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AIB Group PLC on Friday said it had revised its medium-term targets, increasing its goal for return on tangible assets, as the Irish economy delivers growth.
The Dublin-based bank revised its RoTE target for 2024 to greater than 13%, from greater than 8% by 2023, which was set out in the company’s medium-term targets in December 2020.
AIB said it also expects a cost income ratio of around 50% by 2024, due to ‘significant momentum’ in income.
‘We set out our strategy in December 2020 to fulfil our ambition of being at the heart of our customers’ financial lives. Since then we have made significant progress in growing and strengthening the group through an enhanced product suite, a transforming operating model and an increased customer base - now heading to over three million customers,’ Chief Executive Officer Colin Hunt said.
AIB also revised its common equity tier one target to more than 13.5%, down slightly from 2020’s target of greater than 14% by 2023. The company said it would move towards this target by ‘increasing levels of distribution, supplementing dividend with share buybacks where appropriate.’
On October 28, the company said its loaded CET1 ratio was 15.4% for the third quarter, noting that this was ‘well ahead’ of minimum regulatory requirements
‘The Irish economy continues to deliver economic growth and demonstrate resilience,’ Hunt said.
Back in July, AIB reported pretax profit for the first of 2022 was up 84% at €537 million from €291 million a year before.
AIB shares were down 1.6% at 253.00 pence on Friday morning in London.
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