LSE:AIBG

Stock Analysis Report

Executive Summary

AIB Group plc provides banking and financial products and services to retail, business, and corporate customers.


Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has AIB Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AIBG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.4%

AIBG

-4.1%

GB Banks

-4.4%

GB Market


1 Year Return

-42.8%

AIBG

-11.3%

GB Banks

1.4%

GB Market

Return vs Industry: AIBG underperformed the UK Banks industry which returned -11.3% over the past year.

Return vs Market: AIBG underperformed the UK Market which returned 1.4% over the past year.


Shareholder returns

AIBGIndustryMarket
7 Day-3.4%-4.1%-4.4%
30 Day-17.5%-8.0%-6.3%
90 Day-25.3%-9.1%-2.7%
1 Year-40.4%-42.8%-6.8%-11.3%6.7%1.4%
3 Yearn/a-10.1%-20.4%12.6%-1.5%
5 Yearn/a-6.7%-24.6%28.8%-0.7%

Price Volatility Vs. Market

How volatile is AIB Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is AIB Group undervalued compared to its fair value and its price relative to the market?

25.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AIBG (€2.21) is trading below our estimate of fair value (€2.96)

Significantly Below Fair Value: AIBG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AIBG is good value based on its PE Ratio (7.9x) compared to the Banks industry average (8.9x).

PE vs Market: AIBG is good value based on its PE Ratio (7.9x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: AIBG is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: AIBG is good value based on its PB Ratio (0.4x) compared to the GB Banks industry average (0.8x).


Next Steps

Future Growth

How is AIB Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIBG's forecast earnings growth (3.6% per year) is above the savings rate (0.5%).

Earnings vs Market: AIBG's earnings (3.6% per year) are forecast to grow slower than the UK market (13% per year).

High Growth Earnings: AIBG's earnings are forecast to grow, but not significantly.

Revenue vs Market: AIBG's revenue (0.1% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: AIBG's revenue (0.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AIBG's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

Past Performance

How has AIB Group performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIBG has a large one-off loss of €323.0M impacting its June 30 2019 financial results.

Growing Profit Margin: AIBG's current net profit margins (27.1%) are lower than last year (33.4%).


Past Earnings Growth Analysis

Earnings Trend: AIBG has become profitable over the past 5 years, growing earnings by 11.4% per year.

Accelerating Growth: AIBG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AIBG had negative earnings growth (-28.7%) over the past year, making it difficult to compare to the Banks industry average (26.6%).


Return on Equity

High ROE: AIBG's Return on Equity (5.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AIB Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AIBG has a low level of unsold assets or inventory.

Debt Coverage by Assets: AIBG's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: AIBG's level of assets compared to its equity is low.

Allowance for Bad Loans: AIBG has a low allowance for bad loans.

Low Risk Liabilities: AIBG's liabilities are made up of primarily low risk sources of funding.

Loan Level: AIBG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AIBG's loans are broadly funded by customer deposits.

Level of Bad Loans: AIBG has a high level of bad loans (7.44%)


Next Steps

Dividend

What is AIB Group's current dividend yield, its reliability and sustainability?

7.65%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%1.9%markettop25%5.3%industryaverage6.8%forecastin3Years10.4%

Current dividend yield vs market & industry

Notable Dividend: AIBG's dividend (7.65%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: AIBG's dividend (7.65%) is in the top 25% of dividend payers in the UK market (5.34%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AIBG has been paying a dividend for less than 10 years.

Growing Dividend: AIBG's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.2%), AIBG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AIBG's dividends in 3 years are forecast to be covered by earnings (77% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Colin Hunt (49yo)

0.9yrs

Tenure

0

Dr. Colin Hunt, BComm, BComm, MEconSc, Ph.D. has been CEO and Executive Director of AIB Group Plc an Allied Irish Banks PLC since March 8, 2019. He was Managing Director of Corporate, Institutional & Busin ...


