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Nov 1 2019, 09:45 GMT
AIB Group
Capital accretive portfolio sale
DAVY VIEW
The non-performing loan (NPL) sale puts AIB on track to achieve its c.5% target by end-2019 as the Q2 2019 pro-forma ratio falls to c.6.2% (from 7.5%). The overall net 20bps CET1 impact is in line with our forecasts, although the timing impact (Q4 2019 negative/Q1 2020 positive) is different. Overall, the sale alongside efforts to optimise the overall capital stack bodes well for surplus capital return discussions – our forecast currently assumes a €300m special dividend in Q3 2020.
