Bank of Ireland Group PLC
🇮🇪 BIRG.IR · Dublin · IE00BD1RP616
Bank
EUR 15.70 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
13.7
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): 13.6
Yield (Fwd)
5.73%
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): 4.49%
Payout (TTM)
46.2%
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
9.3%
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
Bank of Ireland is a dominant commercial bank providing essential financial services in a highly concentrated market, supported by upgraded earnings guidance and massive capital returns. Trading at €15.70, below our fair value estimate of €18-23, this represents a 15-46% upside to fair value, making it worth considering for new positions. While management has proposed a minor 7.3% dividend adjustment to accommodate a €530M share buyback and one-off UK motor finance provisions, the overall yield remains attractive and highly sustainable.
Sector Context
Bank of Ireland Group is a leading commercial bank providing essential retail, corporate, and commercial financial services primarily in Ireland and the UK. In the banking sector, higher debt metrics are normal as customer deposits are legally classified as liabilities; investors should instead focus on capital adequacy, return on equity, and the sustainability of payout ratios throughout varying interest rate cycles.
Temporary Opportunity Identified
One-off €429 million regulatory provision for UK motor finance commissions under the FCA redress scheme, combined with minor margin compression fears.
📊 Strategy Analysis
- • Trading at an attractive Forward P/E of 9.98, below typical historical multiples, offering a compelling valuation for a dominant market player.
- • The trailing dividend payout ratio of 46.17% sits squarely in the optimal 40-70% range and is well-covered by free cash flow, ensuring long-term sustainability.
- • Strong capital return framework, including a recently announced €530 million share buyback, demonstrating shareholder-friendly management and robust capital generation.
- • Operates as a dominant commercial bank in a highly concentrated Irish market, providing a deep competitive moat and reliable essential services.
⚠ What to Watch
- • A recent €429 million provision for UK motor finance commissions represents a significant one-off regulatory charge that will temporarily impact near-term earnings.
- • Management has proposed a slight 7.3% dividend reduction for 2026 (€0.97 to €0.90) to balance capital returns alongside the new share buyback.
- • Current Return on Equity (ROE) of 9.26% sits slightly below the >10% ideal target for highly efficient commercial banks.
📊 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.