DAVY VIEW

AIB has made significant progress towards its 2023 Strategic Plan. 2022 will be a further year of implementation, with lower costs and organic and inorganic balance sheet growth. Delivery of higher returns will become evident from 2023, with rates providing further material upside. Surplus capital remains a key part of AIB’s investment case, likely to deliver with FY 2023 results. AIB’s valuation is not aligned to our outlook – we retain our ‘Outperform’ rating and increase our price target to €3.55 (from €3.45).