AIB Group PLC
🇮🇪 A5G.IR · Dublin · IE00BF0L3536
Bank
EUR 8.94 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
9.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Forward P/E (estimated): 10.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 9.6
Yield (Fwd)
10.74%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 6.48%
Payout (TTM)
52.8%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
ROE
14.2%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
Summary
AIB Group is a highly profitable financial institution operating within the deeply consolidated Irish banking duopoly, offering an excellent essential service moat. The company continues to deliver exceptional shareholder returns, recently raising its guidance and announcing a €1.0 billion share buyback alongside its sustainable dividend. Trading at an attractive forward P/E of 10.04 with a well-covered 6.5% yield, it represents a compelling entry point for dividend investors seeking quality financial exposure. Worth considering for new positions at current levels.
Sector Context
AIB Group is a dominant commercial bank providing essential lending, deposit, payment, and wealth management services primarily in Ireland. In the banking sector, high debt-to-equity is the standard operating model as customer deposits function as liabilities. Key metrics for dividend investors are Return on Equity (a very robust 14.2% here) and sustainable payout ratios that allow the bank to simultaneously reward shareholders and maintain strict regulatory capital requirements.
Temporary Opportunity Identified
Broader macroeconomic uncertainty and geopolitical tensions (Iran/Hormuz conflict) are causing a general flight to cash, keeping European bank valuations compressed despite AIB's fundamentally strong earnings and raised guidance.
📊 Strategy Analysis
- • Dominant market position within the highly consolidated Irish banking duopoly, providing a wide essential service moat.
- • Robust profitability demonstrated by a 14.2% Return on Equity and expanding net margins (47.5%).
- • Trading at an attractive Forward P/E of 10.04 with a highly secure 6.48% TTM dividend yield (52.8% payout ratio).
- • Strong shareholder return profile highlighted by recent guidance upgrades and a recently announced €1.0 billion share buyback program.
⚠ What to Watch
- • Earnings growth remains sensitive to the European Central Bank's interest rate cycle and potential future rate cuts.
- • Broader macroeconomic volatility and inflation fears from global geopolitical tensions could temporarily impact European loan demand.
- • The Price-to-Book (P/B) ratio of 1.31 represents a slight premium compared to the broader European banking sector average, though fundamentally justified by superior ROE.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.