For the life
you’re after
AIB Group plc
Annual Financial Report
For the year ended 31 December 2024
Welcome to our
2024 Annual
Financial Report
This report describes AIB Group’s business, strategy
and performance during 2024. It also provides an
overview of our governance, approach to risk and capital
management. This disclosure document explains how,
over time, AIB Group creates value for our stakeholders.
New in this report is our Sustainability Statement, in line
with the Corporate Sustainability Reporting Directive
(CSRD). Our Sustainability Statement highlights our
approach to environmental, social and governance
(ESG) matters and shows how they are addressed as
an integral part of our business strategy. We strive to
contribute to society and to have a positive impact in
areas that matter most to our stakeholders.
We are publishing this Annual Financial Report 2024
in conjunction with our Sustainability Disclosures Table,
available on our website at https://aib.ie/sustainability
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AIB Group plc
Annual Financial Report 2024
This copy of the statutory annual report
of AIB Group plc for the year ended
31 December 2024 is not presented
in the ESEF-format as specified in the
Regulatory Technical Standards on
ESEF (Delegated Regulation (EU)
2019/815). The ESEF annual report
will also be published on: https://aib.ie/
investorrelations/financial-information/
results-centre/2024-financial-results
Annual Review
Business Performance
02
AIB Group at a Glance
04
Chair’s Statement
06
Chief Executive’s Review
08
Economic Overview
12
Our Strategic Progress
14
Risk Summary
16
Principal Risks
17
Evolving and Emerging Risks
21
Business Review
Operating and Financial Review
24
Capital
40
Sustainability Reporting
Sustainability Statement
44
Our Approach to Sustainability
44
Climate & Environment Action
63
Societal & Workforce Progress
83
Governance & Responsible Business
99
Task force on Climate-related
Financial Disclosures (TCFD)
120
Governance and Oversight Report
Chair's Introduction
124
Governance at a Glance
124
UK Corporate Governance Code
125
Governance in Action
126
Board of Directors
128
Our Executive Committee
132
Board Leadership, Company Purpose,
Culture and Values; and Division
of Responsibilities
134
Board Focus
138
Section 172 Statement and
Stakeholder Management
139
Report of the Board Audit Committee
144
Report of the Board Risk Committee
149
Report of the Nomination and
Corporate Governance Committee
152
Board Composition and Succession
154
Report of the Remuneration Committee
157
Corporate Governance
Remuneration Statement
159
Report of the Technology and
Data Advisory Committee
167
Report of the Sustainable Business
Advisory Committee
168
Internal Controls
169
Viability Statement
171
Directors’ Report
172
Schedule to the Directors’ Report
175
Other Governance Information
177
Supervision and Regulation
178
Risk Management
Risk Management Approach
180
Individual Risk Types
185
Financial Statements
Statement of Directors’ Responsibilities
248
Independent Auditors’ Report
249
Consolidated Financial Statements
259
Notes to the Consolidated
Financial Statements
265
AIB Group plc Company
Financial Statements
347
Notes to AIB Group plc
Company Financial Statements
349
General Information
EU Taxonomy Disclosure Tables
356
Shareholder Information
387
Forward Looking Statement
388
Glossary of Terms
389
Principal Addresses
395
Index
396
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Annual Financial Report 2024
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What’s inside this report
Sustainability Reporting
43
Risk Management
182
Governance and
Oversight Report
123
2024 Results
Financial Performance
Profit After Tax
Net Interest Income
Net Credit Impairment Charge
€2,351m
€4,129m
€55m
Profit before tax up 13% to €2.7bn
Operating profit1 up 3% to €2.8bn, an impairment
charge of €55m and exceptional items of €66m
Net interest income up 7%
Benefiting from a growing balance sheet and the
favourable impact of higher average interest rates
partly offset by an increase in interest expense on
customer accounts.
Net interest margin (NIM) of 3.16%
Asset quality remains resilient
Maintaining cautious, forward-looking approach
with an expected credit loss balance sheet cover
of 1.9%
NPE ratio 2.8%
Non-performing exposures2 (NPEs) €2.0bn
New Lending
Gross Loans
Customer Accounts
€14.5bn
€71.2bn
€109.9bn
New lending up 17%
Strong growth in Climate Capital, Irish mortgage
lending (market share 36%) as well as corporate
lending partially offset by lower property lending
Gross loans increased 6%
Gross loans up €4.2 billion driven by strong new
lending exceeding redemptions and the
acquisition of loans from Ulster Bank
Customer accounts up 5%
Customer accounts increased by €5.1 billion
driven by growth in personal and SME
1. Operating profit before impairment losses and exceptional items.
2. NPEs refers to non-performing loans (NPLs) and excludes € 103 million of off-balance sheet commitments.
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Annual Financial Report 2024
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Business Performance
€2,351m
€2,058m
2024
2023
€14.5bn
€12.3bn
2024
2023
€4,129m
€3,841m
2024
2023
€71.2bn
€67.0bn
2024
2023
€55m
€172m
2024
2023
€109.9bn
€104.8bn
2024
2023
4
4
Medium-term Financial Targets (2026)
Return on Tangible Equity1
CET1 Ratio (fully loaded)
Absolute Cost Base2
A measure of how well capital is deployed
to generate sustainable earnings
A measure of our ability to withstand
financial stress and remain solvent
Cost of running the business
Outcome
Outcome
Outcome
26.7%
15.1%
€1,971m
Return on tangible equity benefiting from
increased profitability and substantially ahead of
medium-term target
Strong capital position, well in excess of regulatory
requirements and medium-term target.
Distributions of €2.6bn - completed share buyback
of €0.5bn, proposed dividend of €861m and share
buyback of €1.2bn
Cost income ratio 40%. Costs up 8%, reflecting
the enlarged group, inflationary impacts, staff
benefits and additional spend for customer and
operational efficiency initiatives
Target
Target
Target
15%
>14%
<€2.0bn
with a CIR <50%
Sustainability Performance
Our approach continues to evolve which may result in variations in methodologies and reported outcomes over time.
Greening our
Business
Helping Customers
to Buy their First Home
Universal
Inclusion
Amount of new lending for
Climate Action Fund3 since 2019
New lending to first-time buyers
Women as % of management5
€16.6bn
€2.79bn
43%
Continued growth in new lending for Climate
Action in 2024, up 44% on 2023, delivered
by strong performance in renewable energy
and energy-efficient residential and
commercial buildings
Strong performance in new lending to first-time
buyers in 2024, which accounted for 62% of AIB
Group new mortgage lending in the Republic of
Ireland and supported c.10,0004 customers to buy
their first home
Gender balance maintained across management
levels. Targeted programmes on leadership
development, technical skills enhancement and
career progression strategy have been
implemented to ensure that our female workforce
has the resources and opportunities needed to
succeed and thrive within AIB.
Target
Target
Target
€30bn by 2030
>€6bn by 2026
Gender
Balanced6
(Ongoing)
1. Return on Tangible Equity (RoTE) is based on the target CET1 capital on a fully loaded basis. 2023 RoTE was based on previous CET1 target of greater than 13.5%
For definition and basis of calculation, see pages 38 and 52.
2. Before exceptional items, bank levies and regulatory fees. For exceptional items, see pages 28 and 38.
3. Our green lending definition is aligned to our Sustainable Lending Framework (SLF), and includes mortgage lending to energy-efficient homes
(BER A1-B3/EPC A-B). AIB’s SLF outlines the key parameters on which a transaction can be classified as green.
4. Customer is defined at account level as such two buyers for the one property is only counted as one customer.
5. Within AIB’s career structure management is defined as those in Level 4-6 positions including the Executive Committee. Payzone, Goodbody, contractors, AIB staff
on career break or unpaid leave and Board members are excluded from the figure.
6. The Equileap annual Gender Equality Global Report & Ranking equates ‘gender balanced’ with between 40% and 60% women.
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Annual Financial Report 2024
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€16.6bn
€11.6bn
2024
2023
€2.79bn
€1.20bn
31 Dec 2024
30 Jun 2024
43%
42%
2024
2023
26.7%
25.7%
2024
2023
15.1%
15.8%
2024
2023
€1,971m
€1,826m
2024
2023
Well positioned
in the markets
we serve
AIB Group operates predominantly in Ireland and the
United Kingdom. Our shares are quoted on the Irish and
London stock exchanges and we are a member of the
FTSE4Good Index. Our four core operating segments are
Retail Banking, Capital Markets, Climate Capital and AIB UK.
Whether it’s adapting to a greener way of living, planning
for the future, growing a business or simply navigating
day-to-day life, our ambition as a Group is to be at the
heart of our customers’ financial lives.
Our purpose is empowering people
to build a sustainable future
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Annual Financial Report 2024
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AIB Group at a Glance
Our brands
AIB is our principal brand across all our
geographies. AIB provides a range of
products and services to retail, business
and corporate customers. AIB holds market-
leading positions across key segments.
EBS is a predominantly mortgage-focused
brand within AIB Group, helping thousands
of customers buy their own homes in Ireland.
It offers mortgage, personal banking, savings
and investment products and services.
Haven is our mortgage broker channel,
providing mortgages through
intermediaries on behalf of AIB Group.
Goodbody offers wealth management,
asset management and investment banking
services with quality advice and exceptional
client service at the core of its offering.
Payzone, a subsidiary of AIB Group,
provides comprehensive payment
solutions to more than 7,500 retail stores,
over 100 clients and over 500,000 app
users across Ireland.
AIB life is a joint venture with Great-West
Lifeco, providing protection, pensions and
investments to help customers on their
path to financial security for the life
they’re after.
AIB Merchant Services is an associate
of the Group. It is one of Ireland’s largest
payment solution providers and one of
Europe’s largest e-commerce acquirers,
with an international customer base.
Nifti is an associate of the Group.
NiftiBusiness assists companies in
achieving their fleet management goals
including the transition to more sustainable
mobility solutions.
Operating Contribution
by Segment
Retail Banking
€1.7bn
Capital Markets
€0.8bn
Climate Capital
€0.1bn
AIB UK
£0.1bn
Operating contribution is before exceptional
items. Total includes Group segment
contribution of €75m. For further information
see Segment Reporting on pages 32 to 37
in the Operating and Financial Review,
Annual Financial Report 2024.
Retail Banking
Capital Markets
3.08m Active customers1
Relationship-driven model
€42.1bn €17.6bn
Gross loans
Gross loans
Retail Banking supports our personal and
business customers with a comprehensive
range of banking and financial services,
delivered through our branch and digital
channels with an expanded reach via EBS,
Haven, Payzone, AIB life, AIB Merchant
Services and Nifti.
Capital Markets, which includes Goodbody,
serves the Group’s large and medium-sized
business customers as well as our private
banking customers, taking a partnership
approach and providing deep sector
expertise combined with our comprehensive
product offering.
Climate Capital
AIB UK
Relationship and
transaction-driven model
254.4k Active customers1
€5.5bn
£5.0bn
Gross loans
Gross loans
Climate Capital specialises in lending to
large scale renewable and infrastructure
projects, which are key drivers for
sustainable economic growth, across Ireland,
the UK, Europe and North America.
AIB UK operates in two distinct markets
of Great Britain and Northern Ireland.
Across both regions, AIB supports our
corporate customers with sector-specific
expertise. In Northern Ireland, we offer
full-service retail banking.
1. Active customers defined as those meeting specific criteria under one or more of three categories:
activity, balance and holds a policy.
Investment Thesis
Earnings resilience and strong growth outlook
Revenue diversification and wealth opportunity
Focused on operational efficiency and resilience
Strong capital generation and shareholder returns
Underpinned by
Supportive domestic
macro backdrop
Conservative credit
management
Robust
balance sheet
Leading ESG
credentials
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Annual Financial Report 2024
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€2.8bn
FY2024 Total
Without doubt 2024 was an excellent
year for the Group. We have made
progress on our three-year strategy
which was refreshed at the beginning
of the year, and I remain very optimistic
about the prospects for the Group in
the years ahead.
Jim Pettigrew
Chair
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Annual Financial Report 2024
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Chair’s Statement
I am delighted to report that 2024 was another
year of record performance and profitability for
AIB Group. The Group generated net interest
income of €4,129m, some 7.5% ahead of
2023. This yielded a profit before tax of
€2,702m, which was 12.9% ahead of 2023.
Profit after tax amounted to €2,351m which
translated to earnings per share of 92.5 cent.
Our business performance is underpinned by
our three-year strategy, our purpose, values
and our focus on our medium-term targets.
Sustainability remains at the heart of the
Group’s agenda as we support our customers
in the transition to a greener future. Colin’s
Chief Executive’s Review in the pages
following sets out in detail the highlights from
the year which yielded the excellent result.
Capital, dividend and other distributions
The Group continued to generate capital over
the period and ended the year with a fully
loaded CET1 ratio of 15.1%, ahead of our
medium-term target of greater than 14%. This
position already takes account of distributions,
paid and proposed, to shareholders which are
described below.
Your Board has decided to distribute a total of
€2,561m for 2024 by way of a combination of
share buybacks and a cash dividend to
shareholders. On 2 September 2024, the
Group announced the completion of a €500m
directed buyback from the Minister for
Finance, having announced our intention to do
so with our Half Yearly results. I am pleased to
announce that the Board has resolved to
undertake a further directed buyback with the
Minister, subject to both shareholder approval
at the 2025 Annual General Meeting (the
AGM) and reaching agreement with the
Minister. If concluded, this will amount to a
further €1,200m. The Required pre-approval
for these two reductions in capital has been
received from the European Central Bank.
Finally, subject to shareholder approval at the
AGM, which will be held on 1 May 2025, a
cash dividend of 36.984 cent per share will be
paid on 9 May 2025 to shareholders on the
register on 28 March 2025. This represents an
increase of 39.2% over the cash dividend of
26.568 cent per share for the prior year and
amounts, in total, to €861m.
State shareholding
The Irish State’s holding reduced substantially
during 2024 through a combination of the
Minister for Finance’s on-market share trading
plan, an accelerated book build of c.5% in
June 2024 by the Department of Finance, and
through two directed buyback transactions
executed between the Group and the Minister.
These comprised a €999m off market
purchase of c 7.6% on 3 May 2024 following
the Extraordinary General Meeting, and the
€500m off market purchase of c 3.8% on
2 September 2024 referenced above.
Since the year end, further sales under the
Minister’s share trading programme combined
with an accelerated book build transaction in
January 2025 have resulted in the State’s
shareholding falling to 12.39%.
On behalf of the Board, I welcome the new
shareholders and acknowledge again our
existing holders who increased their stakes in
the Group during the disposals by the Minister.
Thank you for your support and for your
confidence in the Board and Management of
the Group.
The Irish State’s holding in the Group has
reduced significantly since the commencement
of the disposals by the Minister in 2022, the
first such activity following the relisting of the
Group’s shares in the 2017 Initial Public
Offering when it stood at 71.12%. Each
transaction is important to, and welcomed by,
AIB as it evidences a return to the Irish
taxpayers of their investment in the
Group, which was necessary during the global
financial crisis.
Delivering on our promises
I was reflecting recently on the progress
achieved since the refloat of the Group’s
shares in 2017. In the period since the end of
2016, we have:
• Recorded loan book growth of 9.5% from
€65.2bn to €71.4bn.
• Reduced non-performing exposures from
€14.1bn, or 21.6% of gross loans, to
€2.0bn, or 2.8% of gross loans.
• Increased customer accounts from €63.5bn
to €109.9bn.
• Secured a reduction on our Pillar 2 Capital
Requirement from 3.25% to 2.40%.
• Generated significant capital, much of which
was used to repay the Irish State, mainly
through directed buybacks of shares.
• Reinstated the annual dividend and
published a clear distribution policy for
shareholders.
• Reduced the cost income ratio from 52%
to 40% and made clear our medium term
target for costs in absolute money terms.
• Delivered greater levels of customer
satisfaction, with some net promoter scores
at the highest level ever recorded at the end
of 2024.
We have completed the first year of our three-
year strategy 2024 to 2026 and have set out
our medium-term targets, against which we
expect our success to be measured in 2026.
I remain confident that this strategy is the right
one for the Group.
Stakeholder engagement
Elsewhere in the Annual Report we have set
out how the Group has engaged with our
various stakeholders, including our customers,
employees, suppliers, investors, regulators,
society and the community. I would encourage
you to read these sections when you have
time. Each is important to the Board, and this
is reflected in our engagement with them.
Executive remuneration
Our ability to attract and retain our senior
executives is severely hampered by the
ongoing remuneration restrictions which
remain in place for AIB. This places the Group
at a material disadvantage to our domestic
and non-domestic competitors for attracting
and retaining high calibre candidates both
within financial services and outside of
the industry.
The 2025 Programme for Government
commits the Irish Government to “normalising
the domestic banking system to best serve the
interests of the economy”. Throughout the
year, I have continued my engagement with
the serving Minister for Finance to secure the
lifting of the remuneration restrictions to
enable the Board to mitigate the senior
executive retention risk. I will continue to
advocate on behalf of the Group for the
elimination of this disadvantage.
In conclusion
Without doubt 2024 was an excellent year for
the Group. We have made progress on our
three-year strategy which was refreshed at the
beginning of the year, and I remain very
optimistic about the prospects for the Group in
the years ahead.
Our customers are truly at the centre of
everything your Board considers. I want to
thank them for their loyalty and placing their
trust in us to be at the centre of their financial
lives. I want to thank our employees for their
passion and commitment to our customers
and to the Group, for showing up with energy
every day and really bringing our purpose
to life, empowering people to build a
sustainable future.
I want to thank the Executive Committee,
under Colin’s exemplary leadership, and my
Board colleagues for their commitment to the
success of the Group and doing right by our
many stakeholders. I add my thanks to the
Irish taxpayer and the Minister for Finance for
their support at the time of the global financial
crisis, when the Group needed it, and in the
years since. Finally, I want to thank you, our
shareholders, for your continued support.
Jim Pettigrew
Chair
4 March 2025
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AIB Group plc
Annual Financial Report 2024
07
A key development during the year
was the continued normalisation of the
Group’s share register, with the State’s
shareholding more than halving in 2024
and momentum maintained into 2025.
Colin Hunt
Chief Executive Officer
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Annual Financial Report 2024
08
Chief Executive’s Review
Introduction
2024 was another very strong year for AIB as we
commenced our current three-year strategic cycle
focusing on Customer first, Greening our
business and Operational efficiency & resilience.
The Irish economy continued its solid
performance, reducing inflation, expanding
modified domestic demand, increasing consumer
spending and maintaining strong employment
levels during a year of global volatility. Against this
backdrop, I am pleased to report a very strong set
of results, with profit after tax of €2,351m, a CET1
capital position of 15.1%, a return on tangible
equity of 26.7% and robust growth in new lending.
A key development during the year was the
continued normalisation of the Group’s share
register, with the State’s shareholding more than
halving in 2024 and momentum maintained into
2025. Total payments to the State now stand at
€18.5bn, including c. €4.4bn returned over the
last 15 months. The process of repaying Irish
taxpayers for their support, enhancing liquidity in
AIB shares and normalising the share register
has been a key focus for the Group. With the
State shareholding at c. 12.39% at the time of
writing, this puts the opportunity of full private
ownership in 2025 within the bounds of
possibility.
We continue to make progress on the
commitments made at the time of the
Group’s IPO.
Generating and returning capital to our
shareholders has been a priority for the
Group. Following commencement of additional
distributions above our policy in 2024, we are
pleased to announce a proposed payout of
109% of profit after tax subject to shareholder
approval at the AGM on 1 May. As such, the
Board is recommending a cash dividend of
36.984 cent per share subject to shareholder
approval, representing an increase of 39.2%
compared to last year.
The Group continues to have strong funding
and liquidity ratios, with a loan to deposit ratio of
64%, a liquidity coverage ratio of 201% and a
net stable funding ratio of 162%, which compare
to 63%, 199% and 159% respectively at
December 2023.
Strong balance sheet growth continued in
2024 with new lending of €14.5bn, an increase
of 17% compared to 2023, and gross loans
totalling €71.2bn, an increase of 6% and a 10-
year high. Our customer accounts grew by 5%
in 2024, totalling €109.9bn. AIB continues to
be the number one provider of personal main
current accounts in Ireland, holding 40% of the
market (+15 population) in 2024. It is
important to note just how significantly our
customer numbers have grown since the IPO:
from 2.7 million in 2017 to 3.35 million today.
Meanwhile, we have increased efficiency
through digitalisation and simplification, and
expanded our product offering to service our
enlarged customer base.
The Group’s net interest income (NII)
increased by 7% to €4.1bn, reflecting higher
average interest rates and customer loans
partly offset by an increase in interest
expense. Our net interest margin (NIM) was
3.16%. We are, however, navigating
a dynamic interest rate environment, and so
our work on diversifying income streams
continues in order to ensure sustainable
growth and resilience. In particular, we further
developed our pensions, savings and
investments offering in 2024. Goodbody,
which the Group acquired in 2021, celebrated
150 years in business, and proved to be a key
enabler in driving our broader product offering
and further deepening customer relationships.
Meanwhile, new customers at AIB life – our
joint venture with Great-West Lifeco –
increased by 68% in its first full year of
operation, and our growing team of Financial
Advisors engaged 32,000 customers on their
financial goals and futures. Strategically, and
importantly, we have established a working
ecosystem between AIB, Goodbody and the
AIB life platform – a system that will serve our
customers and the Group very well in the
coming years.
AIB remains Ireland’s foremost business bank
and a leading mortgage provider, with the
largest mortgage loan book in the country and
a market share of 36% in 2024 (up from 33%
in 2023), while also leading the sustainability
agenda in financial services in the country. Our
UK business also made good progress in 2024,
having validated our sector-focused strategy.
Our current strategy to 2026 focuses on
three interconnecting areas: Customer first,
Greening our business and Operational
efficiency & resilience. Our focus on Customer
first will ensure we understand our customers,
respond to their needs and deliver excellent
services. In Greening our business, we aim to
continue to grow our green loan book and
support the vital transition to lower carbon
emissions while we enable more sustainable
practices through education and innovation. In
delivering Operational efficiency & resilience,
we will modernise our business, maximising
productivity and improving our customers’
experience while harnessing new technologies.
We significantly progressed this strategy in 2024.
Customer first
At the beginning of 2024, we set out to develop
deeper, more enduring relationships with our
customers, aiming for an enhanced customer
experience across all of our channels. Having
established a Chief Customer Officer role and
business area within the Group, we focused on
implementing incremental changes to our
services throughout the year, building on
our recognised key strengths.
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Annual Financial Report 2024
09
Supporting home
ownership
In October 2024, AIB announced two new
shorter-term green fixed mortgage rates
as part of our commitment to sustainability
and supporting customers in their transition
to a low-carbon society. The launch of
these new green products followed a
number of cuts to mortgage rates across
AIB, EBS and Haven. AIB also extended
the Approval in Principle period from six
to 12 months, giving customers more time
to find and purchase their new homes.
AIB customers who are building their own
home can also now avail of the full range of
AIB mortgage products including our green
rates. These enhancements reflect our
unwavering dedication to providing choice,
value and convenience to our customers
throughout their home ownership journeys.
We maintain Ireland’s largest branch network,
and welcomed 11 million branch visits
throughout the year. This is a vital part of the
role AIB plays in our communities – a role
we do not take lightly. We recognise that our
customers value the face-to-face service
provided in our branches, particularly when
it comes to important financial decisions and
support. That’s why we have prioritised and
invested in simplifying journeys, which has
enabled our frontline colleagues to have more
added value conversations. As announced in
2024, we’re investing €40m by the end of
2025 in a range of upgrades to branches and
ATMs, ensuring environments where all our
customers are comfortable discussing their
finances, while also reducing our operational
carbon emissions by 10%.
At the same time, customer service expectations
continue to heighten around digital financial
services. AIB has long held the reputation of
being the leading digitally-enabled Irish bank and
we intend to maintain that position with, among
other improvements, the development of an
upgraded mobile offering, which commenced in
2024. In the meantime, we continued to innovate,
launching, for example, Ireland’s only end-to-end
digital Home Energy Upgrade proposition
through our App.
We are already seeing a positive response
from our customers. We finished the year with
encouraging Net Promoter Scores (NPS) –
the measure by which we gauge customer
satisfaction across many services and products.
Our Homes Aggregated (66), Personal
Relationship (36) and Channel (53, consisting of
branches, Customer Engagement Centres and
digital) NPS were in each case the highest
scores AIB has ever recorded and surpassed
our year-end targets. Meanwhile, our SME
Aggregated (64) NPS surpassed our target,
with these customers telling us that their
experiences across our products and channels
have improved.
Greening our business
Sustainability continues to play a central role
in our Group strategy. Our focus area of
Greening our business encompasses both our
customer products and supports and the internal
business practices we are implementing to
ensure AIB continues to play a key role in the
transition to a lower-carbon future.
Of all our new lending in 2024, 35% was
green, amounting to €5.1bn. We have now
issued, in total, €16.6bn of new green finance
since 2019 as we continue to support our
customers in the transition to a more
sustainable future, deploying our €30bn
Climate Action Fund. Our Climate Capital core
segment had a strong performance in its first
year of operation, with gross loans of €5.5bn
in 2024, and our green mortgage offerings
across our brands performed very well with
52% of all new mortgage lending going to
finance energy efficient homes.
I invite you to read more about the Group’s
sustainability performance within the
Sustainability Reporting section of this
Annual Financial Report (pages 43 to 121).
I am, and always have been, an advocate for
the critical role education plays in creating
strong and resilient economies and
communities. Quality education is the key to
prosperity and opens a world of opportunities,
making it possible for everyone to contribute
to a healthy, vibrant society. The transition to
a lower-carbon future creates real opportunity
for learning and innovation. That is why, in
November, at our annual Sustainability
Conference – a stakeholder event that has
grown in significance and audience number
over the last eight years – I announced that
AIB is committing over €20m in new
sustainability-focused education and research
initiatives. This includes €10m for the new AIB
Trinity Climate Hub at Trinity College Dublin,
which will bring researchers together to
address challenges around maintaining
a stable and liveable climate, securing
biodiversity and the ecosystem services
provided by nature, adapting to climate
change, and reversing water degradation.
Operational efficiency & resilience
AIB has continued to pursue a strategy
of progressive modernisation across our
technology and data systems. This strategy is
calibrated to strike a strong balance between
ensuring AIB remains resilient and secure
while evolving our digital, operations and
people capabilities in line with customer and
regulator expectations. Progress throughout
the year included strengthening our
infrastructure, enhancing the employee
experience, and mobilising and progressing
key transformational programmes, with
a continued focus on digitalisation.
2024 was a year of heightened cyber
threat activity. We continue to implement
improvements in our infrastructure that enable
safe and secure banking, including investment
in our critical payments infrastructure. From
a regulatory perspective, AIB is fully DORA
ready, as the Act applies from January
this year.
As for our people, the Group is focused on
having the right capabilities in place to enable
our strategy. In 2024 we commenced the roll-
out of Dynamic Workforce Planning, which is
an enterprise-wide, data-led and capability-
focused approach to workforce planning
that considers operational capacity and
organisational resilience. Through this
approach we will accelerate our ability to
deliver the right capability by enabling the
business to source the right talent and support
longer-term planning and more sustainable,
strategic decisions on the workforce.
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Chief Executive’s Review continued
Focus on Climate Capital
In its first year, our Climate Capital
segment established itself as a key player
in renewable energy and sustainable
infrastructure lending in Ireland and further
afield, with a year-end balance sheet of
€5.5bn. With a bias towards renewables,
the green qualifying activities it supported
in 2024 included onshore and offshore
wind developments in France, solar assets
in the UK, and utility-scale renewable
ventures in North America. In Ireland,
Climate Capital funded key renewables
transactions in the Onshore Wind and
Solar sectors. It also supported broader
infrastructure development including
telecoms, transport and Public–Private
Partnerships.
Our employee satisfaction continues to grow,
with the latest Engage Survey returning an
impressive employee satisfaction rate of 89%.
We continue to focus on building a values-based,
people-led culture, where colleagues throughout
the organisation are empowered, accountable
and focused on customer outcomes, with our
enhanced reward proposition as of 2024 offering
a progressive and sustainable level of benefit.
Total operating expenses in 2024 amounted to
€1,971m, up 8% compared to the previous year
in line with guidance, with a cost income ratio of
40%. The increase was due to higher average
staff numbers, salary inflation, an increase in
allowance for variable pay and the introduction
of health insurance.
Outlook
Turning to the year ahead, while the outlook
is somewhat clouded by geopolitical
uncertainties, growth is anticipated for the
global economy, with the International
Monetary Fund (IMF) forecasting a slight
acceleration in global growth to 3.3% from
3.2% in 2024. This will be characterised by
relatively rapid US growth (2.7%) and more
sluggish growth in the Eurozone (1%) in 2025.
However, recent forecasts from the Economic
and Social Research Institute (ESRI) and
Central Bank of Ireland (CBI) show they
expect continued strong Irish growth, with both
GDP and modified domestic demand growing
by 3-4% in 2025.
Several factors should underpin Irish growth.
Inflation has returned to target and monetary
policy is expected to be loosened further in the
coming year. Combined with solid wage
growth, this will boost real household
disposable incomes. Fiscal policy is set to
remain supportive in the context of the healthy
state of the public finances. Our economy will
continue to operate at a structurally higher
growth rate than European peers amid rapid
population growth and a robust industrial base.
Ireland’s growing population is a key driver of
prosperity and resilience in a competitive global
landscape. From the Group’s perspective, not
only does continued growth provide AIB with
potential new customers – both personal and
business – it also increases the necessity for
the development of infrastructure, improved
public transport systems, continued housing
development and enhanced urban planning, all
with sustainability as a key consideration. The
Group is well placed to take advantage of these
opportunities in the coming years, with a
growing loan book and resilient and diversifying
income streams.
The IDA reports that Ireland’s foreign direct
investment proposition remains strong against
an increasingly competitive international
backdrop and uncertainty around US
economic policy. While Ireland remains
exposed to the threat of trade protectionism
globally, our specialism in defensive export
sectors provides a bulwark to potentially
weaker global trade flows. Meanwhile, private
sector balance sheets remain characterised
by low debt and high levels of savings.
These buffers will be vital if any downside
risks emerge to impact growth in the highly
open Irish economy.
Looking forward, AIB Group is well positioned
for the future with a resilient balance sheet,
diversifying income and an exceptional
customer franchise. In 2025, we embark on
the second year of our three-year strategy,
guided by our three medium-term (end-2026)
financial targets: a return on tangible equity of
15%, a CET1 ratio greater than 14%, and an
absolute cost base of less than €2bn with
a corresponding cost income ratio of less
than 50%.
I would like to thank our customers for their
business in 2024. I would also like to thank
my fellow Board and Executive Committee
members, and all my colleagues across the
Group, for their support as we continue to
progress our three areas of strategic focus. As
a sustainability leader and a key support to our
communities, we will continue to execute our
plans at pace; prudently growing our loan book,
diversifying our income, driving efficiencies
and generating sustainable returns.
Colin Hunt
Chief Executive Officer
4 March 2025
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Optimising
operations with AI
In 2024, AIB took significant steps to
harness the potential of artificial
intelligence (AI), aiming to transform
customer experiences and streamline
operations. We established our AI Centre
of Excellence developing a core capability
to support delivery of the bank’s strategy.
The capability will evolve over 2025, with a
concentration on key use cases across
customer engagement, developer and
engineering productivity and operational
efficiency, while ensuring responsible and
transparent use of AI. One output came at
the end of the year, when we launched Abi,
a new digital assistant in our Customer
Engagement Centre. Abi initially supports
eight key customer needs but we plan to
increase this number in 2025.
Global and domestic
growth continues
Moderate but uneven global growth
Despite a sharp synchronised tightening of monetary policy around the
world, the global economy has remained remarkably resilient over the
past two years. Moreover, tighter monetary policy and lower commodity
prices have contributed to a reduction in inflation. Price pressures have
dissipated more slowly in 2024 but headline inflation is now approaching
2% in many advanced economies. Core inflationary pressures are
proving to be somewhat sticky, but they too have been on a downward
trajectory, paving the way for central banks to cut interest rates.
Encouragingly, the decline in inflation has been achieved without
causing major harm to labour markets. The unemployment rate remains
low and relatively steady in many advanced economies despite the still
restrictive stance of monetary policy. However, tight conditions in the
labour market are feeding into elevated levels of services inflation,
which is in turn contributing to the stickiness in core inflation.
Against this backdrop, the global economy continued to expand at
a moderate pace in 2024. In the main advanced economies, robust
US growth offset weaker than anticipated out-turns in the large
Eurozone countries, while the UK economy registered an upturn in
activity. Both the IMF and OECD estimate that the world economy
grew by 3.2% in 2024. However, growth has remained uneven, with
US GDP expanding by 2.8% last year, compared to just 0.9% in the
UK, and 0.7% in the Eurozone.
Inflation
(%)
Source: CSO, EuroStat, ONS
Irish domestic economy remains
in good shape
Following a sharp fall in GDP in 2023 due to a downturn in the Pharma
sector, GDP remained weak in 2024, mostly due to ongoing
developments in the information and communications technology (ICT)
sector. According to the CSO flash estimate, GDP expanded by 0.3% in
2024, having declined by 5.5% in 2023. However, this needs to be
viewed in the context of the very strong performances seen in 2021 and
2022, when GDP rose by 16.3% and 8.6%, respectively. Furthermore,
the domestic economy has continued to grow at a solid pace, with the
available data indicating modified domestic demand expanded by 3.1%
year-on-year between Q1-Q3. Consumer spending increased by 2.4%
over the same period also.
Growth in the domestic economy was driven by the Irish labour market,
which continued to perform very strongly in 2024. Ongoing strong net
inward migration helped sustain robust growth in the workforce.
Employment rose sharply and was up by 2.6% year-on-year in the
fourth quarter. The number of people in employment has risen by c.
70,000 people during 2024, to just below 2.8 million people. Meantime,
the unemployment rate averaged 4.3% for the year. Encouragingly,
inflation fell substantially over the course of 2024, with the annual HICP
declining to 0.0% by September, before edging higher to 1.0% in
December. Overall, HICP inflation averaged just 1.3% in 2024.
Irish unemployment rate
(%)
Source: CSO
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Economic overview
Jan
2021
Jul
2021
Jan
2022
Jul
2022
Jan
2023
Jul
2023
Jan
2024
July
2024
Jan
2025
3.5
4
4.5
5
5.5
6
6.5
7
7.5
8
Ireland
EU
UK
Jan
2021
Jul
2021
Jan
2022
July
2022
Jan
2023
Jul
2023
Jan
2024
-2
-1
0
1
2
3
4
5
6
7
8
9
10
11
12
House price inflation accelerates markedly
House price inflation trended higher throughout 2024. The latest CSO
data show prices were up by 8.7% year-on-year in December 2024,
compared to 4.1% at end-2023. In terms of supply, housing
completions totalled 30,300 in 2024, compared to 32,500 in 2023, and
just below 30,000 in 2022. Completions numbered around just 20,500
per annum in the period 2019-2021. Meanwhile, official government
data show housing commencements picked up sharply in 2024,
totalling c. 60,000 for the year, up from 32,800 in 2023. At the same
time, household savings were maintained at a very high level in 2024.
This manifested itself in a further rise in levels of Irish private sector
deposits. These stood at €324bn in December, up from €307bn at the
start of 2024.
Real income growth and high levels of savings contributed to the
sharp rise in residential property prices in 2024. However, the main
factor influencing house prices remained the mismatch between
supply and demand. Despite the recent increase in housing supply,
the number of new units built per annum to meet demographic and
pent-up demand which has been accumulating over the last number
of years, needs to be higher. In this regard, the latest forecast from
the Central Bank of Ireland indicates that housing completions could
amount to 37,500 in 2025 and 41,000 in 2026.
New dwelling completions
(Total, 4 Qrt Mov Avg)
Source: CSO
Outlook for 2025
All the main international forecasters are projecting another year of
modest growth for the global economy in 2025. World output is forecast
to expand by 3.3% this year according to the IMF. However, there are
significant downside risks to the outlook amid elevated levels of
uncertainty, most notably owing to current geopolitical tensions and
conflict around the globe. The potential ratcheting up of protectionist
trade policies by the new US administration also poses a significant
downside risk to the outlook. In the US, growth is projected to remain
robust, amid still strong underlying demand conditions and a tight
labour market. Growth in Europe is expected to accelerate, as falling
inflation and interest rates stimulate activity, but it is set to remain well
below that of the US.
From an Irish perspective, IDA Ireland is indicating that there is a more
challenging backdrop for foreign direct investment (FDI). However,
GDP is forecast to return to growth in 2025, underpinned by the
rebound in exports seen in 2024. Furthermore, the domestic economy
is set to continue to grow at a solid pace, aided by ongoing employment
growth and a renewed rise in real wages. The public finances are in
strong shape, allowing fiscal policy to remain supportive of activity also.
Meanwhile, private sector balance sheets are characterised by low debt
and high savings. Thus, most forecasts are for Irish modified domestic
demand and GDP to grow by between 3-4% in 2025.
Irish private sector deposits and household savings ratio
€bn
Source: CSO, CBI
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13
Q4
2017
Q4
2018
Q4
2019
Q4
2020
Q4
2021
Q4
2022
Q4
2023
Q4
2024
9000
12000
15000
18000
21000
24000
27000
30000
33000
Household savings
Private sector deposits
Dec’
19
Jun
’20
Dec
’20
Jun
’21
Dec
’21
Jun
’22
Dec
’22
Jun
’23
Dec
’23
Jun
’24
Dec
’24
160
180
200
220
240
260
280
300
320
9.00
12.00
15.00
18.00
21.00
24.00
27.00
30.00
33.00
36.00
A strategy for
the future
The AIB Group strategy is centred on an informed
view of our customers’ needs and anchored in
a progressive ESG agenda. With one year of our
three-year strategic cycle complete, we are
progressing our three areas of focus at pace.
Three areas of
strategic focus
Customer first
Greening our business
What this means
We will develop deeper, more enduring
relationships with our customers by
better serving their financial needs
through integrated propositions.
We will mobilise capital to support
climate action, be a catalyst for positive
change and continue to build on our
sustainability leadership.
2024 outcomes
• Chief Customer Officer appointed, focused on driving a
deep understanding of our customers and embedding
the Customer First ethos across the organisation.
• Our Customer Digital programme delivered many
mobile enhancements, building an engaged customer
base while addressing pain points.
• We introduced new push notifications on the
AIB Mobile App to give our customers real-time
transaction information.
• We have Ireland’s largest branch network with
significant investment made in branches in 2024.
• Our NPS scores are at an all-time high across multiple
customer journeys.
• We made a series of mortgage rate cuts across AIB,
EBS and Haven, as well as expanded our offerings for
self-build customers.
• Continued support for our customers by deploying
green finance – c. 35% of our new lending is green
or transition.
• Majority (52%) of our new mortgage lending in Ireland
was to energy efficient homes, underpinned by the
launch of two new green fixed rate mortgage products
and a range of green mortgage rate reductions.
• We launched Sustainability Linked Loans, a new
transition product for corporate customers, and
supported home retrofits through our Home Energy
Upgrade proposition.
• Strong progress made towards reducing carbon
emissions in our operations by 2030 supported
by a significant branch investment programme
commenced across c. 60% of our network.
• AIB Community €1 Million Fund supported 70 charities
in 2024, and over 200 charities to date.
• Continued successful greening of our funding model
with €6.4bn in ESG bond issuance in recent years.
Looking ahead
Leveraging customer feedback, research and the power
of artificial intelligence (AI), critical focus ahead is on
developing a deeper understanding of what our
customers need and want. We will harness customer
insights to drive customer personalisation, proposition
developments and enhance service levels.
Upgrading our mobile app, with enhanced features
and capability for customers, blending security
and convenience.
Our Climate Capital business is well positioned to
address the significant financing opportunities and market
liquidity that renewables offer.
Beyond Climate Capital, there will be ongoing
enhancement of our green/transition product offering
and related propositions.
We will invest further in data to support our understanding
of the transition profile of our business, and
in sustainability-related innovation including
academic research.
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Our strategic progress
Three areas of
strategic focus
Operational efficiency & resilience
What this means
We will ensure the appropriate
capability, capacity and resilient
platforms are in place to support
the Group’s strategic ambition.
2024 outcomes
• Our Simple & Sustainable Servicing programme is
delivering efficiency through detailed focus on key
processes within our Operations area.
• We have made sustained progress on improving
processes which support key customer journeys.
This includes activities that: enable quicker account
opening; digitalisation of some paper-heavy processes;
introduction of 24-hour mortgage approval in-principle
for EBS and Haven, and; a reduction in home loans
turnaround time in our UK business from c. 35 to 15 days.
• We have established an AI Centre of Excellence and
have successfully implemented a new AI-capable
payment fraud monitoring system.
• Launch of Abi, our new digital assistant – part of our
ongoing commitment to enhance customer service,
helping our customers to resolve simple queries with
a digitally available solution.
Looking ahead
Continued investment in AI capability in our Customer
Engagement Centre.
Investment in credit data and customer credit systems to
modernise, reduce paper and speed time-to-decision.
Continued modernisation of our technology systems to
drive efficiency and improve product development
capabilities.
Use of dynamic workforce planning tools to ensure
readiness for future skills needs.
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Our approach to risk
Our prudent approach to risk management is fundamental
for the Group to achieve our strategic objectives.
Our Risk Management Framework ('RMF') sets out the governance, principles, arrangements,
roles and responsibilities in place for the Group to manage our risks. The Group’s risk
management principles are as set out below:
Risk Governance and Oversight
1
The Group Board has ultimate responsibility for the governance of all risk-taking
activity in the Group and risks assumed through our investments in joint ventures
and associated companies.
Identification and Assessment
2
The Group identifies, assesses and reports all material risks through the Material Risk
Assessment review process.
3
Risk management is embedded in the strategic planning, performance management
and strategic decision-making processes of the Group.
4
The Group develops and uses models across a range of risks and activities to inform
key strategic business and financial decisions.
Monitoring, Escalating and Reporting
5
The Group accepts that certain risks (within the bounds of risk appetite) may be taken
in the short-to-medium term to support environmental, social and governance ('ESG')
initiatives for the benefit of all our stakeholders over the long term.
6
The Group operates and manages risks in line with the Group’s Risk Appetite
Statement ('RAS') and understands, manages, measures, monitors and reports all risk
it takes or originates.
7
The Group aims to provide clarity in all communications, which will help to better
inform business decisions.
