AIB Group (A5G) H2 2024 earnings summary

Executive summary

• Profit after tax reached €2.35 billion in 2024, with a return on tangible equity (RoTE) of 26.7% and earnings per share up 22% to €0.925.

• Net interest income grew 7% year-over-year to €4.13 billion, and total income rose 4% to €4.91 billion.

• CET1 ratio ended the year at 15.1%, well above regulatory requirements, supporting €2.6 billion in shareholder distributions (109% payout ratio).

• New lending increased 17% to €14.5 billion, with strong growth in corporate/SME and green lending.

• State shareholding reduced to 12.39%, with a clear path to full private ownership by 2025 and €18.5 billion returned to the State.

Financial highlights

• Earnings per share increased 22% to €0.925; profit after tax €2,351 million; RoTE 26.7%.

• Net interest income €4,129 million (+7%); net fee and commission income €666 million (+5%).

• Gross loans grew 6% to €71.2 billion; customer accounts increased by 5% to €109.9 billion.

• Cost-to-income ratio was 40%, with operating expenses up 7% to €1,971 million.

• Asset quality remained strong, with a cost of risk of 8 basis points and portfolio coverage at 1.9%.

Outlook and guidance

• Net interest income guidance for 2025 is greater than €3.6 billion, with other income c. €750 million.

• Customer loans expected to grow by 5% annually through 2027.

• Cost growth expected at 3% for 2025, with a medium-term cost target of less than €2 billion.

• CET1 ratio target set at greater than 14% for 2026, with a 250bps buffer.

• Return on tangible equity targeted at 15% medium-term, with 2025 expected to be well ahead.