DAVY VIEW

AIB continues to progress at pace on inorganic strategic initiatives, with progress towards a life assurance joint venture (JV) to add to recent announcements. Underlying profit for 2020 was ahead on higher income despite a conservative approach to provisioning. Capital was significantly ahead on higher intangible relief. For 2021, a return to profitability and strong capital should pave the way for capital distributions beyond the resumption of its ordinary dividend. We reiterate our ‘Outperform’ rating.