Risk Culture
8
The Group supports the delivery of a strong risk culture.
9
Risk management capabilities are valued, encouraged and developed.
Control Environment
10
The Group has a system of internal controls designed to mitigate rather than
eliminate risk.
11
A comprehensive, fit-for-purpose framework and policy architecture is in place to
support risk management and is reviewed regularly.
12
The Group has adopted a Three Lines of Defence ('3LOD') model and risks are
managed in line with the model.
The Risk Management section, from pages 179 to 246, gives more detail on how risk is
managed within the Group, detailing the approach to risk governance including the 3LOD
committee structures, risk appetite and stress testing.
The Group operates an enterprise-wide RMF,
which is centred around the embedding of a
strong risk culture and ensures the governance
and capabilities are in place to facilitate
a consistent approach to risk management
across the Group. The risk management
approach is set out in more detail on pages
179 to 246. The RMF aligns our risk approach
to the Group’s overall strategic objectives.
The RMF is designed and maintained
by the Group’s Risk function, and is subject
to annual review and approval by the Board.
The RMF governs the way in which the
Group identifies and manages our risks.
The Group identified 10 Principal Risks
and Emerging Risks which are described
on pages 17 to 21.
On an annual basis, the Board sets out the
maximum amount of risk the Group is willing
to accept within our RAS. The approved risk
thresholds are monitored and reported on an
ongoing basis to the Board Risk Committee
to ensure the Group remains within its risk
appetite. RAS metrics are also reported to
the Board as part of the escalation process
for RAS breaches.
The Group tests the resilience of our strategy
across each of the Principal Risks through
scenario analysis and stress testing. The
scenarios used are informed by the key
Emerging Risks and are used to assess
the Internal Capital Adequacy Assessment
Process ('ICAAP'), the Internal Liquidity
Adequacy Assessment Process (‘ILAAP’) and
the three-year financial plan.
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Risk Summary
Principal Risks
Principal Risks are those risks that could have a material
adverse effect on our customers or the financial or operational
outcomes or reputational standing of the Group.
The Group’s risks are reviewed as part of the
Material Risk Assessment ('MRA’), reflecting
the Group’s risk profile in light of internal and
external factors such as the Group’s strategy
and the regulatory environment in which
we operate.
The Group faces 10 Principal Risks across
our business, which are key areas of
management focus.
Although there was no changes to the
Principal Risks for 2024, the Board decided
that, from 1 January 2025, Information
Security (including Cyber) Risk has been
deemed as a Principal Risk for the Group and
will no longer be a sub risk of Operational
Risk. This reflected consistent identification
in internal surveys as a critical risk,
increased regulatory focus and an
evolving threat landscape. The Cybersecurity
section in the Sustainability Reporting from
pages 110 to 112 and the Governance Report
on pages 154 and 156 provides additional
information around identifying, assessing and
governing cyber security.
A. Credit Risk
What is the Risk?
The risk that the Group will incur losses as
a result of a customer or counterparty being
unable or unwilling to meet contractual
obligations and associated credit exposure in
respect of loans or other financial transactions.
Key Developments in 2024
The credit quality of the lending portfolio has
remained robust during the year and new
lending is in line with targeted quality levels.
The Group’s risk appetite for corporate
renewable energy and related infrastructure
lending was expanded, reflecting the Group’s
strategy for sustainable lending. Expected
Credit Losses ('ECLs’) continue to reflect the
Group’s vigilant stance on emerging risks
while maintaining a comprehensive approach
to assessing the credit environment, ensuring
that the level of ECL stock remains
appropriately conservative. The Group also
successfully concluded the Ulster Bank
portfolio acquisitions.
Key Risk Indicators
• Asset class concentration risk metrics
• Country concentration risk metrics
• Non-Performing Exposures ('NPE’) as a %
of customer loans and ECL cover rates
Read more: page 186 to 230
B. Market and Equity Risk
What is the Risk?
The uncertainty of Group returns attributable
to fluctuations in market factors. Where the
uncertainty is expressed as a potential loss
in earnings or value, it represents a risk to
the income and capital position of the Group.
Key Developments in 2024
Cooling inflation data throughout the year
has led to interest rate cuts by the ECB.
The Group responded by adapting our
strategic approach to managing and hedging
our interest rate exposure, in particular as
regards to Net Interest Income.
Key Risk Indicators
• Earnings sensitivity
• Interest rate capital at risk
• Credit spread capital at risk
• Pension capital at risk
• Equity nominal investment
Read more: page 231 to 234
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C. Capital Adequacy
Risk
What is the Risk?
The risk that the Group breaches, or may
breach, regulatory capital ratios and internal
targets measured on a forward-looking basis,
across a range of scenarios, including a
severe but plausible stress.
Key Developments in 2024
The Group maintained a strong capital
position throughout 2024 with buffers to
regulatory requirements for Fully Loaded
Common Equity Tier 1 ('CET1’) and Total
Capital ratios. Stress testing activities in 2024
demonstrated the robustness of the capital
position including the annual ICAAP.
The Group improved its CET1 ratio by 20bps
in Quarter 4 after completing its inaugural
Significant Risk Transfer ('SRT’) transaction.
Three new metrics were added to the suite
of capital adequacy metrics reported to ALCo
on a monthly basis. Two of these relate to
Climate & Environmental Risk ('C&E Risk’)
including Transition Risk Depletion and
Physical Risk Depletion while the third is
a Stress CET1 Management Buffer.
Key Risk Indicators
• Fully loaded CET1 ratio
• Fully loaded internal capital buffer
• Aggregate Group RAROC on new business
Read more: page 235
D. Liquidity and
Funding Risk
What is the Risk?
The risk that the Group will not be able to
fund its assets and meet its obligations as
they come due, without incurring unacceptable
costs or losses. Funding is the means by
which liquidity is generated, for example,
secured or unsecured, corporate or retail.
In this respect, Funding Risk is the risk
that liquidity cannot be obtained at an
acceptable cost.
Key Developments in 2024
Customer deposits have continued to grow
reflecting higher income and employment
levels in the Irish economy. The interest
rate environment has seen the Group
continue to expand our suite of fixed term
deposit offerings, with continued investment
and focus on improving customer journeys
and engagements to retain and grow our
customer base.
C&E Risk (Physical and Transition) is being
considered as part of the suite of adverse
Liquidity Stress Tests.
Key Risk Indicators
• Liquidity coverage ratio ('LCR’)
• Survival period
• Net stable funding ratio ('NSFR’)
Read more: page 235 to 240
E. Business Model
Risk
What is the Risk?
Business Model Risk ('BMR) is the risk of not
achieving the agreed strategy or approved
business plan either as a result of an
inadequate implementation plan, or failure
to execute the implementation plan as a result
of inability to secure the required investment.
This also includes the risk of implementing
an unsuitable strategy, or maintaining an
obsolete business model, in light of known
internal and external factors.
Key Developments in 2024
The BMR assessment was reviewed,
with the profile and outlook now driven
primarily as an output from the bi-annual risk
review of the status of strategic initiatives in
addition to financial performance and regular
assessments of the point-in-time external and
internal operating environment.
Timeline of assessment within internal
risk reporting has increased to a three-year
horizon in alignment with financial and
strategic planning cycles. During 2024,
the previously combined BMR and Capital
Adequacy Risk Framework was separated
into two distinct Frameworks to better reflect
the differences in processes and procedures
between the two risks.
Key Risk Indicators
• Operating profit % variance to plan
• Return on tangible Equity
• Net interest margin ('NIM’)
Read more: page 241
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Principal Risks continued
F. Operational
Risk
What is the Risk?
The risk to the Group arising from inadequate
or failed internal processes, people and
systems, or from external events. This
includes legal risk, but excludes strategic
and reputational risk.
Key Developments in 2024
Established closer and more effective
cooperation with the Technology & Data
('T&D’) function, including risk monitoring and
management, by conducting various second
line of defence activities, such as Thematic
Risk Reviews, Quality of Service checks,
Oversight & Challenge activities, and by active
participation by second line of defence in key
T&D Fora such as Technology & Data Advisor
Committee ('TDAC’) and the Architecture
Review Board ('ARB’).
In 2024 AIB established the Maturing the
Operating Control Environment Programme
under the Group Strategy and Group Risk
Plan. This programme will drive enhancements
to Operational Risk tools and processes for all
users in the Group and enrich our Operational
Risk data for risk measurement, reporting and
decision making.
The Change Risk Policy has been enhanced
to include a Risk Impact Assessment ('RIA’)
as a mandatory step for all new material
change programmes. The RIA supports
the identification of potential impacts to
material risk exposure and reputational
impacts in a timely manner.
The People Risk Policy has been enhanced
to ensure effective identification, assessment,
management, monitoring and reporting of
people-related risks.
Key Risk Indicators
• Cumulative operational risk losses
• Cyber security and technology risk metrics
Read more: page 241 to 242
G. Climate and
Environmental Risk
What is the Risk?
Climate and Environmental ('C&E’) Risk
encompasses the financial and non-financial
impacts on the Group arising from climate
change, environmental change and the
transition to a sustainable economy.
These risks can affect the Group directly
through our operations or indirectly through
our relationships with customers and third
party suppliers.
Key Developments in 2024
Following the approval to elevate C&E Risk
to a Principal Risk in 2023, the Group
continued to embed C&E Risk into the Risk
Management Framework during 2024. A
detailed materiality assessment was
completed, including transmission channel
assessment, to measure the impact that C&E
Risk drivers have on the Group’s Principal
Risks. Results were subsequently
incorporated in the RAS through additional
Key Risk Indicators, as well as enhancements
to C&E stress testing processes.
Key Risk Indicators
• % of new lending to energy efficient
homes (residential mortgages)
• % of new lending to energy efficient
buildings
Read more: page 242 to 243
H. Model
Risk
What is the Risk?
The loss the Group may incur, as a
consequence of decisions that could be
principally based on the output of models, due
to errors in the development, implementation
or use of such models.
Key Developments in 2024
In the first quarter the Group implemented
three new Pillar II stress testing Climate &
Environmental models: two models
measuring Transition Risk across Retail
and non-Retail credit exposures, and an
updated Flood Risk Model.
In 2024 the Group received regulatory
approval and completed the deployment
of three redeveloped IRB rating systems
covering AIB Mortgage, SME and
Corporate borrowers.
The Group also updated and implemented the
IFRS 9 AIB Mortgage and Corporate models.
Key Risk Indicators
• Quarterly risk score of approved models
in use
Read more: page 244
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I. Culture Risk and
Conduct Risk
What is the Risk?
Culture Risk and Conduct Risk are two
distinct risks.
Culture Risk is the risk that the core values
of the Group are not shared by all staff and
as a consequence are not consistently
demonstrated through staff behaviour.
This includes the risk that consistent, fully
understood and risk adjusted performance
measures are not in place resulting in
outcomes that are not aligned to the Group’s
Strategy, Behaviour or Values.
Conduct Risk is the risk that inappropriate
actions or inactions by the Group cause poor
or unfair customer outcomes or negatively
impact market integrity.
Key Developments in 2024
The Central Bank of Ireland’s ('CBI’) focus on
a customer centric leadership remains a
priority and highlights the need to secure
customer interests such that they are front and
centre in the decision-making process.
The Culture Risk and Conduct Risk
Framework has been updated to expand
the key risk management principles to cover
Culture. Principles expanded from four to
eight overarching principles which govern
the design and operation of the Framework
within the Group covering our Values,
Code of Conduct, Inclusion & Diversity
and Remuneration.
The Culture and Conduct Framework
was updated to include Customer Impact
Assessment ('CIA’), which is conducted
whenever customer impacts need to be
evaluated, such as assessing a breach,
policy change or other customer impacting
decisions. Culture Risk and Risk Culture
definitions have also been added, along with
the first line of defence responsibilities for
completing Risk Impact Assessments ('RIA’)
and CIA.
Key Risk Indicators
• The identification of critical customer
impacting conduct issues
• Number of product portfolio reviews
outstanding >3 months
• Completion of mandatory training courses
Read more: page 244 to 245
J. Regulatory
Compliance Risk
What is the Risk?
The risk of legal or regulatory sanctions,
material financial loss, or loss to reputation
that the Group may suffer as a result of
a failure to comply with principal laws,
regulations, rules, related self-regulatory
codes and related supervisory expectations
that relate to the Group’s regulated banking
and financial service activities, i.e. those
activities in which the Group is licensed
to conduct business.
Key Developments in 2024
The CBI issued their first annual Regulatory
and Supervisory Outlook Report in 2024
which emphasised the importance of firms
proactively managing risk, adopting a
customer centric focus and ensuring that firms
manage change including climate capital and
transition change effectively.
Key developments within the Group include
the establishment of a standalone Compliance
Monitoring Team within the Group Risk
function and continued development in
maturing the control environment. A regulatory
questionnaire has been introduced by the
Regulatory Compliance team to ensure
strategic and regulatory change prioritises the
critical regulatory requirements associated
with business developments.
Key regulatory programmes supported
across 2024 include SEAR (Senior Executive
Accountability Regime) and Basel IV.
The CBI launched a consultation paper on
updates to the Consumer Protection Code
('CPC’) in March 2024 with the final code
expected to be published in early 2025.
The Consumer Duty in the U.K. set higher and
clearer standards of consumer protection and
requires firms to act to deliver good outcomes
for consumers from 31 July 2023 for open
products, and 31 July 2024 for products not
open to new business. There is a new
FCA Individual Conduct Rule that requires
all staff to act to deliver good outcomes for
retail customers.
C&E Risk remains in sharp regulatory focus,
in particular regarding enhanced reporting
requirements under Corporate Sustainability
Reporting Directive ('CSRD’) on ESG factors,
managing potential greenwashing and
reputational risks.
Key Risk Indicators
• Regulatory breaches
• Impact assessment for delayed delivery
of regulatory directive change initiatives
• Number of data protection incidents that
resulted in a significant personal data
breach (Sustainability Reporting on page 43
provides additional information around
management of data protection)
Read more: page 245 to 246
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Principal Risks continued
The Group identifies evolving and emerging risks as part of the Group’s MRA process.
Evolving Risks are current risks that have emerged across any of our risk types and have the potential to increase in significance, have a material
impact on the Group’s strategy, operations and on our customers in the short-term (<1 year). Emerging Risks are less certain in terms of outcome,
timing and may manifest themselves in the longer term (>1 year).
The table below sets out the evolving and emerging risks identified.
Evolving and emerging risks
How we responded during 2024
Links to
Principal Risks
Cyber Risk
The risk of diminished
operational capability of the
Group’s IT systems. In
addition, the potential for
legal liability, data risk, fraud
or loss of reputation with our
customers due to an
evolving cyber threat
landscape and heightened
threats related with cyber
criminals, rogue nation
states and artificial
intelligence.
Information Security
(including Cyber Risk)
is a Principal Risk
from 1 January 2025.
• Cybersecurity remained a top risk in 2024, reflecting the ever-evolving nature of threats and the
increasing frequency, sophistication, and impact of cyber incidents globally. Societal change, especially
in terms of technology adoption and privacy concerns, has also been a notable driver of this risk.
• In response, key initiatives focused on strengthening leadership within critical cybersecurity domains,
refining our operating model to prioritise Information Security (including Cyber Risk) and recruiting
high performing candidates from the external market.
• Although not a Principal Risk for the Group in 2024, as part of the 2024 Material Risk Assessment it
was decided to formally recognise Information Security (including Cyber Risk) as a Principal Risk
from 1 January 2025. This strategic move ensures we proactively address the evolving threat
landscape by enhancing our capability to anticipate, mitigate, and respond to cyber threats.
The comprehensive Double Materiality Assessment ('DMR’) process evaluated the Group’s material
sustainability matters from both an impact and financial materiality perspective with cyber security
identified as one of seven material topics, (the Sustainability Reporting section from pages 107 to 110
provides additional information).
• While our operating model continues to mature, we have maintained a strong focus on foundational
practices to mitigate risk effectively. These efforts include strengthening workforce awareness to
reduce the risk of social engineering; ensuring 24/7 rapid response capabilities to address emerging
vulnerabilities; deploying industry-leading enterprise data protection measures; enhancing
collaboration with industry peers to improve threat intelligence sharing; and alignment to industry
standards to inform the Group’s control environment.
• In addition, as part of the holistic business resilience agenda, the group has taken proactive steps to
enhance digital operational resilience in alignment with DORA (Digital Operational Resilience Act)
requirements. This includes strengthening ICT and cyber risk management, incident reporting
processes and resilience testing across important business systems to provide demonstrable
operational continuity for the Group and its customers whiles ensuring compliance with regulatory
leading practice.
• These actions reflect our commitment to safeguarding customer trust, protecting data, and ensuring
the Group’s operational resilience in an increasingly complex threat landscape.
ADEFHIJ
Geopolitical Risk
The risk that geopolitical
developments and tensions
could escalate and could
negatively impact the
Group’s operations
or result in other financial or
macroeconomic impacts.
• Geopolitical Risk remained a central theme in 2024, with global conflicts and a heavy electoral
schedule all contributing to a high degree of economic uncertainty, especially for a small open
economy such as Ireland.
• We have analysed associated market, economic, policy and strategic impacts on the Group in detail
through governance fora including Executive Committee (‘ExCo’), Group Risk Committee (‘GRC’),
Asset and Liability Management Committee (‘ALCo’) and Board Risk Committee.
• Geopolitical Risk has been taken into account in the design and calibration of scenarios used in
stress tests and the calculation of expected losses (including weightings) as well as in the setting of
the Group’s risk appetite.
• In particular, the moderate downside scenario is centred on an escalation of geopolitical risk global
fragmentation and heightened trade tensions. The ICAAP also investigated the macroeconomic
impacts of a shock to foreign direct investment (FDI) as a result of changes in US tax laws. Further
development of these scenarios to include impacts from trade tariffs have been highlighted for ICAAP
and stress testing in early 2025.
• The Group’s Risk function compared the Group’s downside scenarios with independent third party
scenarios (e.g. from IMF) which assessed the impact of the various potential policy changes such as
tariffs and immigration associated with the new US administration. It concluded that the Group’s
scenarios were conservatively calibrated vis-a-vis these other scenarios.
• As evidenced in the results of the heavy electoral cycle during 2024, the risk associated with
changing societal preferences and voting behaviour have been identified by the Group and work on
assessing potential impacts for the Group will be continued into 2025.
• We have continued to apply sanctions requirements in various jurisdictions as applicable.
ABCDEF
GHJ
AI Risk
The potential harm that the
Group, as well as its customers
and communities, which may
incur due to decisions
primarily based on the outputs
of AI systems. These risks can
arise from errors in the
development, implementation,
or use of AI systems.
• Whilst the rapid growth of AI technologies has the potential to significantly improve efficiency
there is also significant risks associated such as implementation risk, legal risk, governance risk,
risk of bias/hallucinations etc.
• The Group’s Technology & Data function has defined the approach to the implementation of AI in
the Group through an AI strategy that has been presented to ExCo and Board. The strategy
defines the approach for the ethical and responsible use of AI.
• To comply with the newly established EU AI Act, a dedicated EU AI Act programme has been
mobilised, with representatives from across the Group.
• The programme has assessed how AI is currently used and how it is intended to be used across
business activities in the future. As part of this, a comprehensive approach was taken to define
the relevant characteristics of AI systems.
ABCDEF
HIJ
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Evolving and Emerging Risks
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Making a difference with GOAL
In 2024, the GOAL Mile achieved its most successful
campaign to date, with over 200 events held across
Ireland in towns, GAA clubs, and local parks.
This initiative, proudly supported by AIB, brought
communities together to make a meaningful impact
during the Christmas holidays. AIB has provided
invaluable support for the GOAL Mile since 2021,
helping the event grow and deliver much needed
funds to communities in crisis from climate change
and conflict around the world.
More than €750,000 was raised across the country
through the GOAL Mile, directly supporting GOAL’s
global humanitarian efforts. These vital funds enable
GOAL to deliver life-saving assistance to vulnerable
communities in 14 countries – including emergency
response in crisis-affected regions such as Gaza,
Lebanon, Syria, Ukraine, and Sudan. This engagement
shows AIB’s commitment to supporting communities –
both locally and globally.
Above: Mangui Robert, GOAL Nutrition Supervisor, providing vital emergency
food and nutrition services at Renk, on the Sudan-South Sudan border.
Business
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In this section
Operating and Financial Review
24
Capital
40
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Basis of presentation
The operating and financial review is prepared using IFRS and non-IFRS measures to analyse the Group’s performance, providing comparability
year-on-year. These performance measures are consistent with those presented to the Board and Executive Committee. Non-IFRS measures
include management performance measures which are considered Alternative Performance Measures (‘APMs’). APMs arise where the basis
of calculation is derived from non-IFRS measures. A description of the Group’s APMs and their calculation is set out on page 38. These measures
should be considered in conjunction with IFRS measures as set out in the consolidated financial statements from page 259. A reconciliation
between the IFRS and management performance summary income statements is set out on page 39.
Figures presented in the operating and financial review may be subject to rounding and thereby differ to the risk management section and the
consolidated financial statements.
Basis of calculation
Percentages are calculated on exact numbers and therefore may differ from the percentages based on rounded numbers. The impact of currency
movements is calculated by comparing the results for the current reporting period to results for the comparative reporting period retranslated at
exchange rates for the current reporting year.
2024
2023
%
Management performance - summary income statement
€ m
€ m
change
Net interest income
4,129
3,841
7
Other income1
779
900
-13
Total operating income1
4,908
4,741
4
Personnel expenses1
(980)
(901)
9
General and administrative expenses1
(690)
(630)
10
Depreciation, impairment and amortisation1
(301)
(295)
2
Total operating expenses1
(1,971)
(1,826)
8
Bank levies and regulatory fees1
(138)
(185)
-25
Operating profit before impairment losses and exceptional items1
2,799
2,730
3
Net credit impairment charge
(55)
(172)
-68
Operating profit before exceptional items1
2,744
2,558
7
Income from equity accounted investments
26
12
Loss on disposal of business
(2)
(26)
Profit before exceptional items1
2,768
2,544
9
Customer redress
(46)
(62)
Restructuring costs
(4)
(11)
Inorganic transaction costs
(32)
(59)
Gain/(loss) on disposal of loan portfolios
1
(18)
Other
15
—
Total exceptional items1
(66)
(150)
Profit before taxation
2,702
2,394
13
Income tax charge
(351)
(336)
4
Profit for the year
2,351
2,058
14
1. Performance has been adjusted to exclude items viewed as exceptional by management and which management view as distorting comparability of performance
year-on-year. The adjusted performance measure is considered an APM.
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Business Review –
1. Operating and Financial Review
Net interest income
Net interest income
€4,129m
2024
2023
%
Net interest income
€ m
€ m
change
Interest income1
5,374
4,643
16
Interest expense
(1,245)
(802)
55
Net interest income
4,129
3,841
7
Average interest earning assets
130,190 123,563
5
%
%
change
Net interest margin (NIM)
3.16
3.11
0.05
Net interest income
€4,129m
Net interest income of € 4,129 million increased by € 288 million or 7%
compared to 2023.
The increase in net interest income reflected the benefit of higher
average interest rates in 2024 compared to 2023 and higher average
interest earning assets partly offset by an increase in interest expense
on customer accounts.
Interest income
Interest income of € 5,374 million in 2024 increased by € 731 million
compared to 2023 primarily due to:
• Increased asset yields driven by higher average Euro, Sterling
and US Dollar interest rates reflecting the graduated changes by
central banks to official interest rates.
• Higher average customer loan volumes primarily driven by an
increase in new lending and the completion of loan acquisitions from
Ulster Bank.
• Increase in average investment security volumes.
Interest expense
Interest expense of € 1,245 million in 2024 increased by € 443 million
compared to 2023. The increase in funding costs was primarily due to:
• Higher interest expense on customer accounts as customers avail of
higher yielding term products.
• Increased other debt issued and subordinated liabilities funding costs
reflecting interest rate impacts and higher average MREL volumes.
Net interest margin
3.16%
NIM increased by 5 basis points to 3.16% in 2024 compared to 3.11%
in 2023 driven by the impact of higher average interest rates.
Average interest earning assets of € 130.2 billion in 2024 were
€ 7 billion or 5% higher compared to 2023 driven by an increase in
customer accounts and other debt issued.
Year ended
Year ended
Average balance sheet
31 December 2024
31 December 2023
Average
Interest1
Average
Average
Interest1
Average
balance
rate
balance
rate
Assets
€ m
€ m
%
€ m
€ m
%
Loans and advances to customers2
68,300
2,817
4.11
63,411
2,391
3.77
Investment securities
18,011
841
4.66
16,410
712
4.34
Loans and advances to banks3
43,879
1,716
3.90
43,742
1,540
3.52
Average interest earning assets
130,190
5,374
4.12
123,563
4,643
3.76
Non-interest earning assets
7,816
8,123
Total average assets
138,006
5,374
131,686
4,643
Liabilities & equity
Deposits by banks3
1,328
60
4.50
1,066
42
3.96
Customer accounts
49,242
468
0.95
44,528
175
0.39
Other debt issued
8,563
539
6.29
7,284
436
5.98
Subordinated liabilities
1,645
112
6.80
1,429
97
6.86
Lease liabilities
268
9
3.30
248
9
3.47
Average interest earning liabilities
61,046
1,188
1.94
54,555
759
1.39
Non-trading derivatives (economic hedges)
57
43
Non-interest earning liabilities
62,010
63,978
Equity
14,950
13,153
Total average liabilities & equity
138,006
1,245
131,686
802
Net interest income
4,129
3.16
3,841
3.11
1. Negative interest income on assets of € 2 million in 2024 (2023: € 2 million) is offset against interest income.
2. Income on Loans and advances to customers includes the negative impact of € 618 million from cash flow hedges in 2024 (2023: € 607 million). See note 4 to the
consolidated financial statements.
3. Loans and advances to banks and Deposits by banks include Securities financing.
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Other income
Other income1
€779m
2024
2023
%
Other income1
€ m
€ m
change
Net fee and commission income
666
633
5
Net gain on equity investments (FVTPL)
70
27
Net trading income
50
210
– Loan acquisition forward contracts
27
223
– Equity investment hedges
(12)
(15)
– Other
35
2
Net gain on loans and advances to customers (FVTPL)
12
3
Other (expense)/income
(19)
27
Other income
779
900
-13
Other income1
€779m
Other income decreased by € 121 million or 13% compared to 2023
as higher fee and commission income and equity investment gains
were more than offset by lower income from loan acquisition forward
contracts as the majority of the Ulster Bank loans migrated in the
prior year.
2024
2023
%
Net fee and commission income
€ m
€ m
change
Customer accounts
248
240
3
Card income
148
148
1
Customer related foreign exchange
91
88
4
Lending related fees
56
54
3
Stockbroking client fees and commissions
57
46
23
Payzone
20
19
6
Other fees and commissions
46
38
20
Net fee and commission income
666
633
5
Net fee and commission income of € 666 million in 2024 increased
by € 33 million or 5% compared to 2023 primarily reflecting higher
transaction volumes with other fees and commissions benefiting from
higher wealth income. Stockbroking client fees and commissions
were up 23% due to increased market activity.
Net gain on equity investments2 of € 58 million in 2024 increased by
€ 36 million compared to 2023 and included a gain of € 22 million
following partial conversion of Visa Inc. Series B Preferred Stock.
Loan acquisition forward contract gain of € 27 million was recognised in
2024 in respect of Ulster Bank tracker mortgages (2023: € 203 million)
which reflected income earned on the portfolios since the Group
acquired an economic interest and changes in valuation parameters
since the original transaction pricing. The prior year also included a
gain of € 20 million on Ulster Bank corporate and commercial loans3.
Net trading income (excluding the loan acquisition forward contracts
and equity investment hedges) of € 35 million in 2024 increased by
€ 33 million compared to 2023 due to favourable movements on
non-customer foreign exchange contracts and derivative valuation
adjustments (XVA).
Other expense of € 19 million in 2024 decreased by € 46 million
compared to other income of € 27 million in 2023 primarily due to a loss
on the redemption of subordinated debt and on the disposal of
investment securities.
IFRS basis
On an IFRS basis other income, including a net gain of € 20 million on
exceptional items1, was € 799 million in 2024 compared to € 881 million
in 2023.
1. Other income before exceptional items. A gain of € 20 million on exceptional items in 2024 comprises: net fee and commission income of € 15 million (2023: Nil),
other operating income € 4 million (2023: Nil) and € 1 million net gain on disposal of loan portfolios (2023: net loss on disposal of loan portfolios € 19 million).
2. Net gain on equity investments comprises a net gain on equity investments (FVTPL) of € 70 million in 2024 (2023: € 27 million) and a loss on equity investment
hedges of € 12 million in 2024 (2023: € 15 million).
3. For further information see note 43 to the consolidated financial statements.
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Business Review –
1. Operating and Financial Review continued
Operating expenses
Total operating expenses1
€1,971m
2024
2023
%
Operating expenses1
€ m
€ m
change
Personnel expenses
980
901
9
General and administrative expenses
690
630
10
Depreciation, impairment and
amortisation
301
295
2
Total operating expenses
1,971
1,826
8
Staff numbers at period end2
10,469 10,551
-1
Average staff numbers2
10,655 10,200
4
Total operating expenses1
€1,971m
Total operating expenses of € 1,971 million increased by € 145 million
or 8% compared to 2023.
Personnel expenses
Personnel expenses increased by € 79 million compared to 2023
primarily due to higher average staff numbers, salary inflation, an
increase in the allowance for variable pay and the introduction of
health insurance.
Staff numbers at period end were 1% lower compared to 31 December
2023.
General and administrative expenses
General and administrative expenses increased by € 60 million
compared to 2023 and included €25m additional spend for customer
and operational efficiency initiatives.
Depreciation, impairment and amortisation
Depreciation, impairment and amortisation increased by € 6 million
compared to 2023.
Cost income ratio1
40%
Costs of € 1,971 million and income of € 4,908 million resulted in a cost
income ratio of 40% in 2024 compared to 39% in 2023.
Bank levies and regulatory fees
€138m
2024
2023
Bank levies and regulatory fees
€ m
€ m
Irish bank levy
94
37
Deposit Guarantee Scheme
11
86
Single Resolution Fund
—
36
Other regulatory levies and charges
33
26
Total bank levies and regulatory fees
138
185
Total bank levies and regulatory fees of € 138 million decreased by
€ 47 million compared to 2023 primarily due to a reduction in Deposit
Guarantee Scheme and Single Resolution Fund fees which was partly
offset by an increase in the Irish bank levy following a change in the
relevant legislation.
The European Single Resolution Fund and Irish Deposit Guarantee
Scheme (DGS) Contributory Fund have reached their respective target
levels. Future contributions to these funds is dependent on growth in
covered deposits.
IFRS basis
On an IFRS basis total costs, including bank levies and regulatory fees
of € 138 million and the cost of exceptional items3 of € 86 million, were
€ 2,195 million in 2024 compared to € 2,142 million in 2023. This results
in a cost income ratio (IFRS basis) of 45% in 2024, in line with 2023.
1. Before bank levies and regulatory fees and exceptional items.
2. Staff numbers are on a full time equivalent (FTE) basis.
3. The cost of exceptional items of € 86 million in 2024 (2023: € 131 million) comprised: Personnel expenses € 4 million (2023: € 10 million) as well as General and
administrative expenses € 82 million (2023: € 121 million).
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Net credit impairment charge
€55m
There was a net credit impairment charge of € 55 million in 2024 (2023:
€ 172 million) comprising a € 57 million charge on loans and advances
to customers (2023: € 172 million) partially offset by a € 2 million
writeback for investment securities exposures (2023: Nil).
The net credit impairment charge on loans and advances to customers
in 2024 comprised:
• Other personal portfolio net impairment charge of € 80 million (2023:
€ 36 million).
• Non-property business portfolio net impairment charge of € 12 million
(2023: writeback of € 138 million).
• Residential mortgage portfolio net impairment writeback of
€ 36 million (2023: net impairment charge of € 30 million).
• Property and construction portfolio net impairment writeback of € 1
million (2023: net impairment charge of € 244 million).
For further information see pages 185 to 230 in the Risk Management
section.
Loss on disposal of business
€2m
The loss on disposal of business was € 2 million in 2024. The loss of
€ 26 million in 2023 primarily reflected the transfer to the income
statement of a portion of the foreign currency translation reserves
following repatriation of part of the capital of foreign subsidiaries which
have ceased trading.
Income tax charge
€351m
The income tax charge was € 351 million in 2024, representing an
effective tax rate of 13% compared to a tax charge of € 336 million in
2023 (effective tax rate 14%). The effective tax rate is influenced by
geographic mix of profit streams which may be taxed at different rates.
For further information see note 14 and note 26 to the consolidated
financial statements.
Total exceptional items
€66m
2024
2023
Total exceptional items
€ m
€ m
Customer redress
(46)
(62)
Inorganic transaction costs
(32)
(59)
Restructuring costs
(4)
(11)
Gain/(loss) on disposal of loan portfolios
1
(18)
Other
15
—
Total exceptional items
(66)
(150)
These (costs)/gains were viewed as exceptional by management.
Customer redress in 2024 reflects a net charge of € 46 million for
remediation payments to customers and associated costs in respect of
legacy matters.
Inorganic transaction costs reflect costs associated with the
migration of a portfolio of Ulster Bank tracker (and linked) mortgages.
Gain/(loss) on disposal of loan portfolios reflects a gain of
€ 1 million relating to the disposal of non-performing loan portfolios.
Other includes a fee receivable on the exit of a servicing agreement for
a non-core legacy business.
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Business Review –
1. Operating and Financial Review continued
Assets
Gross loans to customers
New lending
€71.2bn
€14.5bn
31 Dec
31 Dec
2024
2023
%
Assets
€ bn
€ bn
change
Gross loans to customers
71.2
67.0
6
ECL allowance
(1.3)
(1.5)
-12
Net loans to customers
69.9
65.5
7
Investment securities
18.7
17.4
8
Loans and advances to banks
38.6
39.3
-2
Securities financing
6.6
6.5
3
Other assets
7.5
7.6
-2
Total assets
141.3
136.3
4
Gross loans to customers
€71.2bn
Gross loans to customers increased by € 4.2 billion or 6% compared to
31 December 2023 primarily driven by strong new lending, which
exceeded redemptions by € 3.1 billion, and the acquisition of loans
from Ulster Bank of € 0.8 billion.
In September 2024 the Group completed the migration of the final
tranche of Ulster Bank tracker (and linked) mortgages with a fair value
of € 0.8 billion.
New lending
€14.5bn
New lending of € 14.5 billion in 2024 was € 2.2 billion or 17% higher
compared to 2023.
New lending comprises of € 13.0 billion in term lending (€ 10.7 billion in
2023) and € 1.5 billion of transaction lending (€ 1.6 billion in 2023).
Irish mortgage lending of € 4.5 billion, representing a market share of
36% (2023: 33%) was 14% higher compared to 2023.
Personal lending was up 7% to € 1.3 billion.
Non-property lending of € 6.8 billion was up 36% driven by growth
in renewable energy & infrastructure and corporate lending, including
selective growth in syndicated lending.
Property related lending was 21% lower at € 1.6 billion reflecting lower
lending in Ireland and the UK.
Non-performing loans
Non-performing loans ratio
€2.0bn
2.8%
Non-performing loans at 31 December 2024 were in line with 31
December 2023 with net flows to non-performing of € 0.8 billion offset
by redemptions and disposals of € 0.8 billion.
Non-performing loans ratio
Non-performing loans as a percentage of gross loans to customers was
2.8% at 31 December 2024 compared to 3.0% at 31 December 2023.
ECL allowance
Non-performing loans cover
€1.3bn
32%
The ECL allowance on loans (at amortised cost) of € 1.3 billion at
31 December 2024 decreased by € 0.2 billion compared to
31 December 2023 driven by repayments and loan portfolio disposals.
Non-performing loans cover
The ECL allowance cover rate on non-performing loans of 32% was in
line with 31 December 2023.
Summary of movement in loans to customers
The table below sets out the movement in loans to customers from 1 January 2024 to 31 December 2024.
Performing
Non-performing
Loans to
loans
loans
customers
Loans to customers
€ bn
€ bn
€ bn
Gross loans (opening balance 1 January 2024)
65.0
2.0
67.0
New lending
14.5
—
14.5
Redemptions
(10.7)
(0.7)
(11.4)
Portfolio acquisitions
0.8
—
0.8
Portfolio disposals
(0.2)
(0.1)
(0.3)
Net movement to non-performing
(0.8)
0.8
—
Write-offs and restructures
—
(0.1)
(0.1)
Foreign exchange and other movements
0.6
0.1
0.7
Gross loans (closing balance 31 December 2024)
69.2
2.0
71.2
ECL allowance
(0.7)
(0.6)
(1.3)
Net loans (closing balance 31 December 2024)
68.5
1.4
69.9
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Assets continued
The tables below summarise the credit profile of the loan portfolio by asset class and includes a range of credit metrics that the Group uses in
managing the portfolio. Further information on the Group’s risk profile and non-performing loans is available in the Risk Management section on
pages 185 to 230.
At amortised cost
Residential
Other
Property and
Non-property
Loan portfolio profile
mortgages
personal
construction
business
Total
31 December 2024
€ bn
€ bn
€ bn
€ bn
€ bn
Gross loans to customers
37.0
3.3
8.7
22.2
71.2
Of which: Stage 2
1.9
0.6
2.7
2.8
8.0
Non-performing loans1
0.9
0.1
0.5
0.5
2.0
Total ECL allowance
0.3
0.1
0.4
0.5
1.3
Total ECL allowance cover
0.7 %
4.2 %
5.3 %
2.1 %
1.9 %
ECL allowance cover Stage 2
2.8 %
8.4 %
8.3 %
7.0 %
6.6 %
ECL allowance cover non-performing
24.1 %
66.0 %
33.2 %
39.2 %
32.4 %
31 December 2023
€ bn
€ bn
€ bn
€ bn
€ bn
Gross loans to customers
34.8
2.9
9.2
20.1
67.0
Of which: Stage 2
2.4
0.2
2.8
2.3
7.7
Non-performing loans1
0.7
0.1
0.7
0.5
2.0
Total ECL allowance
0.3
0.1
0.5
0.6
1.5
Total ECL allowance cover
0.9 %
3.3 %
5.9 %
2.9 %
2.3 %
ECL allowance cover Stage 2
3.2 %
13.0 %
9.6 %
11.5 %
8.3 %
ECL allowance cover non-performing
29.7 %
54.7 %
29.3 %
34.6 %
31.9 %
1. Non-performing loans as a percentage of gross loans was 2.8% at 31 December 2024 (31 December 2023: 3.0%), comprised Mortgages 2.4% (31 December 2023:
2.1%), Personal 3.1% (31 December 2023: 2.7%), Property and construction 6.1% (31 December 2023: 7.1%) and Non-property business 2.2% (31 December 2023:
2.6%).
Investment securities
Investment securities of € 18.7 billion, primarily held for liquidity
purposes, increased by € 1.3 billion from 31 December 2023.
Loans and advances to banks
Loans and advances to banks of € 38.6 billion, including € 36.4 billion
of cash and balances at central banks, were € 0.7 billion lower than
31 December 2023.
Securities financing
Securities financing of € 6.6 billion increased by € 0.1 billion from
31 December 2023.
Other assets
Other assets of € 7.5 billion comprised:
• Deferred tax assets of € 2.3 billion2, decreased by € 0.3 billion from
31 December 2023.
• Derivative financial instruments of € 2.1 billion decreased by € 0.2
billion from 31 December 2023.
• Remaining assets of € 3.1 billion, increased by € 0.4 billion from
31 December 2023.
2. For further information see note 26 to the consolidated financial statements.
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Business Review –
1. Operating and Financial Review continued
Liabilities & equity
Customer accounts
Equity
€109.9bn
€15.4bn
31 Dec
31 Dec
2024
2023
%
Liabilities & equity
€ bn
€ bn
change
Customer accounts
109.9
104.8
5
Deposits by banks
0.8
1.8
-53
Debt securities in issue
8.8
8.4
5
Subordinated liabilities
1.6
1.5
11
Other liabilities
4.8
4.7
Total liabilities
125.9
121.2
4
Equity
15.4
15.1
2
Total liabilities & equity
141.3
136.3
4
%
%
change
Loan to deposit ratio
64
63
1
Customer accounts
€109.9bn
Customer accounts increased by € 5.1 billion or 5% compared
to 31 December 2023 driven by an increase in personal and
SME balances.
Interest bearing customer accounts of € 51.4 billion at
31 December 2024 increased by € 5.3 billion or 11% compared to
31 December 2023 driven by an increase in term deposits. The mix
between current and interest bearing customer accounts remained in
line with 31 December 2023.
Loan to deposit ratio
The loan to deposit ratio was 64% at 31 December 2024 compared to
63% at 31 December 2023.
Deposits by banks
Deposits by banks of € 0.8 billion decreased by € 1.0 billion compared
to 31 December 2023 driven by lower deposits by central banks and
cash collateral received from derivative counterparties.
Debt securities in issue
Debt securities of € 8.8 billion increased by € 0.4 billion from 31
December 2023 driven by an increase in commercial paper of € 0.8
billion and credit linked notes of € 0.1 billion partially offset by a
reduction in MREL related volumes of € 0.5 billion.
Subordinated liabilities
Subordinated liabilities of € 1.6 billion increased by € 0.1 billion
compared to 31 December 2023 driven by a green Tier 2 capital
issuance of € 0.65 billion partially offset by redemptions of € 0.5 billion.
Other liabilities
Other liabilities of € 4.8 billion comprised:
• Derivative financial instruments of € 1.8 billion, decrease of
€ 0.1 billion from 31 December 2023.
• Securities financing € 0.2 billion, € 0.4 billion decrease from
31 December 2023.
• Remaining liabilities of € 2.8 billion, € 0.6 billion increase from
31 December 2023.
Equity
€15.4bn
Equity increased by € 0.3 billion to € 15.4 billion compared to
€ 15.1 billion at 31 December 2023.
The table below sets out the movements to 31 December 2024.
Equity
€ bn
Opening balance (1 January 2024)
15.1
Profit for the year
2.4
Distributions paid
(2.3)
Cash flow hedging reserves
0.2
Closing balance (31 December 2024)
15.4
Distributions paid in the period included the buyback of ordinary shares
of € 1.5 billion and a dividend payment on ordinary shares of € 0.7
billion.
