Full Year 2024 Bank of Ireland Group PLC Earnings Call Transcript
Key Points
- Bank of Ireland Group PLC (BKRIF) reported strong financial performance in 2024, with robust loan and deposit growth, and a significant increase in assets under management (AUM) by 19%.
- The company achieved a return on tangible equity (RoTE) of 16.8% for 2024, with expectations to exceed 17% by 2027.
- The bank's business model is outperforming its peer group, with higher capital generation and total shareholder returns, supported by a EUR1.2 billion total distribution, marking the group's largest ever.
- The Irish economy is growing and outperforming the euro area, providing a favorable environment for Bank of Ireland Group PLC (BKRIF) to grow its mortgage and corporate lending businesses.
- The Wealth and Insurance division showed strong performance, with AUM growth of 55% for Davy and increased protection policy sales by New Ireland Insurance, contributing to a diversified income stream.
- The company faces heightened uncertainty due to evolving international trade policies, which could impact its operations and growth prospects.
- Non-core charges in 2024 were higher than expected, primarily due to a EUR172 million provision related to UK motor finance and a EUR108 million charge for software intangibles impairment.
- Net interest income (NII) was 2% lower on a like-for-like basis in 2024, reflecting higher funding costs and liquid asset income.
- The bank's cost base is expected to grow by circa 3% in 2025, with ongoing investments required to drive future efficiencies.
- The provision for UK motor finance remains a concern, with potential for further adjustments depending on regulatory outcomes and remediation schemes.
Good morning. I'm Eamonn Hughes, the Chief Sustainability and Investor Relations Officer at Bank of Ireland. You're all very welcome to the presentation. Myles O'Grady and Mark Spain will outline our results and outlook. We'll then take questions. But first, we'll see a short overview of the past year at Bank of Ireland.
' -
Thank you, Eamonn, and good morning to everyone joining us on the call today. Before we talk through the results in detail, our opening slide presents our positive outlook for the medium term. Bank of Ireland continues to be highly capital-generative.
Supported by a growing Irish economy and our market position, I expect loan and deposit book growth and wealth AUM growth while retaining our proven cost discipline. Seizing this opportunity translates into a return on tangible equity of greater than 17% by 2027, and I'll come back to these
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