bn at end September 2019.

New mortgage lending year to date increased 9%, with personal lending delivering a strong performance, the company added.

The company expected full-year costs of about â¬1.5bn, driven by wage inflation, maintaining capacity in our distressed credit work-out unit, increased cost of regulation and rising depreciation from investment spend.

At 9:35am: (LON:AIBG) AIB Group Plc share price was -0.02p at 3.06p


ire.com