By Najat Kantouar


AIB Group is returning 1.7 billion Euros ($1.85 billion) to shareholders after reporting a jump in 2023 profit driven by a strong business performance, continued economic growth, and a return to a more normal monetary policy environment.

The Irish bank--which returned to majority private ownership in the year--said Wednesday that it will return the money via a EUR1 billion share buyback and dividend of 26.6 cents a share.

Profit after tax for the year ended Dec. 31 was EUR2.06 billion compared with EUR765 million in 2022.

Total income increased 64% to EUR4.74 billion, while net interest income--a key metric for the industry which is the difference between interest earned on loans an that paid on deposits--grew to EUR3.84 billion from EUR2.16 billion. Looking ahead, the company expects net interest income of EUR3.65 billion this year.

Net interest margin for 2023 was 3.11% compared with 1.69%.

The bank closed the period with a common equity Tier 1 ratio--a measure of balance-sheet strength--of 15.8% compared with 16.3%, while its return on tangible equity ratio was 25.7% compared with 9.6%.

"With a new set of medium-term targets, including an upgraded [Return on Tangible Equity] target of 15%, we look to the future with confidence," Chief Executive Officer Colin Hunt said.

At 0932 GMT, share were up 0.18 European cents, or 4.10%, at EUR4.52. Over the past twelve months, shares are up 10.32%.

The Irish government owned 40.77% of the group's shares at Dec. 31 compared with 56.89% at Dec. 31, 2022, and 71.12% at Dec. 31, 2021.


Write to Najat Kantouar at najat.kantouar@wsj.com


(END) Dow Jones Newswires

03-06-24 0459ET