The Group issued € 0.6 billion of Additional Tier 1 securities in
April 2024 at a coupon rate of 7.125% and completed the redemption of
Additional Tier 1 securities of € 0.5 billion.
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Segment overview
In 2024 the Group introduced a new customer facing segment,
‘Climate Capital’, increasing the Group’s reportable segments from four
to five. The Group’s performance is now therefore managed and
reported across Retail Banking, AIB Capital Markets (Capital Markets),
Climate Capital, AIB UK and Group segments. Comparative segment
information for the prior period has been re-presented. Segment
performance excludes exceptional items.
Retail Banking
Our leading Irish retail franchise provides a comprehensive range of
products and services to more than 3 million customers delivered
through our branch, digital and phone banking channels; with an
expanded reach into the retail customer base via EBS, Haven,
AIB Merchant Services, Payzone, Nifti and AIB life.
• Homes and Consumer are responsible for meeting the everyday
banking needs of customers in Ireland by delivering innovative
products, propositions and services and for growing our market
leading positions. Our aim is to achieve a seamless and transparent
customer experience across all our products and services including
mortgages, current accounts, personal lending, payments and credit
cards, deposits, insurance and wealth.
• SME serves our micro and small SME customers through our
sector-led strategy and local expertise with an extensive product and
services offering. Our aim is to help our customers create and build
sustainable businesses in their communities.
Capital Markets
Capital Markets provides institutional, corporate and business banking
services to the Group’s larger customers and customers requiring
specific sector or product expertise. Capital Markets’ relationship-driven
model serves customers through sector specialist teams including:
corporate banking, real estate finance and business banking.
In addition to traditional credit products, Capital Markets offers
customers foreign exchange and interest rate risk management
products, cash management products, trade finance, mezzanine
finance, structured and specialist finance and equity investments,
as well as Private Banking services and advice. Capital Markets also
has syndicated and international finance teams based in Dublin and in
New York. Goodbody offers further capabilities in wealth management,
corporate finance, asset management and wider capital markets
propositions.
Climate Capital
Climate Capital is a new segment comprised of assets and resources
previously residing in Capital Markets and AIB UK segments.
Climate Capital specialises in lending to large scale renewable energy
and infrastructure projects, which are key drivers for sustainable
economic growth. The business serves the Irish, UK, European
and North American markets through offices in Dublin, London and
New York.
AIB UK
AIB UK offers corporate, retail and business banking services in two
distinct markets:
• A sector-led corporate bank supporting mid to large corporates
focused on housing, commercial real estate, health, hotels and
manufacturing businesses across both Great Britain and Northern
Ireland. Services include lending, treasury, trade facilities, asset
finance and invoice discounting.
• A full-service retail bank in Northern Ireland (‘AIB (NI)’) to personal
and business customers with a focus on mortgage and
business lending.
Group
Group comprises wholesale treasury activities and Group control and
support functions. Treasury manages the Group’s liquidity and funding
positions and provides customer treasury services and economic
research. The Group control and support functions in the period
included Technology and Data, Operations and Business Services,
Finance, Risk, Legal and Corporate Governance, Chief Customer
Office, Human Resources, Strategy and Sustainability, Corporate
Affairs and Group Internal Audit.
Segment allocations
Under the Group's cost allocation methodology, substantially all of the
costs of the Group's control, support and Treasury functions are
allocated to Retail Banking, Capital Markets, Climate Capital and AIB
UK. In addition, certain Bank levies and regulatory fees, such as the
Irish bank levy, are allocated to the Retail Banking, Capital Markets and
Climate Capital segments.
Funding and liquidity income/charges are based on each segment’s
funding requirements and the Group’s funding cost profile, which
is informed by wholesale and retail funding costs. Income attributable
to capital is allocated to segments based on each segment’s
capital requirement.
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Business Review –
1. Operating and Financial Review continued
Retail Banking
Retail Banking
contribution statement
2024
2023
%
€ m
€ m
change
Net interest income
2,633
2,409
9
Other income
509
662
-23
Total operating income
3,142
3,071
2
Total operating expenses
(1,353) (1,253)
8
Bank levies and regulatory fees
(104)
(51)
Operating contribution before
impairments and exceptional items
1,685
1,767
-5
Net credit impairment charge
(28)
(57)
-51
Operating contribution before
exceptional items
1,657
1,710
-3
Income from equity accounted
investments
21
7
Contribution before exceptional items
1,678
1,717
-2
Net interest income
€2,633m
Net interest income increased by € 224 million compared to 2023
primarily driven by the favourable impact of higher average interest
rates and an increase in average loan volumes, including
the acquisition of loans from Ulster Bank, partly offset by higher interest
expense on customer accounts.
Other income
€509m
Other income decreased by € 153 million compared to 2023 as higher
transactions volumes and wealth income was more than offset by lower
income from the loan acquisition forward contract to acquire tracker
(and linked) mortgages from Ulster Bank.
Total operating expenses
€1,353m
Total operating expenses increased by € 100 million in 2024 compared
to 2023 due to higher personnel and general and administrative
expenses.
Bank levies and regulatory fees
€104m
Following changes in the relevant legislation, bank levies and
regulatory fees increased to € 104 million in 2024 compared to € 51
million in 2023.
Net credit impairment charge
€28m
There was a net credit impairment charge of € 28 million in 2024 (2023:
€ 57 million). This comprised a charge on personal of € 80 million
partially offset by writebacks on mortgages of € 35 million, non-property
business € 13 million and property € 4 million.
31 Dec
31 Dec
Retail Banking
2024
2023
%
balance sheet metrics
€ bn
€ bn
change
Mortgages
4.5
3.9
Personal
1.3
1.2
Property
0.1
0.1
Non-property business
0.9
0.9
New lending
6.8
6.1
11
Mortgages
35.5
33.4
Personal
3.1
2.8
Property
0.4
0.5
Non-property business
3.1
3.1
Gross loans
42.1
39.8
6
ECL allowance
(0.5)
(0.6)
-17
Net loans
41.6
39.2
6
Current accounts
47.0
46.7
1
Deposits
37.2
33.8
10
Customer accounts
84.2
80.5
5
New lending
€6.8bn
New lending of € 6.8 billion was € 0.7 billion or 11% higher than 2023
driven by growth of 13% in mortgage lending and 7% in personal
lending.
Gross loans
€42.1bn
Gross loans increased by € 2.3 billion or 6% to € 42.1 billion as new
lending exceeded redemptions and the acquisition of Ulster Bank
tracker (and linked) mortgages.
ECL allowance
€0.5bn
The ECL allowance of € 0.5 billion in 2024 decreased by € 0.1 billion
compared to 31 December 2023 driven by a portfolio disposal and
write-offs during the year.
Customer accounts
€84.2bn
Customer accounts increased by € 3.7 billion compared to
31 December 2023 driven by higher personal and SME balances.
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Capital Markets
Capital Markets
contribution statement
2024
2023
%
€ m
€ m
change
Net interest income
906
841
8
Other income
223
185
21
Total operating income
1,129
1,026
10
Total operating expenses
(375)
(353)
6
Bank levies and regulatory fees
(19)
(12)
58
Operating contribution before
impairments and exceptional items
735
661
11
Net credit impairment writeback/
(charge)
83
(85)
Gain on disposal of business
—
2
Contribution before exceptional items
818
578
42
Net interest income
€906m
Net interest income increased by € 65 million compared to 2023
primarily driven by the favourable impact of higher average interest
rates partly offset by higher interest expense on customer accounts.
Other income
€223m
Other income increased by € 38 million compared to 2023 driven by
higher income from equity investments, loan disposal gains and wealth
and asset management in Goodbody Stockbrokers, partly offset by
lower income from loan acquisition forward contracts.
Total operating expenses
€375m
Total operating expenses increased by € 22 million compared to 2023
primarily due to higher personnel expenses.
Bank levies and regulatory fees
€19m
Following changes in the relevant legislation, bank levies and
regulatory fees increased to € 19 million in 2024 compared to € 12
million in 2023.
Net credit impairment writeback
€83m
There was a net credit impairment writeback of € 83 million in 2024
(2023: net credit impairment charge € 85 million). This comprised a
writeback on non-property business of € 71 million and on property and
construction of € 12 million.
31 Dec
31 Dec
Capital Markets
balance sheet metrics
2024
2023
%
€ bn
€ bn
change
Mortgages
0.1
0.0
Property
0.9
1.3
Non-property business
3.4
2.6
New lending
4.4
3.9
11
Mortgages
0.5
0.5
Personal
0.1
0.0
Property
5.9
6.5
Non-property business
11.1
10.4
Gross loans
17.6
17.4
1
ECL allowance
(0.6)
(0.7)
-12
Net loans
17.0
16.7
2
Investment securities
2.5
2.4
4
Current accounts
10.4
10.9
-5
Deposits
5.2
4.0
30
Customer accounts
15.6
14.9
5
New lending
€4.4bn
New lending of € 4.4 billion was € 0.5 billion or 11% higher than 2023
driven by growth in corporate lending in Ireland and selective growth in
syndicated lending partially offset by lower property lending.
Gross loans
€17.6bn
Gross loans excluding the favourable impact of foreign exchange
movements is broadly in line with 2023 with growth in business lending
largely offset by a reduction in property.
ECL allowance
€0.6bn
The ECL allowance of € 0.6 billion decreased by € 0.1 billion compared
to 31 December 2023 driven by the net credit impairment writeback
during the year.
Customer accounts
€15.6bn
Customer accounts increased by € 0.7 billion compared to
31 December 2023.
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Business Review –
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Climate Capital
Climate Capital
contribution statement
2024
2023
%
€ m
€ m
change
Net interest income
110
89
24
Other income
21
13
62
Total operating income
131
102
28
Total operating expenses
(47)
(35)
34
Bank levies and regulatory fees
(2)
—
Operating contribution before
Impairments and exceptional items
82
67
22
Net credit impairment (charge)/
writeback
(22)
9
Contribution before exceptional items
60
76
-21
Net interest income
€110m
Net interest income increased by € 21 million compared to 2023
primarily driven by higher average loan volumes.
Other income
€21m
Other income increased by € 8 million compared to 2023.
Total operating expenses
€47m
Total operating expenses increased by € 12 million compared to 2023
primarily due to higher personnel expenses driven by higher staff
numbers to support the growing business.
Net credit impairment charge
€22m
There was a net credit impairment charge of € 22 million in 2024
compared to a writeback of € 9 million in 2023.
31 Dec
31 Dec
Climate Capital
balance sheet metrics
2024
2023
%
€ bn
€ bn
change
New lending
1.9
1.2
55
Climate Capital Europe
2.5
2.3
Climate Capital UK
1.9
1.4
Climate Capital US
1.1
0.4
Gross loans
5.5
4.1
35
ECL allowance
0.0
0.0
Net loans
5.5
4.1
34
Investment securities
0.1
0.1
Current accounts
0.2
0.2
Deposits
0.2
0.1
Customer accounts
0.4
0.3
33
New lending
€1.9bn
New lending of € 1.9 billion was € 0.7 billion or 55% higher than 2023
as we continue to finance the transition to renewable energy and
infrastructure.
New lending includes the financing of onshore and offshore wind
developments in France, solar assets in the UK and utility scale
renewable ventures in North America. In Ireland, Climate Capital
funded key renewable transactions in the onshore wind and solar
sectors.
Gross loans
€5.5bn
Gross loans increased by € 1.4 billion or 35% to € 5.5 billion driven by
higher new lending.
Customer accounts
€0.4bn
Customer accounts in line with 31 December 2023.
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AIB UK
AIB UK
2024
2023
%
contribution statement
£ m
£ m
change
Net interest income
321
340
-5
Other income
22
34
-35
Total operating income
343
374
-8
Total operating expenses
(154)
(148)
4
Bank levies and regulatory fees
(2)
(1)
95
Operating contribution before
impairments and exceptional items
187
225
-17
Net credit impairment charge
(76)
(33)
Operating contribution before
exceptional items
111
192
-42
Income from equity accounted investments
5
5
-3
Contribution before exceptional items
116
197
-41
Contribution before exceptional items € m
137
227
-40
Net interest income
£321m
Net interest income decreased by £ 19 million compared to 2023 driven
by higher interest expense on customer accounts.
Other income
£22m
Other income of £ 22 million in 2024 decreased by £ 12 million
compared to 2023 driven by a loss on the disposal of legacy assets.
Total operating expenses
£154m
Total operating expenses increased by £ 6 million compared to 2023
due to higher general and administrative and personnel expenses.
Net credit impairment charge
£76m
There was a net credit impairment charge of £ 76 million in 2024 (2023:
£ 33 million). This comprised of a charge of £ 64 million on non property
business and £ 12 million on property.
31 Dec
31 Dec
AIB UK
2024
2023
%
balance sheet metrics
£ bn
£ bn
change
AIB GB Corporate
1.0
0.8
22
AIB NI Retail
0.2
0.1
75
New lending
1.2
0.9
30
AIB GB Corporate
3.8
3.8
AIB NI Retail
1.2
1.1
9
Gross loans
5.0
4.9
1
ECL allowance
(0.1)
(0.2)
-26
Net loans
4.9
4.7
3
Current accounts
3.7
3.9
-5
Deposits
3.4
3.0
13
Customer accounts
7.1
6.9
3
New lending
£1.2bn
New lending of £ 1.2 billion in 2024 increased by £ 0.3 billion or 30%
compared to 2023 driven by strong growth in corporate and mortgage
lending.
Gross loans
£5.0bn
Gross loans increased by £ 0.1 billion or 1% to £ 5.0 billion as the
impact of new lending exceeding redemptions was partly offset by the
disposal of legacy loans of £ 0.2 billion during the year.
ECL allowance
£0.1bn
The ECL allowance of £ 0.1 billion at 31 December 2024 was £ 0.1
billion lower compared to 2023 primarily due to the impact of the loan
disposal in the period.
Customer accounts
£7.1bn
Customer accounts of £ 7.1 billion at 31 December 2024 were
£ 0.2 billion higher compared to 31 December 2023.
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Business Review –
1. Operating and Financial Review continued
Group
2024
2023
%
Group contribution statement
€ m
€ m
change
Net interest income
101
111
-9
Other income
—
1
Total operating income
101
112
-10
Total operating expenses
(14)
(15)
-7
Bank levies and regulatory fees
(11)
(121)
-91
Operating contribution before
impairments and exceptional items
76
(24)
Net credit impairment writeback/(charge)
2
(1)
Operating contribution before
exceptional items
78
(25)
Loss on equity accounted investments
(1)
(1)
Loss on disposal of business
(2)
(28)
Contribution before exceptional items
75
(54)
Total operating income
€101m
Total operating income of € 101 million decreased by € 11 million
compared to 2023 driven by the loss on redemption of subordinated
debt and on disposal of investment securities which was partly offset by
higher equity gains and net trading income.
Total operating expenses
€14m
Total operating expenses of € 14 million decreased by € 1 million
compared to December 2023.
Bank levies and regulatory fees
€11m
Bank levies and regulatory fees decreased by € 110 million compared
to 2023 due to lower Deposit Guarantee Scheme and Single Resolution
Fund fees.
Loss on disposal of business
€2m
The loss on disposal of business was € 2 million in 2024. The loss of
€ 28 million in 2023 primarily reflected the transfer to the income
statement of a portion of the foreign currency translation reserves
following repatriation of part of the capital of foreign subsidiaries which
have ceased trading.
31 Dec
31 Dec
2024
2023
%
Group balance sheet metrics
€ bn
€ bn
change
Investment securities
16.1
14.9
8
Securities financing
6.6
6.5
2
Customer accounts
1.2
1.2
Investment securities
€16.1bn
Investment securities of € 16.1 billion, primarily held for liquidity
purposes, increased by € 1.2 billion from 31 December 2023.
Securities financing
€6.6bn
Securities financing of € 6.6 billion increased by € 0.1 billion from
31 December 2023.
Customer accounts
€1.2bn
Customer accounts of € 1.2 billion are in line with 31 December 2023.
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Alternative performance measures
The following is a list, together with a description, of APMs used in analysing the Group’s performance, provided in accordance with the
European Securities and Markets Authority (ESMA) guidelines.
Average rate
Interest income/expense for balance sheet categories divided by the corresponding average balance.
Average balance
Average balances for interest-earning assets are based on daily balances for all categories. Average
balances for interest-earning liabilities are based on a combination of daily/monthly balances, with the
exception of customer accounts which are based on daily balances.
Absolute cost base
Total operating expenses excluding exceptional items, bank levies and regulatory fees.
Cost income ratio
Total operating expenses excluding exceptional items, bank levies and regulatory fees divided by total
operating income excluding exceptional items.
Cost income ratio (IFRS basis)
Total operating expenses divided by total operating income.
Exceptional items
Performance measures have been adjusted to exclude items viewed as exceptional by management and
which management views as distorting the comparability of performance year-on-year. The adjusted
performance measure is considered an APM. A reconciliation between the IFRS and management
performance summary income statements is set out on page 39. Exceptional items include:
• Customer redress reflects a net charge for remediation payments to customers and associated costs
in respect of legacy matters.
• Inorganic transaction costs include costs associated with the acquisition and migration of a portfolio
of Ulster Bank corporate and commercial loans and a portfolio of Ulster Bank tracker (and linked)
mortgages.
• Restructuring costs primarily reflect termination benefits.
• Loss on disposal of loan portfolios relates to the disposal of non-performing loan portfolios.
• Other includes a fee receivable on the exit of a servicing agreement for a non-core legacy business.
Loan to deposit ratio
Net loans and advances to customers divided by customer accounts.
Net interest margin
Net interest income divided by average interest-earning assets.
Non-performing exposures
Non-performing exposures as defined by the European Banking Authority, include loans and advances
to customers (non-performing loans) and off-balance sheet exposures such as loan commitments and
financial guarantee contracts.
Non-performing loans cover
ECL allowance on non-performing loans as a percentage of non-performing loans.
Non-performing loans ratio
Non-performing loans at amortised cost as a percentage of total gross loans.
Return on Tangible Equity
(RoTE)
Profit after tax less AT1 coupons paid, divided by targeted CET1 capital on a fully loaded basis.
Details of the Group’s RoTE is set out in the Capital Section on page 42.
Management performance –
summary income statement
The following line items in the management performance summary income statement are
considered APMs:
• Other income
• Total operating income
• Personnel expenses
• General and administrative expenses
• Depreciation, impairment and amortisation
• Total operating expenses
• Bank levies and regulatory fees
• Operating profit before impairment losses and
exceptional items
• Operating profit before exceptional items
• Profit before exceptional items
• Total exceptional items
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Business Review –
1. Operating and Financial Review continued
Reconciliation between IFRS and management performance summary income statements
Performance has been adjusted to exclude items viewed as exceptional by management and which management view as distorting comparability
of performance year-on-year. The adjusted performance measure is considered an APM. A reconciliation of management performance measures
to the directly related IFRS measures, providing their impact in respect of specific line items and the overall summary income statement, is set out
below.
2024
2023
IFRS - summary income statement
€ m
€ m
Net interest income
4,129
3,841
Other income
799
881
Total operating income
4,928
4,722
Total operating expenses
(2,195)
(2,142)
Operating profit before impairment losses
2,733
2,580
Net credit impairment charge
(55)
(172)
Operating profit
2,678
2,408
Income from equity accounted investments
26
12
Loss on disposal of business
(2)
(26)
Profit before taxation
2,702
2,394
Income tax charge
(351)
(336)
Profit for the year
2,351
2,058
Adjustments - between IFRS and management performance
Other income
of which: exceptional items
(Gain)/loss on disposal of loan portfolios
(1)
19
Other
(19)
—
(20)
19
Total operating expenses
of which: bank levies and regulatory fees
138
185
of which: exceptional items
Customer redress
46
62
Restructuring costs
4
10
Inorganic transaction costs
32
59
Other
4
—
86
131
Management performance - summary income statement
Net interest income
4,129
3,841
Other income1
779
900
Total operating income1
4,908
4,741
Total operating expenses1
(1,971)
(1,826)
Bank levies and regulatory fees1
(138)
(185)
Operating profit before impairment losses and exceptional items1
2,799
2,730
Net credit impairment charge
(55)
(172)
Operating profit before exceptional items1
2,744
2,558
Income from equity accounted investments
26
12
Loss on disposal of business
(2)
(26)
Profit before exceptional items1
2,768
2,544
Total exceptional items1
(66)
(150)
Profit before taxation
2,702
2,394
Income tax charge
(351)
(336)
Profit for the year
2,351
2,058
1. Performance has been adjusted to exclude items viewed as exceptional by management and which management view as distorting comparability of performance
year-on-year. The adjusted performance measure is considered an APM.
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Objectives
The objectives of the Group’s capital management policy are to at all times comply with regulatory capital requirements and to ensure that the
Group has sufficient capital to cover the current and future risk inherent in its business and to support its future development. Detail on the
management of capital and capital adequacy risk can be found in ‘Risk management 2.3’ on page 235.
Regulatory capital and capital ratios1
Fully loaded
Transitional
Fully loaded
31 December
2024
31 December
2023
31 December
2023
€ m
€ m
€ m
Equity
15,437
15,077
15,077
Less: Additional tier 1 Securities
(1,239)
(1,115)
(1,115)
Proposed ordinary dividend
(861)
(696)
(696)
Proposed share buyback2
(1,201)
(1,000)
(1,000)
Regulatory adjustments:
Intangible assets and goodwill
(548)
(535)
(535)
Cash flow hedging reserves
121
287
287
IFRS 9 CET1 transitional add-back
—
223
—
Pension
(26)
(26)
(26)
Deferred tax
(2,153)
(2,218)
(2,458)
Calendar provisioning3
(90)
(77)
(77)
Other4
(64)
(52)
(52)
(2,760)
(2,398)
(2,861)
Total common equity tier 1 capital
9,376
9,868
9,405
Additional tier 1 capital
Additional tier 1 issuance
1,239
1,115
1,115
Other
(3)
(3)
(3)
Total additional tier 1 capital
1,236
1,112
1,112
Total tier 1 capital
10,612
10,980
10,517
Tier 2 capital
Subordinated debt5
1,661
1,500
1,500
Instruments issued by subsidiaries that are given recognition in tier 2 capital
—
29
30
IRB Excess of provisions over expected losses eligible
11
111
111
IFRS 9 tier 2 transitional adjustment
—
(65)
—
Other
(3)
(3)
(3)
Total tier 2 capital
1,669
1,572
1,638
Total capital
12,281
12,552
12,155
Risk-weighted assets
Credit risk
53,806
53,409
53,229
Market risk
730
342
342
Operational risk
7,434
5,822
5,822
Credit valuation adjustment and settlement risk
60
70
70
Total risk-weighted assets
62,030
59,643
59,463
%
%
%
Common equity tier 1 ratio
15.1
16.5
15.8
Tier 1 ratio
17.1
18.4
17.7
Total capital ratio
19.8
21.0
20.4
1. Prepared under the regulatory scope of consolidation.
2. A proposed share buyback of € 1,201 million has been included as a foreseeable distribution, in line with the new EBA Q&A 2023_6887 released in quarter 4 2023.
The prior year comparative (December 2023) share buyback was € 1,000 million.
3. Calendar provisioning is a Supervisory Review and Evaluation Process (“SREP”) recommendation to ensure minimum coverage levels on long term NPE exposures.
The difference between the SREP recommended coverage levels and the IFRS 9 ECL coverage is taken as a CET1 deduction.
4. In December 2024 Other primarily includes a prudent valuation adjustment. The prior year comparative includes an adjustment for the Ulster Bank forward
contract,which has since expired.
5. In December 2024 Non-CET1 own fund instruments include accrued interest and fair value hedge adjustments in line with the EBA report on the monitoring of
Additional Tier 1, Tier 2 and TLAC/MREL Eligible Liabilities instruments of EU institutions published on 27th June 2024 (paragraphs 144 to 162).
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40
Business Review –
2. Capital
Key Points
• The Group is reporting a fully loaded CET1 ratio of 15.1% at
31 December 2024 against a regulatory requirement of 11.4%.
• Proposed share buyback of € 1.2 billion and a cash dividend of € 0.9
billion from profits of € 2.4 billion.
• € 500 million directed share buyback completed in September 2024.
• The Pillar 2 requirement (P2R) has decreased from 2.6% to 2.4%
for 2025.
• CET1 target of greater than 14.0%.
Capital requirements
The table below sets out the capital requirements at 31 December 2024
and the pro forma requirements for 31 December 2025.
Regulatory Capital Requirements
Actual
Pro Forma
31 Dec
2024
31 Dec
2025
CET1 Requirements
Pillar 1
4.50 %
4.50 %
Pillar 2 requirement (‘P2R’)
1.46 %
1.35 %
Capital Conservation Buffer (‘CCB’)
2.50 %
2.50 %
Other Systemically Important Institutions
Buffer (‘O-SII’)
1.50 %
1.50 %
Countercyclical buffer (‘CCyB’) Impact
1.44 %
1.44 %
CET1 Requirement
11.40 %
11.29 %
AT1
1.99 %
1.95 %
Tier 2
2.65 %
2.60 %
Total Capital Requirement
16.04 %
15.84 %
Under Article 104a any shortfall in AT1 and Tier 2 must be held in
CET1. There is currently no shortfall. The table does not include Pillar 2
Guidance (‘P2G’) which is not publicly disclosed.
The Central Bank of Ireland (‘CBI’) increased the CCyB for Irish
exposures to 1.5% on 7 June 2024 (equating to an estimated 1.08%
Group requirement). The CCyB for UK exposures remains at 2%
(equating to an estimated 0.27% Group requirement). Other
jurisdictional exposures equate to a 0.09% Group requirement.
Capital ratios at 31 December 2024
Fully Loaded Ratio
The fully loaded CET1 ratio decreased to 15.1% at 31 December 2024
from 15.8% at 31 December 2023. Profit for the year attributable to
equity holders of the parent (+4.0%), DTA utilisation (+0.5%), less
proposed ordinary dividend (-1.5%), proposed share buyback (-2.0%),
mid-year buyback (-0.8%) and increased Risk Weighted Assets (‘RWA’)
(-0.7%).
The fully loaded total capital ratio decreased to 19.8% from 20.4% at
31 December 2023. The decrease in the ratio was primarily driven by
the CET1 ratio movements outlined above.
The Group elected to cease reporting the transitional arrangement in
June 2024 (as per CRR Article 473a).
Capital Actions
In April 2024, the Group issued a perpetual € 625 million Additional
Tier 1 instrument (first call date 30 October 2029), with a discretionary
coupon of 7.125%.
In May 2024, the Group issued a € 650 million Green Tier 2 instrument
(first call date 20 May 2030), carrying a coupon of 4.625%.
These issuances supported the redemption of the € 500 million AT1
and € 500 million Tier 2 capital instruments.
Significant Risk Transfer (‘SRT’)
In November 2024, the Group executed a SRT transaction referencing
a portfolio of c.€ 1.0 billion of corporate loans. The benefit of this
transaction for the Group’s CET1 ratio as at December 2024 is c.
20bps.
The SRT transaction reduced the Group’s credit risk exposure through
a risk sharing structure whereby a significant portion of the credit risk
on the reference portfolios of loan assets was transferred to external
investors. No assets were derecognised from the Group balance sheet
and the reference portfolio of loan assets and related customer
relationships will continue to be maintained by the Group.
Distributions
Proposed Dividend
The Board proposes to pay an ordinary dividend of 36.984 cent per
share from 2024 profits (totalling € 0.9 billion based on the total number
of ordinary shares currently outstanding). This is subject to shareholder
approval at the Annual General Meeting on 1 May 2025.
Share Buybacks
The Group has received regulatory approval from the European Central
Bank to undertake a buyback of its ordinary shares in an aggregate
consideration amount of € 1.2 billion. Discussions with the Department
of Finance in relation to a potential directed buyback of ordinary shares
are currently underway. Any buyback of ordinary shares would be
subject to the approvals of the Board and the Minister for Finance.
Furthermore, a buyback of € 1.2 billion from the Minister for Finance
would require the approval of independent shareholders, which, subject
to agreeing the terms of the buyback with the Department of Finance,
the Group will seek in due course.
In September 2024, the Group with agreement from the Minister of
Finance, executed an off-market purchase for a total consideration of
€ 500 million of 91,827,364 ordinary shares at a price of € 5.445 per
Ordinary Share, being the closing price of the Ordinary Shares on
30 August 2024 on Euronext Dublin.
In October 2024, the Group completed its Odd-lot Offer to eligible
shareholders resulting in the Group buying back 253,765 ordinary
shares at a price of € 5.65 each for a total consideration of c.€ 1.4
million. The Odd-lot Offer was launched on 9 September 2024 to
facilitate the disposal by Eligible Odd-lot Holders of their Ordinary
Shares at a 5% premium to the market price, without the dealing costs
that would typically render such a disposal uneconomic, whilst giving
Eligible Odd-lot Holders the ability to opt-out of such a disposal.
Regulatory Developments
Capital Requirements Regulation 3 (‘CRR3’)/Basel IV
Basel IV capital regulations enacted in EU legislation through the
CRR3 came into effect on 1 January 2025, the benefit is estimated
at c. 120bps. The key impacts are a combination of reduced LGD input
factors on certain Foundation IRB exposure classes, the removal of the
IRB risk weight scalar of 1.06 and reduced risk weights on portfolios on
standardised models.
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Model Development
In 2024 redeveloped models for AIB Mortgages, Corporates and SME
were implemented resulting in a largely neutral capital impact as
scalars had been applied to the outgoing models during 2023.
A regulatory decision in relation to the Permanent Partial Use (‘PPU’) to
apply the standardised approach to certain exposure classes has been
received. The implementation of the decision has resulted in € 0.6bn
reduction in RWA (0.1% CET1%) mainly due to sovereign exposures
now receiving a lower risk weight than under the IRB approach.
Headwinds may be faced as further exposures transition from the
standardised approach to IRB.
Leverage ratio
The fully loaded leverage ratio is 7.3% at 31 December 2024 (7.5% at
31 December 2023).
2024
2023
Leverage Ratio Metrics
€m
€m
Total Exposure (Fully Loaded)
145,609
140,289
Tier 1 Capital (Fully Loaded)
10,612
10,517
Leverage Ratio (Fully Loaded)
7.3 %
7.5 %
Minimum Requirement for Own Funds and Eligible Liabilities
(‘MREL’)
At 31 December 2024 the Group has a MREL ratio of 31.7% of RWA
(34.0% at 31 December 2023).
The Group’s MREL ratio is in excess of the target for 2024 indicating
that the Group has sufficient loss absorption and re-capitalisation
capability. In the 12 months to 31 December 2024, the Group issued
$ 1 billion MREL bonds.
The Group’s January 2025 requirement is 28.9% of RWA including
the combined buffer requirement.
The Group continues to monitor developments in the Single Resolution
Board’s (‘SRB’) MREL policy which has the potential to impact the
Group’s MREL requirements.
Ratings
AIB Group plc and Allied Irish Banks, p.l.c. are rated at investment
grade with Moody’s and S&P Global.
AIB Group plc
On 26 Nov 2024, S&P Global moved AIB’s outlook to Positive from
Stable and reaffirmed all ratings.
The positive outlook reflects multiple factors including; S&P Global’s
expectations that risk-adjusted profitability for the Group will remain
solid despite the declining interest rates and the Group’s sound risk
management together with stronger and more efficient franchise thanks
to advancing digital capabilities, could help close the gap with higher
rated peers.
Long term Ratings
31 December 2024
Moody’s
S&P Global
Long term
A3
BBB
Outlook
Positive
Positive
Investment grade
√
√
Long term Ratings
31 December 2023
Moody’s
S&P Global
Long term
A3
BBB
Outlook
Positive
Stable
Investment grade
√
√
Return on Shareholder Equity (‘RoE’)/ Return on Tangible Equity
(‘RoTE’)
Return on Shareholder Equity (RoE)/
Return on Tangible Equity (RoTE)
2024
2023
€m
€m
Profit after tax
2,351
2,058
AT1 coupons paid
(80)
(65)
Attributable earnings
2,271
1,993
Average Shareholder Equity
14,078
12,555
Return on Shareholder Equity
16.1%
15.9%
Average RWA
60,747
57,398
RWA * 14% CET1 target1
8,505
7,749
Return on Tangible Equity
26.7%
25.7%
The Group has a financial target for RoTE of 15%.
Return on Assets
The Return on Assets (RoA) at 31 December 2024 is 1.6%
(2023: 1.5%).
1. The Group’s CET1 target for 2024 is greater than 14%. The 2023 RoTE is calculated using the target of greater than 13.5%
Note: RoTE is considered an Alternative Performance Measure
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Business Review –
2. Capital continued
Sustainability
Reporting
Progressing our sustainability agenda
is a core tenet of our corporate strategy.
In this section
Sustainability Reporting
43
Sustainability Statement
44
Our Approach to Sustainability
44
Basis of Preparation
45
Our Sustainability Strategy
46
Our Value Chain
48
Our Stakeholder Engagement
49
Creating Value through Our Business Model
50
Our Sustainability Governance
51
Our Approach to the Double Materiality Assessment
54
Our Material Impacts, Risks and Opportunities
58
Climate & Environmental Action
63
Climate Change
64
Climate & Environmental Risk
68
Decarbonising Our Loan Book
70
Decarbonising Our Own Operations
75
Methodology for Calculating GHG Emissions
77
EU Taxonomy
80
Societal & Workforce Progress
83
Financial Wellbeing
85
Housing
88
Own Workforce (Equal Treatment & Opportunities for All)
90
Human Rights Commitment
95
Channels for Stakeholders to Raise Concerns
96
Governance & Responsible Business
99
Corporate Governance, Ethics & Accountability
101
Culture & Reputation
104
Cybersecurity & Data Protection
107
Management of Our Supplier Relationships
111
Appendices
113
Statement of Directors’ Responsibilities
for the Sustainability Statement
116
Limited Assurance Opinion
117
Task Force on Climate-Related Financial Disclosures (TCFD)
120
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How to read the
sustainability statement
In line with the ESRS 1 general
requirements, our sustainability statement is
a standalone section of the management
report, structured in four parts. The first part
includes mandatory information as required
by the general disclosures of ESRS 2,
including the outcome of the DMA. The
other three parts are topical – Climate &
Environmental Action, Societal & Workforce
Progress and Governance & Responsible
Business.
In line with the ESRS, the topical sections
include information on our seven material
topics. We have included material
information with respect to the policies,
actions, metrics and targets we have
adopted to manage the corresponding
impacts, risks and opportunities (IROs) of
each material topic. You will find details of
our material topics throughout the topical
sections, within the Our policies, Our actions
and Our performance measures categories,
including key metrics that we have
highlighted for your reference.
Key performance measures /
metrics are indicated by this icon:
Some of the required information is
incorporated by way of reference to other
sections of this report, including the Annual
Review, Governance and Oversight Report,
and Risk Management, as we believe this
information is best read in conjunction with
the financial information and overview of
our other activities. We have indicated
clearly where this is the case.
Additionally, given that the ESRS are
sector-agnostic, we have included
entity-specific metrics to disclose material
information for the reader. The index tables
in Appendix 1 from page 113 summarises
where the ESRS Disclosure Requirements
(DR) can be found in this report.
We have utilised visuals and diagrams to
facilitate understandability of information,
and, where applicable, have included a
reference to the corresponding DR within
the text.
Throughout this report, ‘sustainability
matters’ and ‘sustainability topics’ are used
interchangeably. Key sustainability related
terms are defined in the Glossary of Terms
in the General Information section from
page 389.
We are pleased to present our
first sustainability statement which
has been prepared in accordance
with CSRD. This statement builds on our
well-established approach to transparent
sustainability disclosures. We believe
sustainability reporting is an important enabler
of our broader approach to embed sustainable
practices across our business model.
Mary Whitelaw
Chief Strategy and Sustainability Officer
AIB has reported against the Non-Financial
Reporting Directive (NFRD) since 2017.
This year, we have prepared our sustainability
statement in line with the European
Sustainability Reporting Standards (ESRS)
to comply with the Corporate Sustainability
Reporting Directive (CSRD).
Progressing our sustainability agenda is
a strategic priority for AIB. We integrate
environmental, social and governance (ESG)
factors into financial decision-making to
promote sustainable development, which is
often defined as the development that meets
the needs of the present without compromising
the ability of future generations to meet their
own needs.
We continue to support the low-carbon
transition, empowering people to build a
sustainable future, and have made ambitious
commitments to play a central role in
supporting our customers, colleagues and
many other stakeholders on this journey. We
are committed to complying with regulatory
requirements and providing our stakeholders
with a fair and balanced view of our material
sustainability matters, practices and results for
the 2024 financial year, reflecting our belief
that open disclosure and accountability
promote trust and confidence among
stakeholders.
We have included a content index detailing
our progress against the Task Force on
Climate-Related Financial Disclosures (TCFD)
recommendations, from page 120 for details.
In addition to this sustainability statement, you
can find our disclosures with reference to the
Global Reporting Initiative (GRI) framework,
United Nations Environment Programme
Finance Initiative (UNEP FI) Principles for
Responsible Banking and the Equator
Principles on our website.
Companies in scope of the CSRD are required
to report on a double materiality basis. This
means disclosing both the risks and the
opportunities they face from a changing climate
and other ESG matters (financial materiality),
as well as the impacts they have or may have
on people and the environment (impact
materiality).
In line with this requirement, we have carried
out a detailed Double Materiality Assessment
(DMA) to identify our material topics across
the value chain. Our value chain encompasses
a range of activities and relationships
with stakeholders across upstream, own
operations and downstream components.
As a result of the DMA process we have
identified our seven material topics, which
we disclose in this sustainability statement.
Climate change
ESRS E1
Financial wellbeing
ESRS S4
Housing
ESRS S3
ESRS S4
Own workforce
(Equal treatment &
opportunities for all)
ESRS S1
Governance, ethics
& accountability
ESRS G1
Culture & reputation
ESRS G1
Cyber security &
data protection
ESRS S1
ESRS S4
ESRS G1
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Our Approach to Sustainability
BP-2
We have prepared our sustainability statement on a consolidated
basis and the scope of consolidation aligns with that of the Group’s
Consolidated Financial Statements, available from page 247 of this report.
BP-1, BP-2
General basis of preparation
Within AIB Group plc, the material
subsidiaries as of 31 December 2024 are:
• Allied Irish Banks, p.l.c.;
• AIB Mortgage Bank Unlimited Company;
• EBS d.a.c;
• AIB Group (UK) p.l.c.
Page 326 of this report lists our principal
businesses and their locations. Further
detail on our subsidiaries is available in
the Financial Statements.
Our sustainability statement covers our
upstream, own operations and downstream
value chain, to the extent required to enable an
understanding of our material sustainability
matters. The sustainability statement is prepared
in accordance with Part 28 of the Companies Act
2014 and in compliance with the ESRS
requirements.
Our materiality assessment has considered IROs
that arise through direct and indirect business
relationships across the value chain. When
reporting on policies, actions and targets, we
have covered value chain stakeholders where
applicable. We report on metrics associated with
our value chain using relevant qualitative and
quantitative data and information collected
across the business or directly from customers.
For certain environmental metrics related to
value chain information, we use proxy
information as detailed under estimations. The
Group has prepared a policy document outlining
the principles, specific measures and methods
for collection of all relevant sustainability data and
information. Data collection is based on relevant
data sources, and the information is aligned with
the material data points defined in the ESRS.
We have not omitted any specific information on
the basis of intellectual property, know-how, or
innovation results, or the basis of negotiation. In
line with ESRS 1, Appendix C, we have taken
advantage of certain phase-in provisions
applicable to AIB, as set out in the Appendix
index table on pages 113 to 115.
Where applicable, a reference to the Financial
Statements indicating direct connectivity is
included alongside monetary amounts.
Disclosures for specific circumstances
Time horizons
For the purposes of this statement our time
horizons are defined as follows:
• short-term: Up to 1 year;
• medium-term: 1 – 5 years;
• long-term: > 5 years.
We deviate from the medium- and long-term time
horizons when reporting climate-related physical
and transition risks. In line with the Regulatory
Guidance from the European Banking Authority
(EBA), we define long term as > 10 years. Given
that the ESRS does not permit a deviation from
the 1-year short term horizon, the medium term
defaults to >1 – 10 years.
Estimations
We report certain value chain and quantitative
metrics by relying on data derived indirectly
through third-party data providers or sector-
average value. This information may be
estimated using estimation factors which may
significantly affect the reported information.
The Group cannot influence estimates and
assumptions made by a third-party data provider.
As real data becomes available and
calculation methods develop, the quality of
data will improve gradually.
This means that figures in the sustainability
statement may change over the coming years,
and there may also be changes in figures from
previous ESG reports. New guidance, industry
standards and scientific research are
anticipated, and we reserve the right to
periodically review and update targets,
methodologies and approaches and to restate
baselines as necessary.
Limited assurance
In accordance with section 1613 of the
Companies Act, 2014, this sustainability
statement, set out on pages 43 to 116, has
been subject to limited assurance by
PricewaterhouseCoopers. The elements of
this report outside of the sustainability
statement that are covered by their limited
assurance procedures are clearly indicated by
the specific ‘(limited assurance)’ reference.
Their limited assurance procedures do not
extend to any comparative information, links or
references to material outside of the Annual
Financial Report (AFR) nor to other sections of
the AFR unless clearly otherwise indicated to
the contrary. Their limited assurance report is
included on pages 117 to 119 of the AFR and
should be read in conjunction with this
sustainability report.
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Basis of Preparation
We continue to support the transition to a more
sustainable future, building long-term resilience
for our business, customers, economy and society.
SBM-1
Our sustainability strategy is integrated with
our overall Group strategy, with Sustainable
Communities as a core pillar. It aligns with the
three strategic areas of focus, which place an
enhanced focus on serving our customers
across the Group, greening the business and
driving greater operational efficiency.
To support the delivery of the Group strategy,
AIB has appointed a Chief Customer Officer to
drive improved customer experience by better
understanding customer behaviour and
attitudes and using those insights to meet
their evolving needs.
As a financial institution, we have a role to
play in combatting climate change through our
lending and investment activities, recognising
that significant investments are required globally
to finance the green transition.
Our ambition is for our own operations to
be Net Zero by 2030 and for our lending
portfolio to be Net Zero by 2050. To deliver
on our decarbonisation ambition, we have
sharpened our ESG principles across three
pillars, as shown in the graphic below. Similar
to our peers, we recognise the challenges of
implementing our strategy due to the evolving
policy landscape, stringent regulatory
requirements, ESG data limitations and the
global struggle to stay on track for limiting long-
term global warming to 1.5⁰C.
