DAVY VIEW

FY 2022 results are ahead of expectations. Ordinarily this might attract more focus, but the focus today will be squarely on the higher returns on equity and distributions Bank of Ireland (BOI) is pointing to (across the 2023 to 2025 period) with highlights being a c.15% ROTE and a revised distributions policy (build to 40% ordinary with annual consideration on surplus return) – the former is higher than consensus and indicates higher capital generation, the latter an output of the former. The positive ambition is also underpinned by conservatism on inputs (rates and capital). BOI has materially re-rated over the last 24 months, the new plan will, in on our view, support further re-rating.