DUBLIN, Nov 1 Reuters Irish bank AIB Group lifted its fullyear income guidance for the third time this year on Wednesday after a higher interest rate environment contributed to a very strong third quarter that it expects to continue in the final three months.

AIB, one of three high street left lenders in Ireland after two other rival banks exited the market, said its total income in the first nine months of the year increased by 70, with net interest income NII up 95 yearonyear.

The bank, which had a 32 share of the Irish mortgage market at the end of September, now expects NII of more than 3.75 billion euros this year, raising a July forecast of 3.6 billion and an initial estimate of 3 billion euros in March.

It increased its net interest margin NIM forecast to above 3 from 2.70 and expects return on tangible equity ROTE in excess of 20 this year, well above its mediumterm target of above 13. The bank had forecast ROTE of around 20 in July.

AIB39;s NIM a key metric that shows how profitable its lending is stood at 3.08 at the end of September, while its fully loaded core tier 1 capital ratio a measure of financial strength rose to 16.2 from 15.7 three months earlier.

Analysts at Davy Stockbrokers said the consensus forecast for 2024 net interest income of 3.6 billion euros appears on the conservative side, based on Wednesday39;s trading update.

AIB39;s main rival Bank of Ireland last week lifted its guidance for the second time this year.

Ireland39;s two…