The implementation of our strategy is supported
by our four operating segments: Retail Banking,
Capital Markets, Climate Capital and AIB UK.
We operate predominantly in Ireland and the
UK. Further information on our operating
segments, including significant groups of
products and services, can be found on pages 4
to 5 of the Annual Review section. Number of
employees by geographical area is reported on
page 94 of this statement. Information on how
our material IROs correlate to our strategy and
business model is on page 58 of this section.
Three strategic
areas of focus
Customer first
We will develop deeper, more
enduring relationships with our
customers by better serving
their financial needs through
integrated propositions.
Greening our business
We will mobilise capital to
support climate action, be a
catalyst for positive change
and continue to build on our
sustainability leadership.
Operational efficiency
& resilience
We will ensure the appropriate
capability, capacity and resilient
platforms are in place to support
the Group’s strategic ambition.
Customer
first
Sustainable
communities
Simple &
efficient
Risk &
capital
Talent &
culture
Our Sustainability Strategy
ESG strategic
pillars
Climate &
environmental
action
Societal &
workforce
progress
Governance &
responsible
business
Our purpose
Empowering people to build a sustainable future
Guided by our
ESG principles
by providing responsible green
finance, investments and advice to
drive structural change and support
the transition to a low-carbon future
by maximising positive outcomes
for customers and colleagues,
helping build a brighter and a
more prosperous future for all
by acting responsibly, with
integrity and transparency,
while embedding sustainability
capabilities and measures
Our material
sustainability
topics
Climate change
Financial
wellbeing
Governance, ethics
& accountability
Housing
Culture & reputation
Own workforce
(Equal treatment &
opportunities for all)
Cyber security &
data protection
ESRS E1 – Climate change
ESRS S4 – Consumers & end-users
ESRS S3 – Affected communities
ESRS S1 – Own workforce
ESRS G1 – Business conduct
Alignment with
UN SDGs1
1. While AIB supports all 17 United Nations Sustainable Development Goals, we believe we can make the most sustained and scalable impact in those listed above.
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Our Sustainability Strategy
Climate &
environmental
action
Areas of focus for 2024 – 2026
• Lend responsibly and steer our portfolios
towards Net Zero by 2050.
• Reach Net Zero in own operations by 2030.
• Increase consideration and management
of climate and environmental risks.
• Contribute to protecting nature and
safeguarding natural ecosystems/habitats.
We have developed a range of products and
services to deliver on our strategic ambition to
lend responsibly and decarbonise our loan
book by 2050. Our retail offerings include
green mortgage products across the AIB, EBS
and Haven brands and the AIB green personal
loan, along with green commercial real estate
(CRE) lending and renewables lending
delivered by AIB, as well as electric vehicle
(EV) car leasing options through Nifti, our joint
venture with Nissan Ireland.
Our Climate Capital segment is mobilised
and growing, providing finance for renewable
energy and sustainable infrastructure
projects across Ireland, the UK, Europe
and North America. We have established
a €30bn Climate Action Fund to support our
strategy implementation.
Across our four segments, we intend to
broaden our green product suite for personal,
small and medium-sized enterprises (SME)
and corporate customers. We plan to steadily
increase new green and transition lending to
reach our target of 70% of all new lending to
be green and transition by 2030.
We are also focused on managing our own
carbon footprint, with an ambition to reach Net
Zero in our own operations and source 100%
of electricity from certified renewable energy
sources by 2030 through virtual Power
Purchase Agreements (VPPAs).
To support our decarbonisation ambitions,
we closely monitor and manage climate and
environmental risks, which are integrated into
our credit risk management policies and
processes. Understanding our green and
transition lending and continuously improving
data capture and analysis will support our
long-term management of climate-related and
environmental risk in our lending portfolio, by
not funding or lending to companies that are
not aligned with our sustainability targets.
We will continue to further develop our
approach to nature and to include
considerations for nature into both our business
strategy and risk management approach.
Read more in Climate & Environmental Action.
Societal &
workforce
progress
Areas of focus for 2024 – 2026
• Put our customers first, always treating
them fairly and with respect.
• Continue to proactively contribute to a
robust and sustainable economy
and society.
• Empower our workforce and foster a safe,
inclusive and supportive work environment.
• Support our communities and local
initiatives in a sustainable way.
Customer First continues to be at the centre
of our strategy. We invest in developing tailored
financial products that meet our customers’
needs and support their financial wellbeing.
We strive to deliver simplicity, agility, speed and
self-service while safeguarding the accessibility
and equality of opportunities to access financial
services for all. We offer advisory services via
Goodbody Clearstream and specialist advice
for our clients on their sustainability journey,
from advisors across AIB Group. We also
provide financial literacy programmes and have
additional supports in place to take extra care
of our vulnerable customers.
As a pillar bank in Ireland, we recognise our
role in supporting with social challenges such as
access to housing. We fund new developments
and support social and affordable housing
programmes, seeking to improve the
availability and affordability of housing for
our customers and the wider community.
Our people know and serve our customers.
To promote equal treatment and opportunities
for our own workforce, we have dedicated
policies and actions in place to support
diversity and inclusion as well as training and
skill development. We have dedicated
sustainability resources, including an in-house
ESG research function, AIB Sustainability
Champions and an AIB Sustainability
Academy which is a hub for all ESG learning,
sustainability resources and education
opportunities. We continuously engage with
product owners and frontline staff when
developing new green and transition products.
Overall, stakeholder awareness is key to
advancing our strategic ambitions. Our
Sustainability Conference brings together
exceptional international and Irish trailblazers,
each providing their unique perspective to
help demystify the global transition to a more
sustainable future.
We continued with our contribution to the
wider community and society through the
annual AIB Community €1 Million Fund, part of
our €11.3m Community Investment.
Read more in Societal & Workforce Progress.
Governance &
responsible
business
Areas of focus for 2024 – 2026
• Facilitate a culture that promotes our
values and fosters engagement.
• Ensure that the Board and management
work to the highest standards to deliver
long-term value.
• Operate responsibly at all levels, while
managing cyber security, data security
and operational resilience risks.
We promote a strong culture of accountability
through our Code of Conduct, robust
corporate governance rules, regular
compliance monitoring and dedicated
training at all levels in the organisation.
Our policies, controls and procedures help
us protect ourselves and our stakeholders
against threats like insider trading, corruption,
bribery and money laundering. Our culture and
reputation help us align our business activities
with our principal values of integrity,
transparency and accountability.
In line with our values, we strive to act and
conduct our business sustainably, including
our supply chain. We only do business with
companies who adhere to our Responsible
Supplier Code, which sets out our
expectations, including the responsible and
ethical behaviours that we look for.
Our Sustainability Transformation Programme
oversees and embeds sustainable practices
across our business and takes an integrated
approach to delivering on our regulatory,
strategic and customer enablement objectives.
Through continued oversight of our policies,
processes and governance structures, we
seek to ensure positive outcomes.
In a digital and interconnected world,
safeguarding all forms of data and maintaining
cyber resilience is imperative to our business
and to our stakeholders. We will further
improve our efforts to manage cyber security,
data security and operational resilience risks,
protecting customers, our colleagues and
the Group.
Read more in Governance & Responsible
Business.
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Upstream value chain
Our investors refer to our shareholders,
including capital providers, both debt and
equity.
Our suppliers refer to any third-party
organisation that provides goods or
services to or on behalf of AIB Group.1
Regulators refer to regulatory bodies,
governments and policy-makers
responsible for creating rules and
regulations which supervise or moderate
AIB’s functioning business.
Own operations
Our own workforce
refers to our
colleagues. It
includes employees
who are in an
employment
relationship with AIB
Group, and non-
employees, including
our subsidiaries.
Downstream value chain
Community refers to different
groups with whom we are
connected, both directly and
indirectly. These include industry
groups and associations, schools
and universities, and groups
established to represent the
interests of the wider community
and the environment.
Our customers include retail and
business customers to whom we
provide products and services.
Our ability to create long-term value is deeply interconnected
with our value chain and our stakeholders.
SBM-1
Our value chain encompasses a range
of activities and stakeholder relationships,
which we rely on to provide banking products
and services.
We have identified our key stakeholder groups
along the upstream, own operations and
downstream of our value chain, and, in line
with the ESRS, we group them into:
• Affected stakeholders, who are individuals
or groups whose interests are affected, or
could be affected, by our activities, either
directly through contractual relationships
(e.g. employees and customers) or
indirectly through our value chain
(e.g. community and society).
• Users of the sustainability statement,
who are primary users of general-purpose
financial reporting and other users
(e.g. investors and regulators).
The nature of our business means that we
have a complex value chain. It extends
beyond direct contractual business
relationships. For example, in our role as a
lender we have direct relationships with our
personal and business customers. Our
business customers have their own value
chains, through which we may be associated
with impacts on the wider society and the
environment. As an employer, we have a
direct relationship with our own workforce,
who are part of our own operations. As a
regulated business, funded by debt and equity,
and as a procurer of goods and services, we
are connected to stakeholders in our upstream
value chain, such as our regulators, investors
and suppliers.
For each of our roles we perform due diligence
processes. The diagram below is a high-level
depiction of our intricate value chain and our
relationships with our key stakeholder groups.
1. This definition does not include individual contractors, agents, or intermediaries.
Value chain key:
Direct relationships
Affected stakeholders
Indirect relationships
Users of the sustainability statement
Direct and indirect relationships
Both affected stakeholders and users of the sustainability statement
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Our Value Chain
Effective, systematic and continuous
stakeholder engagement is a key focus
of our approach to sustainability.
SBM-2
Stakeholders’ views, interests and expectations
are integral to our strategy and business
model, and are considered by the Board in
all its deliberations. To understand our
stakeholders’ views and serve their best
interests, the Group engages with them
through a range of regular engagement
channels, including our due diligence
processes, as well as through industry
representative groups.
Throughout 2024, the Board continued
engaging directly with key stakeholders,
including our colleagues, customers, suppliers,
investors, regulators and the wider society and
community. It received management reports
and updates on stakeholder matters.
Information on the key engagement outcomes
and how they informed the Group’s strategic
decisions is included in Section 172 Statement
and Stakeholder Engagement from page 140 in
the Governance Report.
When engaging with stakeholders, including our
own workforce (i.e., our colleagues), our
suppliers, our customers and the wider
community and society (including affected
communities), we pay particular attention to
human rights.
We do so by promoting a culture of accountability
and inclusivity, conducting appropriate checks as
part of our due diligence and onboarding
processes, and ensuring that we have channels
for all of our stakeholders to raise any concerns,
including our whistleblowing channels for raising
concerns of wrongdoing as defined by Protected
Disclosures legislation.
A new Whistleblowing Policy, with the sole
purpose of facilitating the reporting and
effective management of Protected
Disclosures was approved by Group Board
Audit Committee in November 2024, and
effective from January 2025. It replaces the
Speak Up Policy, which has been retired. Our
respect for human rights is embedded in our
Human Rights Commitment and it is shaped by
the UN Guiding Principles on Business and
Human Rights. It operates alongside AIB’s Code
of Conduct and Responsible Supplier Code.
Further details on Our Human Rights
Commitment are included on page 95 of this
statement.
Additionally, in 2023, as part of the DMA
process, we have engaged with our key
stakeholders, the outcome of which was
communicated to the respective ExCo and
Board Committees. This process is outlined in
Our Approach to the Double Materiality
Assessment from page 54.
We will continue our annual stakeholder
engagement process in a responsible manner
to build strong relationships and continuously
inform our strategy, while delivering long-
standing outcomes.
The sustainability statement highlights, along
with a link to the full report, is shared with all of
our colleagues following publication. Senior
leaders are also provided with key messages
for their teams to further ensure channels of
communication are available to raise any
questions.
We are members of and actively participate
in the:
• Banking and Payment Federation Ireland
(BPFI)
• Business in the Community Ireland
• European Banking Federation
• Financial Services Union
• Irish Business and Employers'
Confederation (IBEC)
• Irish Banking Culture Board
• Irish Paper Clearing Company1
• Irish Payments Council1
• Institute of Bankers1
• Cyber Defence Alliance1
• UNEP-FI
1. AIB holds a governance position with these
organisations
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Our Stakeholder Engagement
Our value creation model
SBM-1
We are committed to creating value for our
stakeholders through a robust and dynamic
Group business model. In 2024, AIB Group
operated four core segments, Retail Banking,
Capital Markets, Climate Capital and AIB UK,
predominantly in Ireland and the UK, as
described on pages 4 and 5. Our ambition as
a Group is to be at the heart of our customers'
financial lives. Our value creation model
depends on inputs across our three strategic
priorities, including key intangible resources
such as brand reputation, employee expertise,
intellectual property and technology
innovation. These key intangible resources
drive strong relationships with our customers
and other stakeholders. By leveraging these key
intangible resources, we strive to empower
people to build a sustainable future, while
driving our business growth and competitive
advantage. The diagram below includes a
non-exhaustive list of the key inputs that we
rely on to deliver value for our stakeholders, in
the form of outputs and outcomes.
Guided by our strategic pillars
With three strategic areas of focus
Customer
first
Greening our
business
Operational efficiency
& resilience
Inputs include the resources and relationships that we rely on to operate our business and deliver value for our stakeholders
€110bn
Customer accounts
236
170 AIB branches and 66 EBS offices in ROI
€30bn
Climate Action Fund by 2030
100%
Sourcing of renewable energy
for our own operations by 2030
10,469
Employees (Actual Full Time Equivalent)
€4.93bn
Total operating income
Our business model includes the activities, products and services through which we deliver value for our stakeholders
Our purpose
Empowering
people to build
a sustainable
future
Our Values
• Put customers first
• Be one team
• Show respect
• Own the outcome
• Drive progress
• Eliminate complexity
Our operating segments
• Retail Banking
• Capital Markets
• Climate Capital
• AIB UK
Our material topics
• Climate change
• Own workforce
(Equal treatment &
opportunities for all)
• Housing
• Financial wellbeing
• Governance, ethics
& accountability
• Corporate culture
• Cyber security &
data protection
Supported by our
relationships with
key stakeholders
across the value chain
• Our customers
• Our colleagues
• Our investors
• Our suppliers
• Regulators
• Society & community
Outputs include the results that our business activities create for our stakeholders
€14.5bn
New lending
2.27m
Digitally active customers
€16.6bn
Cumulative Climate Action Fund
lending since 2019
84%
of renewable energy achieved from VPPAs
89%
People satisfaction rate (H2 2024)
10.33%
Cybersecurity spending of overall IT spend
Outcomes include longer-lasting impacts and benefits for our stakeholders
Developing deeper, more enduring relationships
with our customers by better serving their
financial needs through integrated propositions.
Know our customers
Respond to their needs
Deliver service excellence
Educate and innovate
Mobilising capital to support climate action,
be a catalyst for positive change and continue
to build on our sustainability leadership.
Grow green
Support transition
Enable sustainable practices
Invest for the future
Ensuring the appropriate capability, capacity
and resilient platform are in place to support
the Group’s strategic ambition.
Resource efficiency
Process efficiency
Measure and manage
Harness new technology
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Creating Value through Our Business Model
Our strong governance structures are key to delivering our
sustainability commitments. Our governance framework
provides clear oversight and ownership of the Group’s sustainability
strategy and the management of IROs at Board and Executive levels.
This section outlines the roles and
responsibilities of these bodies in relation
to sustainability matters and business
conduct, including their relevant skills and
expertise. The Governance Report
provides details of their overall roles and
responsibilities, composition and diversity1
as well as representation of employees
(pages 128 to 135 and 154 to 155).
Roles and responsibilities
GOV-1
AIB Group Board
The Board is responsible for promoting the
Group’s long-term sustainable performance.
It approves the Group’s strategy and our
financial and investment plans, which includes
considering sustainability factors. The Board
approves our sustainability targets as part of
the strategic planning process. These targets
then form part of the financial planning process
across our core operating segments. The
Board receives regular updates on the
execution of the Group's sustainability strategy,
enabling it to monitor performance against the
sustainability targets. These reports include
regular updates on People & Culture and bi-
annual sustainability updates. The Board is
also responsible for overall business conduct
as detailed on page 134 of the Governance
Report. Our Board-approved Code of Conduct
supports the Group’s values and helps us to
deliver on our Group strategic purpose. At
31 December 2024, the Board consisted of
the Chair, who was deemed independent on
appointment, twelve Independent Non-
Executive Directors and two Executive
Directors, being the Chief Executive Officer
and the Chief Financial Officer.
Board Committees
The Board is supported in discharging its duties
by a number of Board and Advisory Committees.
Part of their role is to oversee and challenge the
Group’s sustainability strategy and performance,
while the Board retains ultimate responsibility,
ensuring a robust approach. In relation to
sustainability matters, the Board Audit
Committee (BAC) oversees the quality and
integrity of the non-financial disclosures,
internal controls and mechanisms through
which employees and contractors may raise
concerns, in line with the scope of the
Whistleblowing Policy. The Board Risk
Committee (BRC) oversees and fosters sound
risk governance across the Group, including
ESG-related risks. The Sustainable Business
Advisory Committee (SBAC) assists the Board
in overseeing sustainability matters and
supports the execution of the Group’s
sustainable business strategy, in accordance
with the Group Strategic and Financial Plan.
The Technology and Data Advisory Committee
(TDAC) supports with the review and
challenge of the strategy, governance and
execution of matters relating to technology,
data including cybersecurity, areas aligned to
our material topics. The Nomination and
Corporate Governance Committee (NomCo)
ensures that the Board and Executive
Committee are equipped with the necessary
skills and diversity to effectively guide the
group towards sustained success. The
Remuneration Committee (RemCo) oversees
the Remuneration Policy, including the
variable remuneration scheme. Each
Committee operates under Terms of
Reference approved by the Board, as detailed
in the Governance Report.
How we define our governance
•
Management Body –
the Group Board and Board Committees
•
Management Body
in its Supervisory Function –
Non-Executive Directors
•
Management Body
in its Management Function –
Executive Directors
•
Senior Management –
ExCo and, where delegated by ExCo,
a sub-committee of ExCo.
AIB Group Executive Committee (ExCo)
ExCo is led by the Chief Executive Officer
(CEO) and includes the managing directors of
our four core operating segments. It provides
input on the design, development and delivery
of our purpose, strategy and values, and is
responsible for our day-to-day operations.
ExCo ensures we have an effective
organisational structure, including the
selection, motivation and direction of senior
management, and oversees the execution of
the strategy agreed with the Board, as well as
the operational management, compliance and
performance of all of the Group’s businesses.
ExCo is also responsible for maintaining an
effective internal governance and control
framework that includes a clear organisational
structure and independent risk management,
compliance and audit functions. In addition,
it evaluates the effectiveness of the systems
that ensure the integrity of our financial and
sustainability information, as well as the
soundness and effectiveness of risk
management and internal controls.
AIB Group governance structure
AIB Group Board
Board Audit
Committee
Board Risk
Committee
Remuneration
Committee
Nomination &
Corporate Governance
Committee
Sustainable
Business Advisory
Committee
Technology &
Data Advisory
Committee
AIB Group Executive Committee
Group Sustainability
Committee
Group Conduct
Committee
Group Risk
Committee
Group Disclosure
Committee
Data, Analytics and
Technology Committee
Core segments
Retail Banking
Capital Markets
Climate Capital
AIB UK
1. In line with ESRS 2, gender diversity is calculated as the average ratio for the year. For FY24 this is the same figure as the year-end figure presented in the
Governance Report on page 129.
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Our Sustainability Governance
ExCo operates under defined Terms of
Reference and has full authority to delegate
any of its powers, authority or activities to
identified executives or to one or more of its
sub-committees. In line with this, ExCo has
established several sub-committees. The
Chair of each sub-committee reports to ExCo
on the key aspects of its work. ExCo oversees
the sub-committees and regularly evaluates
their effectiveness.
Group Sustainability Committee (GSC)
The GSC is chaired by our Chief Sustainability
Officer. Its remit includes the effective fulfilment of
strategic objectives and regulatory obligations,
and our data strategy as it relates to ESG
disclosures. It reviews and assesses current and
emerging ESG risks, interacting with the Group
Risk Committee (see below) on relevant matters.
It also maintains relationships with key
sustainability stakeholders, and ensures that
the Group’s portfolio of ESG products aligns to
its sustainability agenda and strategy. The
GSC oversees internal and external
communications with stakeholders on the
Group’s approach to ESG matters. The SBAC
receives updates on sustainability matters
including the sustainability strategy, from
Management, following review and
recommendation from GSC.
Additionally, the GSC manages and oversees the
DMA process. The outcome of the DMA and any
subsequent updates to it are communicated to
SBAC and BAC on an annual basis.
Group Risk Committee (GRC)
The GRC is the senior management risk
committee and is accountable to ExCo for
setting policy and monitoring all risk types
across the Group, to enable delivery of the
Group’s risk strategy. As part of this process, it
receives updates on the effectiveness of the
Group’s policies and programmes related to
identifying, managing and mitigating the
Group’s ESG risks, including Climate &
Environmental (C&E) Risk, and ensuring
compliance with regulatory requirements and
industry standards. The GRC also approves
the Climate and Environmental Policy.
The BRC receives updates from the ExCo
members following review at GRC, including the
effectiveness of policies and programmes, which
relate to identifying, managing and mitigating
ESG risks, in connection with the Group’s
operations and ensuring compliance with
regulatory requirements and industry standards.
Group Disclosure Committee (GDC)
The GDC oversees material Group
disclosures. This includes recommending the
disclosures in the sustainability statement for
review to the BAC, ahead of recommendation
to the Board for approval. As part of this, the
GDC reviews the key judgements and
estimates applied to sustainability disclosures,
following their consideration by the GSC, as
well as the clarity and consistency of the
GSC’s recommended response to new legal
and regulatory requirements impacting Group
ESG disclosures.
To ensure completeness, sustainability
disclosures are also shared with SBAC
for information and feedback.
Group Conduct Committee (GCC)
The GCC is responsible for oversight of
conduct related issues in the Group. It seeks
to promote and sustain a customer centric
culture to demonstrate and evidence
consideration of customer outcomes and to
ensure that products and propositions are
consistent with the Risk Strategy and Risk
Appetite of the Group.
Data, Analytics and Technology Committee
(DATC)
The DATC is responsible for the governance,
oversight and approval of all material aspects
of the Group’s data and technology activities,
including the technology, data and analytics
strategy, data quality, cyber, ethics and privacy
standards.
Oversight of material
sustainability matters
GOV-1, GOV-2
Our Board Committees are regularly informed
by Management and ExCo subcommittees as
detailed above. This supports them in fulfilling
their oversight and management
responsibilities for our material IROs.
As detailed in the topical sections, we manage
the material IROs that cut across our core
operating segments through dedicated controls
and procedures, including policies, actions,
metrics and targets. For example, as the
sponsors or owners of particular policies,
Management and ExCo members are
responsible for overseeing their effectiveness in
addressing impacts and risks. We also manage
and monitor impacts through our enhanced due
diligence processes, as detailed below and in the
Governance & Responsible Business.
Our material risks are effectively managed
through our risk management framework and
internal controls, in accordance with the Three
Lines of Defence (3LOD) model. The Board of
Directors is ultimately responsible for the effective
management of risks and for our system of
internal controls as detailed from page 169 to
171 in the Governance Report. The Board has
delegated a number of risk governance
responsibilities to various committees. Further
details can be found from page 180 to 183 of the
Risk Management section.
Opportunities are considered as part of
strategic planning, including financial and
investment plans. SBAC ensures that the
DMA results frame our approach to developing
our sustainability strategy, including major
decisions and transactions.
The Group monitors progress towards the
Board-approved sustainability targets via the
Climate & Environment Dashboard, which is
reported quarterly to GSC and SBAC. The
Group continues to work on integrating the
processes, controls and procedures to
monitor, manage and oversee material IROs
within the specific Executive and Board
committees and internal functions.
Due diligence assessment
GOV-2, GOV-4
In addition to policies, actions, metrics and
targets in place to manage material IROs, we
also manage and monitor material impacts
and risks through enhanced due diligence
processes, as detailed below and in our
Governance section.
Our approach to due diligence demonstrates
our commitment to identifying, preventing,
mitigating and accounting for the ESG-related
impacts of our business on people and the
environment.
Our controls include extensive due diligence
assessments of clients and other business
partners. For example, as part of our C&E
Risk due diligence, the ESG Questionnaire
continues to be used in credit applications for
borrowers identified as carrying increased
transitional, environmental, social and/or
governance-related risk.
The ESRS do not impose any conduct
requirements in relation to due diligence or
require any modification to our governance.
The due diligence table in Appendix 1 of this
statement on page 114 maps where the main
elements of the due diligence process are
reflected in our sustainability statement,
including how we apply them in practice.
Key sustainability matters discussed in 2024
GOV-2
The Board and ExCo and/or their Committees
discussed a broad range of sustainability
matters in 2024, including:
• Sustainability transformation and targets
• Mobilisation of CSRD and readiness for
implementation
• Double Materiality Assessment – refresh
exercise
• Development of the Social Agenda,
including vulnerable customers
• ESG propositions
• Diversity & inclusion
• AIB’s environmental footprints
• Regulatory engagement and expectations
• Employee communications on sustainability
matters
• Sustainability Reporting
• Board succession planning, renewals,
composition and diversity
• Stakeholder engagement
• Whistleblowing and the Code of Conduct
• Climate and environmental risk
• Conduct risk and Culture risk
• Cyber risk
• Corporate Governance
• Variable remuneration
• Operational efficiency & resilience
• Data & AI
• Collaboration with community partners
Further details on areas of focus in 2024 for
the Board can be found on page 138 of the
Governance Report and in the detailed reports
of each Board committee.
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Our Sustainability Governance continued
Sustainability-related
skills and expertise
GOV-1
Acquiring and maintaining knowledge on
sustainability matters, including business
conduct, is crucial to enable us to deliver on
our sustainability commitments.
To ensure that the Board, its Committees and
the Executive are equipped with the
necessary skills and diversity to effectively
guide the Group towards sustained success,
we have a rigorous Director recruitment
process, managed by the NomCo. Similarly,
the Group’s Senior Selection Policy provides
that all candidates for ExCo positions are
assessed against key role criteria and
capabilities in the job description.
Our Board and ExCo have members with
specialised knowledge and expertise in
sustainability. The skills and expertise of each
Board member are evaluated in relation to
core skills, including Climate & Environmental
(Sustainability) and Customer & Conduct,
which covers business conduct. The Board is
supported by SBAC, as described on page
168. SBAC includes members of ExCo,
including our Chief Sustainability Officer, and
Head of Climate Capital.
Throughout 2024, several ESG-related
training events took place to advance the
Board’s collective knowledge and skills. The
training sessions were delivered by internal
and external subject matter experts on topics
including industry perspectives, emerging
practices, challenges with data quality for
climate-related disclosures and CSRD.
Our Board also has full access to an online
corporate governance library and a suite of
AIB-specific online training courses.
The Human Resources team, in partnership
with Corporate Governance, also runs a
professional development and continuous
education programme to ensure that the
Directors are equipped to lead with integrity
and oversee compliance. More information on
the Professional Development and Continuous
Education Programme, including Board skills
and experience can be found from page 154
of the Governance Report.
Variable remuneration
GOV-3
AIB operates a short-term variable
remuneration scheme which focuses on
delivery against Group performance
measures. The scheme applies to all
employees. The scheme comprises of three
financial measures, accounting for 60% of the
award calculation, and three non-financial
measures accounting for the remaining 40%.
The non-financial measures relate to gender
balance, customer satisfaction and green
finance, and underline the importance placed
on the ESG and customer agendas in line with
the Group’s strategy. Each non-financial
measure has an equal weighting of 13.33%.
Currently, performance is not assessed
against GHG emission reduction targets. The
Scheme has a Group Profit underpin, which is
a minimum level of profit that must be
achieved to trigger an award under the
Scheme. The underpin was achieved for the
2024 performance year. The variable
remuneration scheme is a component of the
Remuneration Policy and the terms of the
Scheme are approved by the RemCo. Further
details on the variable remuneration are
included in the Governance Report, from page
157.
Governance of our
sustainability reporting
GOV-5
Our governance approach to sustainability
reporting is aligned with financial reporting and
is integrated within our internal control system.
It is governed by the Sustainability Disclosure
Policy, which applies to all material
sustainability disclosures of the Group and all
in-scope entities. On an annual basis, the
Chief Strategy and Sustainability Officer, as
sponsor of the policy, recommends the
sustainability disclosures for review by the
GSC, after which they are reviewed by the
GDC and BAC as detailed above on page 52,
with the Board having final approval authority.
SBAC is also kept informed.
Risks are identified through a combination of
risk assessment methodologies and internal
controls and are in line with the 3LOD model.
The key risk identified is in relation to regulatory
compliance, which is minimised by the
Sustainability Disclosure Policy and is
managed as part of the Risk Management
Framework outlined from page 245. Other risks
identified relate to inaccurate disclosures and
lack of awareness of reporting regulatory
requirements, resulting in inaccurate
disclosures, green-washing or regulatory
censure and damage to our reputation. They
are also mitigated by our Sustainability
Disclosure Policy, as well as the internal control
framework and minimum control standard
detailed on pages 180 to 183 of the Risk
Management section.
Any findings or issues identified as part of our
assessment of the reporting process are
captured and reported to BAC and are also then
tracked and monitored until closure by the
relevant First Line Assurance teams. Please see
pages 147 to 148 of the Governance Report.
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Double materiality
assessment process
IRO-1 (E1-E5, G1)
The DMA is the starting point for preparing our
sustainability statement. In 2023, we carried
out a DMA process to identify and assess our
material sustainability matters from an impact
and financial materiality perspective.
From an impact materiality perspective, we
define impacts as the positive or negative
effects we have or could have on people
and the environment, connected with our
own operations and our upstream and
downstream value chains across short-,
medium-, or long-term. Impacts are linked
to our products and services, as well
as to our direct and indirect business
relationships, for example through our
clients’ value chains.
From a financial materiality perspective,
we define risks and opportunities as the
financial effects that affect, or could
reasonably be expected to affect, our
financial position, financial performance,
cash flows, access to finance or cost
of capital over the short-, medium- and
long-term.
Collectively, the impacts, risks and
opportunities are referred to as IROs.
In 2024, we began a new three-year strategic
cycle and our Climate Capital segment
became fully operational. We reviewed the
DMA, as required by the ESRS, and
concluded that the foundational work from
2023 continues to provide a reliable basis for
our sustainability reporting and strategic
decision-making processes.
Through the 2024 review, we identified ‘Own
workforce (Equal treatment & opportunities for
all)’ as an additional material topic. We also
merged two environmental topics,
‘Responsible lending and investment’ and
‘Climate change adaptation’ into one topic,
‘Climate change’, and two social topics,
‘Financial inclusion and wellbeing’ and
‘Customer banking experience’ into one topic,
‘Financial wellbeing’.
In line with the ESRS requirements, we
designed a five-step process to inform our
materiality assessment. The following details
the steps taken, including our methodology
and assumptions, for both the 2023
assessment and 2024 update.
Methodologies and assumptions
Scope of the assessment
We conducted the DMA process for AIB Group
plc. Given that the Bank’s operations are
based in developed markets, mainly Ireland
and the UK, where the socio-economic and
environmental factors do not vary materially,
disaggregation was not deemed necessary.
This was confirmed throughout the process
with our colleagues across the Group.
Our value chain analysis was informed by
both internal and external sources, including
risk management documentation, and input
from our colleagues. For example, our
downstream analysis focused on sustainability
IROs related to sectors of the AIB Group loan
portfolio, such as residential mortgages,
property and construction, distribution and
manufacturing. Additionally, the outcome of
our due diligence processes informed our
analysis of the upstream value chain and our
suppliers. Our initial desktop analysis was
complemented by input from our colleagues in
business areas across the Group.
Stakeholder engagement methodology
In 2023, we conducted an internal and
external stakeholder engagement process.
The internal engagement process required the
bank-wide involvement of our colleagues,
including the highest level of governance –
the Board and ExCo. They were involved in
identifying, assessing and validating the
results of the DMA, based on impact and
financial materiality parameters. The Board
and ExCo provided input through surveys and
oversaw the process, including validating and
approving the outcomes. Our colleagues were
engaged through a series of workshops and
validation sessions.
The external engagement process was carried
out through an online survey and focus group
discussions. We selected a sample size to be
representative of the stakeholder population
group. We engaged directly with customers,
investors and suppliers through surveys.1,201
customers responded to our survey.
We also engaged through working sessions
with representatives of industry associations
and non-governmental organisations in
relation to the interests and views of the wider
community and the environment. These
included the Climate Change Advisory
Council, Open Doors Initiative, International
Financial Services Centre of Excellence,
IBEC, BPFI, and Sustainability Works. These
organisations were also involved in validating
the DMA results.
We engaged some stakeholder groups to
provide inputs on impact materiality, while
others assessed topics from both impact and
financial materiality perspectives. We
determined this based on assumptions about
their level of expertise and the stakeholder
group category. Affected stakeholders
provided input from an impact materiality
perspective, while users of the sustainability
statement provided input from both impact and
financial materiality perspectives.
Scoring and thresholds
We developed the scoring methodology in line
with the impact and financial materiality
parameters detailed in ESRS 1. Impacts are
assessed based on their scale, scope,
irremediable character and likelihood. Risks
and opportunities are assessed based on the
magnitude of their financial effect and their
likelihood.
We tailored the assessment process to
internal and external stakeholders, and their
expertise levels, to ensure effective
engagement and reliable DMA outcomes. Our
colleagues assessed the IROs for each topic
across impact and financial materiality
parameters (as detailed below in steps 3 and
4). External stakeholders provided their input
on material topics on a scale of 0 – 5, ranging
from not material to critical.
The results were first calculated within each
stakeholder group and then consolidated by
taking a weighted average across all
stakeholder groups. We assigned weightings
to each stakeholder group. To support the
prioritisation of material IROs, all scores were
consolidated in an overall scale of 0 – 5,
ranging from none, minimal, informative,
important, significant and critical.
We set our materiality threshold to include
topics ranked from the high end of important
up to critical. IROs scoring above this
threshold and the associated topics are
deemed to be material. As detailed in step 5
below, the results were validated by internal
stakeholders and representatives of external
stakeholder groups, and then reviewed,
challenged and approved through the GSC.
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Our Approach to the Double Materiality Assessment
AIB’s Double Materiality Assessment
Environmental,
social, governance
factors
Financial materiality
‘Impact inward’
Impact materiality
‘Impact outward’
Environment
and society
Step 1
Business
context
Step 3
Assessing
impact
materiality
Step 5
Validation
and sign-off
Step 2
Identification
of list of
sustainability
matters
Step 4
Assessing
financial
materiality
Step 1 – Business context
We analysed our strategy and business model
to inform the context for the DMA, including the
key markets in which we operate and the sector
exposures associated with our financial
products and services. We mapped our value
chain by considering the direct and indirect
business relationships that we depend on and
identified key internal and external
stakeholders. In line with the ESRS guidance
we categorised them as affected stakeholders
or users of the sustainability statement.
Understanding these relationships helped us
identify and assess the impact of these
stakeholders in our value chain and the risks
and opportunities posed to our business, as
developed in the following steps.
Step 2 – Identification of the list of
sustainability matters
The ESRS provides a list of sector-agnostic
sustainability matters to consider. To ensure a
comprehensive assessment that took the
nature of our business into account, we
examined additional inputs to identify potential
sector and entity-specific topics across
different categories. These inputs were:
1. Peers and competitors;
2. ESG-focused regulations relevant for AIB;
3. ESG frameworks;
4. Media;
5. Industry publications;
6. Company documents.
For each category, we scored topics based on
their frequency and relevance to our business.
This resulted in a list of 24 preliminary material
sustainability topics across our ESG pillars,
which were challenged and reviewed by
Sustainability Transformation Steering
Committee.
Steps 3 & 4 – Assessing impact and
financial materiality
Through desktop research, we identified the
IROs for each of the 24 topics identified in step
2. The desktop results were complemented by
input from our colleagues.
Identifying impacts
We categorised all identified impacts as positive
or negative, actual or potential.
Social impacts were informed by company
documentation, insights from the due diligence
process and existing stakeholder engagement
output. We considered impacts on our
employees associated with our operations.
In relation to our customers and the wider
society and community, we considered the
direct and indirect impacts associated with our
lending and investment activities.
Environmental impacts relate to climate
change, pollution, water and marine
resources, biodiversity and ecosystems, and
resource use and circular economy. To
understand how they relate to our business
activities, sector exposures and geographical
locations, we consulted company documents
and publicly available databases such as
UNEP-FI. We also consulted representatives
of non-governmental organisations
representing the views of affected
stakeholders, and those regarding nature.
Impacts related to business conduct were
considered in relation to our own operations
and the associated impacts for stakeholders
along the value chain. They were mainly
informed by the regulatory framework in place.
The correlation between negative impacts and
risks was considered, particularly their
potential to trigger regulatory and reputational
risks for the Group.
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Identifying risks and opportunities
After identifying impacts across the ESG pillars,
we considered risks and opportunities, including
factors that could trigger them, such as impacts,
or dependencies on business relationships and
natural resources. For example, the impact of
transitioning our business model to support a
low-carbon economy could lead to transition
risks associated with exposure to high GHG-
emitting sectors. At the same time, this transition
presents opportunities to develop and finance
green products, thereby growing our business.
Opportunities were mainly informed by
desktop research and strategic documentation.
The outcome of the DMA, including
opportunities identified, inform the strategic
orientation for the Group.
Risks were considered in relation to physical
and transition channels related to our operations
and value chain. To ensure overall alignment,
the existing risk management processes were
an important input factor to the DMA. We
conducted the analysis through desktop
research, including analysis of the Material Risk
Assessment (MRA) framework (see page 57 for
more details), Annual Reports, Pillar 3
disclosures and credit rating reports.
Assessing the materiality of IROs
After the IROs were identified, our colleagues
from across different areas, including
subsidiaries and entities, assessed them based
on the impact and financial materiality
parameters prescribed by the ESRS. The
scoring methodology was defined on a scale of
0 – 5, ranging from not material to critical,
including a time horizon lens of short-, medium-
and long-term.
In line with impact materiality parameters,
impacts were assessed based on:
• Scale: we assessed how grave the negative
impact is, or how beneficial the positive
impact is, for people or for the environment.
• Scope: we assessed how widespread the
negative or positive impacts are. For
environmental impacts, the scope may be
understood as the extent of environmental
damage or a geographical perimeter. For
impacts on people, the scope may be
understood as the number of people affected.
• Irremediable character of the impact: for
negative impacts, we assessed whether, and
to what extent, we could remediate the
impacts by restoring the environment or
affected people to their prior state.
• Likelihood: for potential impacts, we
assessed how likely the impact is to occur.
In line with financial materiality parameters, risks
and opportunities were assessed based on:
• Magnitude of the financial effect: the
potential current or anticipated financial effect
of the risks and opportunities.
• Likelihood: how likely a risk or opportunity is
to occur.
Assessing human rights impacts
For human rights impacts, the severity of the
impact takes precedence over its likelihood.
While we identified certain potential negative
impacts, their severity scored below our
materiality threshold. Severity comprises scale,
scope and the irremediable character of the
impact.
However, the right to privacy is recognised by
the Universal Declaration of Human Rights and
falls within ‘Cyber security and data protection’,
which is a material topic for AIB. Our Human
Rights Commitment also compels us to
safeguard our customers’ right to privacy. More
information on our commitment to protecting
human rights can be found on page 95.
Consolidation of results
To arrive at a prioritised list of material topics,
the input received by our colleagues and the
input received by our stakeholders was
consolidated. The consolidated results were
validated through a series of working sessions.
We prioritised material topics, and their
corresponding IROs, based on their final score
and materiality threshold.
Step 5 – Validation and sign-off
In terms of the decision-making process and
the related internal controls procedures, the
overall process is overseen by our senior
management through the GSC, which
reviews, challenges and validates the results
of the DMA.
Prior to review by the GSC, the consolidated
results were validated by our colleagues and
approved by the Sustainability Transformation
Steering Committee. We also organised
separate validation sessions with
representatives of external stakeholder
groups, as detailed above.
As a final step, the DMA results were noted by
SBAC, BAC and the Board.
Our seven material topics –
outcome of the DMA process
As a result of the DMA process we have
identified seven material topics:
• Climate change, Own workforce
(Equal treatment & opportunities for all),
and Cyber security & data protection are
material from both impact and financial
(risk and opportunity) perspectives.
• Culture & reputation is material from a
financial perspective only (risk).
• Financial wellbeing, Housing and
Governance, ethics & accountability are
material from an impact perspective only.
Details on the corresponding material IROs for
each topic are included in Our Material
Impacts, Risks and Opportunities on pages 58
to 61.
Materiality of information
Once the material topics were determined,
they were mapped to the corresponding
ESRS. A materiality of information process
was carried out to identify material DR and
data points to be included in the sustainability
statement. Please see Appendix 1 from page
113 for more information.
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Our Approach to the Double Materiality Assessment continued
DMA and MRA connectivity
IRO-1 (E1-E5)
AIB carries out an annual Material Risk
Assessment (MRA) where risks such as C&E
Risk are identified, assessed, managed,
monitored and reported upon, as described
below. The MRA is an annual top-down
process, identifying the Group’s material risks
in line with the Group’s Risk Management
Framework. It is a key input into the Group’s
risk management processes, including the
Risk Appetite Statement (RAS). The Risk and
Control Assessment (RCA) process is a
detailed bottom-up risk assessment identifying
the risks arising from the Group’s processes
and business activities. Further details can be
found from page 180 to 183 of the Risk
Management section.
In addition to the MRA and RCA, the Group
has other risk management processes, such
as the Internal Capital Adequacy Assessment
(ICAAP) and the Internal Liquidity Adequacy
Assessment (ILAAP), both of which consider
climate-related factors in assessing capital
adequacy and liquidity adequacy.
The outcomes of risk management processes
are an important input factor in the DMA process,
informing the alignment and calibration of results.
The Group is continuously working on integrating
the DMA process, including the identification of
risks and opportunities, in terms of the overall
planning, risk management and internal controls
as applicable.
