International banking sector in Ireland set to grow in 2025 with over 60% of firms expected to increase business activity but impacts from geopolitical and regulatory challenges are likely – FIBI
- Employment in FIBI member firms up by over 20% on pre-pandemic levels, with almost 14,700 people employed at the start of 2025
- Almost €5.5bn spent directly into the Irish economy by foreign-owned business and financial services firms
- However, industry faces headwinds with four out of five FIBI members citing heightened geopolitical tensions as a challenge in the next five years More than 40% of FIBI firms expect to increase the number of people employed in 2024
Tuesday 13th May 2025 – A new report published today by the Federation of International Banks in Ireland (FIBI) shows that the international banking sector in Ireland is set to grow with over 60% of FIBI firms expected to increase business activity and almost 40% (39%) expected to increase the number of people employed in 2025. However, Ireland’s international banks are likely to be impacted by heightened geopolitical tensions and resulting disruptions to trade with four out of five (79%) members citing it as a challenge in the next five years, while the increasing regulatory burden was also seen as a challenge by 61% of members.
Ireland hosts operations for more than 30 international banks and ranked eighth largest exporter of financial services in the world
Highlighting the key findings of the report, Davinia Conlan, Chair of FIBI and Country Head for Citi Ireland, said: “Ireland is recognised as a major European and global hub for international banking and investment firms, hosting operations for more than 30 international banks and ranked eighth largest exporter of financial services in the world. Internationally owned business, financial and other services firms were responsible for direct spending in the Irish economy of €5.5 billion, according to the most recent figures from the Department of Enterprise, Trade and Employment. That included more than €3.9 billion in payroll costs alone, as well as expenditure on Irish-sourced materials and services. The financial industry’s exchequer contribution is even more impressive reaching €7.7 billion from financial and insurance activities.”
“Ireland’s international banks also make a significant contribution to employment across the country with employment in FIBI member firms up by over 20% on pre-pandemic levels (2019), with almost 14,700 employed at the start of 2025. As the international financial services industry grows in Ireland, the talent pool is expanding organically, and many companies now have a depth of experience that was not previously available to them. The quality of talent available is also having a positive impact on growth in the sector, which is helping FIBI member firms to expand their business and develop beyond initial plans.”
Heightened geopolitical tensions and increasing regulatory burden seen as key challenges
“While the overall outlook remains positive, the industry does face headwinds. In common with businesses in every other sector, Ireland’s international banks are likely to be impacted by heightened geopolitical tensions and resulting disruptions to trade. Four out of five (79%) members cited it as a challenge in the next five years, while 39% cited it as the main challenge they face. The increasing regulatory burden was also seen as a challenge by 61% of members while a further 39% cited the diverging international regulatory landscape. This is to be expected against the backdrop of a growing tide of regulation coming into force both domestically and at EU level, exacerbated by the increased complexity caused by the varying approaches taken to implementing regulations in different jurisdictions.”
Industry, Government and regulators must continue to enhance Ireland’s position as an attractive location for international banking activities
Ms. Conlan concluded: “The EU is currently at a key point in terms of positioning the region for growth. FIBI and its members are well positioned to play an important role in shaping Europe’s growth agenda and positioning Ireland at its centre. I believe that our industry, through FIBI, can be a clear voice on how this can be achieved while maintaining a strong, safe and robust regulatory environment. While the responses to our survey and the ongoing success of the international banking and investment industry here in Ireland give cause for confidence that the sector will continue to make a major contribution to economic and employment growth in Ireland, there is no cause for complacency, however. We have seen all too clearly in recent months just how quickly the environment can change. It is now more important than ever that all stakeholders in this country – industry, Government, and regulators – come together and actively seek to enhance Ireland’s position as an attractive location for international banking activities.”
ENDS/
The FIBI Report 2025 is available to download here.
About FIBI: The Federation of International Banks in Ireland (FIBI) is the forum and representative body for international banking and investment firms in Ireland, representing over 30 international banking institutions and investment firms. FIBI works with members and stakeholders to shape and influence the future agenda and policy, and regulatory environment for the rapidly expanding international financial services sector in Ireland. An affiliate of BPFI, the Federation members include many of the largest financial service providers in the world and collectively employ over fourteen thousand people in Ireland. FIBI is the principal voice of the international banking and investment firms sector in Ireland.
About BPFI: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland, and the Fintech & Payments Association of Ireland, BPFI has over 120 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace.
Contact: Fiona Murphy, Head of Communications, fiona.murphy@bpfi.ie or Jillian Heffernan, Director of Communications, jillian.heffernan@bpfi.ie.
