DAVY VIEW

Bank of Ireland’s (BIRG) 2023 profitability and a conservative 2024 outlook are behind both Davy and market expectations. We are likely to lower our forecast underlying profit before tax (PBT) by 9% to c.€1.85bn. Counteracting the weakness, BIRG has demonstrated tangible progress on its capital and distribution targets: the ordinary dividend payout target (40%) has been reached one year early together with a material buyback. Combined, this equates to 12% of market capitalisation; interim distributions will also commence during 2024.