AIB Group - H1 loss on significant front-loading of provision charges

Davy Research
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A loss of €700m reflects an eye-catching impairment charge of €1.2bn, with underlying pre-provision profit for both H1 and its trend for the full year in-line. We view the results as a front-loading of impairments to the benefit of future year earnings, but further cost initiatives are also expected to underpin management’s reiterated medium-term targets.