(Alliance News) - AIB Group PLC on Wednesday announced its medium-term targets for 2021 to 2023.
The Dublin-based provider of commercial banking services for retail and institutional customers said its comon equity tier 1 target is greater than 14%.
Return on tangible equity is targeted to be greater than 8% by 2023.
The absolute cost target, which includes costs before bank levies, regulatory fees and exceptional items, is less than EUR1.35 billion in 2023.
Chief Executive Colin Hunt said: "Prior to the onset of Covid-19 in Ireland, we set out our plans to further simplify, streamline and strengthen AIB Group. The fundamentals upon which these plans were based, namely the great strength of our customer franchise, our modern digital IT architecture and strong liquidity and capital position, remain unchanged.
"Covid-19 has dramatically changed the operating environment, presenting both challenges and opportunities and accelerating the trends of digitalisation, changing ways of working and sustainability. In short, it has made significant change both necessary and possible. Accordingly, we are recommitting to our target to deliver a ROTE of greater than 8%.
AIB Group shares were up 2.9% at EUR1.63 pence each in London on Wednesday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Aib Group (AIBG)