DAVY VIEW

While net interest income (NII) is marginally behind expectations, this is more than offset by gains in other income as earnings beat forecasts. Importantly, business activity and volumes on both lending and deposits increased in H1 – indicating little, if any, impact from competition. Revised guidance implies a c.2% increase to Davy and consensus – mostly related to other income. Strongly capitalised, AIB Group (AIBG) remains well placed to grow and deliver attractive capital generation and returns in the coming years.