Aib Group Plc · EURONEXT:A5G

Aib — FY2024 Earnings Presentation

48 slides from Aib's earnings presentation, Mar 5, 2025

  1. Slide 1: AIB Group plc Annual Financial Results 31 December 2024

    For the life you’re after AIB Group plc Annual Financial Results 31 December 2024

  2. Slide 2: Forward looking statement

    AIB Group plc | Annual Financial Results | 2024 2 Forward looking statement 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 s

  3. Slide 3: Very strong 2024 performance

    AIB Group plc | Annual Financial Results | 2024 3 Very strong 2024 performance €2.35bn Profit after tax 15.1% CET1 €18.5bn returned to the 26.7% RoTE Strong capital position State 12.39% State shareholding €4.1bn NII up 7% €2.6bn distributions(1) Clear path to full private 109% payout ownership in 2

  4. Slide 4: FY 2024 ESG highlights

    AIB Group plc | Annual Financial Results | 2024 4 FY 2024 ESG highlights €30bn climate action fund Continued contribution to key Sustainability Coordinator €16.6bn since 2019 social infrastructure – €5.1bn in 2024 Financial wellbeing, energy & SME steps to Sustainability 35% of new lending housing A

  5. Slide 5: Solid Irish economic fundamentals

    AIB Group plc | Annual Financial Results | 2024 5 Solid Irish economic fundamentals Underpinned by strong labour force and population growth Good growth forecast for 2025-27 despite risks Irish employment rises sharply post pandemic % 120 ▪ Irish economy continues to perform % robustly, forecasts si

  6. Slide 6: Open and resilient Irish economy

    AIB Group plc | Annual Financial Results | 2024 6 Open and resilient Irish economy Strong fiscal position facilitates State investment in housing and infrastructure Well-established stock of inward FDI investment (% GDP) Irish export base in defensive sectors (€bn, 2023) ▪ Ireland remains an attract

  7. Slide 7: New lending up 17% to €14.5bn

    AIB Group plc | Annual Financial Results | 2024 7 New lending up 17% to €14.5bn New lending across asset classes Mortgages (€bn) Personal lending (€bn) Property (€bn) Corporate & SME (€bn) +16% +7% +36% -21% 4.7 6.8 4.0 1.2 1.3 2.0 1.6 5.0 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2

  8. Slide 8: AIB is Ireland's #1 Bank

    AIB Group plc | Annual Financial Results | 2024 8 AIB is Ireland’s #1 Bank Market-leading franchise underpinned by strategic priorities #1 Irish Retail Bank Leading mortgage provider 36% mortgage market share(1) 40% personal main current account share(2) #1 Green Bank #1 Business Bank Sustainability

  9. Slide 9: Customer First – Delivering enhanced customer and financial outcomes

    AIB Group plc | Annual Financial Results | 2024 9 Customer First – Delivering enhanced customer and financial outcomes Developing more enduring relationship with our 3.35m customers Maximising the opportunity to deliver an intuitive, responsive & friction-free customer experience Driven by strategic

  10. Slide 10: Greening our Business: Mobilising capital to support climate action

    AIB Group plc | Annual Financial Results | 2024 10 Greening our Business: Mobilising capital to support climate action Grow our business in green energy & sustainable infrastructure Strong momentum underpinned by high demand and the significant sustainable finance opportunity Financing the transitio

  11. Slide 11: Operational Efficiency & Resilience: focus on digitalisation & simplification

    AIB Group plc | Annual Financial Results | 2024 11 Operational Efficiency & Resilience: focus on digitalisation & simplification Enhanced customer and commercial outcomes Progressive modernisation of technology Simplification & improved efficiency c. €300m investment on average p.a. Resilient platfo

  12. Slide 12: Clear path to a return to full private ownership in 2025

    AIB Group plc | Annual Financial Results | 2024 12 Clear path to a return to full private ownership in 2025 Generating and returning shareholder value State shareholding reducing Shareholder distributions % €2.6bn distributions: €bn 109% 71% ▪ €1.2bn regulatory approved share buyback 2.6 • Discussio

  13. Slide 13: Driving sustainable shareholder value

    AIB Group plc | Annual Financial Results | 2024 13 Driving sustainable shareholder value Delivering on our commitments Executing at pace Solid platform for Sustainable value against our strategic enduring growth creation objectives ▪ Customer First – more ▪ Sustainable business growth ▪ Sound domest