Transmission Channel Analysis
Transmission channel analysis is conducted
annually and is used to analyse how different
C&E risk drivers transmit through micro and
macroeconomic factors and impact the
Group’s material risks. The analysis considers
the Group’s geographical footprint, such as
credit, market and third party providers,
economic sectors and different asset classes,
which is overlaid with the intelligence gathered
through a Business Environment Scan (BES),
heatmaps and other internal research to map
the Group’s material risk to C&E Risk drivers.
For each of the C&E Risk drivers, the micro
and macro transmission channels are
identified, and first- and second-order impacts
are assessed.
The Group’s Materiality Matrix (GMM) was
used to determine the materiality of the
impact on individual risk types, which
considers reputational and regulatory impacts,
as well as financial losses and impacts on
business objectives.
The 2024 assessment considered 16 drivers
including transition, physical and
environmental risk, and was completed over
the short (<1 years), medium (1 – 10 years)
and long-term (10+ years) to recognise the
changing impacts of C&E risk drivers over
different time horizons.
For further details regarding stress testing and
the scenario analysis undertaken, please refer
to Climate & Environmental Risk in this
sustainability report from page 68.
Business Environment Scan
BES is conducted to provide a clear view on
how the business environment is changing,
given C&E risks. This gives a strategic view at
a macro-level, covering developments in
government policy, ambition and
achievements in reaching climate targets
(including keeping track of narratives on
carbon pricing), policy and regulation, key
technologies, demographic and social trends
and the competitive landscape, as well as
trends for priority sectors.
The latest climate science is also monitored
closely, given the potential for new information
on the physical effects of climate change to
alter perspectives on the likelihood, frequency
or type of physical risks impacting the
geographies in which the Group operates.
Risk drivers identified in the BES exercise are
incorporated for an assessment of their impact
on material risks in the Transmission Channel
Assessment.
Deep Dive on Sectors – ‘House View’
Granular research is conducted for sectors
that are material to the Group’s balance sheet,
resulting in ‘house views’. These assess how
key sectors will be impacted by broad
sustainability factors, supporting the
identification of key impacts, risks and
opportunities, as well as supporting customer
engagement. At a national level, engagement
with climate scientists, academics and
customers informs expert views on likely
pathways for these material sectors, while
local business areas across the Group, where
the sector specialists are based, are directly
involved in research and debate on current
and future developments at a sectoral level.
The output of sectoral deep-dives informs
internal debate and strategy at various levels
of the Group, while key insights are also
translated into customer-focused outputs as
appropriate to ensure broader dissemination
to stakeholders and to assist customers in
understanding transition pathways.
C&E Risk Heatmap Tools
By leveraging external studies, reports, global
tools, regulatory guidelines and internal
knowledge, three heatmaps have been
developed and are used to inform which C&E
risks are most prevalent, and where these
risks might crystallise. These heatmaps relate
to physical risk, transition risk and
environmental risk. Heatmaps are a core tool
in understanding the C&E risk profile of AIB’s
business.
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AIB at the Kaleidoscope Festival.
Our materiality assessment identified the sustainability
matters that we believe have the most impact for our
stakeholders, including the risks and opportunities arising
from our strategy and business model.
SBM-3
This section provides an overview
of our seven material topics and their
corresponding IROs. It discusses the
effects on people and the planet, and how
we can best manage and monitor these
effects, including any effects on our
business.
This section discusses how our material
IROs relate to our strategy and business
model, which is designed to be resilient
in addressing impacts and risks, while
leveraging opportunities.
Impacts
We operate predominantly in Ireland and the
UK. Through our business model, we finance
a large part of the economy, and the most
significant impacts of our operations relate to
retail and corporate lending activities.
As a people business, we impact our retail
customers and the wider community through
our approach to financial services, the
products we offer and the clients we serve,
thereby directly influencing their financial well-
being. By prioritising responsible lending,
communicating clearly and implementing
inclusive banking practices, we aim to
enhance the positive impacts of our business
on our customers and the wider community.
Housing is a strategic priority for AIB. We lend
to first-time buyers and finance social housing
that benefits the wider community. This, in
turn, supports people’s ability to achieve
financial stability and security, influencing their
quality of life and wellbeing.
We also lend to corporate clients who operate
in sectors that impact the wider society and
the environment. We have considered these
direct and indirect relationships when
identifying our most material impacts. In line
with our strategic commitment to supporting
customers in the transition to a sustainable
future, our Climate Action Fund provides green
lending and finances energy efficiency
infrastructure and technology development for
climate change mitigation and adaptation
solutions. We also acknowledge that our
financed emissions have negative impacts on
climate change. These are linked to our
lending activities and exposures to certain
high GHG-emitting sectors, and we have
therefore committed to greening our business
and decarbonising our loan book by setting
financed emission targets and integrating
ESG criteria into our lending and
investment strategies.
From the perspective of our own operations,
our most material impacts relate to our own
workforce. These are directly linked to our
commitment to empowering our colleagues
while fostering a safe, inclusive and supportive
work environment. We continuously monitor
our policies, practices and initiatives that
support inclusion, diversity, learning and
development, which, in turn, impact employee
satisfaction, engagement and retention, so we
can respond effectively and enhance the
benefits for our own workforce.
From a time horizon perspective, actual
impacts generally occur during the reporting
period. Many impacts (both positive and
negative) may also be expected to continue in
the medium to long term. Potential impacts
tend to have a medium- to long-term time
horizon, while some potential impacts could
occur at any time, such as those related to
cyber security and data protection.
Risks
The Group’s RMF ensures that our control
arrangements provide appropriate governance
of the Group’s strategy, operations and
mitigation of related material risks. Enhanced
management of climate, environmental and
wider ESG risks is an important component of
our sustainability strategy. The MRA process
has identified C&E Risk as a principal risk for
the Group, and we have established robust
risk management processes to manage both
physical and transitional climate risks.
In addition to environmental risks, we have
identified social and governance-related risks.
As a business we handle vast amounts of
sensitive personal and financial information.
Our approach to safeguarding and protecting
all forms of data, information and assets, and
ensuring we only use them within the required
rules and regulations, has a significant impact
on our stakeholders. Our banking operations
therefore depend on secure and reliable data
management systems and robust technology
infrastructure.
Cyber security and data protection is integral
to our strategy and operational resilience.
Consequently, we have established dedicated
technology and data advisory governance
structures.
In addition to the AIB Technology Strategy
2024-2026, which the Board approved in
December 2023, we are developing a refresh
of the Group Cyber strategy to contend with
ever-evolving cyber threats.
Our robust approach supports us in
maintaining customer trust, ensuring
regulatory compliance and the security of our
digital infrastructure, while preventing any
risks that might arise from cyber-attacks or
data privacy breaches. To ensure appropriate
oversight and alignment in the direction of the
AIB cybersecurity strategy, TDAC members
oversee and advise on relevant operational
cyber risk metrics, delivery progress and
business benefits.
Our ability to operate and deliver our strategic
commitments is closely tied to ensuring equal
treatment and opportunities for our own
workforce, with talent attraction and retention
as a key risk. By having sustainability at the
forefront of our plans, investing in employee
development and fostering an inclusive
workplace, we align our people strategy with
our business goals to achieve long-term
success and resilience.
In terms of our strategic resilience, we use
scenario analysis and stress testing to assess
the resilience of our strategy across each of
our principal risks, including C&E Risk. The
scenarios we use are informed by the key
emerging risks and form part of the ICAAP
and our assessment of our three-year financial
plan. See the Climate & Environmental Action
from page 68 for more details on the
methodology applied.
Opportunities
In line with our strategic commitment, our
material opportunities are mainly linked to
financing the transition to a sustainable future.
In 2024, we fully mobilised our Climate Capital
segment, which specialises in lending to large-
scale renewable and infrastructure projects,
which are key drivers for sustainable
economic growth, across Ireland, the UK,
Europe and North America. To deliver on our
strategic commitments, we continue to focus
on attracting and retaining a skilled and
talented workforce.
Overall, our business model and strategy are
underpinned by a strong culture of
accountability, integrity and openness, and are
supported by the robust governance
processes in place. Our governance is
essential for managing our impacts and risks,
and leveraging the opportunities.
More information can be found in the relevant
topical sections, where we report on our
material IROs in line with the ESRS DR.
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Our Material Impacts, Risks and Opportunities
A description of our material IROs
SBM-3
The following tables list the sustainability-related IROs that we have identified and
assessed as material as a result of our DMA process. A topic can be material because of
the actual impacts that we have or may have on people or the planet (impact materiality),
because of the financial effects of sustainability factors, in terms of risks or opportunities,
on AIB (financial materiality), or both. An impact may also be positive, or negative, actual
or potential. The tables also identify in which part of our value chain the matter originates.
Where material risks and opportunities were
identified through the DMA process, further
analysis was conducted to determine whether
they resulted in current financial effects.
Where applicable, a summary has been
provided to explain further.
Climate change
ESRS E1
Impacts
• Transition to renewable energy is essential for the sustainable use of resources and for mitigating climate
change, which we support by implementing efficiency measures in our own operations and by prioritising
renewable energy investments, financing and supporting the development and adoption of clean energy
sources, and funding research and development.
Value chain:
Own operations,
downstream
• The Climate Capital segment specialises in lending to large-scale renewable and infrastructure projects,
which are key drivers for sustainable economic growth across the markets in which we operate.
• Financed emissions from certain lending activities contribute to climate change, impacting the
environment and people.
• Our responsible lending policies, which govern how we provide a range of products such as green
mortgages, along with our Green Bond Framework and excluded list of activities, support climate change
mitigation activities and contribute to environmental protection.
• Through our green mortgage products, we are supporting customers to make more sustainable housing
choices,1 which aligns with our strategy to further green our business. Positive impacts include long-term
cost savings and a reduced environmental footprint.
Risks
• Physical climate-related risks can have a negative financial impact on the Group. These risks can arise
from extreme events such as droughts, floods, and storms, and from progressive shifts such as
increasing temperatures, sea level rises, water stress, biodiversity loss, land use change, habitat
destruction and resource scarcity. This can directly result in negative outcomes, such as damage
to property or reduced productivity, or indirectly lead to outcomes such as the disruption of the Group’s
supply chains.2
Value chain:
Upstream,
downstream
• Transition climate-related risks are also a threat. These risks can arise from the process of transitioning to
a lower-carbon and more environmentally sustainable economy. They could be triggered by technological
progress, changes in laws or regulations, or changes in customer demands and preferences.2
Opportunities
• As the global economy seeks to decarbonise and invest in green infrastructure, there is an opportunity
for growth through green and transition financing.
Value chain:
Upstream,
downstream
Current financial effects
The following provides a summary in relation
to the current financial effects of the risks and
opportunities related to climate change,
a topic that was deemed material from a financial
materiality perspective in 2024.
Climate change
In line with our Group strategic priorities, new green and transition lending in 2024 was
€5.1bn bringing the total drawdown of the Climate Action Fund to €16.6bn. We achieved this
through continued growth in green finance, delivered by strong performance in mortgages
to energy-efficient homes, green mortgage products and lending for green buildings and
renewable energy projects. We plan to steadily increase new green and transition lending,
to reach our target of 70% of all new lending being green by 2030.
In relation to climate-related risks, we have not identified a material impact on the Group’s
financial reporting judgements and estimates. There is currently no reasonable and
supportable information that indicates a material impact of climate change on Estimated
Credit Loss, going concern and viability, provisions and contingent liabilities or impairment
of non-financial assets. For more detail, please refer to note 1 to the Consolidated Financial
Statements.
1. By sustainable choices we are referring to choices and behaviours that actively minimise environmental degradation (use of natural resources, CO2 emissions, waste
and pollution) while supporting equitable socio-economic development and better quality of life for all. This also includes references to green lifestyles. Please refer to
the Glossary of Terms for sustainability-related definitions.
2. We manage these risks through our C&E Risk Framework as detailed in the Climate & Environmental Action.
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Own workforce (Equal treatment & opportunities for all)
ESRS S1
Impacts
• We promote a culture of universal inclusion by implementing an Inclusion & Diversity strategy and a strong
programme of engagement, wellbeing and inclusion initiatives. We aim to support our colleagues in achieving
a sustainable work-life balance, while they navigate life stages.
Value chain:
Own operations
• By introducing variable pay based on performance against specific financial and non-financial measures,
we reward employees for their performance and achievements. This encourages skill development and
contributes to enhanced job satisfaction, supporting their overall career advancement.
• We provide training and skills development to our employees, enabling them to develop their careers.
This, in turn, drives initiatives that align with our commitments and ambition, ultimately fostering a culture
of growth and sustainability.
Risks
• Failure to upskill our colleagues, or recruit banking talent to support the transition of the Group’s loan
book, could impact our ability to deliver our strategic commitments. This could lead to outcomes such as
reputational damage or heightened credit risk from exposure to physical and transition climate risks.1
Value chain:
Own operations
• Failure to attract or retain appropriately qualified employees could also impact our ability to meet
customers’ expectations. This could lead to a decline in our customer base and a negative financial
performance outcome for our shareholders.1
Opportunities
• As a recognised sustainability leader, we can retain and attract a talented workforce who share the same
values. A stable workforce fosters continuity and expertise, leading to improved operational efficiency and
customer services. Attracting top talent can drive innovation in sustainable finance products, leading to
increased profitability for the Group.1
Value chain:
Own operations
Housing
ESRS S3, S4
Impacts
• By providing home loans, we enable individuals and families to purchase their own homes. This can help
foster a sense of stability and security for our customers and their families.
Value chain:
Downstream
• By financing housing development, housing schemes and Private Rented Sector developments, we
contribute to the greater availability of housing stock, particularly affordable housing – stimulating
economic growth and improving quality of life for residents.
• By supporting and financing social and affordable housing, we are improving access to housing, bringing
security and peace of mind to those who need it.
Financial wellbeing
ESRS S4
Impacts
• By providing tailored financial products and services to different customer groups, including vulnerable
customers who may need additional support, we provide access to essential financial resources, promoting
financial inclusion and wellbeing.
Value chain:
Downstream
• Through targeted financial wellbeing and education initiatives, we support customers to make more
informed financial decisions and increase their potential to access finance. For example, in supporting
women-focused communities and initiatives, we support the professional and personal development of
women in business.
• Our complaint management process allows us to track and manage the complaints raised by customers to
deliver positive customer experiences. We implement lasting solutions for issues through root cause analysis
processes, to improve the customer experience overall.
• We have a continued focus on products and services, constantly striving to serve our customers best as
their banking needs evolve. This aligns with our Customer First strategic pillar, helping us to meet our
customers’ needs in a proactive, seamless and innovative manner, and develop deeper and more
enduring relationships.
• We aim to provide digestible and straightforward communication for our customers. This has a positive impact
on customer satisfaction and helps ensure that their needs are met.
1. No material current financial effects are identified for FY 2024 in relation to our material topic Own workforce (Equal treatment & opportunities for all).
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Our Material Impacts, Risks and Opportunities continued
Corporate governance, ethics & accountability
ESRS G1
Impacts
• By implementing a robust Financial Crime Policy (incorporating Anti-Bribery & Corruption), we help to safeguard
our customers, the Group and the wider financial system against financial crime and fraud. We do so through the
detection, prevention and deterrence of financial crime across the Group.
Value chain:
Upstream,
own operations,
downstream
• The integration of sustainability criteria into our risk management processes, policies, and procedures
supports responsible and sustainable business practices and investments. This contributes positively to
environmental protection, social wellbeing, a more sustainable supply chain and an enhanced reputation
with our investors.
• Our tax principles contribute positively to society through transparent, fair and responsible tax practices
throughout the territories in which we operate.
Culture & reputation
ESRS G1
Risks
• Misconduct, inappropriate actions or inactions on a systemic scale can cause poor or unfair customer
outcomes and potential failure to meet regulatory expectations and can negatively impact our market
integrity and reputation. A conduct-focused culture is crucial to AIB, underpinned by strong internal support
structures that incentivise the required behaviours and hold people accountable.1
Value chain:
Own operations
• If the Group’s purpose and values are not shared by all colleagues, it could result in poor customer and market
outcomes. Through our robust internal controls and Risk Management Framework, we promote a strong
conduct culture underpinned by our core values.1
Cybersecurity & data protection
ESRS S1, S4, G1
Impacts
• We take steps to safeguard our customers’ information, ensure the continued resilience of our digital channels,
and protect against fraud. This includes implementing a wide range of initiatives, such as promptly notifying
customers of suspicious activities, and actively engaging customers regularly via email, mobile app and social
channels to raise awareness about potential scams, ongoing security alerts, and emerging threats.
Value chain:
Own
operations,
downstream
• Data security breaches in AIB can compromise employees’ and customers’ data if proper safeguards are
not in place, leading to negative outcomes.
Risks
• Cyber attacks can pose a significant operational risk to the Group, leading to potential financial losses,
legal liability, regulatory fines and reputational damage.
Value chain:
Upstream,
downstream
Current financial effects
The following summarises the current financial
effects of the risk related to Cybersecurity and
data protection, a topic we deemed financially
material in 2024.
Cybersecurity and data protection
Cyber risk is a top and emerging risk for the Bank during 2024, due to its constantly
evolving nature as well as the increased frequency, sophistication, impact and severity
of cyber threats. In 2024, our overall cyber security spending was 10.33% of our total
IT spending which is a subset of the Total Operating Expenses. For more detail, please refer
to note 10 to the Consolidated Financial Statements.
1. No material current financial effects are identified for FY 2024 in relation to our material topic Culture & reputation.
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Climate &
Environmental
Action
We are mobilising capital, investing
in new products and propositions,
and improving business practices
to build a more sustainable future.
In this section
Material topic
ESRS
Page
Climate change
ESRS E1 – Climate change
64
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At AIB, our ambition is to be
a catalyst for positive change,
building long-term value for
stakeholders while protecting
our planet and contributing
to a better society.
This is one of our seven material topics. For
each topic, we report in accordance with
the ESRS. We disclose our approach to
managing our material IROs through our
policies, actions and performance
measures.
Value chain: Upstream, own operations, downstream
We continue to champion sustainability and
are transforming our business operations to
better align the Group with best-in-class
sustainability practices, ensuring that they are
embedded across our business. This will
allow us to continue to fulfil our purpose
of empowering people to build a
sustainable future. We recognise that we have
a long-term role to play in providing the finance
required to transition to a sustainable
economy. In 2019, we launched our Climate
Action Fund, with an ambition to lend €5bn
over a five-year period. Due to exceptional
demand, this doubled to €10bn in 2021 and it
has now increased to €30bn by 2030. This
fund is realised through the Group’s various
green and transition products for personal,
SME and corporate customers in Ireland, the
UK and further afield, and focuses on energy,
climate and infrastructure projects.
To support real, transformative action, our
dedicated green financing segment, Climate
Capital, complements our other segments –
Retail Banking, Capital Markets and AIB UK –
and focuses on funding renewable energy
assets and ESG infrastructure projects across
North America, the UK and Europe.
We began reducing emissions for our
own operations in 2016 and, in 2020,
AIB became the first Irish bank to make
decarbonisation commitments, including our
commitment to be Net Zero in our own
operations by 2030 and in our customer
lending portfolios by 2050. We launched our
Green Mortgage product in 2019. We were the
first bank in the world to receive Science
Based Target Initiative (SBTi) approved
maintenance targets for electricity generation
in April 2023 and have set SBTi-approved
financed emissions targets for 75% of the AIB
loan book.
In 2019, AIB was the first Irish Bank to enter
the Green Bond market and, in 2020, AIB was
the first Irish Bank to issue a Green Bond, for
€1bn. Over the last five years, AIB has raised a
combined €4.65bn from the issuance of Green
Bonds.
Decarbonisation
Journey
During 2022
Issued two Green Bonds totalling €1.5bn
Successful launch of the Strategic Banking Corporation of Ireland (SBCI)
Energy Efficient Loan Scheme
Signed the VPPA to support our energy needs
€3.3bn in green and transition
lending in 2022
During 2023
SBTi validated targets for Residential Mortgages, Commercial
Real Estate, Electricity Generation and a Portfolio Coverage
Target, which covered 75% of the lending portfolio as of 2021
Acquired Clearstream (a corporate climate and sustainability services
provider) to enable us to further support our customers in their transition
AIB raised €750m during 2023 by issuing its fifth Green Bond
Increased our Climate Action Fund to €30bn
€3.7bn in green and transition lending
in 2023 (30% of new lending)
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Material Topic:
Climate Change
During 2024
€5.1bn in green and transition lending
in 2024
This represents 35% of new lending and results in a cumulative
total of €16.6bn of green and transition finance lending since
AIB’s Climate Action Fund was launched in 2019
Began purchasing certified renewable energy via the two
newly constructed solar farms in Co. Wexford
Launched a strategic investment programme in our network,
investing in a range of upgrades to branches and ATMs
Developed our new Transition Finance Guidance to enhance our
transition finance proposition for our corporate and business
customers
Announced that we will invest over €20m in sustainability
education and research, with €10m allocated to a new AIB
Trinity Climate Hub in Trinity College Dublin and a €10m
commitment as a founding partner of Innovate for Ireland
Established AIB’s Sustainability Academy, a hub for ESG learning,
research and training support for all colleagues
Developed our ‘SME Steps to Sustainability’, a go-to resource for
SME businesses, designed to guide them to take sustainable action
AIB launched new shorter-term green mortgage products with rates
starting from 3% for higher energy efficient homes. The launch of
these new Green Fixed Rates follows a number of cuts to mortgage
rates by AIB Group throughout the year
Since 2020, AIB has
issued six Green Bonds,
totalling €4.65bn
The Socially Responsible
Investment Bond Portfolio
reached €2.67bn
2030 Ambition
Own operations – Net Zero ambition across
Scope 1 & 2 emissions by 2030
70% of new lending to be green
and transition by 2030
2050 Ambition
Net Zero
in our customer lending portfolio
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AIB at the National Ploughing Championships.
Enda Buckley
Director of Sustainability at Carbery group.
Manager Cliona Walker and Chef Kallam Moriarty with
Dingle Branch Manager Roisin Healy.
Our approach to
transition planning
E1-1
Introduction
Through our purpose of empowering people to
build a sustainable future, we are committed to
building long-term resilience and sustainability
for our business, economy and society. We
want to ensure that our stakeholders are
aware of our decarbonisation ambition to
transition to a sustainable future and will join us
on this journey. While AIB does not currently
have a standalone Transition Plan published,
we are mapping and further maturing a
Transition Plan in line with current industry best
practice, regulatory guidance and national
plans, strategies and targets. This Transition
Plan will be published within 12 months and will
further evolve over time.
As part of our transition planning, we consider
the financial effects of climate and
environment on our business within two key
processes:
• The financial impact associated with our
decarbonisation strategy is considered as
part of business and financial planning,
ensuring that our strategy and business
model are compatible with the transition to
a sustainable economy and is in line with
the Paris Agreement aim to limit global
warming to 1.5°C. We require each AIB
business area to consider how meeting
these targets will impact its projected
revenues, costs and margins.
• We conduct scenario analysis relating to
future possible climate change outcomes,
which includes quantitative forecasts for
short and long term transition and physical
risk. Further details of our scenario analysis
can be found on page 68 to 69.
To support our decarbonisation ambition, we
regularly review and sharpen the focus of our
sustainability strategy across the ESG pillars,
aligning with our wider business strategy,
industry best practice and emerging themes.
Under our Sustainable Lending Framework
(SLF) which enables the classification of new
customer loans as green, transition or social,
we have now developed Transition Finance
Guidance to support our corporate customers
in their transition journey. Please see page 70
for more details.
Approach to transition planning policies
To support our transition, we have two primary
frameworks in place, the SLF and the Green
Bond Framework (GBF), as well as supporting
internal policies, including our C&E Risk
Policy, our Group Energy Policy and our
Group Environmental Policy, all of which are
described on pages 70 and 75.
We have also had an excluded activities list in
place since 2020, which sets out a range of
business activities that do not align with our
Group strategy. From a sustainability
perspective, excluded activities include the
exploration, extraction and upgrading of oil
sands projects, nuclear power generation,
nuclear waste transportation, and the
decommissioning and/or final disposal of high-
level nuclear waste. Our rules prohibit us from
providing customers with new money when their
activities are covered by this list.
Funding and resourcing the transition
Achieving our purpose of empowering people
to build a sustainable future and delivering on
our decarbonisation ambitions is a multi-year
programme, requiring appropriate funding
and resourcing.
The transition to a sustainable future will
require significant investments over the
coming decades, and the financial services
sector has a key role to play.
AIB will lead by example and want to support
customers along their transition pathways by
financing energy efficiency measures and
providing loans to businesses and individuals
who are transitioning to a low-carbon economy.
AIB’s €30bn Climate Action Fund will support
enabling customers to reduce emissions and
help make a positive environmental impact.
AIB does not have large exposures to carbon-
intensive activities, and our focus is on
mobilising capital towards renewable power
generation and sustainable infrastructure.
To direct more finance towards climate action
initiatives, our Climate Capital segment became
fully operational in 2024, with approximately
75% of it’s activities in green infrastructure. We
have focused on making resources available to
support the new segment, creating a step
change in our ability to finance energy transition
and ESG infrastructure.
Our Sustainability Transformation programme
also continues to oversee our transformation
as we embed sustainable practices across our
business. The programme includes the
delivery of key strategic objectives and
regulatory expectations.
How we measure progress and track metrics
To support our transition planning and to assist
us in reaching our commitments, we have
identified the following measures:
• Financed emissions targets – in 2020, we
set a financed emissions target of reaching
Net Zero in our customer lending portfolio by
2050. To steer our business to more
sustainable financing activities, our validated
SBTi targets (which guide our transition
planning) set a 1.5°C trajectory linked to our
green lending ambition and science-based
target requirements. We have validated
financed emissions targets aligned to a 1.5°C
scenario set for 75% of the 2021 AIB loan
book and, in 2023, were the first bank in the
world to receive an SBTi-approved
maintenance target for electricity generation.
Please refer to Decarbonising Our Loan Book
from page 70 for more details.
• Own operations targets – in 2020, we
announced an ambition of achieving Net
Zero in our own operations by 2030. We
measure and report our operational
emissions according to the Greenhouse
Gas Protocol, where we cover Scope 1 and
Scope 2 emissions. Please refer to
Decarbonising Our Own Operations from
page 75 for more details.
These targets are embedded into the Group’s
formal review and planning processes,
including the Annual Business Review, which
forms part of the Strategic, Financial and
Investment Planning processes.
We publicly disclose our progress against these
targets on an annual basis. Open disclosures
and accountability promote trust and confidence
among stakeholders. We regularly review and
monitor our metrics and targets to maintain a
clear view on where we are, where we want to be
and how we will get there. We do not currently
use GHG removals or carbon credits, or any
form of internal carbon pricing.
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Decarbonisation Journey continued
Actions supporting our Transition Planning (Levers)
E1-1
Offering green products and propositions
to meet our customers’ needs
Please refer to page 70 in Decarbonising Our Loan Book
for further details.
Providing green and transition financing
to support climate action
Please refer to page 70 in Decarbonising Our Loan Book
for further details.
Investing in reducing our direct emissions,
and that of our value chain
Please refer to page 75 in Decarbonising Our
Own Operations and page 77 in Methodology for
Calculating GHG Emissions for further details.
Supporting measures
Educating our customers and colleagues
on their sustainability journeys
Please refer to page 70 in Decarbonising Our Loan Book
for further details.
Collaborations, partnerships and thought
leadership to support change
Please refer to page 70 in Decarbonising Our Loan Book
for further details.
Assigning accountability and managing
climate-related risks
Please refer to page 242 in the Risk Management
section for further details.
We have made good progress towards our decarbonisation ambition
in recent years, driven by a number of our decarbonisation levers and
transition actions. These are presented at a high level in the table
above and expanded on throughout this Sustainability Statement.
Taken together, the levers described above show how we aim to
achieve our 2050 decarbonisation ambition of net zero in our lending
portfolio. Further details are provided in the Decarbonising Our Own
Operations and Decarbonising Our Loan Book sections below.
Our management response to drive progress against our ambition is
integrated into strategic, business and financial planning processes,
with regular reporting to ExCo and Board on progress.
We are committed to working with our customers, our colleagues and
partners to achieve our goals and to support them on their own
transition journeys.
Next steps in transition planning
Further embedding our Transition Plan is a priority at all levels of AIB.
While progress towards our decarbonisation ambition is being made,
there is an acknowledgement that more can be done to further
enhance our transition planning journey and to further embed
sustainable practices across our business. Further details will be
included in our Transition Plan.
In line with any changes, AIB’s policies, actions, targets and metrics
will be monitored to facilitate appropriate implementation and
alignment, not only with our transition planning, but also with our
overarching ambition, strategy and validated financed emissions
reduction targets.
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As part of the overarching risk management process
described in the Risk Management section of our Annual Report
from page 179, AIB identifies top and emerging risks that have
the potential to increase in significance and could have
a material impact on the Group’s strategy, operations and
customers over the short-, medium- and long-term.
SBM-3, IRO-1
Climate change is identified as a material topic
through our DMA process, both from an
impact and financial materiality perspective.
Our Material Impacts, Risks and Opportunities
section from page 58 outline the material IROs
across our value chain, as well as their
interaction with our strategy and business
model. In addition to the DMA process, C&E
Risk is identified as a material principal risk for
the Group through the risk management
processes such as the MRA, as detailed on
DMA and MRA Connectivity on page 57.
C&E Risk is defined as any potential negative
financial or non-financial (e.g. reputational)
impact on the Group stemming from climate
and environmental change and the transition
to a sustainable economy. Further details
regarding the identification and management
of climate related physical and transition risks
are included in the Risk Management section
of this AFR on page 242.
Climate risk is defined as potential negative
impacts due to climate change on the Group.
This includes risks posed by direct exposure
to climate change and indirect exposure
through customers and suppliers. Climate risk
includes the impacts that the Group and its
customers and suppliers have on climate, and
the impact from climate on the Group and its
customers and suppliers.
Environmental risk is defined as potential
negative impacts of the activities or actions of
the Group, its customers or suppliers, either
directly or indirectly, on the naturally occurring
living and non-living components of the Earth
which together constitute the biophysical
environment. Changes in the state of nature
(quality or quantity) may act as drivers on the
Group’s financial performance through risk
events and could result in changes to the
capacity of nature to fulfil social and economic
functions.
Physical and transition risk
The Transmission Channel Analysis,
previously described on page 57, referenced
how different C&E risk drivers transmit through
micro and macroeconomic factors and impact
the Group’s material risks. These are broken
down into a the following categories:
• Climate (Physical Risk) – Includes flooding,
rising sea levels and heatwaves / droughts.
• Environmental (Physical Risk) – Includes
water availability, biodiversity and raw
material availability.
• Climate (Transition Risk) – Includes
consumer and investor behaviour,
regulatory requirements, litigation and
technological improvements.
• Environmental (Transition Risk) – Includes
enhanced regulations.
In mapping these risk drivers against the
Group’s material risks, the Transmission
Channel Analysis provides insight into how
C&E risk can be managed within AIB. Using
scenario analysis and stress testing, further
insights into the potential impact of C&E Risk
are noted.
Stress testing
The impact of C&E risk is incorporated in the
Group’s stress testing framework by
conducting comprehensive scenario analyses
to evaluate the potential impact of various
climate-related events on the Group’s credit
and treasury portfolios, operations and overall
financial position. Scenario testing enables the
Group to assess the interconnectedness of
risks, considering not only direct physical risks
but also transition risks arising from shifts in
market dynamics, investor sentiment and
regulatory landscapes. As well as participating
in the ECB Climate Stress Tests in early 2022,
in 2024, the Group participated in the
European Commission’s ‘Fit-for-55’ climate
risk scenario analysis exercise, which
assessed the resilience of the financial sector
in line with the EU’s ‘Fit-for-55’ plan for green
transition.
The Business Model, the Capital Adequacy
Framework and the Stress Testing Policy
integrate C&E risks into the Group’s stress
testing operations. The Group’s Stress Testing
Policy sets out the key processes, governance
arrangements and roles and responsibilities
around stress testing in general, including
C&E risk impacts.
The climate stress testing approach and the
associated models consider the impact of
physical and transition risks across a range of
scenarios on the Group’s credit exposures.
The initial scope of climate stress testing
activities and climate modelling in the Group is
primarily focused on the credit risk implications
for the loan portfolio, via both transition and
physical risk. This is where the most material
impact of climate stresses impacts the Group,
with the approach covering all customer loans
and advances on the balance sheet. As such,
aside from the indirect macro impact
stemming from the climate scenarios (e.g.,
interest rate trajectories), direct transmission
channels (via other material risks) or direct
upstream impacts (e.g., via our suppliers) are
excluded from these stress scenarios.
The Group has identified that flooding is the
most material physical risk to the Group. The
Group is exposed to the risk that flooding will
adversely affect the value of properties,
collateralising the Group’s lending, causing an
increase in credit provisioning to compensate.
The development of an enhanced flood-risk
model to support the quantification of flood-
related risks was rolled out during 2024.
The newly developed model represents a
significant step forward, in terms of both
granularity and flexibility relative to previous
approaches.
As a first step, the new model locates
individual properties and overlays a series of
flood maps corresponding to river, coastal and
surface water flood events. This is repeated
for multiple return periods (1-in-20-year or 1-
in-1000-year periods) allowing for a probability
distribution of flood levels to be calibrated for
each property. The damage to each property
for a given level of flooding is estimated,
based on building type and flood type.
Estimates of rebuild costs are applied to
calculate the cost of repair.
Using this approach, the model can be used to
quantify flood-damage impacts across a
probability distribution of flood severities and,
from this information, estimate the ‘Expected
Annual Damage’ as the probability-weighted
average of flood-damage costs. This approach
can be applied to reflect current climate
conditions or projected climate conditions
under a variety of science-based scenarios
developed by the IPCC (Intergovernmental
Panel on Climate Change).
The scenarios currently available are
Representative Concentration Pathway (RCP)
2.6, 4.5, 6.0 and 8.5 at 5-year intervals until 2100.
RCP 8.5 assumes by far the greatest CO2
concentration and temperature anomalies,
whereas RCP 2.6 assumes a far lower
amount. RCPs work intuitively; the greater the
RCP value, the stronger the physical risk
signal will be for the scenario. Some RCPs
map closely to the Network for Greening of the
Financial System (NGFS) scenarios being
used by the regulators for climate
stress testing.
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Climate & Environmental Risk
In this way, the model is used to quantify flood
risk under a range of climate scenarios, including
high-emissions scenarios for horizons out to
2055. Consequently, the model supports the
Group’s ICAAP and stress testing more generally
which, in turn, informs assessments of the
materiality of flood risk in the short-, medium- and
long-term, such that, if required, mitigating
actions can be taken in a timely manner.
A known constraint of the new model is that,
while it can estimate the probabilities of a given
level of flooding for individual properties, it cannot
estimate the joint probability of a given level of
flooding for multiple properties. This limitation is
overcome by stressing the flood risk of individual
properties in a way that is consistent with a
plausible stress-scenario narrative characterised
in geographic terms.
The new flood-risk model’s ‘layered’ approach to
quantifying flood damage impacts facilitates the
analysis of key risk drivers and their relevance to
the Group’s exposure. For example, acute
scenario impacts can be broken down into flood
type, building type, customer type and
geographic location.
The Group is exposed to risk through the
potential negative impact on the creditworthiness
of its customers that is associated with the
uncertainties and challenges associated with a
transition to a more sustainable low-carbon
economy. The Group quantifies this potential
impact using transition risk models centred on
carbon emissions charges. Following the
development of two new transition risk
models, one for Retail (Mortgages) and one for
Non-Retail, these models were implemented and
rolled out in 2024.
Climate scenarios for Transition risks are
focused on a forecast of the macroeconomic
drivers of risk, used in stress testing models,
to assess a climate-focused 3 year forecast
under the ICAAP structure. Two scenarios are
used to assess transition risk in the short to
medium term.
• The first, Paris-aligned, assumes that
governments pursue incentives to reduce
carbon emissions. They do this in a
carefully structured way, with incentives
geared towards a reduction that is
systematically implemented.
• In the Sudden Realisation scenario, it is
assumed that a limited number of actions
have taken place, with the ‘shock’ coming
from an unstructured and significant
implementation of carbon-reduction levies
and taxes. The resultant volatility is caused
by the sudden implementation of climate-
positive policies to ‘make up’ for time when
they weren’t in place.
In these scenarios, forecasts of those factors
that drive increased risk in the Group’s credit
portfolios have been made. These factors are
implemented in the ICAAP credit stress testing
engine and are applied to the Group’s balance
sheet, with business plans integrated into
growth forecasts in credit exposures and the
existing IFRS9 risk parameters.
Both ‘stressed’ Climate Risk economic forecast
scenarios focus on the impacts of additional
(hypothetical) carbon emissions charges caused
by changes to market conditions and through
government policy and incentives.
For the Retail model, this tax would affect
disposable incomes for Retail customers,
which may present challenges for customers
and the Group, depending on how unexpected
they are and how punitive the taxes. The
stress test output is an analysis of the
potential impacts of this scenario on the
mortgage book, where charges are applied
based on the carbon emissions of homes,
which leverages data on property Building
Energy Ratings (BER).
For Non-Retail customers, the model reflects
the borrower’s affordability by reducing profits
and increasing costs. Charges are applied in
this model based on the scope of the carbon
emissions of the NACE1 sector in which the
borrower operates. The stress test output
provides an analysis of the potential impacts
of this scenario on the Non-Retail borrowers.
The stress tests described above were
included in the ICAAP process (which was
approved in 2024), which provided assurance
that the Group had adequate capital to
withstand these risks.
As referenced above, the impact of climate
risk under various climate scenarios is
assessed as part of the stress testing process
within the Group. It is noted however that the
impacts are not expected to manifest in the
short-term and therefore there is no
requirement to make any related adjustments
to the financial statements.
1. NACE is a pan-European classification system
that groups organisations according to their
business activities.
Protecting nature and biodiversity
Nature and Biodiversity play a crucial role
in the health of our planet. Nature provides
raw materials such as wood, minerals and
food, as well as a range of services such
as pollination, water purification and
climate regulation.
Over the course of 2024, we have further
developed our approach to C&E to more
clearly articulate our nature strategy and
to integrate nature considerations into both
our business strategy and risk management
approach. Nature considerations are location
specific and often site-specific. AIB has
carried out detailed mapping exercises to
identify any own premises located in areas
of biodiversity sensitivity. In addition, a
business environment scan has been carried
out to understand risks to our business as
well as areas where AIB and our customers
have greatest potential impact on nature
and dependencies on specific ecosystem
services (e.g. fresh water, soil quality).
Understanding Nature risks, impacts and
dependencies is complex. Best practice
continues to evolve as will AIB’s approach.
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Lending is a crucial element of our value chain and
financed emissions account for the majority of our
total emissions. Loan book decarbonisation is, therefore,
central to reducing our impact on the climate, environment
and society, helping to mitigate the Group’s C&E Risk and
facilitating the broader transition across our economy.
In this section, we detail our approach to
managing the material IROs related to our
financed emissions and decarbonising our
loan book through the lens of our policies,
actions and performance measures.
Our policies
E1-2
The Group has implemented several
Board-approved policies and frameworks,
which are monitored on an ongoing basis.
The three policies and frameworks that
facilitate green and transition lending and
support the decarbonisation of our loan book
are our C&E Risk Policy, our SLF and our
GBF. These policies and frameworks will
support us in reducing the negative impacts
related to financed emissions, to increase our
positive impacts and opportunities related to
sustainable lending and renewable energy
development, and to mitigate both physical
and transition C&E risks.
The key contents of these policies and their
contribution to managing our material climate
change mitigation and adaptation IROs are
described below. Our C&E Risk Policy is
approved by GRC, while our SLF and GBF are
approved by GSC, with regular reporting to
ExCo, SBAC and the Board on progress.
Climate & Environmental Risk Policy
The C&E Risk Policy sets out how AIB Group
defines, manages, mitigates and measures
C&E risk (physical and transition) and details
the roles and responsibilities for identifying,
assessing, managing, monitoring, reporting
and overseeing C&E risk. This policy is a
component part of the C&E Risk Framework and
has been prepared in line with the Group’s Risk
Policy Governance Framework (PGF)
requirements. The C&E Risk Policy is made
available to all staff through the AIB intranet.
In recognising the transverse nature of C&E risk,
the policy refers to multiple frameworks and
policies to ensure C&E risks are identified and
managed appropriately.
The C&E Risk Policy is an overarching policy
that influences all C&E targets across the
Group. All the policies, actions, and targets set
out below contribute to the objective laid out in
the C&E Risk Policy of mitigating C&E risk.
The C&E Risk Policy applies to all staff,
contractors and third parties providing a service
or function across the 3LOD, including senior
management and the Board of Directors, and in
all jurisdictions in which the Group operates.
Sustainable Lending Framework
The SLF provides transparency on the criteria
that we employ when classifying and reporting
on green, transition and social lending, to help
us achieve our ambition that 70% of new
lending should be green or transition by 2030.
The policy is a Group-wide framework and is
available on the AIB website.
Lending across all of our business units and
geographies is within the scope of the SLF.
It supports our sustainable lending to further
energy efficiency and renewable energy
development.
We developed and implemented the SLF in
July 2021 to comply with the EBA guidelines
on Loan Origination and Monitoring. The
guidelines defined in the SLF, to classify new
lending as green or transition lending, aim to
be aligned to the greatest extent possible with
the technical criteria outlined in the EU
Taxonomy regulation for relevant activities. As
further work is completed to consider the full
implications of reporting under the EU
Taxonomy and, in particular, the Green Asset
Ratio (GAR), we expect our approach to
evolve and mature.
Green Bond Framework
The GBF enables AIB to fund projects that
support climate change mitigation and the
transition to a circular economy.
The purpose of the GBF is to support AIB, and
its subsidiaries, in the issuance of Green Bond
instruments, which may include covered
bonds, senior bonds (either preferred or non-
preferred), subordinated bonds, medium-term
notes, and commercial paper, to finance and/
or refinance eligible green loans with a
positive environmental benefit.
AIB’s green bonds fund eligible projects or
assets that mitigate climate change by
reducing emissions, protecting ecosystems, or
have a positive environmental impact. Eligible
projects include renewable energy generation,
transmission and storage, green buildings,
circular economy and waste management
assets, and clean transportation.
Our GBF is based on the International Capital
Market Association (ICMA) Green Bond
Principles of 2021, including the updated
Appendix I of June 2022, and defines the
portfolio of loans eligible to be funded by the
proceeds of Green Bonds issued by AIB. Our
GBF is publicly available on our website.
