LSE:AIBG

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet average dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.2%

AIBG

0.9%

GB Banks

0.1%

GB Market


1 Year Return

-69.4%

AIBG

-42.3%

GB Banks

-15.3%

GB Market

Return vs Industry: AIBG underperformed the UK Banks industry which returned -42.3% over the past year.

Return vs Market: AIBG underperformed the UK Market which returned -15.3% over the past year.


Shareholder returns

AIBGIndustryMarket
7 Day7.2%0.9%0.1%
30 Day-2.3%-3.8%-2.7%
90 Day24.0%5.0%16.9%
1 Year-69.4%-69.4%-40.6%-42.3%-11.4%-15.3%
3 Yearn/a-42.6%-48.9%-3.4%-15.2%
5 Yearn/a-35.1%-47.0%15.4%-10.3%

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?

9.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AIBG's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AIBG's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AIBG is poor value based on its PE Ratio (9.4x) compared to the Banks industry average (6.7x).

PE vs Market: AIBG is good value based on its PE Ratio (9.4x) compared to the UK market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: AIBG is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: AIBG is good value based on its PB Ratio (0.2x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is AIB Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIBG's forecast earnings growth (25% per year) is above the savings rate (1.2%).

Earnings vs Market: AIBG's earnings (25% per year) are forecast to grow faster than the UK market (21.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AIBG's revenue is expected to decline over the next 3 years (-3.1% per year).

High Growth Revenue: AIBG's revenue is forecast to decline over the next 3 years (-3.1% 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 (3%).


Next Steps

Past Performance

How has AIB Group performed over the past 5 years?

-6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIBG has a large one-off loss of €577.8M impacting its December 31 2019 financial results.

Growing Profit Margin: AIBG's current net profit margins (12.3%) are lower than last year (34.5%).


Past Earnings Growth Analysis

Earnings Trend: AIBG's earnings have declined by -6.8% per year over the past 5 years.

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 (-69%) over the past year, making it difficult to compare to the Banks industry average (9.1%).


Return on Equity

High ROE: AIBG's Return on Equity (2.6%) is considered low.


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


Financial Institutions Analysis

Asset Level: AIBG's Assets to Equity ratio (6.9x) is low.

Allowance for Bad Loans: AIBG has a low allowance for bad loans (37%).

Low Risk Liabilities: 85% of AIBG's liabilities are made up of primarily low risk sources of funding.

Loan Level: AIBG has an appropriate level of Loans to Assets ratio (62%).

Low Risk Deposits: AIBG's Loans to Deposits ratio (85%) is appropriate.

Level of Bad Loans: AIBG has a high level of bad loans (5.4%).


Next Steps

Dividend

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

7.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AIBG's dividend (7.03%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: AIBG's dividend (7.03%) is in the top 25% of dividend payers in the UK market (5.6%)


Stability and Growth of Payments

Stable Dividend: AIBG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AIBG has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.4%), 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 (57.2% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Colin Hunt (50yo)

1.33yrs

Tenure

€579,168

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Colin's total compensation ($USD651.12K) is below average for companies of similar size in the UK market ($USD2.36M).

Compensation vs Earnings: Insufficient data to compare Colin's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Colin Hunt
CEO & Executive Director1.33yrs€579.17k0.00083% 25.6k
Tomás O'Midheach
COO, Deputy CEO & Executive Director1.33yrs€572.89kno data
Donal Galvin
Chief Financial Officer1.33yrsno datano data
Niamh Hore
Head of Investor Relationsno datano datano data
Helen Dooley
Group Company Secretary & Group General Counsel1.25yrsno data0.00037% 11.4k
Paddy McDonnell
Head of Media Relationsno datano datano data
Geraldine Casey
Chief People Officer0.50yrno datano data
Jim O'Keeffe
Managing Director of Retail Banking9.08yrsno datano data
David McLaughlin
Head of Private Banking Unit3.67yrsno datano data
Dave Keenan
Deputy Chief People Officer4.42yrsno datano data

2.5yrs

Average Tenure

50yo

Average Age

Experienced Management: AIBG's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Colin Hunt
CEO & Executive Director1.33yrs€579.17k0.00083% 25.6k
Tomás O'Midheach
COO, Deputy CEO & Executive Director1.33yrs€572.89kno data
Basil Geoghegan
Independent Non-Executive Director0.83yr€28.00k0.00036% 11.1k
Brendan McDonagh
Independent Chairman0.33yr€109.00k0.00074% 22.9k
Helen Normoyle
Independent Non-Executive Director4.58yrs€75.00k0.000070% 2.2k
Elaine MacLean
Independent Non-Executive Director0.83yr€26.00kno data
Carolan Lennon
Senior Independent Director0.25yr€80.00k0.00028% 8.6k
Ranjit Singh
Independent Non-Executive Director1.25yrs€55.00kno data
Sandy Pritchard
Independent Non-Executive Director1.33yrs€73.00kno data
Ann O'Brien
Independent Non-Executive Director1.25yrs€51.00kno data

1.3yrs

Average Tenure

53.5yo

Average Age

Experienced Board: AIBG's board of directors are not considered experienced ( 1.3 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: €3.089b
  • Shares outstanding: 2.71b
  • Website: https://group.aib.ie

Number of Employees


Location

  • AIB Group plc
  • 10 Molesworth Street
  • Dublin
  • Co. Dublin
  • 2
  • 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 Banking, Corporate Institutional & Business 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, education, business, farm development, startup, farm investment, future growth, and brexit loans; graduate, corporate, asset, energy efficiency, forestry, invoice, prompt pay and insurance premium, debt, real estate, and trade finance; business and farmer credit line, government credit guarantees, and overdrafts; and venture capital funds, as well as mortgages. In addition, the company offers credit and debit cards; investment funds; life, home, car, travel, and business succession insurance products; and pension products. Further, it provides payment, merchant, cash management, FX rates, foreign currency and interest rate risk management, exporting, international cash flow management, foreign exchange, and interest rate fluctuation management services; and trade finance products, such as documentary collections, import and export letter of credit, standby letter of credit, and bank guarantees. AIB Group plc operates through a network of 296 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 Analysis2020/07/04 21:28
End of Day Share Price2020/07/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.