  14. Slide 14: Financial Performance

    14 Financial Performance

  15. Slide 15: Financial performance FY 2024

    AIB Group plc | Annual Financial Results | 2024 15 Financial performance FY 2024 Profit after tax €2,351m ▪ RoTE 26.7% with 22% growth in EPS to 92.5c Total income €4,908m up 4% ▪ Net interest income €4,129m (+7%); net fee and commission income €666m (+5%) Costs €1,971m(1); underlying growth 7% and

  16. Slide 16: Income Statement

    16 Income Statement

  17. Slide 17: Income statement – profit after tax €2.35bn and ROTE 26.7%

    AIB Group plc | Annual Financial Results | 2024 17 Income statement – profit after tax €2.35bn and ROTE 26.7% Summary income statement (€m) FY 2024 FY 2023 Net interest income 4,129 3,841 ▪ Total operating income €4,908m up 4% Other income(1) 779 900 Total operating income 4,908 4,741 ▪ Operating ex

  18. Slide 18: Net interest income €4,129m; up 7%

    AIB Group plc | Annual Financial Results | 2024 18 Net interest income €4,129m; up 7% NII / NIM movements (€m) / (bps) NII €4,129m (+7%) from FY 2023 impacted by: ▪ -€443m higher cost of liabilities including: €288m increase in NII; 5bps increase in NIM • -€293m reflecting higher deposit interest ex

  19. Slide 19: NII outlook: resilience in an evolving interest rate environment

    AIB Group plc | Annual Financial Results | 2024 19 NII outlook: resilience in an evolving interest rate environment NII resilience (€bn) NII 2025 guidance >€3.6bn NII 4.1 >3.6 ▪ Assuming ECB deposit rate of 2.00% by June 3.8 ▪ Low deposit beta(1) to date; to evolve in 2025 End ECB deposit rate • c.1

  20. Slide 20: Fee and commission up 5%; growing and recurring income

    AIB Group plc | Annual Financial Results | 2024 20 Fee and commission up 5%; growing and recurring income Net fee and commission income (€m) FY 2024 FY 2023 Customer account fees 248 240 ▪ Total other income €779m down 13% Lending related fees 56 54 • Primarily due to lower income from forward contr

  21. Slide 21: Costs €1,971m; underlying cost growth of 7%

    AIB Group plc | Annual Financial Results | 2024 21 Costs €1,971m; underlying cost growth of 7% due to inflation and enlarged Group Operating expenses(1) (€m) ▪ Costs €1,971m, up 7% on an underlying basis 1,971 1,826 • 8% growth including once-off additional spend for customer and 301 operational eff

  22. Slide 22: ECL charge €55m (8bps CoR); 1.9% ECL cover

    AIB Group plc | Annual Financial Results | 2024 22 ECL charge €55m (8bps CoR); 1.9% ECL cover Loan book(1) by Staging & Coverage (€bn) 2.3% 67.0 1.9% 71.2 ECL (charge) / writeback (€m) FY 2024 FY 2023 31% 31% 3% 3% Macroeconomic assumptions 41 19 11% 8% 11% 7% Credit performance (88) (95) PMA and mo

  23. Slide 23: Balance Sheet

    23 Balance Sheet

  24. Slide 24: Strong growth in both customer loans and customer accounts

    AIB Group plc | Annual Financial Results | 2024 24 Strong growth in both customer loans and customer accounts Balance sheet (€bn) Dec 2024 Dec 2023 Performing loans 69.2 65.0 Assets Non-performing loans 2.0 2.0 ▪ Gross loans €71.2bn increased by 6% Gross loans to customers 71.2 67.0 Expected credit

  25. Slide 25: Strong momentum in loan book growth

    AIB Group plc | Annual Financial Results | 2024 25 Strong momentum in loan book growth Gross Loan €71.2bn increased €4.2bn (€bn) Gross loans (€bn) CAGR c. 5% 14.5 (10.7) (1.0) 0.8 0.6 (1.3) + 6% 71.2 71.2 67.0 5.5 69.9 4.1 67.0 6.0 5.6 17.6 17.5 Dec 23 New lending Redemptions NPE Porfolio FX/Other D

  26. Slide 26: Funding and Capital

    26 Funding and Capital

  27. Slide 27: Strong funding and liquidity reserves

    AIB Group plc | Annual Financial Results | 2024 27 Strong funding and liquidity reserves Total funding composition Strong growth in customer accounts (€bn) 136.6 (€bn) 52% of deposits 131.6 insured 109.9 31.5 Corporate 33.1 104.8 92% of deposits 3.4 3.0 ROI-based 6.8 + c.€6bn net 12.7 Customer inflo

