Aib Group Plc · EURONEXT:A5G
Aib — Debt Investor Presentation (June 2020)
21 slides from Aib's debt investor presentation, Jun 16, 2020
Slide 1: Investor Presentation – AT1
Investor Presentation – AT1 16 Jun 2020 AIB Group plc
Slide 2: Disclaimer
Disclaimer NOT FOR DISTRIBUTION TO ANY U.S. PERSON OR TO ANY PERSON OR ADDRESS IN THE U.S. IMPORTANT: You must read the following before continuing. The following applies to the presentation materials contained in this document, and you are therefore advised to read this carefully before reading, ac
Slide 3: Disclaimer
Disclaimer The risks and uncertainties referred to above include: (i) the performance of the markets in Ireland and the wider region in which the Issuer operates; (ii) changes in political, social, legal or economic conditions in the markets in which the Issuer and its customers operate; (iii) the I
Slide 4: Disclaimer
Disclaimer By purchasing, or making or accepting an offer to purchase, any Securities (or a beneficial interest in such Securities) from the Issuer and/or any of the Managers, each prospective investor will thereby represent, warrant, agree with and undertake to the Issuer and each of the Managers t
Slide 5: Disclaimer
Disclaimer Singapore: No sales to any person in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act (Chapter 289) of Singapore, as modified or amended from time to time, the “SFA”) pursuant to Section 274 of the SFA, (ii) to a relevant pe
Slide 6: Contents
Contents AT1 Transaction & tender offer - overview 7 Q1 2020 Trading & Covid-19 update 15 Credit ratings 19 Medium term targets 20 Contacts 21 6
Slide 7: AT1 Transaction & Tender Offer – overview
AT1 Transaction & Tender Offer – overview AIB Group plc
Slide 8: Executive summary
Executive summary PerpNC [●] €[●] Fixed Rate Reset Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities Issued by AIB Group plc (HoldCo), in line with group structure and resolution strategy Semi-annual, discretionary, non-cumulative coupons Offering Par call exercisable at
Slide 9: Mitigating principal write-down risk
Mitigating principal write-down risk Robust buffer to trigger Q1, 2020 - Buffer to trigger (FL, %) Capital position remains particularly strong with 16.2% CET1 ratio fully loaded (18.6% CET1 ratio transitional)(1) at Q1 2020 16.2% Temporary write-down loss absorption mechanism 7.0% CET1 ratio
Slide 10: SREP: CET1 & Total capital requirements FY 2020 & 2021
SREP: CET1 & Total capital requirements FY 2020 & 2021 FY 2020 FY 2021 FY 2020 CET1 requirements (% RWA) (Pro-forma FY 2021 (Pro-forma Article 104a) Article 104a) Pillar 1 - CET1 4.50% 4.50% 4.50% 4.50% (1) Pillar 2 Requirement (P2R) 3.00% 1.69% 3.00% 1.69% Capital conservative buffer (CCB) 2.50% 2.
Slide 11: Mitigating distribution risk – FY 2020 SREP 11%, AT1 1.50%, T2 2.00%
Mitigating distribution risk – FY 2020 SREP 11%, AT1 1.50%, T2 2.00% Very strong buffers to MDA and robust ADI capacity CET1 MDA (Transitional, %) CET1 MDA (Fully loaded, %) CET1 MDA (Fully loaded, %) includes unfilled AT1/T2 includes unfilled AT1/T2 assumes AT1/T2 buckets filled 18.6 16.2 7.1% 4.8%
Slide 12: Mitigating distribution risk – Pro-forma Article 104a SREP
Mitigating distribution risk – Pro-forma Article 104a SREP 9.69%, AT1 2.06%, T2 2.75% Very strong buffers to MDA and robust ADI capacity CET1 MDA (Transitional, %) CET1 MDA (Fully loaded, %) CET1 MDA (Fully loaded, %) includes unfilled AT1/T2 includes unfilled AT1/T2 assumes AT1/T2 buckets filled 18
Slide 13: Summary Term Sheet
Summary Term Sheet Issuer AIB Group plc Description Fixed Rate Reset Additional Tier 1 Perpetual Contingent Temporary Write Down Securities (the “Securities”) Direct, unsecured, unguaranteed and deeply subordinated obligations of the Issuer and rank pari passu, without any preference, among th
Slide 14: Tender offer
Tender offer Summary Terms Offer Tender offer targeting up to €250mm in aggregate principal amount Offeror Allied Irish Banks, p.l.c. €500mm Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities (ISIN: XS1328798779), with a first reset date (being the first date on which, Targ
Slide 15: Q1 2020 Trading and Covid-19 Update
Q1 2020 Trading and Covid-19 Update AIB Group plc
Slide 16: Q1 Trading and Covid-19 update
Q1 Trading and Covid-19 update COVID-19 response Financially and operationally resilient; backing our customers, staff and the Irish economy through the COVID-19 crisis Introduction of a wide range of customer initiatives; close to 50,000 payment breaks implemented Over 7,000 of our c. 9,500 s
Slide 17: Q1 Trading and Covid-19 update continued
Q1 Trading and Covid-19 update continued Outlook Medium term targets outlined on 6 March 2020 remain appropriate; Guidance related to 2020 expected performance is no longer current The Group remains financially and operationally resilient amid heightened uncertainty Our strong capital and fund
Slide 18: Breakdown of loan book by sector and stage Q1 2020
Breakdown of loan book by sector and stage Q1 2020 5.7% loans are classified as Stage 3 / Purchased or originated credit impaired (POCI) Gross Loans and advances to customers (at amortised cost) at end Q1 €m Analysed by ECL stage profile Stage 1 Stage 2 Stage 3 POCI Total Agriculture 1,436 228 102 0
Slide 19: Credit ratings
Credit ratings Investment grade status for AIB Group plc AIB Group plc (HoldCo) Baa2 BBB BBB- Long Term Issuer Rating Outlook Stable Negative Negative Investment Grade 19
Slide 20: Medium term targets (2022)
Medium term targets (2022) Medium-term targets by 2022 Focused Appropriate Deliver cost(1) capital sustainable discipline target returns €1.5bn CET1(2) > 14% RoTE(3) > 8% 1) Costs before bank levies and regulatory fees and exceptional items 2) Fully loaded 3) RoTE = (PAT – AT1) / (CET1 @ 14% of RWAs
Slide 21: Contacts
Contacts Please contact Investor Relations or Treasury Funding Team for any further information Name Email Telephone Niamh Hore niamh.a.hore@aib.ie +353 1 6411817 Head of IR Janet McConkey janet.e.mcconkey@aib.ie +353 1 6418974 Head of Debt IR Siobhain Walsh siobhain.m.walsh@aib.ie +353 1 6411901 /