Aib Group Plc · EURONEXT:A5G
Aib — Investor Day (December 2022)
17 slides from Aib's investor day presentation, Dec 2, 2022
Slide 1: Investor and Analyst Update: Medium-term Targets
Investor and Analyst Update Medium-term Targets 2 December 2022
Slide 2: Forward looking statement
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 statements can be identified by the fact that they
Slide 3: AIB management
AIB management Colin Hunt Chief Executive Officer Donal Galvin Chief Financial Officer 3
Slide 4: Delivering our strategy
Delivering our strategy In an evolving environment Medium-term Expected in 2023 targets RoTE >10% RoTE(1) >13% 2 Dec 2020 Changed environment 2 Dec 2022 in 2024 Two banks exiting Plan to accelerate Rising interest rates Delivering our strategy at strategy through pace to generate Progressive distrib
Slide 5: Open and resilient Irish economy
Open and resilient Irish economy Solid Irish economic growth still expected despite headwinds Good growth forecast for 2022-24 despite clear headwinds Employment levels rise sharply while unemployment falls Irish inflation increases in line with elsewhere % % 2,600 12 12.0 2,500 11 16 13.6 10.0 10 1
Slide 6: Significant strategic progress achieved
Significant strategic progress achieved Leading financial services group positioned for growth in a changing environment Market change: Strategic progress the opportunity to grow our customer base ~5,000 UB corporate & commercial customers Growing the Group Transforming operating model ~47,000 UB tr
Slide 7: Financial Targets
Financial Targets 7
Slide 8: Medium-term targets trajectory
Medium-term targets trajectory RoTE target upgraded to >13% Dec 2020(1) H1 2021 Dec 2022 Targets set Targets revised Targets revised Deliver Deliver sustainable sustainable Deliver sustainable returns returns returns RoTE >13% RoTE >8% RoTE >9% in 2024 in 2023 Improved economic in 2023 Two banks to
Slide 9: Balance sheet geared for rising rates
Balance sheet geared for rising rates Customer accounts continue to grow Evolution of loans and customer accounts €bn 99 110 128 133 NII sensitivity as at June 2022 (€m) -100bps +25bps +50bps +100bps AIB’s NII sensitivity drivers tend to fall into one of three interest rate cohorts: 90 59% Euro (301
Slide 10: Cost target <€1.75bn in 2024
Cost target <€1.75bn in 2024 CIR reducing from 64% to ~50% Cost trajectory to 2024 <€1.75 €bn Cost target <€1.75bn in 2024 With a cost income ratio ~50% <€1.475 ~€1.5 Significant reduction in cost income ratio to ~50% 2023 old target UB tracker book 2023 old target adjusted Inflation Enlarged balanc
Slide 11: CET1 target >13.5%
CET1 target >13.5% ~2% buffer to regulatory requirements CET1 - Capital requirements (%)(1) 11.05% 11.4% CET1 target >13.5% 10.2% 1.00 1.35 0.15 1.50 1.50 1.50 Profit momentum providing organic capital 2.50 2.50 2.50 generation 1.55 1.55 1.55 RWA increases due to balance sheet organic 4.50 4.50 4.50
Slide 12: Clear pathway to CET1 >13.5%
Clear pathway to CET1 >13.5% Generating and returning capital FY 2022 FY 2023 – FY 2025 + Capital generation + Capital generation 15.4%(1) - Impact of inorganic initiatives (-70bps) - RWA growth >13.5% Q3 2022 - RWA growth - Ordinary distributions - Ordinary distributions - Additional distributions
Slide 13: RoTE target >13% in 2024
RoTE target >13% in 2024 Strong revenue momentum exceeds cost growth RoTE target increased from >9% to >13% ROTE target >13% in 2024 ~+10% ~(3%) Strong revenue momentum; geared to rising interest rates ~(3%) >13% Sustainable loan book growth >9% Growing customer base supporting fees and commissions
Slide 14: AIB - leading financial services provider
AIB - leading financial services provider Medium-term A group transforming and well-positioned for the future Targets Leading market positions and expanding product suite in attractive market Sound AIB Modern, resilient and flexible digital IT architecture; No1 Irish banking app fundamentals Simple
Slide 15: Appendix
Appendix 15
Slide 16: Capital requirements
Capital requirements Outlook to 2024 Dec-23 Dec-24 Capital requirements(1) Dec-22 look through* look through* Pillar 1 4.50% 4.50% 4.50% Pillar 2 requirement (P2R) 1.55% 1.55% 1.55% Capital Conservation Buffer (CCB) 2.50% 2.50% 2.50% O-SII Buffer 1.50% 1.50% 1.50% Countercyclical Buffer (CCyB) ROI -
Slide 17: Contact details
Contact details Our Investor Relations Department are happy to facilitate your requests for any further information Name Email Telephone Niamh Hore [email protected] +353 86 3135647 Head of Group IR Siobhain Walsh [email protected] +353 87 3956864 Head of Debt IR Pat Clarke patricia.m.clarke