AIB Group PLC AIB Group plc - Medium-Term Targets (3564I)
02 December 2022 - 6:00PM
UK Regulatory
TIDMAIBG
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 <EUR1.75 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 c
lick 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
Please note it is advisable to register in advance
Further details available on our website
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 email: paddy.x.mcdonnell@aib.ie
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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