AIB Group to Return EUR1.7 Billion to Shareholders After Profit Leap
By Najat Kantouar
AIB Group is returning 1.7 billion Euros ($1.85 billion) to shareholders after reporting a jump in 2023 profit driven by a strong business performance, continued economic growth, and a return to a more normal monetary policy environment.
The Irish bank--which returned to majority private ownership in the year--said Wednesday that it will return the money via a EUR1 billion share buyback and dividend of 26.6 cents a share.
Profit after tax for the year ended Dec. 31 was EUR2.06 billion compared with EUR765 million in 2022.
Total income increased 64% to EUR4.74 billion, while net interest income--a key metric for the industry which is the difference between interest earned on loans an that paid on deposits--grew to EUR3.84 billion from EUR2.16 billion. Looking ahead, the company expects net interest income of EUR3.65 billion this year.
Net interest margin for 2023 was 3.11% compared with 1.69%.
The bank closed the period with a common equity Tier 1 ratio--a measure of balance-sheet strength--of 15.8% compared with 16.3%, while its return on tangible equity ratio was 25.7% compared with 9.6%.
"With a new set of medium-term targets, including an upgraded [Return on Tangible Equity] target of 15%, we look to the future with confidence," Chief Executive Officer Colin Hunt said.
At 0932 GMT, share were up 0.18 European cents, or 4.10%, at EUR4.52. Over the past twelve months, shares are up 10.32%.
The Irish government owned 40.77% of the group's shares at Dec. 31 compared with 56.89% at Dec. 31, 2022, and 71.12% at Dec. 31, 2021.
Write to Najat Kantouar at najat.kantouar@wsj.com
(END) Dow Jones Newswires
March 06, 2024 04:59 ET (09:59 GMT)
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