Brief: AIB hikes shareholder returns to 1.7 bln eur, boosts targets

PS International

06/03/2024 07:00

March 6 (Reuters) - Aib Group PLC  AIBG.I :
    * AIB GROUP - FY PROFIT AFTER TAX 2.058 BILLION EUR VERSUS
765
MILLION EUR A YEAR AGO
    * AIB GROUP - PROPOSED DISTRIBUTIONS 1.7 BILLION EUR (381
MILLION
IN 2022), 696 MILLION EUR VIA CASH DIVIDEND, 1 BILLION EUR SHARE
BUYBACK
    * AIB GROUP - PROFORMA FULLY LOADED CET1 OF 15.8% VERSUS %
16.2%
END-SEPT; ROTE 25.7% IN 2023 VERSUS 9.6% IN 2022 (NOV GUIDANCE
>20%)
    * AIB GROUP - TOTAL INCOME +64% Y/Y, NET INTEREST INCOME
+83% TO
3.841 BILLION EUR, OTHER INCOME +13%, NIM 3.11% (Q4 EXIT NIM
3.3%)
    * AIB GROUP - TOTAL NEW LENDING €12.3BN (2022: €12.6BN) WITH
NEW
LENDING UP 22% H2 VERSUS H1; MORTGAGE MARKET SHARE 33% VERSUS
32.1% AT END-SEPT
    * AIB GROUP - A €327M CHARGE (MAINLY PROPERTY-RELATED)
PARTIALLY
OFFSET BY A €155M WRITEBACK IN THE CORPORATE & SME PORTFOLIO
    * AIB GROUP - ABOVE-POLICY PAYOUT RATIO OF 82% OF PROFIT
AFTER TAX
COMMENCES RETURN OF EXCESS CAPITAL
    * AIB GROUP - COSTS INCREASED 10% TO €1,826M, WITH A COST
INCOME
RATIO (CIR) OF 39% (2022: 57%)
    * AIB GROUP - GOOD START TO 2024 WITH BOTH INCOME AND ASSET
QUALITY DEMONSTRATING RESILIENCE.
    * AIB GROUP - NET CREDIT IMPAIRMENT CHARGE OF 172 MILLION
EUR
VERSUS 7 MILLION EUR IN 2022, EQUATING TO 27BPS OF GROSS LOANS
    * AIB GROUP - 2024 COSTS EXPECTED TO INCREASE 6-7%,
EXCEPTIONAL
COSTS C. €100M, CUSTOMER LOANS TO GROW BY 2%
    * AIB GROUP - 2024 GUIDANCE: NII >€3.65BN, OTHER INCOME
>€700M,
COR AT THE LOWER END OF A 20-30BPS RANGE, LEVIES AND REG FEES
145M
    * AIB - REFRESHED 2026 MEDIUM-TERM TARGETS: ROTE 15%, CET1
>14%
WITH A BUFFER OVER MDA OF AT LEAST 250BPS, ABSOLUTE COST <€2BN
WITH A CIR RATIO OF <50%

Further company coverage:  AIBG.I 

 (Reporting By Padraic Halpin)
 ((Padraic.Halpin@thomsonreuters.com;))