Our actions
E1-3
To achieve our green and transition lending
target and decarbonisation ambitions, and
manage our material IROs, AIB has taken
actions and allocated resources for
implementation.
We take an integrated approach to overseeing
and embedding sustainable practices across
our business. In this regard, we have
established our ongoing Sustainability
Transformation Programme to support AIB in
its regulatory, strategic and customer
enablement objectives.
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Decarbonising Our Loan Book
The following key actions and resources are
grouped by the decarbonisation lever that best
fits with our specific actions. These levers
were referenced above in Our
Decarbonisation Journey and are further
expanded on in the following pages.
We expect that these actions will help us to
achieve our financed emission reduction targets,
reduce C&E Risk and support the transition to a
more sustainable economy. We want to
encourage our customers to go green. We do
this by providing a range of products and
services that will enable our customers to reduce
their own carbon emissions and help AIB deliver
its purpose of empowering people to build a
sustainable future.
All actions relate to our lending portfolio and,
therefore, our downstream value chain. The
impacts of these actions should be considered
within the context of our 2030 and 2050 targets,
as detailed below.
Offering green products and propositions
to meet our customers’ needs
AIB has a suite of green products and
propositions that support our customers in
building a sustainable future. These actions
relate to our responsible lending policies,
which govern the provision of a range of
products to support climate change mitigation
activities and support us in managing our
material IROs. Please see our full list of IROs
on page 59, and a description of related
products as follows:
Products that enable greener homes
We offer Green Mortgages across AIB, EBS
and Haven, with favourable interest rates
available for energy efficient homes. All
three entities provide Green Mortgages to
homes with a BER of between A1 and B3 to
new and existing mortgage customers,
including customers seeking to switch their
mortgage.
AIB is a preferred finance provider to Electric
Ireland Superhomes, a One Stop Shop which
looks after all the key stages of a home
energy retrofit and, through them, they offer
the AIB Green Personal Loan. Customers
who are building their own home can choose
from the full range of mortgage products,
including one of the lowest Green rate
mortgages in the Irish market (where
compliance with nearly Zero Energy Building
(nZEB) standards is demonstrated).
In 2024, the Government, in partnership with
the SBCI, launched the new low-cost Home
Energy Upgrade Loan Scheme for
homeowners. AIB is one of the finance
providers approved to participate in this
scheme. Customers can borrow between
€5,000 and €75,000 per property, for up to
three properties, up to a maximum of €225,000
in total. Furthermore, up to 25% of the loan can
be used for non energy upgrades. Loans will
be available up to 31 December 2026 or until
the scheme is fully subscribed.
Products that enable greener lifestyles
We offer green loans to personal customers
who are looking to make a lifestyle change
in their home or transport options. As an
example, Nifti, our joint venture with Nissan
Ireland Ltd for both business and personal
customers, offers an alternative to owning
a car, with new car-leasing options
including electric and hybrid vehicles.
Products that enable greener businesses
We are committed to supporting businesses
of all sizes. Through our partnership with the
SBCI, we offer the Growth and Sustainability
Loan Scheme. This is a long-term, low-cost
loan scheme to support our customers in
business and agriculture.
There are two loans offered under the SBCI
Growth and Sustainability Loan Scheme. The
‘Climate Action & Environmental Loan’ is
available to businesses who qualify as a
green enterprise or who are investing in green
measures. The ‘Growth and Resilience Loan’
is for long-term investments in the business’s
growth and resilience.
The SBCI operates the scheme, which
benefits from a guarantee from the
European Investment Bank Group and
support from the Department of Enterprise,
Trade and Employment and the
Department of Agriculture, Food and
the Marine.
We continue to be focused on the long-
term sustainability of our business
customers. In 2024 we launched our new
Transition Finance Guidance to assist with
the classification of financing as transition,
which is complementary to our SLF in
supporting our corporate customers.
Providing green and transition financing
to support climate action (AIB’s Climate
Action Fund & Climate Capital segment)
The investment required to finance the
global transition to a low-carbon economy will
need to increase to about $9tn a year by
2030, according to estimates from the Climate
Policy Initiative.1 The International Monetary
Fund estimates that the cost for Ireland will
amount to c.€20bn per annum over the next
decade, much of which will come from the
private sector.
Recognising the importance of climate finance
in funding the transition, AIB has been rapidly
growing its green lending portfolio. See Our
Performance Measures below for further
information.
Given the growing importance and complexity
of infrastructure and energy requirements in
the transition to a low-carbon economy, AIB
has established the Climate Capital segment,
that centralises our green energy-related
activities across the Group to increase our
capability, support business growth and
demonstrate our position as a driving force in
the transition to a sustainable future.
Climate Capital is a fast-growing part of the
bank’s lending book and, with a strong focus on
renewable energy assets that displace fossil fuel-
fired generating assets, will help deploy AIB’s
€30bn Climate Action Fund and play a key role in
underpinning the Group’s Green Bond offerings.
AIB continues to fund renewable energy assets
and ESG infrastructure, either on a bilateral or
co-funding basis. These assets are located
across ROI, the UK, the EU and North America,
and include technologies such as onshore and
offshore wind and solar generation.
Educating our customers and our
colleagues on their sustainability journeys
Sustainability is complex and everyone is
trying to make better choices when faced with
many challenges, including the cost of living.
Educating customers is central to supporting
their transitions, as well as deploying our
Climate Action Fund, achieving our green and
transition lending targets, our financed
emissions reduction targets and reducing C&E
risk. We also have dedicated educational
resources, available on our website, to support
our customers in building a more sustainable
future, such as: Sector Sustainability Guides
and the AIB Green Living Hub. Additionally,
our commitment to educating our customers is
reflected in our ‘SME Steps to Sustainability’
resource for SME businesses to guide them to
take sustainable action. We developed this
resource in 2024, following conversations with
SME customers and in partnership with many
colleagues supporting SMEs across AIB.
We also publish reports on our website of
research carried out, such as the AIB Homes
Retrofit Report, which highlights retrofit
options, generous grants and competitively
priced loans available to consumers wishing to
improve their homes’ energy efficiency.
We also announced a €20m investment in
sustainability education and research at our
2024 Sustainability Conference, with €10m
allocated to a new AIB Trinity Climate Hub in
Trinity College Dublin and a €10m
commitment as a founding partner of Innovate
for Ireland.
1. https://www.climatepolicyinitiative.org/publication/
global-landscape-of-climate-finance-2023/
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Quality education and knowledge play a critical
role in creating strong, resilient economies and
societies. The transition to a low-carbon future
creates real opportunities for learning and
innovation. The work undertaken by the AIB
Trinity Climate Hub, alongside our partnership
with Innovate for Ireland, aims to benefit society
and shape a better future for us all.
Our colleagues must undertake the mandatory
‘Sustainability and AIB’ online course every year,
which gives both context and colour to our
sustainability strategy. We also provide a course
on ‘Understanding ESG for Business
Customers’, in partnership with the Institute of
Bankers. This gives an overview of the particular
challenges and opportunities facing businesses.
Collaborating through the transition
AIB will continue to support transition efforts
that are aligned with our strategy and
decarbonisation ambitions and engage with
organisations to ensure that we can support
positive change. To help drive this agenda, we
have joined a multitude of voluntary
organisations, including the Carbon Disclosure
Project (CDP), SBTi, Net Zero Banking Alliance
(NZBA), UN Global Compact, and the World
Business Council for Sustainable Development
(WBCSD).
We also participate in and provide thought
leadership and knowledge-sharing sessions. The
eighth AIB Sustainability Conference opened
Climate Finance Week in November 2024. With
11,481 hybrid attendees, it was the largest event
to date, hosting impactful conversations with
global figures. AIB’s customer panel discussions
also provided an opportunity for our customers
and other attendees to understand how they can
act, regardless of size or industry, and be part of
the solution.
We also collaborate with our customers by
advising them on their transition pathway
through dedicated sustainability champions,
an in-house Sustainability Research function,
customer events and webinars and an
enhanced sustainability advisory services
offering, provided via Goodbody Clearstream.
Our performance measures
E1-4
We are driving positive change through our
decarbonisation ambition to reach Net Zero
across our own operations by 2030 and in
our customer lending portfolio by 2050,
while protecting our planet and contributing
to society.
We were the first Irish bank to set this
commitment, and, in 2020, our Board also
approved an ambition for 70% of AIB’s new
customer lending to be green or transition by
2030. These targets take into account the
overall Group strategy and are embedded in
our financial planning process.
The cumulative Climate Action Fund drawdown
is a measurement of total cumulative green
lending over the period of 2019-2030, which is
included in AIB’s Climate Action Fund and
adheres to criteria outlined in the SLF. We
provided €11.6bn of green lending between 2019
and 2023, and in 2024, we provided a further
€5.1bn of green lending as we progress towards
our target.
Amount of new lending for Climate
Action Fund in 2024
€5.1bn
Against the cumulative Climate Action Fund
target of €30bn by 2030
This equates to 35% of total lending in 2024
being classified as green (from a 2019 baseline
of 10%), in accordance with criteria outlined in
the SLF. Delivering for our customers whilst
steering finance towards green and transition
activities is an important way in which we can
support the transition to a more sustainable
future. Our validated SBTi targets set a trajectory
linked to our green lending ambition and science-
based target requirements.
% of new lending in 2024 that is
classified as green and transition
35%
Target 70% by 2030
Although we do not have any sustainability
targets related to bonds, in recent years, the
Group’s ESG bond issuance has supported
€6.4bn of green and social collateral, with
€0.65bn of that being issued in 2024. Of the
€6.4bn in ESG Bonds issued to date, €4.65bn of
these are green bonds. These proceeds
contribute to the financing of projects with clear
environmental and climate action benefits, while
further strengthening the Bank’s capital position.
Our Socially Responsible Investment (SRI) Bond
portfolio funds domestic and international projects
that are aimed at global sustainability, carbon
emissions reduction and social improvement, all
under the overarching themes of ESG. AIB
promotes and supports the transition to a more
sustainable global economy and contributes to
positive environmental and social change via
investment in green, social and sustainable
bonds. The SRI Bond portfolio reached €2.67bn
at year-end 2024.
Our performance measures are integrated into
our Climate & Environmental Dashboard,
Strategic Outcomes Report, CFO and CRO
reports and GSC reporting. Progress towards
achieving our targets will also help us mitigate
C&E risks and reach our decarbonisation
ambition. Over time, we will steadily increase our
new sustainable lending activities to reach our
70% green and transition lending target by 2030.
Financed emissions reduction targets
We have set financed emissions reduction
targets, based on a 2021 baseline for our
three most material sectors – Residential
Mortgages, Commercial Real Estate (CRE),
and Electricity Generation – which are the loan
portfolios with the highest transition risk. We
also have a Corporate Portfolio Coverage
target, an engagement target, which aims to
drive the adoption of SBTi’ and emissions
reductions across all sectors.
Factors outside of our control
Our financed emissions reduction targets use a
decarbonisation reference scenario that aims to
limit global warming to 1.5⁰C. This ambition is
considered alongside external interdependencies,
requiring a careful balance between strategic and
transition risks. The world is not on track to limit
global warming to 1.5⁰C, with the latest climate
science suggesting a trajectory of greater than
2⁰C warming1. This trajectory gap between global
ambition and reality is also visible in AIB’s year-
on-year performance against certain targets.
While it is important to communicate clearly and
transparently, to promote stakeholder awareness
of this gap, we will not allow this to inhibit our
efforts to reduce our financed emissions and will
continue to support our customers throughout the
transition.
We do not expect to make linear progress
towards our targets each year, given our reliance
on external factors such as policy, regulation,
market trends and consumer behaviours. For
example, when setting decarbonisation reference
scenarios and targets for our Commercial Real
Estate and Residential Mortgages portfolios, we
have relied on the projections set out in the
Government’s Climate Action Plan regarding
building stock shifts from C+ rated properties to A
or B rated properties through obsolescence, new
builds and retrofit. We have also considered the
projected decarbonisation of the Irish energy grid
and the decrease in building energy-related
emissions that would result.
Overall, a large portion of our decarbonisation
levers are outside our direct control such as
government policy and the speed with which the
electricity grid transitions to renewables.
Strategic progress against decarbonisation
reference scenarios is tracked and reported
through executive and Board governance
channels. Steps to align our portfolios with our
decarbonisation reference scenarios have
been embedded into our strategic, financial
and investment planning process.
Target validation, methodology and tracking
In line with SBTi methodology, we have set both
Sectoral Decarbonisation Approach (SDA) and
Portfolio Coverage Approach (PCA) targets
accounting for 75% of our loan book in 2021.
In 2023, our targets were validated by the
SBTi. We were the first bank globally to have
an Electricity Generation maintenance target
validated by the SBTi. Across our portfolio, our
SBTi-validated targets use physical emissions
intensity and engagement metrics, in line with
SBTi’s SDA and PCA best practice target-setting
methodologies. In addition, we set our targets
and baseline emissions using the Partnership for
Carbon Accounting Financials Greenhouse Gas
(GHG) guidance.
1. https://www.unep.org/resources/emissions-gap-
report-2024
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Decarbonising our Loan Book continued
We measure, track and disclose progress as per
our SBTi commitments. In accordance with the
SBTi SDA target-setting methodology, we aim
to roughly halve absolute emissions by 2030
and reduce emissions as far as possible by
2050.
We are prioritising the measurement and
reduction of our emissions as far as possible,
as per SBTi best practice. Over time, we will
develop a carbon removal strategy for any
remaining unavoidable emissions to achieve
our decarbonisation ambition.
In 2024, working closely with key stakeholders
from relevant business areas across AIB
through internal workshops and regular
communication, we reviewed our
decarbonisation reference scenarios to take
account of external factors, the latest climate
science and internal data enhancements, and
to incorporate recent inorganic growth by AIB
through the acquisitions of new loan books.
We have made significant progress in setting
and reviewing our decarbonisation reference
scenarios and targets and we are now further
maturing the operationalisation of the process
across the Group to support the climate
transition across AIB.
Given the data availability challenges for
financed emissions calculations, proxies are
required when direct customer data are not
available. For example, for our Commercial
Real Estate and Residential Mortgages
portfolios, where a BER certificate or EPC is
not available, a proxy median is assigned
based on national publicly available
information or, where a property’s floor area is
unknown, floor area is calculated at the
property sub-type level using publicly available
Central Statistics Office property figures.
Emissions related to our Electricity Generation
(Power) portfolio are based on actual data
sourced from customers.
We are continuing to put measures in place to
enhance our data across our lending portfolio.
For all our portfolios, we continue to
systematically review, validate and update
customer-level data as necessary,
accompanied by a robust quality assurance
process. This will further improve our ability to
track emissions, targets and the relevant
physical activity data.
Over time, we aim to replace estimates with
actual counterparty or asset-level data and
reduce our reliance on proxy data. As more
specific data becomes available, we will need
to revise our actual emissions, targets and
underlying assumptions.
Progress towards the achievement of our
targets will help us mitigate C&E risks, achieve
our decarbonisation ambition and increase our
sustainable lending supporting our ambition
for 70% of AIB’s new customer lending to be
green or transition by 2030.
Financed
emissions targets
We have set financed emissions targets, using a SDA, for three sectors – Residential Mortgages, Commercial Real Estate, and Electricity
Generation, along with a Corporate Portfolio Coverage target, aligning with a PCA, all of which were validated by the SBTi in 2023.
Actual measurements of progress achieved to date, against these targets is detailed on page 74.
75%
SBTi-validated targets for Residential Mortgages,
Commercial Real Estate, Electricity Generation and Corporate
Portfolio Coverage, which cover 75% of the loan book.
Corporate Portfolio Coverage1
54%
Residential Mortgages2
58%
Commercial Real Estate3
67%
Electricity Generation4
Maintain
Increase loan volume
covered by emissions
targets from 12% to
54% by 2030*
Reduction in
emissions intensity
required by 2030*
Reduction in emissions
intensity required by 2030*
To maintain at or
below 21gCO2/kWh
*From a baseline of 2021
Calculations, judgements and estimates
The following are noted as sources of estimation and outcome uncertainty:
1. Corporate Portfolio Coverage targets are calculated by taking the sum of exposure of the company, dividing it by exposures of all companies in the scope
(i.e., companies with > 500 employees) and multiplying this by the SBTi indicator (i.e., 1 = SBTi targets, 0 = does not have SBTi targets). The data provided to AIB from
external sources are confirmation of SBTi committed (Y/N) & >500 employees (Y/N) and Exposure (€MM).
2. AIB Group Residential Mortgages Financed Emissions Intensity targets: Residential Mortgages Portfolio GHG emissions are calculated by taking the sum of
(Estimated CO2 emissions of property X (Current Loan Outstanding/Original Property Value)) divided by sum of (Floor Area of the Property X (Current Loan
Outstanding/Original Property Value)).The estimations proxy information is: i) Property value: If the property value given is less than €20,000, AIB assigns
the median value of all Residential Mortgages properties greater than €20,000. ii) Floor area: When the property floor area is unknown regarding the
minimum threshold of 20 m2 or above the cap of 500 m2 , apply the property area at the property sub- type level, calculated from the data provided by the
Central Statistics Office (CSO). If the property sub-type level is unknown, blank, or if property sub-type cannot be mapped to CSO property categories, then,
apply the overall property average size. iii) CO2 emissions (BER/EPC): When EPC is not known, assign median of kWh/m2 and KGCO2/m2 of properties by
building type. When no other information is available, the 75th percentile of KGCO2/m2 is assigned to the Residential SEAI BER table. BER/EPC is assigned
based on the kWh/m2 ratio vs notional building (methodology used by SEAI).
3. AIB Group CRE Emission Intensity targets: CRE Portfolio GHG Emissions are calculated by taking the sum of (Estimated CO2 emissions of property X (Current Loan
Outstanding/Original Property Value)) divided by sum of (Floor Area of the Property X (Current Loan Outstanding/Original Property Value)). The following Estimations /
Proxy Information is used: a) If the property value is unknown, AIB assigns average property value by property type and sub-type. b) Floor area: A cap of 88,156 m2
and a minimum threshold of 30 m2 are applied to the property floor area, based on the maximum and minimum property size registered in the SEAI data base for non-
residential buildings. Where CO2 emissions (BER/EPC) are not known, AIB assigns median of kWh/m2 and KGCO2/m2 of properties by dwelling type. When these
data are unknown, AIB assigns the 75th percentile of KGCO2/m2 from the SEAI database.
4. Electricity Generation Maintenance targets: electricity production data is based on actuals where data is sourced directly from counterparties to understand the
emissions intensity of our Electricity Generation portfolio. This has a very low emissions intensity overall, given the high share of renewables. Since the maintenance
target was validated by the SBTi, Waste to Energy counterparties have been de-scoped as per SBTi guidance. The reason for this exclusion is that Waste to Energy
facilities are not based on fossil fuels and electricity generation is not their main purpose and revenue generator. Emissions intensity in the Electricity Generation book
decreased further as outlined below.
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3
Financed
emissions progress
Progress against our financed emissions reduction targets is tracking in the right direction versus the 2021 baseline:
Residential Mortgages:
Emissions Intensity kgCO2e/m2
In 2021, we established a baseline physical emissions intensity of 40 kgCO²e/m² for our Residential
Mortgages portfolio, utilising the International Energy Agency (IEA) 2021 NZE2050 1.5°C SDA Scenario to
reduce our mortgage portfolio GHG emissions 58% per square meter by 2030 from a 2021 base year.
The scope of our target reflects the total lending within our Residential Mortgages portfolio, which was
€29.4bn in 2021, representing 50% of the Group’s total lending at that time. By 2024, our Residential
Mortgages portfolio had increased to 51% of the Group’s total lending, with a total of €36.3bn.
In 2024, the physical emissions intensity of our Residential Mortgages portfolio decreased by approximately
5.6%, compared to our 2021 baseline. As previously noted, progress against targets is not expected to be
linear on a year on-year basis given reliance on external factors such as policy, regulation, market trends
and consumer behaviours. AIB remains committed to investing in residential mortgage products and
propositions to support the achievement of our targets.
Commercial Real Estate:
Emissions Intensity kgCO2e/m2
In 2021, we established a baseline physical emissions intensity of 135 kgCO²e/m², utilising the International
Energy Agency (IEA) 2021 NZE2050 1.5°C SDA Scenario to reduce GHG emissions from the CRE sector
within its corporate loan portfolio 67% per square meter by 2030 from a 2021 base year. The scope of our
target reflects the total lending within our CRE portfolio of €5.6bn in 2021, 10% of the Group’s total lending.
Throughout 2024, we undertook a process to enhance the quality of our data alongside our
decarbonisation models and methodologies, reflecting our commitment to more accurately measure
emissions. As a result of this effort, we are revising our 2021 baseline from 135 kgCO²e/m² to 116
kgCO²e/m², while maintaining our current IEA pathway. This adjustment allows us to present a more
accurate representation of our progress to date, while retaining our emissions reduction target of 67%
by 2030. In 2024, our CRE portfolio accounted for 8% of the Group’s total lending, with total lending
at €5.6bn. In 2024, the physical emissions intensity of our CRE portfolio reduced by approximately
8% compared to our 2021 restated baseline.
We are competitive in the CRE sector in our home market, with our commitment to sustainability being a
key differentiator. CRE is also an important sector to us because of the social impact of our business. We
work with developers and housing schemes and, through the provision of finance, we have a positive social
impact by increasing the housing supply in Ireland.
Electricity Generation:
Emissions Intensity gCO2e/kWh
AIB’s Electricity Generation portfolio has a significantly low emissions intensity relative to the global average
for electricity generation (458 gCO2e/kWh in 2024), given the high share of renewable energy assets such
as offshore wind energy.
In 2021, we established our baseline maintenance target to maintain the emissions intensity of our
electricity generation project finance portfolio at or below 21 gCO²e/kWh from 2021 through 2030 and only
finance 1.5°C aligned electricity generation projects. The scope of our baseline and target reflects the total
lending within our Electricity Generation portfolio of €1.6bn in 2021, comprising 3% of the Group’s total
lending. Since setting our maintenance target, waste to energy has been excluded from the Electricity
Generation target scope, following bilateral guidance received from the SBTi. This is primarily due to the fact
that waste-to-energy facilities are not based on fossil fuels, and electricity generation is not their main
purpose or revenue source. Consequently, the baseline emissions intensity decreased significantly from 21
gCO²e/kWh to 0.01 gCO2e/kWh. Note that, financed emissions related to waste to energy will continue to be
tracked against our maintenance target internally. In 2024, the portfolio was 5% of total lending €3.6bn with
an emissions intensity of 0.97gCO2e/kWh.
We are committed to maintaining the emissions intensity level of the Electricity Generation portfolio below
21 gCO²e/kWh through 2030 by keeping the portfolio focused on renewable electricity generation projects.
In addition, we intend to grow AIB’s business in renewable energy infrastructure to support the broader
transition to a sustainable future.
Corporate Portfolio Coverage:
% of corporate portfolio aligning with SBTi
Our Corporate Portfolio Coverage target considers large corporations with >500 employees that have SBTi
validated targets. In 2021, we established a target to increase our corporate portfolio loan volumes covered
by emission targets from 12% to 54% by 2030 from a 2021 baseline. In 2024, we increased our Corporate
Portfolio Coverage to 27%.
The percentage of customers with SBTi-validated targets set is expected to increase in the coming years,
as new regulations around transition plan disclosures come into force. Key sectors should decarbonise in
line with the Government’s Climate Action Plan 2024, and corporate customers with >500 employees are
expected to set their own emissions targets in the medium term.
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Decarbonising our Loan Book continued
AIB – projected – IEA 2021 NZE2050 (1.5°)
Actual
0
10
20
30
40
50
2021
2025
2030
2035
2040
2045
2050
AIB – projected – IEA 2021 NZE2050 (1.5°)
Actual
0
25
50
75
100
125
150
2021
2025
2030
2035
2040
2045
2050
AIB Maintenance Target
Actual
Global – projected – IEA 2024 WEO (1.5°)
0
100
200
300
400
500
2021
2025
2030
Corporate Loan Portfolio – Projected
Corporate Loan Portfolio – Actual
0
20
40
60
80
100
2021
2025
2030
In supporting our customers in the transition to a sustainable
future, we are ever mindful of our own carbon footprint,
including entities in our upstream value chain. We have a clear
ambition to reach Net Zero in our own operations, while sourcing
100% of electricity from certified renewable energy sources by 2030.
In this section, we detail our approach to
managing the material IROs related to the
decarbonisation of our own operations through
the lens of our policies, actions and
performance measures.
We have implemented and regularly review
several policies and frameworks to enable this
journey, along with the targets and actions to
achieve them.
These policies will support us in increasing our
positive impacts through energy efficiency
measures, in reducing physical climate-related
risks, and in grasping our opportunity of
becoming net zero in our own operations by
2030.
Our policies
E1-2
While we have many policies that reference
sustainability and ESG factors, there are two
primary policies that focus on how we will
meet our responsibility to protect the
environment, increase our energy efficiency
and tackle our operational emissions.
• Our Group Energy Policy outlines how we
conduct our business and operations as
energy-efficiently as possible, striving to
achieve continual improvement in our
energy performance and Energy
Management System. This policy is
managed and controlled through the
implementation of Energy Management
Standard ISO 50001.
• Our Group Environmental Policy aims to
support us to meet our current needs
without compromising the ability of future
generations to meet their own needs. This
principle of sustainable development
demands that we accept responsibility for
the direct impact of our own operations on
the environment. The policy also commits
us to supporting initiatives aimed at
mitigating, adapting or responding to
climate change. AIB takes environmental
action into account, in accordance with
international standard ISO 14001.
We considered the interests of all AIB
stakeholders when setting these policies. The
Chief Operating Officer is accountable for their
implementation. The policies are publicly
available on our website.
Our actions
E1-3
As detailed in Our approach to transition
planning on page 66, one of our
decarbonisation levers is investment to reduce
direct emissions. We made the following
actions in 2024:
Sourcing renewable energy
We had previously purchased electricity on
green tariffs. However, in 2022, we entered
into a VPPA with NTR plc to create two new
solar farms in Co. Wexford. Construction
began swiftly and the first solar farm started
energisation in February 2024.
These two solar farms will deliver certified
renewable energy to the Group. In 2024, 84%
of AIB’s own electrical energy needs was
produced from these solar farms. This action
is instrumental to meeting our renewable
electricity sourcing target of 100% by 2030.
The agreement also ensures that the Group
has a sustainable and secure energy supply at
a fixed price for 15 years and will continue to
reduce our operational carbon emissions.
Greener Branches Refurbishment
We are continuously upgrading our branch
and office buildings to improve their energy
efficiency. One example of this is our
investment in our Branch Network Greener
Branches Refurbishments Programme.
Our performance measures
E1-4
Own operations targets
We have an ambition to reach Net Zero in our
own operations by 2030.
AIB has an interim target validated by the
SBTi to reduce absolute Scope 1 GHG
emissions by 34% by 2027. We use 2019 as
the baseline year. The baseline values which
the target is measured against are 4,784
tCO2e for Scope 1. In 2024, AIB’s cumulative
reduction in Scope 1 emissions was 40%. See
page 77 for further details on GHG emissions.
Due to the nature of our business, we have
set an SBTi-validated target to increase our
annual sourcing of renewable electricity
needs. In this regard, our Scope 2 target is to
increase the annual sourcing of renewable
electricity to 100% by 2030 from a 2019
baseline of 1%.
The targets have used assumptions around
availability of renewable energy in Ireland and
the UK and the changes within our estate over
the period. As we approach the midpoint of our
target delivery period we will take the
opportunity to consider future developments
and how these will impact on our target by
2030. When setting these targets stakeholders
across the business were engaged with
through consultation.
AIB have a stated objective of achieving net
zero in our own operations by 2030. This
target is relative and measured as a
percentage reduction in emissions.
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Decarbonising Our Own Operations
AIB Solar Farm | Gorey
Energy consumption
and mix
E1-5
Energy consumption and mix
2023
2024
Fossil Energy Consumption
(1)
Fuel consumption from coal and coal products (MWh)
0
0
(2)
Fuel consumption from crude oil and petroleum products (MWh)
8,008
5,034
(2a) Stationary Fuel Consumption
2,740
3,057
(2b) Mobile Fuel Consumption
5,268
1,977
(3)
Fuel consumption from natural gas (MWh)
8,201
8,408
(4)
Fuel consumption from other fossil sources (MWh)
0
0
(5)
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)
2,038
3,049
(5a) Consumption of purchased electricity (office buildings)
1,924
2,518
(5b) Consumption of purchased electricity (EV fleet)
114
508
(5c) Consumption of purchased or acquired heat
0
22
(5d) Consumption of steam and cooling
0
0
(6)
Total fossil energy consumption (MWh) (calculated as the sum of 1 to 5)
18,248
16,491
Share of fossil sources in total energy consumption (%)
49 %
50 %
Nuclear Energy Consumption
(7)
Consumption from nuclear sources (MWh)
0
0
Share of consumption from nuclear sources in total energy consumption (%)
0 %
0 %
Renewable Energy Consumption
(8)
Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of
biologic origin, biogas, renewable hydrogen, etc.) (MWh)
0
0
(9)
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)
19,075
16,537
(9a) Direct Procurement (VPPA)
0
16,360
(9b) Contract with electricity suppliers
19,075
177
(10) Consumption of self-generated non-fuel renewable energy (MWh)
0
0
(11)
Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10)
19,075
16,537
Share of renewable sources in total energy consumption (%)
51 %
50 %
Total energy consumption (MWh) (calculated as the sum of lines 6, 7 and 11)
37,323
33,028
Total Energy consumption (MWh) Reported on Net Calorific Value (NCV)
36,523
32,209
Disaggregating our energy consumption and mix into distinct categories and sources gives us a detailed understanding of our total energy
consumption in absolute value, helping us to focus on improving our approach to energy efficiency and to further increase the share of renewable
energy in our energy mix.
AIB does not operate within a high-climate-impact sector, as defined by ESRS, and, as such, this has not affected our energy intensity calculations.
The Group’s total net revenue is, therefore, shown as the Total Operating Income line item within the Financial Statements section below.
Calculations, judgements and estimates
Calculating energy consumption and mix
Please refer to supporting notes for energy consumption and mix on page 79 for further information regarding calculations.
Assumptions for calculating energy consumption and mix
Estimations are used where the Group does not hold the energy supply contract, for example at service charge locations. Additionally, financial
year data for FY2024 includes nine months of actual data from January to September, while KPIs are then used to estimate the final three
months of data from October to December. FY 2023 data, however, represents full-year actual data.
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Decarbonising our Own Operations continued
Scope 1, 2 & 3
GHG emissions
E1-6
As seen from the above sections, in particular Decarbonising Our Loan Book
and Decarbonising Our Own Operations, we generate GHG emissions primarily
through our loan book and own operations. As such, our GHG emissions can be
broken down into a number of scopes and categories, as shown below.
Table 1: Breakdown of AIB Group Scope 1, 2 & 3 and total GHG emissions
Baseline
2019 / 20211
2023
2024
Change from
2023 to 2024
Milestones and target years4
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO2e)
4,784
2,886
2,875
0 % Reduce absolute Scope 1
GHG emissions 34% by 2027
from a 2019 base year.
Percentage of Scope 1 GHG emissions from regulated
emission trading schemes (%)
N/A
N/A
N/A
N/A
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions (tCO2e)
10,025
4,948
4,391
(11) % Increase annual sourcing of
renewable electricity from 1%
(2019) to 100% in 2030.
Gross market-based Scope 2 GHG emissions (tCO2e)
64
536
813
52 %
Significant Scope 3 GHG emissions 2
Category 15 - Investments (Financed Emissions) 3
2,570,000
813,528
1,067,519
31 % Net Zero by 2050 in customer
lending portfolio.
Total gross indirect (Scope 3) GHG emissions (tCO2e)
2,570,000
813,528
1,067,519
31 %
Total GHG emissions
Total GHG emissions (location-based) (tCO2e)
N/A
821,362
1,074,786
31 %
Total GHG emissions (market-based) (tCO2e)
N/A
816,950
1,071,207
31 %
1. Base year for Scope 1 and 2 emissions is 2019, while Scope 3 financed emissions use a 2021 base year.
2. AIB has identified other Scope 3 categories relevant to our business activities but these account for less than 1% of our total Scope 3 emissions and as such are
not deemed significant in accordance with ESRS E1 para 51. We will continue to monitor and report these emissions internally. Emissions tied to these
categories (1, 2, 3, 5, 6, 7 and 13) will be reported as part of our CDP disclosure.
3. Scope 3 Category 15 GHG emissions include our three most material sectors (i.e., the loan portfolios with the highest transition risk) namely: Residential
Mortgages, CRE, and Electricity Generation where AIB have SBTi validated financed emissions reduction targets based on a 2021 baseline and exclude all other
sectors. Further sectors will be considered to determine if additional financed emissions targets may be required in line with AIB’s business and best practice.
The accounting and reporting of Category 15 emissions associated with lending is described in Partnership for Carbon Accounting Financials (PCAF) Part A
Standards on financed emissions from lending and investment activities. The asset classes in scope for Financed Emissions, in line with the PCAF Standard, are
Mortgages, CRE and Electricity Generation which are included in the scope of the Financed Emissions calculation where there is a dedicated PCAF
methodology for financed emissions. These categories largely correspond to the scope covered by the Group’s SBT.
4. For Scope 1 and Scope 2 progress against milestones and target years, please see progress against milestones and targets below.
Please also see the supporting notes for AIB’s GHG emissions detailed on page 79 for more information.
Progress against milestones and targets
Our ambition is to be Net Zero in our own operations by 2030. The emissions targets that are set and SBTi validated for our own operations are to
reduce absolute Scope 1 GHG emissions by 34% by 2027, from a 2019 base year.
2019
Baseline
2021
2022
2023
2024
Absolute Scope 1 GHG Emission Target (tCO2e)
4,800
3,991
3,110
2,819
2,821
Reduction (versus baseline)
N/A
(17) %
(35) %
(41) %
(41) %
The target figures include gross biogenic emissions as required under SBTi. For example the baseline figure of 4,800 tCO2e includes biogenic
emissions, which is not included in the Group figures in Table 1 above (see Table 6 below for biogenic emissions on their own).
Regarding AIB’s Scope 2 target of increasing the annual sourcing of renewable electricity to 100% by 2030, as detailed above, 2024 saw the
activation of AIB’s VPPA via two solar farms in County Wexford.
2019
2023
2024
Annual sourcing of renewable electricity to 100% by 2030
1 %
0 %
85 %
Electricity consumption from Goodbody is excluded from this target which has resulted in a figure of 85%, compared to the Group figure of 84%,
for 2024. Please also see the supporting notes for progress against milestones and targets detailed on page 79 for more information.
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Methodology for Calculating GHG Emissions
Table 2: Disaggregation of Scope 1, 2 & 3 GHG emissions data by country
Disaggregation by country
Ireland
UK
US
(tCO2e)
2019
2023
2024
2019
2023
2024
2019
2023
2024
Total Scope 1 emissions
4,481
2,663
2,678
282
211
183
21
13
14
Gross location-based Scope 2 GHG emissions
9,366
4,614
4,034
564
270
287
94
64
71
Gross market-based Scope 2 GHG emissions
0
315
535
0
156
207
64
64
71
Total Gross indirect Scope 3 GHG emissions
N/R
N/R
N/R
Total GHG emissions (location-based)
13,847
7,276
6,712
846
481
470
115
77
85
Total GHG emissions (market-based)
4,481
2,978
3,213
282
367
390
85
77
85
Investments data not available at country level. Totals above only include Scope 1 and Scope 2 data.
Table 3: Further disaggregation of Scope 1, 2 & 3 GHG emissions data (within Ireland)
Further disaggregation
Offices, branches, other locations
within Ireland and Payzone
EBS
Goodbody
(tCO2e)
2019
2023
2024
2019
2023
2024
2019
2023
2024
Total Scope 1 emissions
4,207
2,520
2,558
274
44
39
N/A
99
81
Gross location-based Scope 2 GHG emissions
8,578
4,246
3,784
788
210
167
N/A
158
83
Gross market-based Scope 2 GHG emissions
0
60
290
0
183
171
N/A
72
74
Total gross indirect Scope 3 GHG emissions
N/R
N/R
N/A
Total GHG emissions (location-based)
12,785
6,767
6,342
1,062
254
206
N/A
256
164
Total GHG emissions (market-based)
4,207
2,580
2,849
274
227
210
N/A
170
155
Investments data not available at disaggregated level. Goodbody and Payzone were incorporated into the Group after 2019.
Table 4: Contractual instrument procurement type breakdown
Contractual instruments
Bundled instrument
Unbundled Instrument
Total
Procurement type
% of total consumption
% of total consumption
% of total electrical
consumption
Self-generation / On-site generation
N/A
N/A
0 %
Direct procurement (contract with generator – VPPA)
0 %
84 %
84 %
Contract with electricity supplier (supplier-specific emission rate)
9 %
0 %
9 %
Energy Attribute Certificates (EACs)
N/A
N/A
0 %
Passive procurement (residual mix)
0 %
7 %
7 %
Passive procurement (other grid-average EF)
0 %
1 %
1 %
Total
9 %
91 %
100 %
Please see the supporting notes for contractual instruments detailed on page 79 for further information
Table 5: GHG intensity based on net revenue
GHG emissions intensity is calculated below using the ‘Total Operating Income’ line item from the AIB’s Financial Statements.
GHG emissions per net revenue
2023
2024
Change from 2023 to 2024
Total GHG emissions (location-based) per net revenue (tCO2e/Monetary unit)
174
218
20 %
Total GHG emissions (market-based) per net revenue (tCO2e/Monetary unit)
173
217
20 %
Table 6: Biogenic emissions
Biogenic emissions of CO2 from combustion/bio-degradation of biomass
2019
2023
2024
Not included in Scope 1 emissions (tCO2e)
16
35
27
Not included in Scope 2 emissions (tCO2e)
0
0
0
That occur in the value chain and not included in Scope 3 GHG emissions (tCO2e)
0
0
0
Total out-of-scope biogenic emissions
16
35
27
Calculations, judgements and estimates
Calculating scope 1, 2 & 3 GHG emissions
Please refer to Supporting notes for AIB’s GHG emissions detailed below for further information regarding calculations.
Assumptions for calculating GHG emissions
The following assumptions were used in the calculation of the GHG emissions data shown in tables above:
• For Scope 1 & Scope 2 data: Where the Group does not hold the energy supply contract, an estimation is used (e.g. service charge
locations). Current FY data: 9 months of actual data (Jan – Sept). KPIs used to estimate 3 months of data (Oct – Dec).
• For Scope 3 Financial Investments data: See the Financed Emissions Metrics listed above for additional details regarding the assumptions
used. We are applying a phase-in provision for Scope 3 category 15 absolute value emissions, while we focus on adopting transitional
measures for value chain information.
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Methodology for Calculating GHG Emissions continued
Calculations, judgements and estimates continued
Supporting notes for energy consumption
and mix
E1-5
• Energy reported is only the energy
consumed from processes owned or
controlled by AIB (applying the same
perimeter used for reporting GHG Scope 1
& 2 emissions).
• This excludes feedstocks and fuels that are
not combusted for energy purposes.
• All quantitative energy-related information is
shown in megawatt-hours (MWh). Under
NCV totals, “Natural Gas” usage is
converted from GCV to NCV using
published country specific conversion
factors.
• All quantitative energy-related information is
shown as final energy consumption, and
refers to the amount of energy that AIB
actually consumes.
• Self-generation of energy is N/A.
• Energy consumption is not offset.
• There is no Energy that is sourced from
within the organisational boundary under
‘purchased or acquired’.
• AIB does not receive any steam, heat or
cooling as ‘waste energy’ from a third
party’s industrial processes .
• AIB does not have Hydrogen derived from
renewable sources.
• AIB adopts a conservative approach when
splitting the electricity, steam, heat or
cooling between renewable and non-
renewable sources, based on the approach
applied to calculate market-based Scope 2
GHG emissions.
• AIB has entered into a VPPA, which, from
2024, has enabled us to report fully
traceable renewable electricity.
• Figures are rounded and sourced from
company information.
Supporting notes for AIB’s GHG emissions
E1-6
• A GHG source is any physical unit or
process that releases GHG into the
atmosphere:
• Direct (Scope 1) GHG emissions are from
sources that are owned or controlled by
AIB. AIB's Direct (Scope 1) emissions
include combustion of stationary and
mobile sources and fugitive emissions.
• Scope 2 emissions are indirect GHG
emissions associated with the purchase of
electricity, steam, heat or cooling. AIB
Scope 2 emissions include the consumption
of purchased electricity and heat.
• Scope 3 category 15 emissions are
reported for FY2024. No other Scope 3
categories are deemed to be significant
under CSRD.
• Biogenic Emissions are emissions of CO2
from the combustion or biodegradation of
biomass.
• Our carbon reporting is aligned with our
financial reporting. Scope 1 & 2 figures
include nine months of actual data and
three months of estimations to account for
the 12 months of the reporting period. In
relation to Scope 3 emissions (except for
Category 15 investments) other relevant
Scope 3 emissions will be disclosed in our
CDP 2025 submission.
• The GWPs used in the calculation of CO2e
are based on the Intergovernmental Panel
on Climate Change (IPCC) Assessment
Reports over a 100-year period.
• The AIB GHG inventory was calculated in
accordance with the Greenhouse Gas
Protocol: A Corporate Accounting and
Reporting Standard, Revised Edition (the
GHG Protocol), applying the most
appropriate accounting methodologies and
emission factors to ensure accuracy and
reliability.
• In line with the GHG Protocol, our
emissions are presented in tonnes of
carbon dioxide equivalent units (tCO2e) and
cover seven greenhouse gases when
available: CO2, CH4, N2O,
hydrofluorocarbons (HFC),
perfluorocarbons (PFC),
sulphur hexafluoride (SF6) and
nitrogen trifluoride (NF3).
• These Group figures reflect gross location-
based absolute emissions, unless flagged
otherwise.
• A third party independent verification, based
on ISO 14064-3, was completed for
reported Scope 1 & 2 emissions. Our
verification statements are publicly available
on our website. A copy of our historical
GHG verification statements is available in
our annual CDP.
• 2023 figures have been updated as per
last restatement, issued in 2024. This
exercise was completed in accordance
with the GHG Protocol guidance and
allowed the incorporation of 12 months
of actual data
• Terms/abbreviations used: NR = not
reported.
