DAVY VIEW

AIB Group (AIBG) has delivered interim results broadly in-line with expectations, with attractive capital generation. Interim dividends are resumed, and capital remains very strong. Lending growth moderated relative to expectations, resulting in a reduction in FY growth guidance, albeit longer-term CAGR growth of c.5% is maintained and deposits gathering was strong in Q2. The core thesis remains unchanged – growth, capital generation and capital returns – with capital generation pointing to the magnitude of capital returns to come.