ISE:BIRG

Stock Analysis Report

Bank Of Ireland Group

Executive Summary

Bank of Ireland Group plc provides various banking and financial products and services in the Republic of Ireland, the United Kingdom, and internationally.

Snowflake

Fundamentals

Good value with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.7%

BIRG

2.3%

IE Banks

-1.7%

IE Market


1 Year Return

-31.5%

BIRG

0.02%

IE Banks

5.5%

IE Market

Return vs Industry: BIRG underperformed the Irish Banks industry which returned 0% over the past year.

Return vs Market: BIRG underperformed the Irish Market which returned 5.5% over the past year.


Shareholder returns

BIRGIndustryMarket
7 Day-3.7%2.3%-1.7%
30 Day16.8%3.3%6.4%
90 Day-1.5%1.2%1.2%
1 Year-29.5%-31.5%5.6%0.02%7.7%5.5%
3 Yearn/a10.7%-6.1%20.8%15.0%
5 Yearn/a-10.2%-32.1%77.5%62.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bank Of Ireland Group undervalued compared to its fair value and its price relative to the market?

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BIRG (€4.26) is trading below our estimate of fair value (€6.16)

Significantly Below Fair Value: BIRG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BIRG is poor value based on its PE Ratio (9.9x) compared to the Banks industry average (9.5x).

PE vs Market: BIRG is good value based on its PE Ratio (9.9x) compared to the Irish market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: BIRG is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: BIRG is good value based on its PB Ratio (0.5x) compared to the XE Banks industry average (0.7x).


Next Steps

Future Growth

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

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BIRG's forecast earnings growth (17.1% per year) is above the savings rate (0.9%).

Earnings vs Market: BIRG's earnings (17.1% per year) are forecast to grow faster than the Irish market (12.8% per year).

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

Revenue vs Market: BIRG's revenue (2% per year) is forecast to grow slower than the Irish market (4.2% per year).

High Growth Revenue: BIRG's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BIRG's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

How has Bank Of Ireland Group performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BIRG's earnings have grown by 0.7% per year over the past 5 years.

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

Earnings vs Industry: BIRG had negative earnings growth (-26.4%) over the past year, making it difficult to compare to the Banks industry average (5.5%).


Return on Equity

High ROE: BIRG's Return on Equity (5.2%) is considered low.


Return on Assets

ROA vs Industry: BIRG's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate BIRG's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Bank Of Ireland 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: BIRG has a low level of unsold assets or inventory.

Debt Coverage by Assets: BIRG's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: BIRG's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: BIRG has a high level of bad loans (5.08%)


Next Steps

Dividend

What is Bank Of Ireland Group's current dividend yield, its reliability and sustainability?

3.75%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%2.3%markettop25%4.0%industryaverage5.9%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BIRG's dividend (3.75%) is higher than the bottom 25% of dividend payers in the Irish market (2.29%).

High Dividend: BIRG's dividend (3.75%) is low compared to the top 25% of dividend payers in the Irish market (3.97%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37%), BIRG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BIRG's dividends in 3 years are forecast to be well covered by earnings (42.9% payout ratio).


Next Steps

Management

What is the CEO of Bank Of Ireland Group's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Francesca McDonagh (44yo)

2yrs

Tenure

€958,000

Compensation

Ms. Francesca Jane McDonagh has been Group Chief Executive Officer and Executive Director of Bank of Ireland Group Plc since October 2, 2017. Ms. McDonagh has been Executive Director at The Governor and Co ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Francesca's total compensation is reasonable compared to companies of similar size in the Irish market.

Compensation vs Earnings: Francesca's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.7yrs

Average Tenure

50yo

Average Age

Experienced Management: BIRG's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

54.5yo

Average Age

Experienced Board: BIRG's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: BIRG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€41,61812 Aug 19
Evelyn Bourke
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares12,600
Max Price€3.32

Ownership Breakdown


Management Team

  • Des Crowley (59yo)

    Chief Executive of Retail UK

    • Tenure: 10.4yrs
    • Compensation: €279.00k
  • Paul Leonard

    Chief Credit Officer of UK

    • Tenure: 16.8yrs
  • David Deverall

    Managing Director

    • Tenure: 0yrs
  • Matt Elliott (45yo)

    Chief People Officer

    • Tenure: 0.7yrs
  • Francesca McDonagh (44yo)

    Group CEO & Executive Director

    • Tenure: 2yrs
    • Compensation: €958.00k
  • Jackie Noakes (58yo)

    Group Chief Operating Officer

    • Tenure: 1.2yrs
  • Myles O'Grady (50yo)

    CFO & Executive Director

    • Tenure: 0yrs
  • Henry Dummer

    Chief Marketing Officer

    • Tenure: 1.3yrs
  • Darach O’Leary

    Head of Group Investor Relations

    • Tenure: 0yrs
  • Damien Garvey

    Head of Group External Communications & Public Affairs

    • Tenure: 0yrs

Board Members

  • Patrick Haren (68yo)

    Deputy Chairman & Senior Independent Director

    • Tenure: 1.2yrs
    • Compensation: €195.20k
  • Patrick Kennedy (49yo)

    Independent Chairman of the Board

    • Tenure: 1.2yrs
  • Richard Goulding (59yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: €87.00k
  • Evelyn Bourke (54yo)

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: €49.00k
  • Fiona Muldoon (51yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: €71.00k
  • Steve Pateman (56yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: €27.00k
  • Francesca McDonagh (44yo)

    Group CEO & Executive Director

    • Tenure: 2yrs
    • Compensation: €958.00k
  • Patrick Mulvihill (56yo)

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: €103.00k
  • Myles O'Grady (50yo)

    CFO & Executive Director

    • Tenure: 0yrs
  • Ian Buchanan (55yo)

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: €65.00k

Company Information

Bank Of Ireland Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank Of Ireland Group plc
  • Ticker: BIRG
  • Exchange: ISE
  • Founded: 1783
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: €4.584b
  • Shares outstanding: 1.08b
  • Website: https://www.bankofireland.com

Number of Employees


Location

  • Bank Of Ireland Group plc
  • 40 Mespil Road
  • Dublin
  • Co. Dublin
  • 4
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BIRGLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2017
BIRGISE (Irish Stock Exchange)YesOrdinary SharesIEEURJul 2017
BIRGIBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2017
BIRGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2017
BIRGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2017
BKRI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2017
BKRI.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2017

Biography

Bank of Ireland Group plc provides various banking and financial products and services in the Republic of Ireland, the United Kingdom, and internationally. The company operates Retail Ireland, Wealth and I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:47
End of Day Share Price2019/10/22 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.