Buoyant AIB targets higher return on equity, dividends and buybacks

Expects its net interest income to rise by more than 15% this year

Colin Hunt, CEO AIB Group: 'The Irish economy continues to deliver economic growth and demonstrate resilience.' Picture: Miki Barlok

AIB expects to reach a more than 13% return on tangible equity by 2024, up from the 10% forecast for 2023, and to be able to supplement increased dividend payments with share buybacks over that time, the Irish bank said on Friday.

In an update of its medium-term targets, Ireland's largest mortgage lender said it expects annual costs to rise to €1.75bn in 2024, from the €1.65bn expected this year, with its cost-to-income ratio dropping to about 50% from 60% across that period.