April 30, 2024 10:57 GMT
BKIR 1Q24: Positive, Spreads Tighter, Reads Well For AIB
FINANCIALS
Bank of Ireland (BKIR, A3 pos/BBB/BBB+) spreads c.1bp tighter on positive trading statement earlier. News on revenues a positive for AIB and asset quality appears stable.
- Net interest income upgrade: better volumes, alongside “commercial pricing discipline” is seeing guidance upgraded (to 3-4% lower y/y from 5.6% lower). This is a positive lateral for AIB Group (AIB, A3 pos/BBB) and corresponds with Bankinter’s announcement on Friday (26-Apr) that it intends to fully enter the Irish banking market.
- CET1 is 14.7%, up from 14.3% at Dec-23 and comfortably on track for the 14.9% that’s in Jun-24 consensus. This is a minor positive, too.
- Non-performers are up 10bp to 3.2% (from Dec-23) but asset quality is still described as “strong” and in line with expectations.
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