Yahoo Finance

• After-Tax Profit: EUR2.4 billion.

• Return on Tangible Equity (ROTE): 26.7%.

• Net Interest Income: Increased by 7% to EUR4.1 billion.

• CET1 Ratio: 15.1%.

• Total Distributions: EUR2.6 billion, representing a payout ratio of 109%.

• New Lending: Increased by 17% to EUR14.5 billion.

• Gross Loans: EUR71.2 billion, a 6% increase.

• Cost of Risk: 8 basis points, with a charge of EUR55 million.

• Total Income: EUR4.9 billion, up 4%.

• Net Fees and Commission: Increased by 5% to EUR666 million.

• Costs: EUR1.9 billion, with an underlying growth of 7%.

• Cost Income Ratio: 40%.

• Customer Accounts: EUR109.9 billion, increased by EUR5 billion.

• Proposed Cash Dividend: EUR861 million or EUR0.36984 per share.

• Share Buyback: Regulatory approved EUR1.2 billion.

• New Mortgage Lending: EUR2.8 billion to first-time buyers.

• Green or Transitional Lending: 35% of new lending.

• Market Share: 40% in personal main current accounts, 49% in business main current accounts, and 36% in mortgage market share.

• Assets Under Management: EUR17 billion.

• Net Interest Margin: 3%.

• Other Income: EUR779 million, down 13%.

• Staff Costs: Increased by 9%.

• Headcount: Reduced by 1%.

• Funding and Liquidity: LDR 64, LCR over 200, and net stable funding ratio of 162%.

• Capital Generation: 400 basis points.

• Deferred Tax Asset Benefit: 50 basis points in 2024.

• Basel IV Positive Effect: 120 basis points.

• Warning! GuruFocus has detected 5 Warning Sign with AIBRF.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AIB Group PLC (AIBRF) reported an after-tax profit of almost EUR2.4 billion, representing a return on tangible equity (ROTE) of 26.7%.

• The company's net interest income grew by 7%, surpassing expectations, with strong performance across both assets and liabilities.

• AIB Group PLC (AIBRF) maintained a robust capital position with a CET1 ratio of 15.1%, allowing for proposed total distributions of EUR2.6 billion.

• Significant progress was made in green finance, with 35% of new lending being green or transitional, and over EUR16.5 billion of the EUR30 billion Climate Action Fund deployed.

• The company achieved a 17% increase in new lending to EUR14.5 billion, with strong growth in corporate and SME lending, particularly in renewable energy and infrastructure.

Negative Points

• The commercial real estate market remained subdued, with new property lending down 21% for the year.

• AIB Group PLC (AIBRF) faces potential challenges from geopolitical uncertainties and trade tensions, which could impact the Irish economy.

• The company anticipates a moderation in the growth rate of modified domestic demand in Ireland from 3% in 2025 to 2.3% by 2027.

• There is a need for significant upgrading of critical economic and social infrastructure in Ireland, which could pose challenges if not addressed.

• The cost of risk was 8 basis points, with a charge of EUR55 million, indicating some level of risk in the asset portfolio despite strong overall asset quality.