DAVY VIEW

Addressing its cost base through an ambitious cost restructuring programme positions AIB to achieve its 8% ‘North Star’ return target – in line with its pre-COVID-19 target. Yet the stock remains 48% from its pre-COVID level. Although restructuring detracts from near-term capital returns, it does not alter the longer-term view of a well-capitalised bank with surplus capital return and inorganic opportunities to provide future upside. We retain our ‘Outperform’ rating with a price target of €2.13 (prior: €1.60).