In This Article:
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Return on Tangible Equity (RoTE): 16.8% for 2024, with a target of greater than 17% by 2027.
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Total Distribution: EUR 1.2 billion, up 6% year-on-year, the group's largest ever.
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Cumulative Distributions for 2023/2024: EUR 2.4 billion, equivalent to more than 1/4 of market cap.
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Irish Mortgage Book Growth: Up 7% with a 40% share of new mortgage lending.
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Assets Under Management (AUM): Increased 19% to EUR 55 billion.
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Net Interest Income (NII): 2% lower on a like-for-like basis; expected to be greater than EUR 3.25 billion for 2025.
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Business Income Growth: Increased by 4% last year; expected growth of circa 5% in 2025.
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Operating Expenses: In line with guidance; expected circa 3% growth in 2025.
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Noncore Charges: EUR 275 million in 2024; expected to be EUR 100 million to EUR 125 million in 2025.
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NPE Ratio: Improved by 90 basis points to 2.2%.
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Fully Loaded CET1 Ratio: 14.6% at year-end.
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Organic Capital Generation: 310 basis points in 2024; expected 250 to 270 basis points in 2025.
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Shareholder Distributions: Consumed 215 basis points of capital.
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Structural Hedge Income: Expected to be circa 10% higher in 2025 than in 2024.
Release Date: February 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bank of Ireland Group PLC (BKRIF) reported strong financial performance in 2024, with robust loan and deposit growth, and a significant increase in assets under management (AUM) by 19%.
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The company achieved a return on tangible equity (RoTE) of 16.8% for 2024, with expectations to exceed 17% by 2027.
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The bank's business model is outperforming its peer group, with higher capital generation and total shareholder returns, supported by a EUR1.2 billion total distribution, marking the group's largest ever.
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The Irish economy is growing and outperforming the euro area, providing a favorable environment for Bank of Ireland Group PLC (BKRIF) to grow its mortgage and corporate lending businesses.
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The Wealth and Insurance division showed strong performance, with AUM growth of 55% for Davy and increased protection policy sales by New Ireland Insurance, contributing to a diversified income stream.
Negative Points
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The company faces heightened uncertainty due to evolving international trade policies, which could impact its operations and growth prospects.
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Non-core charges in 2024 were higher than expected, primarily due to a EUR172 million provision related to UK motor finance and a EUR108 million charge for software intangibles impairment.
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Net interest income (NII) was 2% lower on a like-for-like basis in 2024, reflecting higher funding costs and liquid asset income.
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The bank's cost base is expected to grow by circa 3% in 2025, with ongoing investments required to drive future efficiencies.
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The provision for UK motor finance remains a concern, with potential for further adjustments depending on regulatory outcomes and remediation schemes.