AIB Group

Accretive tracker mortgage acquisition confirmed

  • Sectors : Banks
  • Companies : AIB Group

Ratings and price correct at time of issue.

  • AIB Group

    Closing Price: 245c

  • RATING 23/01/19

  • PREVIOUS RATING 14/08/18

    NEUTRAL

DAVY VIEW

The binding agreement with NatWest confirms an earnings and returns accretive transaction, utilising surplus capital and liquidity and acquired at an attractive price. Following the transaction, AIB will remain overcapitalised – with clarity on capital investment allowing greater visibility on surplus return. In addition, the higher earnings base will provide greater ordinary dividend capacity, which together with returns accretion should be a further catalyst for a re-rating.

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Jun 2 2022, 07:05 IST/BST

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