DAVY VIEW

AIBG has reported FY 2023 results and a 2024 outlook that are broadly in line with Davy and consensus expectations. Distributions of €1.7bn are materially ahead, including a €1bn directed buyback, and represent a good first step in demonstrating the return of surplus capital. In its medium-term update (to 2026), we see some conservatism in its 15% sustainable return on equity target. Overall, the update supports material distributions in the coming years to normalise its FL CET 1 towards its >14% target.