Bank of Ireland Triumphs in 2025 EU Stress Test, Exceeding Group's Current Capital Requirements

On August 1, 2025, the Bank of Ireland Group (the ‘Group’) underwent an EU-wide stress test orchestrated by the European Banking Authority (EBA) in partnership with the Central Bank of Ireland (CBI), the European Central Bank (ECB), and the European Systemic Risk Board (ESRB). The results of the test are to be used as a critical resource by competent authorities for scrutiny of the bank’s ability to cope with adverse fiscal scenarios.

Contrary to a grading system or pass-or-fail model, the stress test functioned as a measurement of potential resilience; a barometer of economic fortitude. The test, based on the Group’s static balance sheet as of December 2024, evaluated the bank’s ability to meet prudential requirements under likely stressful economic conditions over a three-year span (2025-2027).

The Group’s peak fully loaded CET1 deterioration during the 2025 test is around 290 basis points, representing an improvement of roughly 130 basis points from the 2023 test. The improved performance is indicative of the Group’s efforts to fortify its business model and capitalise on a higher interest rate environment. The approximate 290 basis point depletion in 2025 overshadows the EU average by 50 basis points.