• For carbon accounting purposes,
GHG emissions from our subsidiary
AIB Mortgage Bank are incorporated into
the operational boundary of Allied Irish
Banks. At this stage there is no emissions
data available for Associates and Joint
Ventures of AIB.
• Figures are rounded.
• AIB has refined its market-based
methodology to reflect updated
information as per use of different
contractual instruments.
• Our Scope 3 financed emissions (both
absolute and physical emissions intensity
metrics) were previously reported one
year in arrears. We are now aligned with
year-end reporting.
• Investments data are not available at
country level or a subsidiary level.
Supporting notes for contractual
instruments
E1-6
• The disaggregation of information is in
accordance with the Greenhouse Gas
Protocol and RE100 guidance.
• Calculations based on FY2024 electricity
data (partially estimated) and as per
Guarantee of Origin certificates cancelled
to date.
• There are two types of contractual
instruments: ‘Bundled’, which refers to
renewable energy and any associated
certificates that are purchased together
under the same contract, and ‘Unbundled’
which refers to the separate purchase of
energy and renewable certificates.
• Total electrical consumption used to
calculate the VPPA percentage is the sum
of rows 5a, 5b, 9 (19,563 MWh in 2024) in
the energy consumption and mix table
Supporting notes for progress against
milestones and targets
E1-6
• Since Goodbody was only consolidated
for the final 4 months of 2021, its data
was excluded in the GHG inventory for
submission to SBTi.
• Annual Sourcing progress based on
FY2024 electricity data (partially
estimated) and the Guarantee of
Origin certificates cancelled to date.
• To coordinate with Net Zero commitments,
AIB set 2019 as its operational emissions
base year. 2021 was chosen as the
baseline for our financed emissions
(Cat 15 investments).
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As part of our commitment to transparency and responsible
banking, we are disclosing our Green Asset Ratio (GAR) to
demonstrate our alignment with the EU Taxonomy criteria.
Please refer from page 356 in General
Information for the full disclosure templates
required under EU Taxonomy.
The preparation of the EU Taxonomy reporting
is based on prudential consolidation of AIB
Group plc. The prudential consolidation is in
accordance with the supervisory reporting of
financial institutions as defined in Regulation
(EU) No 575/2013 and the Commission
Implementing Regulation (EU) 2021/451
(FINREP).
The EU Taxonomy is a sustainability
classification system that translates the EU’s
climate and environmental objectives into
criteria for categorising specific economic
activities for investment purposes. It aims
to redirect capital flows to support the
transition and help generate sustainable
and inclusive growth.
The EU Taxonomy Regulation (Regulation
(EU) 2020/852) specifies that financial
undertakings must disclose how and to what
extent their activities are associated with
economic activities that qualify as
environmentally sustainable. To qualify as EU
Taxonomy-aligned, an economic activity must
substantially contribute to one or more of the
six EU environmental objectives under the
technical screening criteria, while doing no
significant harm (DNSH) to the other five
objectives and complying with minimum
social safeguards.
Our SLF, detailed on page 70, provides
transparency on the types of activities we
consider to be green, transition or social
activities. EU Taxonomy-aligned lending is a
subset of the green lending category
determined by the SLF. As at 31 December
2024, the green asset ratio is 4.3% which
equates to total taxonomy aligned exposure of
€4.1bn over total covered assets of €97.2bn
as outlined in the Balance sheet summary
below. For 31 December 2023, the GAR was
4.4%*, which equated to a total taxonomy-
aligned exposure of €4.0bn over the total
covered assets of €92.4bn.
*December 2023 GAR has been restated.
The EU Taxonomy criteria are strict and
exclude many lending activities that contribute
to the transition to a greener economy. For
AIB, EU Taxonomy-aligned exposure mostly
comprises residential mortgages, where the
underlying assets meet the technical
screening criteria for Climate Change
Mitigation, including an assessment of DNSH
to Climate Change Adaptation. Lending to
counterparties subject to the Non-Financial
Reporting Directive is also EU Taxonomy-
aligned but is a small portion of the total
lending activity, at c.1%. As a result, due to the
restrictive nature of the NFRD/CSRD
requirement, much of our renewable lending
for our Climate Capital segment is not
included in the calculation.
In determining alignment for residential
mortgages, we have utilised the property’s
BER or EPC to identify those assets contained
in the top 15% of national stock (constructed
pre-2020) or aligned to the Nearly Zero
Energy Building Standard – 10% (constructed
post-2020).
As in previous years, a screening exercise
was performed to identify counterparties
subject to the Non-Financial Reporting
Directive and reporting for this cohort has
been undertaken using most recent published
counterparty data, some of which relates to
2023 year end information. The EU Taxonomy
regulation is subject to ongoing updates and
refinements in taxonomy criteria that may
influence the calculation of the GAR over time.
We acknowledge the importance of ESG data
to inform reporting, support decision-making
and enhance product development, and we
are committed to evolving our data capture
and storage infrastructure to improve
accessibility, meet regulatory obligations and
integrate ESG data into our business
processes.
Green Asset
Ratio
4.3%
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EU Taxonomy
Balance Sheet Overview as at 31 December 2024
Total Gross
Carrying
Amount (€m)
Taxonomy
Eligible
Exposure1 (€m)
Taxonomy
Aligned
Exposure2 (€m)
Green Asset
Ratio
Loans and advances, debt securities and equity instruments
eligible for GAR calculation
63,206
39,328
4,150
4.27 %
Financial undertakings
19,953
—
—
Non-financial undertakings (subject to NFRD)
882
248
18
Households
42,342
39,080
4,132
Local governments financing
30
—
—
Collateral obtained by taking possession
2
—
—
Assets excluded from the numerator for GAR calculation
(covered in denominator)
33,990
Non-financial undertakings (not subject to NFRD)
26,445
Derivatives
1,719
On demand interbank loans
401
Cash and cash-related assets
664
Other categories of assets (e.g., Goodwill, commodities, etc.)
4,762
Total GAR assets (for denominator)
97,199
Assets not covered for GAR calculation
45,410
Total Assets
142,608
Notes:
1. Taxonomy eligible exposure is lending to an eligible economic activity that has been classified under an environmental objective within the EU Taxonomy Regulation.
2. Taxonomy aligned exposure is lending to an eligible economic activity that qualifies as environmentally sustainable in line with the technical criteria specified within
the EU Taxonomy Regulation.
Our 2024 disclosure
Our total environmentally sustainable assets amount to €4.150 bn, resulting in a GAR of 4.3%.
The table below summarises our GAR stock and flow. Please refer to our supporting tables from page 356 in General Information for the full
disclosure templates required under EU Taxonomy specifications.
Total
environmentally
sustainable assets
€m
KPI1
KPI2
% coverage
(over total
assets)3
% of assets
excluded from
the numerator
of the GAR
% of assets
excluded from
the denominator
of the GAR
Main KPI
GAR (stock)
4,150
4.27
4.27
68.16
23.83
31.84
Total
environmentally
sustainable assets
€m
KPI
KPI
% coverage
(over total
assets)
% of assets
excluded from
the numerator
of the GAR
% of assets
excluded from
the denominator
of the GAR
Additional KPIs
GAR (flow)
379
2.07
2.07
99.97
61.09
0.03
Financial
guarantees
—
— %
— %
Assets under
management
—
— %
— %
Notes:
1. Based on the Turnover KPI that the underlying counterparty has disclosed for each environmental objective in accordance with this Regulation.
2. Based on the CapEx KPI that the underlying counterparty has disclosed for each environmental objective in accordance with this Regulation
3. % of assets covered by the KPI over banks´ total asset
Additional Calculation Information:
• Total environmentally sustainable assets refers to the amount of exposure deemed aligned to EU Taxonomy criteria.
• GAR stock KPIs are the total environmentally sustainable assets (split by turnover and CapEx) as a proportion of the total covered assets.
• GAR flow KPIs are based on the gross carrying amount of exposures originated in 2024 (split by turnover and CapEx) as a proportion of total
covered assets originated in 2024.
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Societal &
Workforce
Progress
We have a customer-first focus:
our colleagues are critical to our
success and are at the centre of
everything we do. We want to build
a brighter and fairer future, continue
to play a positive role in society and
make a positive economic contribution.
In this section
Material topics
ESRS
Page
Financial wellbeing
ESRS S4 – Consumers and end-users
85
Housing
ESRS S4 – Consumers and end-users
ESRS S3 – Affected communities
88
Equal treatment &
opportunities for all
ESRS S1 – Own Workforce
90
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We aim to put people at the centre of everything we do.
We make sure that our colleagues feel supported and empowered
in work every day, that we continue to fulfil our focus, and that
we make a positive economic contribution to our communities.
SBM-3
Three material topics from our DMA are the
primary focus of this section: Financial
Wellbeing, Housing, and Own Workforce
(Equal treatment & opportunities for all).
This section details our approach to managing
the corresponding material IROs in terms of
policies, actions and performance measures.
Alongside our Human Rights Commitment, we
also provide information on other ESRS social
pillar requirements, such as the type of
stakeholders impacted, how we engage with
them on material impacts, and our processes to
raise concerns and remediate complaints.
Through our DMA and our direct and indirect
stakeholder engagement channels, we have
considered aspects such as gender, diversity
and vulnerability to develop our understanding of
the types of stakeholders most affected. Three
stakeholder groups in particular are the focus of
this section: our customers, our colleagues, and
the wider society and community.
The first of our material topics covered in this
section is financial wellbeing. We discuss
this topic through three themes: tailored
financial products, our customers in vulnerable
circumstances and financial literacy.
Customer First remains at the centre of our
strategy.
In July 2024, AIB appointed a Chief
Customer Officer who will support
the Group’s ambition to be at the
heart of customers’ financial lives
by comprehensively and
sustainably meeting their personal
and business life-stage needs,
further driving a customer-centric
culture across the enterprise.
We want to enable our customers to effectively
manage their own money, so they can achieve
the life they are after. We also take extra care
of the most vulnerable people in society. Along
our value chain we support consumers, SMEs
and large corporates, through our products and
services, and through our direct and indirect
business relationships. While the banking
landscape in Ireland is ever-changing, we
continue to rise to the challenge and we strive
to do better for them. Ensuring the financial
wellbeing of our customers is key to achieving
this. This includes activities such as providing
access to financial services, as well as
providing financial education to our customers,
including vulnerable groups, so they can make
informed decisions.
It also includes enhancing the customer
experience, through simplicity, agility, safety
and self-service, and the effective
management of customer relations.
Housing, our next material topic, focuses on
our role as a leading mortgage provider in
Ireland. Access to housing is a critical issue
for our communities, wider society and future
generations. We help to improve the
availability and affordability of housing through
several key initiatives and actions. These
include supporting social and affordable
housing programmes, and funding new
developments. By financing social and
affordable housing, we indirectly impact
affected communities in our downstream value
chain. We also support our retail customers
access to more environmentally friendly and
economically efficient housing through
different green products, such as our green
mortgage offerings, which are detailed in the
Environmental section above. We examine
housing through the lens of both our
customers and the affected communities.
Our Social pillar also discusses the
importance of our people, who support our
customers’ financial needs and ambitions,
and who also have their own needs that must
be met. An area of particular importance is
Own Workforce (Equal treatment &
opportunities for all).
We understand the importance of creating
a workplace where all of our colleagues,
irrespective of their origins, backgrounds,
personality, life experiences and beliefs, feel
empowered at work.
Striving for equal treatment and opportunities
for all of our colleagues means that we have a
positive influence on:
• gender equality and equal pay for work of
equal value;
• training and skills development;
• employment and inclusion of people with
disabilities;
• measures against violence and harassment
in the workplace; and,
• diversity among our colleagues.
We achieve this by creating a culture that
promotes a sustainable work-life balance and
universal inclusion, introducing variable pay
for employees, and helping colleagues to
develop and progress their careers, which has
a positive impact on them.
If we fail to recruit and retain talent with
specialised skills, or do not provide the
necessary training and skills development for
front-line staff, there is a risk we may not meet
our sustainability commitments, such as the
transition of our loan book. This may also affect
our ability to serve our customers. Conversely, a
rigorous approach to sustainability, such as our
decarbonisation ambition and journey to date as
detailed in Climate & Environmental Action, can
help us to attract and retain a talented workforce
that shares our values. We are pursuing this
opportunity, which is integrated into our strategy
via our Operational efficiency & resilience are of
strategic focus. See pages 46 to 47 for details.
Our material Impacts, Risks and Opportunities
on pages 58 to 61 outline the material IROs,
as well as their interaction with our strategy
and business model. These IROs include
those relating to our own operations,
and our value chain.
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Societal & Workforce Progress
In line with our strategy, we put customers first and their financial
wellbeing is at the heart of what we do. We aim to continually adapt
our service and product offering to meet the needs of our customers,
throughout their life stages, while always being fair, transparent,
and accessible, and consistently delivering the best value we can offer.
This is one of our seven material topics.
For each topic, we report in accordance
with the ESRS. We disclose our approach
to managing our material IROs through our
policies, actions and performance
measures.
Value chain: Downstream
Our policies
S4-1
The policies described below apply to all
employees, contractors, consultants, agents and
third parties throughout the Group, in all
jurisdictions who have direct or indirect access to
our information or systems. They are applicable
to all legal entities and subsidiaries in AIB Group,
including Goodbody and, where relevant, our
suppliers within our value chain. Payzone is not
covered by these policies as it maintains its own
suite of policies.
Tailored financial products
We support our customers through different
financial and life stages, from the beginning of
their education to planning for and entering into
retirement. This section details some initiatives
related to tailored financial products for these life
stages, which include our student lending
products, and AIB Advantage accounts for our
older customers.
In supporting our customers through their life
stages, we aim to continually improve their
banking experience with us. We track the
effectiveness of this within our Customer
Experience surveys.
Product and Propositions Risk Policy
This policy sets out our approach for managing
and mitigating risks in relation to the development
of products, propositions, services and customer
solutions, and that we do this in line with our
Group Risk strategy and Risk Appetite Statement
(note that Goodbody have a separate Product
Governance Model in place).
The policy covers consumer and wholesale
products, customer solutions and product fees
or charges. The policy is owned by the Head of
Operational Risk and is sponsored by the Chief
Risk Officer (CRO). The policy supports us in
designing our products with a target customer
market in mind and also ensures that customers’
needs are considered throughout the product
development and management stages. The
policy is available to all of our colleagues
internally.
Customers in vulnerable circumstances
We recognise that every customer is different,
and some require additional care, support or
protection to meet their day-to-day banking
needs. Vulnerability can affect any of us, at
any time, when periods of stress or difficulty
compromise our ability to cope, manage our
finances and make decisions. We consider
someone to be a vulnerable customer, when,
due to their personal circumstances, they
require additional care or support to prevent
poor or unfair customer outcomes. This can
include customers with an accessibility need,
a language barrier, customers facing a time of
stress and difficulty, or our younger customers.
Customer Vulnerability Guidelines
Our Customer Vulnerability Guidelines support
us in managing conduct risk relating to
customers in vulnerable circumstances. The
guidelines are a key supporting document to
the Group Conduct Risk Policy, for both
personal and business customers. The
guidelines recognise that when our customers
are experiencing vulnerable circumstances,
they may be significantly less able to
represent their own interests and more likely
to suffer harm; therefore they require
additional support.
The guidelines are owned by the Head of
Customer Vulnerability, and sponsored by
the Consumer Strategy, Proposition and
Enablement Director.
Under our Conduct Risk Policy, each ExCo
member is responsible for the effective
implementation of Customer Vulnerability
processes in their business and for monitoring
their effectiveness.
Financial literacy
We are committed to ensuring that all our
customers are enabled to make better-
informed financial decisions. AIB has a
positive impact by promoting financial literacy
through education initiatives and ensuring that
our communication is clear and straightforward.
We believe that all forms of customer
communications, including our advertising,
should be clear, fair, accurate, and not
misleading.
Our actions to use clear, fair and accurate
communication in promoting financial literacy,
are aligned with and supported by our Group
Conduct Risk Policy. The policy sets out our
approach to identifying and managing conduct
risks and specifies that we consider our
customers’ needs throughout the management
of these risks. Our approach to Conduct Risk
encompasses both Retail and Wholesale
Market Conduct Risk and aligns to the
Group’s Risk Strategy and Risk Appetite.
The policy covers all customers, including
those in vulnerable circumstances, and has a
vision to place the customer at the heart of
everything we do. Going forward, we will
consider developing a specific policy to
manage our impact in relation to financial
literacy.
The Conduct Risk Policy is owned by the Group
Chief Compliance Officer and sponsored by the
CRO. The policy is available to all of our
colleagues internally on our Intranet.
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Material Topic:
Financial Wellbeing
Awards | AIB Future Sparks
Our actions
S4-4
Tailored financial products
Every day, the Group supports our customers
in making financial decisions and we aim to
improve our customer experience and the
financial products and services that we offer.
Design improvements
Our Customer Credit Transformation Programme
(CCTP) introduced a new suite of platforms to
support some of our offerings to Retail and
Corporate customers. This enables a seamless
connection between our banking teams and our
customers via a secure digital environment that
increases transparency and efficiency.
We have also automated our drawdown
process and launched Docusign, with many
customers opting to sign their credit
agreements via the platform in 2024, which
shows our dedication to improving the loan
journey for our customers.
Throughout 2024, we developed our AIB
Business (iBB) app for business customers.
The app has increased flexibility for
customers, as they can now securely login to
the iBB website without a separate security
device. Customers can also process foreign
currency payments, manage standing orders
and view their balance history in the app. We
will continue to enhance the iBB app, including
enabling customers to sign in with biometrics.
We are also redesigning our AIB Mobile
customer offering, given our customers’ shift
to digital means. This included launching our
biometrics feature, enabling customers to
make payments of up to €10,000 in the app
without needing a card reader.
Our design improvements in 2024 were
influenced by external market research, ‘Voice
of the Customer’ surveys (see below), app
store ratings and the analysis of calls. Further
design improvements allow existing digital
customers access My Mortgage functionality
from the AIB Mobile App.
Savings, investment and pension products
AIB life offers a full suite of protection, investment
and pension products to support the financial
wellbeing of our customers. Sustainability is
deeply embedded into the Investment Fund
Range which is available to customers through
AIB’s Financial Planning Service, including Article
8 and Article 9 funds of the Sustainable Finance
Disclosure Regulation. Such funds explicitly
invest in climate impacting, environmental, health
and societal endeavours and exclude companies
harmful to environmental objectives.
We aim to inform our customers on how to
build financially secure futures for themselves,
their families and their businesses via our
dedicated Financial Advisors, who provide
advice and guidance on how to make our
customers’ futures more secure. A financial
consultation provides a comprehensive review
of each customer’s financial circumstances
and goals which identifies appropriate
protection, investment and retirement planning
solutions to deliver a sustainable financial
future for that customer.
We also strengthen this offering through our
dedicated AIB life digital hub on the AIB mobile
app. The AIB life Hub was launched in 2023 and
provides customers with access to their policy
documents and fund performance, and
relevant information to help plan for their
financial future. Customers who visited the AIB
life Hub engaged with investment and
retirement calculators, product information and
articles covering topics like ‘Who’s going to
pay the bills if you can’t?’ and ‘Why Invest?”
This is in addition to our AIB savings and
deposit offering, providing customers with a
suite of products to support their savings and
investments needs.
Through ongoing research in 2024 AIB have
sought to identify the barriers to customers
savings and make changes to support
customers in developing savings plans and
achieving a return on their savings.
Supporting women
We continue to support women in business,
through ‘THE GLOSS x Goodbody Investment
Club’, which has empowered women with
financial education since 2021. In 2024, we
ran in-person events in Dublin, Cork and
Galway, expanding our female-focused
community. We continued our Investing
Masterclass Series, offering complimentary
financial health checks from our all-female
Goodbody advisory team, which has fostered
candid, supportive conversations about
building brighter financial futures.
In addition, we held numerous events and
webinars as part of our partnership with
AwakenHub, a female entrepreneurship body
that has a community of female-led businesses.
AwakenHub has an all-island focus on levelling
opportunity, access and connectivity for female
founders by removing barriers to investment,
scale and success. AIB also continued its
partnership with Network Ireland focusing on
the professional and personal development of
women in business, and hosted an annual
Businesswoman of the Year event, recognising
excellence both locally and nationwide.
In 2024 AIB commissioned two reports with
the Future Laboratory, to firstly highlight the
issue of the female pension gap, and then to
outline a date by which the gap might be
expected to close, with the drivers of this
closure presented, alongside drivers of
change. Following a national media launch,
the findings were promoted on AIB social
channels, driving the conversation nationally.
AIB will consider the potential for creating
financial products that are specifically tailored
to support women and foster female
entrepreneurship.
Supporting education
We promote access to education through our
student loan offering, which allows full-time third-
level students to access loans at a discounted
student rate when they open a Student Plus
account. For students who need assistance with
covering their Student Contribution Charges and
other fees, we also offer specific tailored loans.
Support for older customers
Our older customers (aged 66 and over)
are eligible for our AIB Advantage account
which provides banking for free with no
maintenance or transaction fees.
Customers in vulnerable circumstances
We aim to continue to have a positive impact
on those of our customers in vulnerable
circumstances. The support we offer includes:
• A dedicated additional support helpline
which supported customers and carers via
10,331 calls in 2024.
• An additional support flag system,
which assists us in providing continuous
assistance to customers in need.
• A dedicated internal vulnerable customer
support team.
• ATM accessibility, which we implemented
across our ATM network, with voice-guided
functionality enabled on all our ATMs, and
cash and cheque lodgement machines,
supporting cash withdrawals, balance
enquiries, mini-statements and PIN services.
• A full annual training and awareness
programme for colleagues, covering
supporting customers in vulnerable
circumstances, with 42,334 hours of training
being completed.
• Customers with a hearing impairment can
avail of sign language interpretation services:
IRIS in Ireland and SignLive in UK. In the UK,
customers who are deaf, hard of hearing or
with a speech impairment can contact us using
the Relay UK Service.
• We provide bank statements in braille and
large print in Ireland and UK. In the UK we are
progressing the expansion of the service with
a partnership with the Royal National Institute
of the Blind (RNIB) to include audio. In Ireland
we are progressing the expansion of the braille
service via the partnership with The Big Word.
• A language translation and interpretation
service, which we implemented in 2024,
providing on-demand branch access to an
interpreter in over 120 languages.
• Inclusive banking, with AIB proud to be JAM-
Card Friendly in Ireland and the UK, and with
Dementia Inclusive in Ireland. In addition, in
2024, we obtained Autism-Friendly
Accreditation for several of our AIB branches.
• Gambling blocks, which we implemented in
2024, allowing customers in Ireland and the
UK to request a block on debit cards and credit
cards in Ireland for gambling transactions
through the Additional Support Helpline.
• AIB UK provide supports to customers and
staff experiencing domestic abuse. One of
the initiatives includes the Domestic Abuse
Exception Process which launched in 2023.
This provides support for existing customers
and staff who may have a poor credit
scoring due to financial abuse.
Providing these support services creates
a banking environment where all of our
customers, including those in vulnerable
circumstances, are empowered to take
control of their financial wellbeing.
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Financial Wellbeing continued
Support for customers
in financial difficulty
We have a proven track record of
supporting customers experiencing
financial difficulty. Our resolution process
is based on the customer’s ability to repay,
taking into account their assets and
sustainable income levels. As a regulated
entity, we have a robust governance and
policy framework in place to deal
consistently and equitably with customers
whose accounts become challenged.
We have developed early warning
indicators to identify those customers most
at risk of going into arrears. We then
contact those customers and encourage
them to get in touch if they are experiencing
financial difficulty. We do this every month
across AIB mortgages, both personal and
SME, as well as EBS mortgages. In 2024,
we reviewed and improved the ‘Worried
about Payments’ section across our ROI
websites. This service now offers simpler
navigation, a new webchat function for
mortgages and enhanced sections on
repayment options and support.
We regularly review all of our forbearance
solutions, so that they remain appropriate
to customers’ circumstances, are applied
fairly and consistently, and continue to
comply with our fiduciary and regulatory
obligations. In 2024, we upgraded and
simplified our household expenditure
guidelines, to more accurately reflect
increases in the cost of living, so that
our solutions remain sustainable for
our customers.
Financial literacy
We promote financial literacy through a range
of initiatives.
AIB Future Sparks Programme
The programme is a skills-based
interdisciplinary programme for secondary
schools. It joins the dots for young people as
they navigate life transitions, by providing
educational resources across multiple subject
areas, such as guidance-related learning,
wellbeing, business, economics, accounting,
financial education and home economics.
We also engage with them on financial
literacy topics aimed at young people through
social media.
In 2024, we launched the AIB Future Sparks
School Impact Awards to highlight and reward
schools’ contributions to the social, financial
and environmental success of their community.
The awards provide a platform to showcase
the work of schools and students to inspire
positive change.
Clear and simple communication
We recognise that simple communication
is best when empowering our customers to
make financial decisions. We avoid using
‘bank speak’ whenever possible to talk to them
about their money, instead focusing on
communicating in a supportive and engaging
way. In our advertising and marketing, we
disclose all relevant information on our
products and services, including charges and
warnings of any potential negative
consequences. We have a function in the
Bank to provide clear communications and our
emails, letters, webpages and apps are almost
always in plain language, unless legal
language is necessary.
Our ‘Banking How To’ Guide is an example of
this approach. It is an easy-to-read guide to
managing day-to-day banking for customers,
covering an introduction to bank accounts,
paying for things from current accounts,
keeping money safe, and banking online
safely. The guide is available on our website,
and is a helpful resource for anyone who may
be nervous about managing a bank account.
In order to reach as large an audience as
possible, we use social media to create
awareness of financial wellbeing and fraud
issues. In 2024, AIB conducted a Fraud
Awareness campaign, ‘Wait a Sec, Double
Check’, encouraging personal and business
customers to pause at critical moments when
they suspect fraud attempts. A separate SME
Fraud Awareness campaign educating
businesses on cyber crime was launched on
LinkedIn to educate businesses on how to
identify and avoid fraud in their operations.
Specifically for a young audience, we also ran
a campaign about the dangers of fraud around
Black Friday and Cyber Monday, when scams
are common.
Our performance measures
S4-5
Tailored financial products
AIB life is our unique proposition which offers
the general market a full suite of protection,
investment and pension products. Last year,
there were 31,808 Financial Planning
consultations carried out by our qualified
advisors. All financial planning consultations
are recorded on a dashboard. A four eye
review for all figures is performed and
recorded. No judgements or estimations are
applied.
With the appointment of our Chief Customer
Officer in 2024, we will continue to track our
progress in customer service along with the
volume of finance provided through our
tailored financial products. We will also
consider further developing how we measure
our impact with other aspects of financial
wellbeing for our customers, including those
who are most vulnerable and require
additional support.
Our focus is now on identifying additional
initiatives and actions to better equip our
customers to make informed decisions,
manage their finances and use banking
products and services responsibly.
Financial planning consultations
undertaken by AIB Financial
Advisors in 2024
31,808
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AIB Colleagues at a Network Ireland Event.
As an Irish mortgage provider, we are attuned to the
unique complexities facing the Irish housing sector
and the needs of our customers.
This is one of our seven material topics.
For each topic, we report in accordance
with the ESRS. We disclose our approach
to managing our material IROs through our
policies, actions and performance
measures.
Value chain: Downstream
We contribute to meeting the national need for
housing by financing housing developments
and offering finance to purchase homes in the
societies in which we operate.
Through our Customer first and Sustainable
communities strategic pillars in particular, our
housing strategy contributes to a robust and
sustainable economy and society.
Our policies
S3-1, S4-1
This section outlines our main policies
governing our provision of finance for
residential mortgages and residential
developments, including Build-to-Rent (BTR),
Private Rented Sector (PRS) and social
housing developments. The policies cover all
our customers in Ireland and the UK. We
review each policy periodically, so that we can
continue to meet our customers’ housing needs
and support Government-led initiatives. These
reviews also incorporate key stakeholders’
interests and feedback from across the
organisation.
The CRO is accountable for implementing
these internal policies, which are available for
our colleagues on our Intranet.
ROI and UK Residential Mortgage and
Group Development Policies
Our ROI and UK Residential Mortgage policies
set out rules for all residential mortgage-related
lending we perform in both our key markets,
including lending to first-time home buyers.
The Group Residential Development Policy
governs lending for residential development,
which includes funding the development phase
of BTR, PRS and social housing developments.
Commercial Investment Policy
Our Commercial Investment Policy covers all
lending for commercial property investment in
ROI and the UK.
Social Housing Policy
Our Social Housing Policy sets out the
relevant lending rules that are applicable in
both ROI and the UK. It supports lending to
our customers for social housing and helps
manage and mitigate the associated risks.
This includes lending for the purpose of
acquiring and refurbishing units for social
housing, or debt funding for social housing
providers. It can include Mortgage to Rent
(MTR), affordable housing, sheltered housing
and housing for the elderly.
Social Bond Framework
Some of the funding that we provide to
Approved Housing Bodies (AHBs), authorised
scheme providers under the MTR scheme,
and to borrowers under the First Home
Scheme (FHS) and Local Authority Affordable
Purchase Scheme (LAAPS) are included in
our social bond pool. This financing is subject
to the voluntary transparency requirements
detailed in our Social Bond Framework,
including annual allocation and impact
reporting. Our lending due diligence takes into
account Group-wide excluded activities as per
our policies. The Framework is based on the
ICMA Social Bond Principles 2021 and is
available on our website.
The GSC approves material Social Bond
Framework updates, as well as social bond
allocation and impact reports.
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Material Topic:
Housing
Our actions
S3-4, S4-4
Supporting our customers
Whether a customer is seeking finance for
their first home, moving homes, switching or
topping up their mortgage, or building a home,
our wide range of mortgage products has
them covered. Our service includes our
dedicated team of mortgage advisors, who are
available in branches, over the phone, online
and at customer and community events.
In response to customer feedback, in 2024,
we extended the period for which an
Approval in Principle is valid from six months
to 12 months.
National Housing Agenda
We continue to participate in the Irish
Government’s FHS and LAAPS. The FHS
supports buyers in middle- to lower-income
ranges, to close the gap between the home
price, their deposit and their mortgage and the
number of applicants supported to acquire a
new home is tracked by the FHS. The LAAPS
supports customers to buy a home at a
discount to it’s market price. By supporting this
Government-led initiative, we help customers
purchase a home that otherwise they could
not afford.
Inflation and rising energy costs have
increased financial pressures for our
customers. Throughout the year, we took a
considered approach to changes in monetary
policy and interest rates, when monitoring the
European Central Bank and Bank of England
interest rate trends. We reduced mortgage
interest rates a number of times last year, in
AIB, EBS and Haven.
Increasing housing stock in societies
which we operate
In Ireland, our Real Estate Finance team
within our Capital Markets segment is a
specialist lending unit that provides funding
for corporate housebuilders, small regional
developers, homes for rent and for sale and
social and affordable housing. The team
consists of specialised lenders and is
supplemented by a Chartered Engineer
and Chartered Valuation Surveyors.
Assisting customers in vulnerable
circumstances
AIB continues to support customers impacted
by the MICA/Defective Concrete Blocks
(DCB) issue. We have a dedicated team,
which liaises directly with customers and
external advocacy groups, including BPFI and
the Redress Focus Group – Banking &
Insurance Committee. This dedicated DCB
Team provides customers with individually
tailored support and representation at industry
and government department levels.
Where increased financial pressures and
other difficulties affect the ability of some
customers to repay loans, we offer support
through our Arrears Support Unit, and our
suite of solutions based on their ability to
repay. By contacting our Arrears Support Unit,
customers can find a resolution, and available
options include interest-only periods, fixed
repayments, split mortgages, and more.
Within our ‘Worried about Payments’ section
across ROI Group websites as detailed
previously in this section, we also provide
information on the supports available to
customers, including cost of living support
and links to external support such as the
Money Advice & Budgeting Service (MABS)
and Insolvency Service of Ireland (ISI).
AIB is an active supporter of the MTR
scheme. This is a Government initiative to
help customers who are unable to meet their
mortgage repayments and who qualify for the
scheme to continue to live in their home. MTR
enables us to give customers the option of
selling their home to an MTR Provider, who
then rents the property back to the customer
at a rent they can afford. Customers can
access this solution through the AIB,
EBS and Haven websites, and can receive
free financial advice from the Irish Mortgage
Holders Organisation. In addition, in 2024 we
funded the acquisition of Mortgage to Rent
properties by Home for Life and iCare.
Our performance measures
S3-5, S4-5
We track the performance measures set out
below. We will also consider developing
other metrics over time, to measure our
performance within the housing value chain
in Ireland.
First-time buyers
We have made a commitment to deliver more
than €6bn of cumulative new lending to first-
time buyers in ROI by 2026. Our Housing
performance target is guided by our internal
target-setting process. Our management
teams consider results from scenario analysis
models, which are approved by senior
leadership, ensuring alignment with our
broader Group and sustainability Strategy.
In 2024, we made substantial progress by
providing €2.79bn in new lending to first-time
buyers in ROI.
New lending extended to first-time
buyers in ROI
€2.79bn
Target: €6bn of cumulative new lending to
first-time buyers in ROI by 2026
Social and Affordable Housing
AIB supports the national housing agenda
directly through various government-led
initiatives and support for social housing
through Approved Housing Bodies in Ireland
and registered providers of social housing in
the UK. While we do not have specific targets
related to lending to fund social and affordable
housing in the ROI, or lending to fund social
housing in the UK, we use the performance
measures as noted here to track the
effectiveness of our actions.
New lending to fund social and
affordable housing 2024 in ROI
€135m
New lending to fund social
housing 2024 in the UK
£112m
Increased housing stock
AIB continued to support residential property
development throughout the year, providing
total facilities of €366m to support the
development of new homes in Ireland and
the UK. In terms of large-scale housing
developments, we offer discounted loans to
residential developers who adhere to an Irish
Green Building Council (IGBC) benchmark that
sets higher green building standards than those
required under current building regulations.
New lending to fund
residential developments in 2024
€366m
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This is one of our seven material topics.
For each topic, we report in accordance
with the ESRS. We disclose our approach
to managing our material IROs through our
policies, actions and performance
measures.
Value chain: Own operations
Operational Efficiency is one of our three
strategic priorities, and we define it as enabling
our colleagues to deliver for our customers by
investing in their capabilities and capacity.
Own workforce (Equal treatment & opportunities
for all), within the ESRS categorisation of ESRS
S1 Own Workforce, is a material topic for the
Group. Our business model and ability to operate
depends on our skilled workforce, how we treat
them, and the opportunities we provided to them.
While ‘Own Workforce’ spans a variety of sub-
topics as per ESRS S1, we identified two through
the DMA process as detailed on page 54.
These are creating a culture of inclusion and
diversity (I&D), and creating a culture of learning
and development. Failure to achieve these, and
failure to recruit and retain talented people as a
result, presents risks to us in relation to our
sustainability commitments, our loan book and
our ability to serve our customers. We use the
terms ‘own workforce’ and ‘our colleagues’
interchangeably.
The following policies relate to own workforce
and apply to everyone who are directly employed
by AIB, unless otherwise stated. In most cases,
Payzone and Goodbody are governed by their
own subsidiary policies. Our policies primarily
relate to ROI and UK staff. AIB US staff refer to
Group Policies where applicable, however in
many cases by their own local policies aligned to
US laws and regulations. Due to data limitations,
Goodbody employees have been omitted from
various performance measures; these will be
considered for inclusion, where appropriate, in
future reporting.
Our colleagues –
Inclusion and diversity
Our policies
S1-1
Inclusion and Diversity Code
Our I&D Code recognises that we should
respect, develop and harness the uniqueness
of our colleagues, as well as embracing and
celebrating our differences, in order to
promote equal treatment and opportunities for
all. The Code sets out the principles that we
live by and underpins our related policies,
handbooks, and a year-round employee
engagement calendar of awareness and
educational events. Our I&D council oversees
the governance of I&D activity aligned with
our strategy.
The Code outlines the scope of I&D and
details what we expect from those who work
at AIB and our suppliers. It highlights how to
raise concerns and points to policies such as
our Whistleblowing Policy and Grievance
Policy, which support our Code of Conduct.
The Code specifically covers the following
grounds of discrimination: race (including
colour, nationality and ethnic and national
origin), religion or belief, age, disability, gender
and gender reassignment, sexual orientation,
marriage or civil partnership, pregnancy or
maternity, family status and membership of the
Travelling Community. We do not have
specific monitoring in place, but our Speak Up
and Grievance procedures allow colleagues to
report behaviours contrary to the Code, which
we then manage through the processes
outlined on page 105.
The Chief People Officer (CPO) is ultimately
responsible for implementing the I&D Code. We
review it periodically via our HR Policy team’s
central review schedule for all HR policies,
which includes engaging with key stakeholders
across the organisation, in the interest of
creating an inclusive and diverse culture for all
of our colleagues. The I&D Code is available
from our website.
Family Leave Handbook and Carer’s Policy
As part of creating an inclusive and diverse
culture, we support our colleagues as they
navigate critical life stages, including having a
family and caring for a family member. Family
is a big part of our culture and these policies
recognise this importance by offering the best
support we can, in a fair and truly inclusive way.
Our Family Leave Handbook outlines what
leave is available, whether it is paid or unpaid,
and what colleagues can use this leave for. It
applies to all parents directly employed by the
Group. The handbook contains all of our
family leave policies, including our maternity,
adoptive, surrogacy and paternity leave
policies, our paid and unpaid parent’s leave
policies, our UK shared parental leave policy
and our fertility leave policy. These are
important for supporting all of our working
parents in achieving a sustainable work-life
balance during critical life stages.
Our Carer's Policy outlines our leave
entitlements and conditions with respect to:
• Critical Caring Leave (AIB ROI and UK
employees);
• Leave for Significant Care / Medical Support
(AIB ROI and UK employees);
• Carer’s Leave (AIB ROI employees only).
The CPO is ultimately responsible for
implementing these policies. Direct employees
of subsidiaries are subject to their subsidiaries’
respective policies and are not within the
scope of the policies above. The policy is
published internally on our Intranet.
Anti-bullying and Harassment Policy
Everyone working in AIB has the right to be
treated with dignity and respect. Our
colleagues should be protected from bullying
or harassment from other colleagues, and
they should never feel intimidated,
victimised or humiliated, or suffer hostility
within the workplace.
This policy reflects our commitment to
providing a workplace that supports our
people to be at their best and make a positive
contribution to what we do.
It relates to any unwelcome behaviour, whether
it happens in the workplace or at a work-related
event or social events organised by the Group
whether on-site or off-site.
The policy applies to everyone directly
employed by AIB in ROI and the UK. The
grounds of discrimination and characteristics
are as those defined in both the Irish and UK
Equality Acts. The CPO is ultimately
responsible for the implementation of the
policy.
Further details on AIB’s grievance mechanisms
are on page 105. The policy is available on
our website.
Our actions
S1-4
Universal inclusion
We continued to cultivate a culture of universal
inclusion in 2024, through the implementation
of our I&D strategy.
• We delivered mandatory online I&D
training, to help our employees to
understand the behaviours we expect and
how they can raise an issue.
• We also provided specialist training on
I&D for our ExCo and their senior
management teams, supported by coaching
sessions, to facilitate consistent awareness
of I&D considerations and empower senior
leaders to support our I&D goals.
• We held our third annual Universal
Inclusion Campaign, to promote an
inclusive workplace in AIB, one where
diversity is embraced and everyone can
reach their full potential. This included a
keynote interview with the CEO of Special
Olympics International, Mary Davis. Teams
across AIB also held discussions on I&D and
made a commitment to progress I&D actions
in the year ahead.
• AIB has an Inclusion & Diversity Council,
made up of leaders from across the
organisation and chaired by an ExCo
member, that helps coordinate and
implement Inclusion & Diversity efforts and
deliver on our commitment to a culture
where all employees can perform at their
best and reach their potential.
• Our leadership programme had a 53%
female participation in 2024. It has an
inclusive leadership module that fosters
an environment conducive to progress
regarding gender and all groups at risk
of marginalisation.
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Material Topic:
Own Workforce (Equal Treatment & Opportunities for All)
• To better understand the barriers to female
progression and what the culture is like for
women in AIB, we conducted a Women in
Leadership diagnostic. The research
included interviews with key stakeholders
and larger focus groups from various levels
and areas of the Bank. As a result, we
compiled a roadmap of short-, medium-,
and long-term actions, which we will
continue to develop and embed in our
people strategy for 2025 – 2026.
Employee networks
Our range of inclusion networks, as follows,
celebrate the diversity of our colleagues and
play an important role in fostering an inclusive
workplace by promoting awareness, support,
and collaboration among employees.
• With the support of our Women’s+ Network,
we have targeted programmes to empower
women at all levels in AIB. The programmes
focus on developing leadership, technical skills
and career progression strategies. For
example, our Mentor Her programme helps
mentees to better command their own career
path through their mentor's support and
contacts across the broader mentee group.
Our 2024 programme featured 194 mentors
and mentees.
• We updated our Origins+ Network Ally
pack in May 2024. This Ally pack and the
I&D Guides support our colleagues in
having open conversations. The Network
raises awareness of the experiences of
people from ethnic minority groups and
celebrates all our employees’ heritage.
• Our Pride+ Network organised a variety of
events for our colleagues, such as a panel
discussion with members of the Pride+
network on their lived experiences, and a
workshop delivered by Belong To LGBTQ+
Youth Ireland, which helped us understand
the things we can do in the workplace, at
home or with friends to be better allies.
• Our Abilities+ Network raised awareness
around several global initiatives, such as
using Autism Awareness Month in April to
roll out volunteering opportunities and
education for AIB employees, to improve
accessibility for both our customers and our
people. During ADHD Awareness Month in
October, a colleague shared his experience
of living with ADHD and the support that is
available. Many other events were
highlighted, such as World Down Syndrome
Day, International Day of Sign Languages,
World Sight Day and the UN International
Day of Persons with Disabilities.
• Our Life & Family+ Network partnered with
Family Carers Ireland to provide a support
package to our working carers, including
one-to-one access to expert guidance and
support. In 2024 the Network supported
them in hosting a panel discussion on
caring for older persons and family
members with an intellectual disability and
on how to recognise carer burnout.
Family Leave
We have also continued to enhance our
progressive policies that support inclusion and
gender balance. In August 2024, the Irish
Government increased the statutory parent’s
leave entitlement from seven to nine weeks for
each parent. AIB topped this up to full pay for
employees in both ROI and the UK. To launch
this, we organised interviews with both a male
and female colleague on their experiences of
this leave, how they used it and what it meant
for them and their family.