Leadership Team

NamePositionTenureCompensationOwnership
Colin Hunt
CEO & Executive Director0.9yrsno data0.00046% 27.7k
Donal Galvin
Chief Financial Officer0.9yrsno datano data
Tomás O'Midheach
COO, Deputy CEO & Executive Director0.9yrsno datano data
Niamh Hore
Head of Investor Relations0yrsno datano data
Helen Dooley
Group General Counsel0.8yrsno datano data
Paddy McDonnell
Head of Media Relations0yrsno datano data
Geraldine Casey
Chief People Officer0.08yrsno datano data
Jim O'Keeffe
Managing Director of Retail Banking8.7yrsno datano data
David McLaughlin
Head of Private Banking Unit3.3yrsno datano data
Dave Keenan
Deputy Chief People Officer4yrsno datano data

2.1yrs

Average Tenure

49yo

Average Age

Experienced Management: AIBG's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Colin Hunt
CEO & Executive Director0.9yrsno data0.00046% 27.7k
Tomás O'Midheach
COO, Deputy CEO & Executive Director0.9yrsno datano data
Richard Pym
Non-Executive Chairman5.2yrs€365.00k0.0011% 66.9k
Brendan McDonagh
Deputy Chairman of the Board0.3yrs€94.00k0.00037% 22.3k
Thomas Foley
Senior Independent Director0.3yrs€122.00k0.000090% 5.4k
Helen Normoyle
Non-Executive Director4.2yrs€75.00k0.000070% 4.2k
Elaine MacLean
Non-Executive Director0.4yrsno datano data
Carolan Lennon
Non-Executive Director3.3yrs€80.00k0.00028% 16.9k
Sandy Pritchard
Non-Executive Director0.9yrsno datano data
Ann O'Brien
Non-Executive Director0.8yrsno datano data

0.9yrs

Average Tenure

55.5yo

Average Age

Experienced Board: AIBG's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AIB Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AIB Group plc
  • Ticker: AIBG
  • Exchange: LSE
  • Founded: 1825
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €6.031b
  • Shares outstanding: 2.71b
  • Website: https://group.aib.ie

Number of Employees


Location

  • AIB Group plc
  • Bankcentre
  • PO Box 452
  • Dublin
  • Co. Dublin
  • 4
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AIBGISE (Irish Stock Exchange)YesOrdinary SharesIEEURDec 2017
AIBGLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2017
A5GDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2017
AIBGIBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 2017
AIBR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2017
AIBG.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2018

Biography

AIB Group plc provides banking and financial products and services to retail, business, and corporate customers. It operates through Retail & Commercial Banking; Wholesale, Institutional & Corporate Banking; AIB UK; and Group segments. The company offers current and savings accounts, demand deposits, notice deposits, fixed term deposits, junior/student saver deposits, and currency deposits. It also provides personal, car, home improvement, travel, education, first, wedding, and overdraft loans, as well as graduate finance, mortgages, corporate finance, asset finance, business loans, energy efficiency finance, farmer credit line, farm development loans, forestry finance, invoice finance, prompt pay and insurance premium finance, startup loans, brexit loans, farm investment loans, venture capital finance, debt finance, real estate finance, and trade finance. In addition, the company offers credit and debit cards; investment funds; home, car, travel, life, business succession insurance products; and life assurance, serious illness cover, income protection products. Further, it provides payment, merchant, cash management, FX rates, foreign currency and interest rate risk management, exporting, international cash flow management, foreign exchange, interest rate fluctuation management, inheritance tax planning, and retirement and pension planning services; e-statements; private, online, mobile, tablet, phone, self-service, branch, post, and community banking services; and direct debits and standing orders, and mortgage consultancy services. AIB Group plc operates through a network of 295 locations in the Republic of Ireland and 29 locations in the United Kingdom. The company was formerly known as Allied Irish Banks, p.l.c. and changed its name to AIB Group plc in December 2017. AIB Group plc was founded in 1825 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 23:18
End of Day Share Price2020/02/25 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.