AIB Group - Medium-term targets trajectory likely well understood

Davy Research
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AIB is well set in the coming years to deliver higher returns and profitability, underpinned by a positive backdrop from higher rates and consolidation. In our view, the earnings upsides are well understood, and it is unlikely that a more definitive message on distributions will be delivered at this juncture. The stock has provided a total return of 42.3% year-to-date (ytd), well ahead of the Eurostoxx bank index. While we remain ‘Outperform’ on a 12-month basis, we do not expect the update to be a catalyst.