Half Year 2024 AIB Group PLC Earnings Call Transcript
Key Points
- AIB Group PLC (AIBRF) reported a profit after-tax exceeding EUR1.1 billion for the first half of 2024, up 30% from H1 2023.
- The company upgraded its Net Interest Income (NII) guidance to circa EUR4 billion, reflecting strong financial performance.
- New lending increased by 13% to EUR6.3 billion, with significant growth in corporate and SME lending driven by the climate capital segment.
- AIB Group PLC (AIBRF) maintained a robust CET1 ratio of 15.5%, indicating strong capital strength.
- The company has launched a new sustainability academy and increased its Climate Action Fund to EUR30 billion, showing commitment to sustainability.
- Operating costs increased by 6% to EUR947 million, impacting the cost-to-income ratio.
- New CRE lending fell by 39% in the first half, indicating caution in the commercial real estate sector.
- Other income was down 14% year-on-year due to the absence of a forward contract benefit from Ulster Bank.
- The company faces ongoing regulatory fees and levies, estimated at EUR145 million for the year.
- Despite strong performance, the company remains cautious about the economic outlook, particularly in sectors sensitive to interest rate changes.
Good morning, and welcome to AIB Group's interim results for 2024. As usual, this morning, I'll spend some time on the key highlights for the first half of the year as we make real progress on our strategy to 2026. Before I hand over to our CFO, Donal Galvin, for the financial details of the period just ended before we open to the floor for questions.
On the back of an exceptionally strong performance in 2023, the first half of this year has seen us delivering a very robust out turn. This reflects not only a supportive economic backdrop, but is underpinned by the strong strategic foundations we have put in place in recent years.
Today, our business is characterized by a broad and attractive range of products and services, a market-leading customer base of more than 3.3 million people and robust capital and liquidity metrics. We are continuing to deliver on our purpose and on our promise to all our stakeholders.
For the first half of the year, we're pleased to report a profit after-tax exceeding EUR1.1
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