  28. Slide 28: CET1 15.1% Strong capital generation delivering significant shareholder returns

    AIB Group plc | Annual Financial Results | 2023 28 CET1 15.1% Strong capital generation delivering significant shareholder returns CET1 material movements % CET1 buffer (0.8) CET1 requirement 4.0 (3.5) 15.8 0.3 0.2 15.1 (0.4) (0.5) 4.7 3.7 11.1 11.4 Dec 23 Capital generation Mid-year DBB Proposed Ot

  29. Slide 29: Capital Management: Pathway to >14% CET1 target

    AIB Group plc | Annual Financial Results | 2023 29 Capital Management: Pathway to >14% CET1 target CET1 Trajectory to >14% target by 2026 (Illustrative) 15.1% + - - +/- - Dec 24 Capital generation Ordinary distributions Invest in our business Headwinds / Tailwinds Additional distributions Target >14

  30. Slide 30: Guidance and Medium-term targets

    AIB Group plc | Annual Financial Results | 2024 30 Guidance and Medium-term targets 2025 Guidance 2026 Medium-term targets ▪ Net interest income > €3.6bn Cost(1) ▪ Other income c. €750m < €2.0bn with CIR <50% ▪ Cost increase c. 3% ▪ Cost of risk within the range of 20-30bps CET1 ▪ Bank levies & regu

  31. Slide 31: Appendices

    31 Appendices

  32. Slide 32: Market leading ESG customer propositions to support transition

    AIB Group plc | Annual Financial Results | 2024 32 Market leading ESG customer propositions to support transition Propositions ESG Ratings Green Mortgage for Sustainable project energy efficient homes finance across AIB, Haven, EBS for Clean Energy and brands & AIB UK Sustainable Infrastructure 11.4

  33. Slide 33: Average balance sheet

    AIB Group plc | Annual Financial Results | 2024 33 Average balance sheet FY 2024 FY 2023 Average Average Volume Interest Yield Volume Interest Yield €m €m % €m €m % Assets Customer loans 68,300 2,817 4.11 63,411 2,391 3.77 Investment securities 18,011 841 4.66 16,410 712 4.34 Loans to banks / other

  34. Slide 34: Customer loans movements

    AIB Group plc | Annual Financial Results | 2024 34 Customer loans movements Non-performing €bn Performing loans Customer loans loans Gross loans (1 Jan 2024) 65.0 2.0 67.0 New lending 14.5 - 14.5 Redemptions of existing loans (10.7) (0.7) (11.4) Portfolio acquisition 0.8 - 0.8 Portfolio disposals (0

  35. Slide 35: Loan book by staging and coverage

    AIB Group plc | Annual Financial Results | 2024 35 Loan book* by staging and coverage Dec 2024 Gross loan exposures & ECL (€bn) Stage 1 Stage 2 Stage 3** Total Exposure Loan book by staging: €71.2bn loan exposures Mortgages 34.2 1.9 0.9 37.0 Personal 2.5 0.6 0.1 3.3 ▪ Stage 1 loan exposures increase

  36. Slide 36: Loan book by sector

    AIB Group plc | Annual Financial Results | 2024 36 Loan book by sector Concentration by sector (%) Dec 2024 Dec 2024 Gross loans (€bn) Residential mortgages 52 At amortised cost (excluding mortgages & personal) Stage 1 Stage 2 Stage 3* Total exposures Property & construction 12 Property & Constructi

  37. Slide 37: Asset quality by asset class

    AIB Group plc | Annual Financial Results | 2024 37 Asset quality by asset class At amortised cost At FVTPL €bn Mortgages Personal Property Corporate & SME Total Total Total Dec 2024 Customer loans 37.0 3.3 8.8 22.2 71.2 0.1 71.2 Total ECL cover (%) 0.7% 4.2% 5.3% 2.1% 1.9% of which NPEs 0.9 0.1 0.5

  38. Slide 38: Mortgages and personal lending

    AIB Group plc | Annual Financial Results | 2024 38 Mortgages and personal lending Total Mortgages Total Mortgages Dec 23 Dec 24 Dec 23 Dec 24 7% 2% 5% 3% 4% 3% 96% 97% 91% 92% €34.8bn €37.0bn €34.8bn €37.0bn (1) Stage 1 Stage 2 Stage 3 Owner-occupier Buy-to-let Total Mortgages Personal lending Dec 2

