AIB Group

Targets refresh and NPL sale to address cost and surplus capital concerns

  • Sectors : Banks
  • Companies : AIB Group

Ratings and price correct at time of issue.

  • AIB Group

    Closing Price: 286c

  • RATING 23/01/19

  • PREVIOUS RATING 14/08/18

    NEUTRAL

DAVY VIEW

AIB has sharply re-rated post interim results on concerns over non-performing loan (NPL) delivery, costs and surplus capital. While lower, surplus capital is not gone and its return should begin next year; costs pressure is partly impacted by timing; and we remain confident that the c.5% NPL milestone will be achieved by year-end. The key catalysts over the next six months will be the delivery on a large NPL sale and the refresh of financial targets next March.

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Aug 6 2019, 07:15 IST/BST

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