The lender said the growth in its mortgage business since the end of December “largely offset” a €400m reduction in its UK personal loans after selling a €800m portfolio earlier this month.

“Market expectations for interest rates have evolved in the third quarter given trends in Eurozone inflation, with average 2025 Eurozone interest rates currently expected to be lower than 2024 levels, although expectations remain volatile,” the bank added in a third-quarter statement.

Overall, the Dublin-based firm said net lending was €2.8bn higher compared to the end of December, supported by €2.1bn growth in Ireland.

Its loan book lifted by 4% while wealth assets under management grew by 15%.

The bank — which also has operations in Germany, France and Spain – said its net interest income was 3% lower in the nine months to the end of September and 1% lower on a like-for-like basis, but was “in-line with our expectations”.

It added: “This performance reflects the evolving interest rate environment, growth in lending income, particularly in Ireland, higher funding costs, market and customer, and continued commercial pricing discipline.”

The bank said that its net interest income guidance for 2024 of around €3.55bn “is unchanged notwithstanding modestly lower interest rate expectations”.