  39. Slide 39: Property €8.8bn; Corporate/SME €22.2bn

    AIB Group plc | Annual Financial Results | 2024 39 Property €8.8bn; Corporate/SME €22.2bn Property €8.8bn/ ECL cover 5.3% Corporate/SME €22.2bn Natural resources Leisure Residential investment 1% Manufacturing Student accomodation 49% 6% 13% Health, education & social work 11% Housing associations 2

  40. Slide 40: NPEs 2.8% of gross loans (Dec 23: 3.0%)

    AIB Group plc | Annual Financial Results | 2024 40 NPEs 2.8% of gross loans (Dec 23: 3.0%) Non-performing exposures (NPEs) Non-performing exposures €bn ▪ NPEs €2.0bn; NPE ratio 2.8% at Dec 24 made up of: 21.6% • €0.5bn Property (27%) Asset class NPE ratio • €0.9bn Mortgages (43%) Property 6.1% • €0.

  41. Slide 41: Debt securities €18.4bn; primarily held for liquidity purposes

    AIB Group plc | Annual Financial Results | 2024 41 Debt securities €18.4bn; primarily held for liquidity purposes Debt Securities €bn 6.6 0.1 78% Irish 5.2 22% European 2.2 3.4 6.5 0.2 2.3 3.0 3.1 2.1 0.9 0.2 0.2 0.7 Bank securities Govt securities Asset backed securities Supranational banks and Gov

  42. Slide 42: Reported capital ratios

    AIB Group plc | Annual Financial Results | 2024 42 Reported capital ratios Fully loaded Transitional Fully loaded Risk weighted assets (€m) Dec 24 Dec 23 Movement Dec 24(1) Dec 23 Dec 23 Credit risk 53,806 53,229 577 Total risk weighted assets (€m) 62,030 59,643 59,463 Market risk 730 342 388 Capita

  43. Slide 43: Regulatory capital requirements

    AIB Group plc | Annual Financial Results | 2024 43 Regulatory capital requirements Regulatory capital requirements Dec 24 Dec 25* Dec 26* Pillar 1 4.50% 4.50% 4.50% Pillar 2 requirement (P2R) 1.46% 1.35% 1.35% Capital Conservation Buffer (CCB) 2.50% 2.50% 2.50% O-SII Buffer 1.50% 1.50% 1.50% Counter

  44. Slide 44: Macroeconomic scenarios and sensitivities

    AIB Group plc | Annual Financial Results | 2024 44 Macroeconomic scenarios and sensitivities Macroeconomic scenario – Base 2024 2025 2026 2027 2028 2029 (%) Composition of balance sheet by interest rate type at Dec 2024* Republic of Ireland 52% GDP growth(1) (0.2) 2.7 3.0 3.2 3.1 3.0 Residential pro

  45. Slide 45: Summary - warrants issued June 2017

    AIB Group plc | Annual Financial Results | 2024 45 Summary - warrants issued June 2017 ▪ Background: warrants issued to the Minister for Finance at the time of the IPO (June 2017) giving the Minister the right to subscribe for 271m new shares in AIB Group plc at the prevailing exercise price ▪ Exerc

  46. Slide 46: Dividend timetable: cash dividend per share 36.984c

    AIB Group plc | Annual Financial Results | 2023 46 Dividend timetable: cash dividend per share 36.984c Dividend timetable Event Date Full year results Wed, 5 March 2025 Ex-dividend date Thurs, 27 March 2025 Record date Fri, 28 March 2025 Currency/tax election deadline Fri, 11 April 2025 @ 12:00 midd

  47. Slide 47: Credit ratings

    AIB Group plc | Annual Financial Results | 2024 47 Credit ratings 31 Dec 2024 AIB Group plc (HoldCo) A3 BBB Long term issuer rating Outlook Positive Positive Investment grade ✓ ✓ AIB p.l.c. (OpCo) A1 A Long term issuer rating Outlook Positive Positive Investment grade ✓ ✓

  48. Slide 48: Contact details

    AIB Group plc | Annual Financial Results | 2024 48 Contact details Name Email Telephone Niamh Hore niamh.a.hore@aib.ie +353 86 3135647 Head of Group IR and External Communications Siobhain Walsh siobhain.m.walsh@aib.ie +353 87 3956864 Head of Debt IR Bernie Glynn bernie.a.glynn@aib.ie +353 87 919570

AIB Group — FY2024 Earnings Presentation on 6ix