Banking industry in Ireland - statistics & facts
The banking industry in Ireland has undergone significant transformations over the past few decades, marked by the consolidation of domestic banks and the entry of foreign institutions. One of the most notable changes was the wave of mergers and acquisitions that reshaped the sector in the aftermath of the 2008 financial crisis. These changes reduced the overall number of banks in Ireland, and resulted in a higher concentration ratio of banking assets among fewer institutions.
Ireland's banking sector is dominated by a few major players. The largest domestic banks by assets include Allied Irish Banks (AIB), Bank of Ireland, and Permanent TSB. These institutions hold the majority of the market share in terms of assets, loans, and deposits. AIB and Bank of Ireland are also listed on the Irish Stock Exchange and have substantial operations both domestically and internationally.
The profitability of Irish banks has been volatile over the past decade, heavily influenced by economic cycles and regulatory changes. The financial crisis severely impacted bank profitability, but recent years have seen a recovery. In 2023, Irish banks reported a rebound in profitability, driven by a strong economic recovery and improved asset quality. At the end of 2023, the return on equity (ROE) of the banking sector reached 13 percent.
The banking industry in Ireland plays a crucial role in supporting the country's economic development and financial stability. With a mix of domestic and international players, the sector has shown resilience and adaptability in the face of economic challenges. The ongoing digital transformation and focus on customer-centric services are likely to shape the future of banking in Ireland.
Ireland's banking sector is dominated by a few major players. The largest domestic banks by assets include Allied Irish Banks (AIB), Bank of Ireland, and Permanent TSB. These institutions hold the majority of the market share in terms of assets, loans, and deposits. AIB and Bank of Ireland are also listed on the Irish Stock Exchange and have substantial operations both domestically and internationally.
The size and profitability of the banking sector
The Irish banking sector is relatively small compared to major European economies but plays a vital role in the country's economic landscape. As of 2023, the total assets of banks operating in Ireland were approximately 716 billion euros. The industry comprises a mix of domestic banks and subsidiaries of international banks, reflecting Ireland's open economy and its attractiveness as a hub for financial services.The profitability of Irish banks has been volatile over the past decade, heavily influenced by economic cycles and regulatory changes. The financial crisis severely impacted bank profitability, but recent years have seen a recovery. In 2023, Irish banks reported a rebound in profitability, driven by a strong economic recovery and improved asset quality. At the end of 2023, the return on equity (ROE) of the banking sector reached 13 percent.
Retail banking trends
Retail banking in Ireland has seen significant changes, particularly with the rise of digital banking. The adoption of online banking has increased, driven by consumer demand for convenience and efficiency. As of 2023, over 83 percent of Irish bank customers regularly used digital banking services. The most widely used banking app in Ireland is Revolut, which had a significantly higher number of downloads than any other banking app in 2023. Additionally, the share of contactless payments has surged, reflecting the broader trend towards cashless transactions. Banks have also been focusing on improving customer experience and introducing innovative financial products to meet the evolving needs of their clients.The banking industry in Ireland plays a crucial role in supporting the country's economic development and financial stability. With a mix of domestic and international players, the sector has shown resilience and adaptability in the face of economic challenges. The ongoing digital transformation and focus on customer-centric services are likely to shape the future of banking in Ireland.
