REG - AIB Group PLC - AIB Group plc - Medium-Term Targets

AIBAnnouncement

02/12/2022 07:00

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RNS Number : 3564I  AIB Group PLC  02 December 2022

 

 EMBARGO 07:00  2 December 2022

 

 

AIB GROUP PLC - MEDIUM-TERM TARGETS

AIB to deliver a ROTE of greater than 13% in 2024

 

AIB Group plc today announces revised medium-term targets as follows:

 

Revised medium-term targets:

·    Absolute cost((1)) target of <€1.75 billion in 2024

·    CET1((2)) target >13.5%

·    RoTE((3)) >13% in 2024

 

With significant momentum in income we also expect to deliver a cost income
ratio of c. 50% by 2024.

 

Additionally today we outline our plans for shareholder distributions. Subject
to a supportive macroeconomic environment and annual Board and required
regulatory approvals, in the coming years we will seek to move towards our
CET1 target by prudently increasing levels of distribution, supplementing
dividend with share buybacks where appropriate.

 

Colin Hunt, Chief Executive Officer commented:

"We set out our strategy in December 2020 to fulfil our ambition of being at
the heart of our customers' financial lives.  Since then we have made
significant progress in growing and strengthening the Group through an
enhanced product suite, a transforming operating model and an increased
customer base - now heading to over three million customers.

 

While global economic headwinds exist, the Irish economy continues to deliver
economic growth and demonstrate resilience. Against this domestic backdrop and
given the changing banking landscape and evolving operating environment, we
have revised our medium-term targets and now expect a RoTE of greater than 13%
in 2024. We continue to implement our strategy to enhance shareholder value
and deliver sustainable returns."

 

Analyst conference call

A conference call for analysts, hosted by Colin Hunt, CEO, and Donal Galvin,
CFO will be held from 10:00 - 11:00 GMT. Please click on the link below and
enter your details to receive a unique PIN to access the call or to request a
free call back which connects you to the meeting automatically up to 15
minutes before the event.

 

https://register.vevent.com/register/BI6225f5655d4043e1a9524dcdffb81c96
(https://register.vevent.com/register/BI6225f5655d4043e1a9524dcdffb81c96)

 

Please note it is advisable to register in advance

 

Further details available on our website
https://aib.ie/investorrelations/aib-investor-updates
(https://aib.ie/investorrelations/aib-investor-updates)

 

 

Footnotes:

1)     Costs before bank levies and regulatory fees and exceptional items

2)     CET1 fully loaded

3)     RoTE = (PAT - AT1) / (CET1 @ 13.5% of RWAs; RoTE: return on
tangible equity

 

-ENDS-

 

For further information, please contact:

 Niamh Hore / Siobhain Walsh                              Paddy McDonnell / Graham Union
 Investor Relations                                       Media Relations
 AIB Group                                                AIB Group
 Dublin                                                   Dublin
 Tel: +353-86-3135647 / +353-87- 3956864                  Tel: +353-87-7390743 / +353-85 2088343
 email: niamh.a.hore@aib.ie (mailto:niamh.a.hore@aib.ie)  email:   paddy.x.mcdonnell@aib.ie

             siobhain.m.walsh@aib.ie
 (mailto:siobhain.m.walsh@aib.ie)

 

 

 

Forward Looking Statements

This document contains certain forward looking statements with respect to the
financial condition, results of operations and business of AIB Group and
certain of the plans and objectives of the Group. These forward looking
statements can be identified by the fact that they do not relate only to
historical or current facts. Forward looking statements sometimes use words
such as 'aim', 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan',
'goal', 'believe', 'may', 'could', 'will', 'seek', 'continue', 'should',
'assume', or other words of similar meaning. Examples of forward looking
statements include, among others, statements regarding the Group's future
financial position, capital structure, Government shareholding in the Group,
income growth, loan losses, business strategy, projected costs, capital
ratios, estimates of capital expenditures, and plans and objectives for future
operations. Because such statements are inherently subject to risks and
uncertainties, actual results may differ materially from those expressed or
implied by such forward looking information. By their nature, forward looking
statements involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future. There are a number of
factors that could cause actual results and developments to differ materially
from those expressed or implied by these forward looking statements. These are
set out in Principal risks on pages 28 to 30 of the Annual Financial Report
2021 and updated on page 37 of the Half-Yearly Financial Report 2022. In
addition to matters relating to the Group's business, future performance will
be impacted by the direct and indirect impacts of the COVID-19 pandemic, the
direct and indirect consequences of the Russia-Ukraine War on European and
global macroeconomic conditions, the impact of higher inflation on customer
sentiment and by Irish, UK and wider European and global economic and
financial market considerations. Any forward looking statements made by or on
behalf of the Group speak only as of the date they are made. The Group
cautions that the list of important factors on pages 28 to 30 of the Annual
Financial Report 2021 is not exhaustive. Investors and others should carefully
consider the foregoing factors and other uncertainties and events when making
an investment decision based on any forward looking statement.

 

 

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