In addition, a positive change in Irish
legislation in 2024 means that employees
who are on maternity leave and require
treatment for a serious medical reason can
now postpone all or part of their leave for a
period of up to 52 weeks. AIB also extended
this to include surrogacy leave, so that
employees will not have to use their leave
during treatment and can use it at a later date.
Our performance measures
S1-5, S1-9
Gender diversity
One area of our I&D Code relates to gender.
Having been an early signatory of Ireland’s
first Women in Finance Charter, we aim to
have a gender-balanced ExCo, management
and Board each year. Specifically, we target
between 40% and 60% of female
representation in ExCo and management,
which is underpinned by the Equileap annual
Gender Equality Global Report and Ranking’s
definition of ‘gender balance’. In addition, AIB
has an ongoing target for Board of a minimum
of 40% female representation. These targets
have been reviewed by the Board. We have
maintained a gender balanced Board, ExCo
and management in 2024. HR monitors our
performance against our gender diversity
target across all management (including
ExCo) and reports to senior management on
a monthly basis.
The Company Secretary monitors our Board’s
performance against the target on an ongoing
basis. If applicable, any proposed actions are
then discussed and presented through
appropriate governance for approval.
Gender
diversity
Women as % of ExCo and Management
43%
Target: 40%
Women as % of Board
40%
Target: 40%
AIB’s Exco Gender Diversity
2024
Number of females
6
Number of males
8
% females
43%
% males
57%
AIB’s Age Diversity:
Number of employees
2024
<30 years old
18%
30 – 50 years old
61%
50+ years old
21%
Women as a percentage of management
includes ExCo. AIB’s ExCo is its ‘Top
Management’ level (for the purposes of
addressing S1-9 requirements).
The gender and age diversity figures above
are taken at the year-end and do not include
Goodbody and Payzone. The gender diversity
figures also do not include employees noted
as Other/Not reported (per page 94). The
Board figure refers to the AIB Group Board.
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Gender Pay Gap Report
S1-16
The Gender Pay Gap (GPG) is the difference
in the hourly pay of men and women across
the organisation.
Our annual GPG report for AIB ROI, based on
our snapshot date of 30 June 2024, shows a
mean GPG of 17.8%. Since our previous GPG
report in December 2023, there has been a
1.1 percentage point improvement.
We also published a report for AIB UK, based
on legislative snapshot date of 5 April 2024,
with a mean GPG of 27%. Since our previous
report in 2023, there has been a 1.3
percentage point improvement.
Gender
Pay Gap
ROI gender pay gap (2024)
17.8%
UK gender pay gap (2024)
27%
Similar to last year, the primary reason for our
GPG remains our organisational shape, with a
significantly larger number of females in lower
level roles, and higher numbers of males in
more senior roles.
These reports include all employees of AIB
ROI and UK on the respective snapshot dates,
who have self-identified as male or female on
that date. The calculations exclude Payzone,
Goodbody and any employees who do not
meet the eligibility criteria as defined in the
Employment Equality Act 1998 (Section 20A)
(Gender Pay Gap Information) Regulations
2022 for Ireland or The Equality Act 2010
(Gender Pay Gap Information) Regulations
2017 for the UK.
Our Gender Pay Gap reporting has been
completed in line with the requirements and
methodologies in the jurisdictions in which we
operate. We are satisfied that the outcomes
are broadly representative of our profile as at
31 December 2024.
The highest paid individual in our organisation is
our CEO. The median annual total compensation
for all employees (excluding the CEO) for 2024
was €60,406 and, the ratio of the annual total
compensation of our CEO to the median annual
total compensation of all employees (excluding
the CEO) was 10.66. This excludes Payzone,
Goodbody, and non-active employees. Estimates
are used for variable remuneration that relate to
FY24 but are not paid until Q2 FY2025. We will
consider the feasibility of using actual data in
future reporting.
As part of the DMA we have identified a
positive impact on our colleagues in relation to
the variable remuneration scheme. To
understand how we manage this impact and
reward employees for their performance and
achievements, please see Our Sustainability
Governance on page 53, the Report of the
Remuneration Committee from page 157, and
the Corporate Governance Remuneration
Statement from page 159.
The applicable targets are the performance
targets noted on page 53.
Family leave
S1-15
In 2024, 100% of AIB employees are entitled
to take family-related leave, with 19% doing
so (23% of females and 13% of males).
Family
leave
100%
of employees are entitled to take family-
related leave
Employees who took multiple types of family-
related leave during 2024 were only counted
once. This avoids double-counting but means
that the figures are a conservative view of how
much family-related leave our employees
took during 2024. These figures exclude
Payzone and Goodbody.
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Own Workforce (Equal Treatment & Opportunities for All) continued
ROI gender pay gap (Mean)
% as of 30 June 2024
UK gender pay gap (Mean)
% as of 5 April 2024
17.8
18.9
18.4
2024
2023
2022
27
28.3
28.6
2024
2023
2022
Our colleagues –
Training and skills
development
Creating a culture of learning and
development is part of our commitment to our
colleagues, helping to attract and retain a
talented workforce who share the same
values. Providing our staff with training and
skills development empowers them along
their career journey, which ultimately helps us
meet our decarbonisation ambitions and put
our customers first.
Our policies
S1-1
Education Policy
Our Education Policy recognises our role in
promoting continuous learning and
development, so colleagues feel supported
throughout their career in AIB and we can fill
any identified skills gaps. The policy provides
a framework for employees’ development and
gives People Leaders financial and non-
financial options to support it.
The CPO is the policy’s ExCo sponsor. Our
HR Policy team reviews our policy regularly in
consultation with stakeholders, addressing
regulatory, legislative, business, management
and best practice requirements, and any
changes to the policy are approved through
the agreed governance pathways. The policy
is available for colleagues on our intranet.
People Risk Policy
People Risk is a key aspect of Operational
Risk. It refers to the failure to plan for, acquire,
develop and retain the appropriate number of
people with the necessary skills and capability
required to achieve the Group’s strategy, as
well as the failure to manage, develop, train
and engage them to optimise their contribution
and progression within the Group. Our People
Risk Policy recognises the importance of our
people in delivering our strategic objectives
and sets out our approach for managing
People Risk in line with the RAS.
The policy is available on our intranet and
applies to all individuals who work for or
provide services to a member of the Group,
and who are either:
• direct employees, irrespective of their
tenure or working patterns; or
• independent contractors, whether we
engage them directly or through their own
service company.
Our CPO is the 1LOD ExCo sponsor and the
CRO is the 2LOD ExCo sponsor for this policy.
The Group Head of Operational Risk reviews
this policy annually, in consultation with
stakeholders. This policy applies to Goodbody,
but not to Payzone, which has its own policy in
place. Please refer to the Risk Management
section from page 241 for more details.
Our actions
S1-4
AIB has several initiatives in relation to training
and skills development.
• We support the further education of our
employees by covering eligible fees and
study leave where necessary. This includes
support for various courses, including post-
graduate programmes and role-specific
qualifications, such as the Professional
Certificate/Diploma in Financial Advice (APA/
QFA), Chartered Banker Institute courses in
the UK, and ACCA or CIMA courses for
accountants.
• We offer Continuing Professional
Development (CPD) Certificates accredited
by the Institute of Bankers (IOB). In particular,
‘Understanding ESG for Business Customers’
empowers our client-facing colleagues to take
action and build their ESG knowledge.
• Our colleagues have access to the AIB
Sustainability Academy, which is a hub for
all ESG learning, signposting sustainability
resources and education opportunities.
It aligns with our purpose to empower
colleagues to build a sustainable future and
equips them to more effectively engage with
and support customers and suppliers as
they navigate their sustainability journey.
• In 2024, we enhanced our Invest in You
celebration of career development,
increasing its frequency from a once a year
to three times a year. This year’s theme was
‘Pave Your Pathway’, aiming to help all
employees to drive their careers and
development plans. The virtual and in-
person events included sessions on
Building Your Confidence, Emotional
Intelligence and Career Sessions.
Our performance measures
S1-5, S1-13
To support our colleagues in improving their
sustainability knowledge, a completion rate of
90% is required each year for the mandatory
‘Sustainability and AIB’ training. The figure of
90% is derived from and aligned with the limit
included in the RAS, which is reviewed
annually by the Risk Compliance team and the
Board Risk Committee and approved by the
Board.
The ‘Sustainability and AIB’ training course
had a 94% completion rate in 2024. This
includes all AIB employees and contractors,
but not Payzone, Goodbody and AIB staff on
long-term leave.
Completion rate of
‘Sustainability and AIB’ training
94%
Percentage of employees
who participated in regular
performance and career
development reviews
2024
Female
95%
Male
94%
All
95%
Average training hours
per employee
2024
Female
32
Male
29
All
31
Our calculations
and assumptions
Mandatory Training
Group-wide mandatory online training must
be completed by all employees and
contractors across AIB Group, including
EBS and Haven and AIB UK. Training
completion rates are monitored and
managed by the respective course owners
across the Bank, who are also responsible
for the creation and annual review of
training content for each of these courses.
A deterioration in completion rate would
lead to discussions on what improvements
are required. Completion rates are
generated from Cornerstone, an external
learning management system provider.
Performance Reviews
We track the percentage of employees who
have regular performance reviews. The
metric reported here uses 2024 interim
data because the final year-end reviews
are completed post year-end, and validated
completion rates are not available until
after the publication of the annual report.
We will consider the feasibility of using
year-end career review data in future
reporting. The data excludes Payzone,
Goodbody, and a senior cohort of AIB ROI
and UK employees who currently have
different measurement criteria from other
employees. We will consider the feasibility
of including this cohort in future reporting.
See page 106 in Governance &
Responsible Business for more details on
our Aspire performance management
framework.
Average Training Hours
The figure for average training hours
includes virtual instructor-led training
(virtual classroom), instructor-led training
(classroom), web-based training, Session
Management Training (AIB internal
training), video, and material provided via
iLearn LMS. The figure excludes Payzone,
Goodbody, and AIB staff on long-term
leave.
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Supplementary
performance measures
S1-6, S1-17
We provide information in this section on other ESRS S1 Own Workforce measurement requirements, including the characteristics of AIB’s employees,
remuneration, and incidents, complaints and severe human rights impacts. AIB is applying a phase-in provision for metrics related to non-employees
(S1-7) and the people with disabilities (S1-12) metric for 2024. ESRS S1-7 is subject to further investigation during 2025 as we continue to analyse
this cohort to more accurately determine its scope.
Characteristics of AIB’s Employees
The following section includes three tables that are relevant to S1.6. We report the number of employees using FTE as at year end, and is defined
as staff in payment only, excluding tied agents, and AIB staff on career break or other unpaid long-term leave. The total year-end FTE figure is
same as that noted in the Financial Statements on page 345. There are no significant variances in employee numbers during 2024, and FTE
figures reflect some rounding. The total number of employees at year end using headcount is 10,721 which is split 5,886 Female, 4,832 Male and
3 Not Reported. Broken down by country this is 9,918 Republic of Ireland, 768 United Kingdom and 35 USA. In relation to our material risks and
opportunities for our own workforce, we do not have specific targets in place for employee retention, our related performance measure 'employee
turnover rate' shows progress towards retention of our workforce.
Table 1: Employees by contract type, broken down by gender
Contract Type
Female
Male
Other1
Not reported1
Total
Number of employees
5,647
4,818
0
3
10,469
Number of permanent employees
5,467
4,608
0
3
10,078
Number of temporary employees
180
210
0
0
390
Number of non-guaranteed-hours employees
0
1
0
0
1
Number of full-time employees
5,127
4,785
0
3
9,915
Number of part-time employees
520
34
0
0
554
Table 2: Employees by contract type, broken down by country
Contract Type
Republic of Ireland
United Kingdom
USA
Total
Number of employees
9,685
749
35
10,469
Number of permanent employees
9,327
717
34
10,078
Number of temporary employees
357
32
1
390
Number of non-guaranteed-hours employees
1
0
0
1
Number of full-time employees
9,178
703
34
9,915
Number of part-time employees
507
46
1
554
Table 3: Employee turnover data
Employee Turnover
2024
Number of employees who have left
1,265
Rate of employee turnover2
12.6%
Our calculations and assumptions
Number of employees and employee turnover data
1. As of FY2024, AIB is reporting employee gender for each group of ‘male’, ‘female’ and ‘not reported’, but not for ‘other’. Work is ongoing to HR systems to
include voluntary anonymised reporting options on gender diversity (i.e., other).
2. Employee turnover rate is calculated based on the total number of leavers, divided by the number of FTE staff at the start of the year. Leavers include voluntary
attrition, contract expirations, retirements and voluntary severance, and excludes Goodbody and Payzone employees.
Incidents, complaints and severe human rights impacts metrics
The Bank has several channels for its own workforce to raise concerns. All concerns are taken seriously, treated confidentially and investigated
with the utmost of professionalism. There have been no incidents of discrimination, including harassment, as defined in paragraph 2 of ESRS S1
reported in 2024. Also, no complaints of discrimination, including harassment, as defined in paragraph 2 of ESRS S1 have been filed through the
channels available to our own workforce to raise concerns in 2024.
AIB confirms that no severe human rights issues and incidents were reported with respect to our colleagues in 2024. See page 95 for more details
on human rights impacts metrics.
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Own Workforce (Equal Treatment & Opportunities for All) continued
SBM-3, S1-1, S1-17, S3-1, S3-4, S4-1, S4-4
This section outlines our human rights policy
commitments in relation to our colleagues, our
customers and the wider society and
community.
Our approach to protecting and preserving
human rights is underpinned by our Human
Rights Commitment, which is available on our
website.This commitment has been shaped by
the United Nations Guiding Principles on
Business and Human Rights and it is
fundamental in guiding our strategic vision,
operations and relationships with
stakeholders.
Our Human Rights Commitment operates
alongside AIB’s Code of Conduct and AIB’s
Responsible Supplier Code, and our
commitments are aligned with those laid out in
the laws applicable to the jurisdictions in which
we operate, the European Convention on
Human Rights and, for our business in Ireland,
the EU Charter of Fundamental Rights. It was
introduced in 2021, when it was approved by
ExCo, and reviewed by SBAC and Board.
In line with our Code of Conduct, we actively
avoid causing, financing or contributing to
any business activity that is known to breach
human rights or fair practices, including taking
steps to address any situations that we
become aware of where this has occurred.
We will also, where practicable, align
ourselves to the provisions of international
treaties and other internationally accepted
declarations and principles intended to protect
human rights. We have due diligence
processes in place to help us identify any
material negative impacts or risks in relation
to human rights, and these are an input to the
DMA process.
When engaging with our stakeholders,
we pay attention to respecting their human
rights. This is outlined in Our Stakeholder
Engagement on page 49.
Due to the nature of our industry and the
markets in which we operate, AIB has not
identified any significant risk of incidents of
forced, compulsory labour or child labour. We
are committed to an inclusive, safe and ethical
workplace, as demonstrated within our Code
of Conduct and this Human Rights
Commitment.
The health, safety and wellbeing of employees
is of paramount importance to AIB. Safe
working is an integral part of our culture, our
purpose and our sustainability and is central to
our business plans. We are committed to
ensuring the safety of our employees,
customers, contractors and visitors and our
workplaces (including home workplaces).
We are embedding our commitment to human
rights in our culture and values and reflecting
this in our policies and actions towards our
customers, employees and suppliers, and in
the communities where we do business.
The Chief Strategy and Sustainability Officer
is ultimately responsible for implementing
our Human Rights Commitment, with the
Sustainability Transformation Programme
providing support for designing and
improving it.
As part of the DMA process, we did not
identify any severe human rights impacts. We
confirm that no severe human rights issues or
incidents were reported with respect to our
colleagues, customers and communities in
2024. We confirm this based on input from our
internal legal function, our Speak up
(Whistleblowing) team and our Workforce
Performance team regarding our grievance
processes. Certain entities are excluded from
some of these inputs. Goodbody has a
Modern Slavery Statement and Code of
Conduct, and Payzone has a Speak Up policy,
and its code of conduct notes their human
rights and its grievance processes. These
policies align with the principles and values of
the Group.
Modern Slavery Statement
We report annually on our approach to
tackling modern slavery in our Modern
Slavery Statement, which is available
online. The statement explicitly references
trafficking in human beings, forced labour
and child labour. See Channels for
Stakeholders to Raise Concerns from page
96 for details of how we engage with our
colleagues, customers and communities
and how we remedy negative impacts on
these stakeholder groups. Please refer to
Corporate Governance, Ethics &
Accountability in the Governance section
for details of how we manage our
relationships with suppliers, including
engaging with them, and how we address
negative impacts concerning our suppliers.
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Human Rights Commitment
We communicate with our stakeholders on material topics,
and there are remediation processes and channels for them
to raise their concerns.
In line with the specific requirements of ESRS
S1, S3 and S4, this section outlines the
processes we have in place to engage with
our colleagues, our customers and the wider
society and community regarding material
impacts. It provides a description of the
channels we have established for our
stakeholders to raise concerns, along with
processes to prevent, manage and remediate
any negative impacts.
Processes for dialogue
on material impacts
Our customers
S4-2
Our customers engage with us every time
they interact with our services, in person, by
phone and online. Across our branches, we
engage with 44,000 of our customers daily
(branch footfall per day) and this year, we held
24 easy banking workshops.
We also engage our customers directly on the
key issues that affect them through our ‘Voice
of the Customer’ survey. We capture their
experiences in near-real time by surveying
customers every day, using digital surveys
when they interact with us through our digital
channels, and via email and phone for other
journeys. The Customer Experience team,
headed by the Chief Customer Officer, is
responsible for implementing the ‘Voice of the
Customer’ survey.
We also carry out a quantitative review after
launching our campaigns, to assess our
customers’ response. This builds on our
annual research into consumers’
understanding of a selection of our
communications, such as brochures, branch
screens and emails. Through our partnership
with AsIAm, Ireland’s autism charity, we
engage regarding how AIB branches can
become more autism-friendly.
Our colleagues
S1-2
We have a number of initiatives to support us
in listening to our people. We check in with
both our employees and contractors twice a
year, through our AIB Engage surveys. These
are short, focused online surveys, which
provide us with constructive feedback. We
invite employees and contractors at all levels
to participate, with the CPO overseeing
implementation.
In 2024, the key issues on which we asked for
our colleagues’ perspective were innovation
and creating the time and space to connect
with each other and with our purpose and
strategy. The surveys received a total of
16,023 employee responses, and a total of
30,598 comments and suggestions from our
own workforce on how we can improve on
these issues. The resulting insights form the
basis of action plans, which we will implement
in the following months.
We also have several Employee Resource
Groups (ERGs), known as Inclusion Networks,
which represent colleagues who may be at
risk of marginalisation or bias. The ERGs meet
at least quarterly and offer support that is
devised and deployed by employees, with
senior management sponsorship. More details
on the ERGs can be found in Inclusion &
Diversity on page 91.
To protect our colleagues, we have workplace
accident prevention policies in place; these
are our Safety Statement for the EU and our
Safety Policy for the UK.
Society & community
S3-2
We engage with certain affected communities
through our community partners, on a monthly
and quarterly basis, to discuss the impact and
progress of the activities we support. The
results are reflected in our Community
Framework, under the areas of Sustainability,
Education & Opportunities and Digital,
Innovation & Financial Inclusion. Our long-
term partners include FoodCloud, GOAL,
Junior Achievement Ireland, AsIAm, and key
educational partnerships. The Director of
Corporate Affairs is ultimately responsible for
this engagement, which is overseen by our
Communities and Partnerships Team.
Our customers, employees and the public can
submit nominations for their chosen charity via
our AIB Community €1 Million Fund.
Customers complete nominations through the
Community pages of our website, while our
employees can nominate through an internal
online survey. In 2024, 70 charitable
organisations received funding from the AIB
Community €1 Million Fund across Ireland,
Northern Ireland, and Great Britain.
Processes and channels
for expressing concerns
Channels for our external stakeholders
S3-3, S4-3
While we strive to always provide the most
positive experience for our customers, we will
not always get it right. When this happens, we
believe in accountability. Customers and the
wider community can engage with us through
our complaint management process, where
their grievances are treated with confidentiality
and respect.
If negative impacts do arise for our customers,
AIB has a process in place and channels are
available online, by post or by phone, to
remediate negative impacts via the complaint
management system. Where possible, we
resolve complaints quickly at a local level.
Otherwise, they are forwarded to our
Centralised Complaints Management team.
We use root cause analysis to examine, track
and monitor complaints.
These processes and channels are governed
by our Complaints Management Policy. The
policy outlines the roles and responsibilities,
governance requirements and minimum
standards required for effective complaints
management to provide the best outcomes for
our customers, in line with our regulatory
obligations. It applies to all staff, including
contractors and third parties providing a
service or function in Ireland and the UK. It is
owned by the Head of Customer Care &
Outcomes, and is available internally for AIB
staff.
We learn a lot from complaints and errors,
which gives us the opportunity to reflect and
make changes. Some examples of the actions
we took in 2024 to prevent and manage any
potential negative impacts on our customers
and the wider community are set out below:
• We rolled out a new complaints and errors
management system to enable us to
capture, manage, resolve and report on
complaints and errors. This will help to
improve our customer service and
operational efficiency.
• We continued to apply root cause analysis
to examine complaints and errors, so we
can enhance customer experiences and
ultimately prevent complaints happening in
the first instance. In line with our regulatory
obligations, we regularly analyse the
patterns of consumer complaints and errors,
including investigating whether complaints
indicate an isolated or more widespread
issue.
• Our staff completed a voluntary course
focused on improving their phone skills
when interacting with customers, as well as
the ‘Customer Island’ training course, which
we assign to staff in Operations and
Business Services, Retail, our Financial
Solutions Group, and Customer Care &
Outcomes. These courses cover skills such
as talking to customers with empathy and
dealing with difficult situations over the
phone. They teach staff how they are
empowered to help the customer and how
they can provide a great solution when
things go wrong, to achieve the best
outcome for the customer.
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Channels for Stakeholders to Raise Concerns
Channels for our internal stakeholders
S1-3
Speak Up
Under our Whistleblowing Policy, our colleagues
are encouraged to speak up when they have a
genuine belief that an actual or suspected
wrongdoing may have occurred, is occurring or
will occur at work, either in or for AIB. Employees
can raise concerns with their People Leader in
the first instance or through confidential Speak
Up channels, such as the AIB Integrity Line, a
secure web-based system hosted by an
independent third-party. The Whistleblowing
Policy applies to all those working in or for AIB
Group in any jurisdiction. All issues raised are
treated promptly and with the highest
confidentiality. The effectiveness of the policy and
the processes are monitored and reviewed by
BAC. For more details, please refer to the
Governance & Responsible Business section of
this statement from page 105.
Grievance mechanisms
Those who are directly employed by AIB can also
raise concerns in relation to personal grievances,
employment-related concerns, bullying and
harassment complaints, or complaints as a
customer through the appropriate channels,
namely, the Grievance Policy, and the Anti-
Bullying & Harassment Policy, with the Customer
Care team, or directly with their People Leader.
The Chief People Officer is ultimately responsible
for the implementation of the Grievance Policy,
which is available on AIB’s website
Our Workforce Performance Team is responsible
for monitoring and tracking formal grievance
complaints. The HR Policy team and the
Workforce Performance Team review the
Grievance Policy regularly, in consultation with
stakeholders, to address regulatory, legislative,
business, management and best practice
requirements. The Grievance Policy complies
with the codes of practice in Ireland, Great Britain
and Northern Ireland.
To facilitate the effectiveness of the Grievance
process, we take the following steps:
1. Formal grievances are recorded on a personal
case register.
2. A dedicated Grievance & Disciplinary decision-
maker panel facilitates the independence and
effectiveness of the channel. All appeals are
heard by either the CEO or their appointed
nominee for review.
3. The investigator is assigned a dedicated case
manager, who oversees that the process is
followed correctly and that fair procedures are
adhered to.
AIB employees and contractors in Ireland and
the UK are required to complete annual training
on the Code of Conduct, which includes key
responsibilities related to the Grievance Policy
(see page 105 for details). The Group
Accountability & Performance team issues
reminders and People Leaders regularly
communicate with their teams on the importance
of understanding and complying with the Code
of Conduct.
Data protection
In the Governance & Responsible Business section, we speak about the impacts we have
on our customers and our colleagues in relation to cyber security and data protection, and the
processes in place to manage the same.
In terms of engagement with stakeholders on impacts, the Group has appointed local
Data Protection Officers (DPOs) in Ireland and the UK who inform and advise everyone in
the Group of their obligations under data protection and ePrivacy regulations. This includes
the awareness-raising and training of staff, and guidance on risk identification and recording,
reporting and managing personal data breaches. Our DPOs set our Data Protection Policy
and oversee its implementation across the organisation. They are the point of contact for
both staff and customers who have queries or complaints about how we process their data
or a personal data breach.
We also have channels in place for our stakeholders to raise concerns and processes
to prevent, mitigate and remediate potential negative impacts. As a regulatory obligation
under the General Data Protection Regulation (GDPR), our Data Protection Notices (DPNs)
include contact details for data subjects to contact AIB or the Data Protection Office (DPO),
to understand how their personal data is processed.
AIB's DPN is publicly available; it outlines how we use, share and keep the information we
collect about our customer, in addition to the processes and channels about the processing
of their personal data. Our Employee Data Protection Notice provides employees with the
same information and this shared with them during the onboarding process.
The DPN directs customers to the Complaints section of our website, if they wish to raise
a complaint about how we collect, use, keep or share their information. Details of our
complaints management process, including Speak Up and grievance processes available to
our employees, are detailed from page 96.
Our personal data breach assessment matrix specifies when we need to notify the
Data Protection Commission (DPC) and affected individuals regarding a personal data
breach, in line with our GDPR obligations. We keep the matrix under review, using personal
data breach data to refine the criteria and enhance its effectiveness. We record all breaches
of the Data Protection and ePrivacy Policies, as well as personal data breaches, in our
internal risk management system, Shield. This system enhances the effectiveness of the
DPO’s personal data breach processes, and also provides the real-time monitoring and
centralisation of information on breaches. The dashboard facilitates awareness and the
tracking of breaches, supporting the efficient management of breaches towards resolution.
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S1-2, S1-3, S4-2, S4-3
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Governance
& Responsible
Business
We pride ourselves on acting responsibly,
and with integrity and transparency,
while embedding ESG capabilities and
measures at the heart of our business.
In this section
Material topics
ESRS
Page
Corporate governance, ethics
& accountability
ESRS G1 – Business conduct
101
Culture & reputation
ESRS G1 – Business conduct
104
Cybersecurity & data
protection
ESRS G1 – Business conduct
ESRS S1 – Own Workforce
ESRS S4 – Consumers and end-users
107
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Governance of our sustainability strategy is guided
by the principle of transparency, which is fundamental to
promoting trust and confidence among our stakeholders.
We pride ourselves on acting responsibly, and with integrity
and transparency, while embedding ESG capabilities and
measures at the heart of our business.
Three material topics from our DMA are
the primary focus of this section: corporate
governance, ethics & accountability,
culture & reputation, and cyber security &
data protection. This section details our
approach to managing the corresponding
material IROs in terms of policies, actions and
performance measures, alongside the material
DR of ESRS G1.
The overall governance structures and
frameworks are described in this section
from page 51 in Our Sustainability
Governance, and in our Governance Report in
the Annual Report from page 123.
Best practice corporate governance and
ESG governance is vital to our operations.
Corporate governance, ethics &
accountability is embedded throughout
every level of the Group.
Our sustainability practices across our
own operations are supported also by the
Sustainability Transformation Programme and
other measures disclosed in our Climate &
Environmental Action section on page 70.
In addition to own operations, we manage
impacts related to our suppliers aiming to
contribute to sustainable supply chain. We
continue to fulfil our duties to our stakeholders.
We do so by complying with regulations,
preventing financial crime, maintaining tax
transparency and managing our approach
to lobbying responsibly.
Our culture & reputation help us to align
our business activities with our stakeholders’
values and expectations, while mitigating
risks and maintaining long-standing
market reputation as a responsible
financial institution.
Our obligations are constantly expanding in
an increasingly digital world. A robust system
of cyber security & data protection is critical
to our functioning, and to the welfare of our
employees and customers. As we continue
to expand our online operations, our key
priorities are to ensure the security of our
systems and information, safeguard against
theft, attacks and unauthorised alterations
that could undermine our credibility and
operations, and protect customers’
confidential information and privacy.
Our Material Impacts, Risks and Opportunities
(page 58) outline the material IROs, as well as
their interaction with our strategy and business
model. These IROs include those relating to
our own operations, and our value chain.
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Governance & Responsible Business
Corporate governance is
a material topic for AIB,
as expected for a
financial institution.
This is one of our seven material topics.
For each topic, we report in accordance
with the ESRS. We disclose our approach
to managing our material IROs through our
policies, actions and performance
measures.
Value chain: Upstream, own operations, downstream
It is critical that we manage the Group in the
interest of all stakeholders and follow a
framework of rules and practices to facilitate
accountability, fairness and transparency.
Our approach to corporate governance and
corporate behaviour is relevant for all
stakeholders, including those who influence
our business and those impacted by our
actions. Our colleagues are key to delivering
our strategy and our strong governance
structures and frameworks aim to ensure that
everyone who works for us adheres to high
ethical standards.
This section should be read in conjunction
with our ESRS 2 disclosures starting from
page 51, Our Sustainability Governance,
which also presents details of our corporate
governance framework.
Our policies
G1-1
The following policies related to corporate
governance, ethics and accountability apply to
everyone who are directly employed by AIB,
as well as agency staff, contractors, and
Board members. This includes AIB Mortgage
Bank, EBS d.a.c. (incl. Haven), AIB UK and
Goodbody. Payzone is not covered by these
policies as it maintains its own suite of policies
which are aligned to the Group.
Conflicts of Interest Policy
Our Conflicts of Interest (CoI) Policy sets out
how to evaluate, report and manage any
actual, potential, or perceived conflicts of
interest to ensure that employees and
Directors always act in the best interests of the
Group and of our stakeholders.
Every year, employees must
complete mandatory online
conflicts of interest training.
The policy was set after considering the
interests of key stakeholders and was
approved by our Group Risk Committee.
Employees must declare any perceived or
potential conflicts of interest on an ongoing
basis. This includes receiving prior approval
from their People Leader to give or receive
gifts, benefits or hospitality valued at more
than €200/£200/$260, either individually or
cumulatively, when given to or received from
one party. All instances above these limits
must be recorded on the CoI register.
Each business area has a Conflicts of Interest
Business Coordinator. They review the CoI
register to identify potential or perceived
conflicts or corruption risks, ensure that the
register complies with our policies, report any
breaches to the policy owner, complete
quarterly returns to our HR Direct team and
report policy breaches to the policy owner.
HR provides training and support to the
appointed coordinators.
Where needed, our business owners must
establish local procedures to mitigate bribery
or corruption risks and must regularly inform
employees of the risks and required
mitigations.
Financial crime poses economic and social
problems for businesses and consumers
throughout the world, including the
jurisdictions in which we operate. AIB is
committed to safeguarding our customers,
acting with honesty and integrity, and
supporting the investigation and prevention of
financial crime. Our policies and codes enable
us to uphold this commitment.
While effective corporate governance is crucial
to mitigate financial crime, strong cyber
security measures also protect against digital
threats and safeguard sensitive financial data.
More details on how we manage financial
crime and fraud through our material topic of
cyber security and data protection can be
found from page 107.
Financial Crime Policy (incorporating ABC)
Financial Crime can involve money laundering
and terrorist financing, corruption in the supply
of goods and services, internal and external
fraud and dishonesty, data protection
breaches and theft, or breaches of any law or
regulation relating to sanctions, financial crime
or tax evasion. We manage financial crime
matters through our 3LOD model. Assurance
teams operate throughout each line, and
regularly report to senior management and the
Board on the efficacy of our controls.
Our Financial Crime Policy and related
standards encompass anti-money laundering,
countering the financing of terrorism, fraud,
anti-bribery and corruption (ABC) and
sanctions. We have embedded the policy and
standards in our operating procedures and we
verify their content at least annually to ensure
they are kept up to date. Any material updates
require Board approval.
We make all employees and Directors aware
of our policies and standards, and provide
mandatory and bespoke training, as described
in the Our Actions section below.
Our Financial Crime (incorporating ABC)
Policy and CoI Policy apply to all employees,
contractors and suppliers operating within AIB,
including all business functions, relevant
subsidiaries and branches throughout the
Group and across all the jurisdictions in which
we operate. They are reviewed annually by
internal stakeholders, and our Group Risk
Committee must approve material changes.
We publish documents on roles and
responsibilities and instruction guides on our
intranet to help everyone understand these
policies thoroughly.
In setting our Financial Crime
Policy, we consider the interests
of key stakeholders.
Tax Principles
We published our Tax Principles document in
2022, which is aligned with our purpose. Our
Tax Principles set out our approach to tax and
the standards to which we commit to in
complying with tax law and regulation,
managing our tax affairs and the tax-related
aspects of our business with customers, and
the associated responsibilities of all our
employees.
Our approach to tax has the following
objectives:
• maintaining high standards of integrity and
complying with the letter and the spirit of
applicable tax laws, regulations, and any
codes of conduct to which we subscribe in
all jurisdictions in which we operate; and
• acting with professionalism, integrity,
honesty, and fairness in dealings with
customers, suppliers, employees, regulatory
and tax authorities and law enforcement
agencies.
The Tax Principles are approved by the BAC.
AIB adheres to the Irish Co-operative
Compliance Framework and the UK Code of
Practice on Taxation for Banks.
Our Tax Principles can be found on our website.
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Material Topic:
Corporate Governance, Ethics & Accountability
Our actions
G1-3
Financial Crime
In our ongoing efforts to safeguard the integrity of
our financial systems, we have a series of
measures to prevent and mitigate financial crime,
and to ensure that we effectively implement our
Financial Crime and CoI Policies.
The Special Investigations Unit (SIU)
independently investigates allegations of
serious wrongdoing by our employees,
including bribery and corruption, including
those raised through our whistleblowing
channels.
The unit is part of Group Internal Audit, and
derives its authority from the Board, through
BAC. The SIU is independent of the Group’s
business management and is, therefore,
separated from any chain of management
involved in a matter that is being
investigated.This means that all SIU
investigations are conducted in the same
professional, impartial and objective manner.
In accordance with our operating guidelines,
material bribery and corruption matters will be
escalated to the Board on a case-by-case basis
through Executive Management reporting.
Financial crime and CoI training
All employees, contractors and suppliers
are required to complete Financial Crime
(Anti-Money Laundering (AML) & Sanctions)
and CoI training annually.
We provide bespoke training, which is tailored
to the financial crime risks relevant to specific
roles, and is also provided to key employees.
Our Money Laundering Reporting Officer
(MLRO) also provides comprehensive annual
training to the Board.
Responsible tax engagement
We are committed to acting responsibly in
relation to tax issues and to dealing fairly and
honestly with the tax authorities in each
territory where we operate. Therefore, we
engage regularly with the tax authorities to
discuss material business developments,
significant transactions, and uncertainties in
relation to the interpretation of the law.
Political engagement (including lobbying
activities)
G1-5
The ESRS for business conduct also includes
DR in relation to lobbying activities, to create
transparency about the ways in which
companies look to influence public policy and
their regulatory environments.
Our CoI Policy covers our approach to
lobbying, and prohibits us from making
political donations. We also have a
Lobbying Policy, which is approved by
our Group Risk Committee.
Lobbying activity in Ireland is recorded on
a lobbying register, where AIB is registered
as a Lobbyist.
Lobbyists must submit returns to the register
detailing their activities. These returns focused
on executive pay, promoting gender balance in
financial services, and highlighting the
challenges facing the Irish Stock Exchange.
With these activities, we want to:
• ensure that the Minister is fully informed of
the Board’s and investors’ concerns about
the impact on AIB Group of the ongoing
Government limits on executive pay;
• bring to the Minister’s attention potential
green financing solutions;
• discuss promoting greater gender balance
in financial services;
• highlight the significant challenges facing
the Irish Stock Exchange.
•
Please read our material topic section on Own
Workforce (Equal Treatment & Opportunities
for All) from page 90 for more information on
executive pay and our approach to promoting
gender balance in financial services.
AIB did not financially support any political
parties in 2024. We are a member of multiple
trade associations; however, do not currently
have a process in place to determine which of
these are engaged in political activity. We plan
to put a process in place.
No members of our Board or ExCo held a
comparable position in public administration
in the two years preceding their appointment
at AIB.
AIB is registered on the European Union
Transparency Register and its registration
number is 885308748162-21.
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Corporate Governance, Ethics & Accountability continued
Our performance measures
G1-3
Financial crime and CoI Training
Training our colleagues is an important way in
which we manage performance. This reflects
our commitment to enhancing employee skills
and competencies and overall organisational
performance.
During 2024, AIB provided one hour of
computer-based training to our employees,
including managers and ExCo, and our
contractors, regarding Financial Crime (AML,
Sanctions and ABC). The training included
the definition of corruption, details of our
Financial Crime Policy, the procedures
regarding suspicion/detection, and the key
laws and regulations that place obligations on
AIB.
This training was completed by 98% of
managers, and employees. AIB does not
assess workers as being at risk of bribery or
otherwise for the purposes of assigning this
training; it is mandatory for all employees.
In 2024, the MLRO also delivered in-person
Financial Crime training (incorporating ABC)
to our Board.
All employees and business partners
(including advisory partners and contractors)
are also required to complete CoI training
annually, with a 94% completion rate in 2024.
Incidents of corruption and bribery
G1-4
We assess our operations across the Group
annually for risks related to corruption, to
identify vulnerable areas, and take
preventative actions. We did not identify any
significant risks related to corruption in the risk
assessment during 2024.
There were 0 confirmed incidents in which we
dismissed or disciplined our own workers for
corruption or bribery incidents and 0 confirmed
incidents where we terminated or did not
renew contracts with business partners that
were terminated or not renewed due to
corruption or bribery violations.
There were no incidents in our value chain
where AIB or our employees were directly
involved. Accordingly, no actions have
been necessary to address breaches in
our Anti-Bribery and Corruption procedures
and standards.
The incidents of corruption and bribery data
are sourced from our risk management
system SHIELD. The report is a point in time
snapshot and is constantly updated. There are
no validation, judgements or estimations
applied, as SHIELD is fully automated.
Incidents of corruption
and bribery
0
Number of incidents in 2024
Responsible tax engagement
AIB is committed to acting responsibly in
relation to tax issues in each territory in which
we operate, and to dealing fairly and honestly
with the tax authorities of those territories. In
2024, the total amount of tax paid and
collected was €763m.
‘Tax paid’ (€376m) refers to taxes borne by
the Group, including corporate tax, bank levy,
employer social insurance and irrecoverable
VAT. ‘Tax collected’ (€387m) comprises taxes
collected from employees, customers and
shareholders.
Details of tax payments are collected from
multiple teams across the Group and collated
in a central file. No judgements or estimations
are applied.
Tax paid
and collected
€763m
Total amount of tax paid and collected in 2024
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AIB Group plc Head Office Molesworth Street.
Our Values & Behaviours
Be one
team
Own the
outcome
Drive
progress
Show
respect
Eliminate
complexity
Put Customers
First
Create connections,
Universally include
Seek excellence,
take accountability
Deliver sustainability,
embrace innovation
Empower others,
speak up
Actively simplify,
be decisive
Deliver solutions,
share insights
This is one of our seven material topics.
For each topic, we report in accordance
with the ESRS. We disclose our approach
to managing our material IROs through our
policies, actions and performance
measures.
Value chain: Own operations
We often talk about the ‘Why’, ‘What’ and ‘How’
of our business. Our ‘Why’ is our purpose.
Our ‘What’ is our Group strategy, of which
Sustainable communities is a pillar (for more
information, see page 46). Our ‘How’
comprises our values and behaviours – which
can make all the difference to outcomes for
our stakeholders.
In relation to our material risks, we ensure
that our staff share the Group’s purpose and
values, and having a culture focused on
conduct, underpinned by strong internal
support structures so we deliver customer
outcomes, maintain market integrity and
meet regulatory expectations.
We ensure sufficient senior management
focus on our conduct through our Regulatory
and Conduct Risk Committee, which provides
oversight of these risks, including within our
subsidiaries.
Our policies
G1-1
The following policies related to corporate
culture apply to everyone who are directly
employed by AIB, as well as agency staff,
contractors, and Board members. This
includes AIB Mortgage Bank, EBS d.a.c. (incl.
Haven) and AIB UK. In some cases, Payzone
and Goodbody are governed by their own
policies which are aligned to the principles and
values of the Group.
Culture and Conduct Risk Framework
The Group Culture Risk and Conduct Risk
Framework sets out how the Group manages
and governs these risks in line with the
Group’s Risk Appetite Statement. The
Framework also applies to the operations
of Goodbody.
The Framework sits within the overall Group
Risk Architecture and is one of the Material
Risk Frameworks supporting the Group’s Risk
Management Framework (RMF).
The Framework is underpinned by a number
of Group policies and codes of practice. See
the Risk Summary section on pages 16 to 21
of our Annual Report which provides more
detail on how the Group manages risk. The
requirements of the Third Party Risk
Management Policy and Third Party Service
Assessment are respected by implementing
the Framework.
Each ExCo member is responsible for
effectively managing the day-to-day
operations of their business segment or
function, and for developing and implementing
the Group strategy. ExCo as a whole is
responsible for considering Culture Risk and
Conduct Risk in our strategic planning, and for
how the Group formally assesses the conduct
risks inherent in the strategy, including having
effective procedures for protecting diverse and
vulnerable customers.
During annual reviews of the Framework,
we engage stakeholders across our first and
second lines of defence, consider their
feedback, and incorporate it as necessary.
The Board Risk Committee approves the
Framework, which is communicated to all
employees via infomail and internal articles.
The Framework is also published on our
intranet site.
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Material Topic:
Culture & Reputation
Code of Conduct
It is vital that everyone who works in or for the
Group understands how they are expected to
behave. Our Code of Conduct (the Code),
therefore, sets out clear expectations of how
we behave and how we do business, and
underpins our values and culture. Payzone
and Goodbody have their own Codes of
Conduct, which are aligned to the standards
required in the Group Code.
One of the five standards in the Code is that
we act in the best interests of our customers,
at all times, and treat them fairly and
professionally. We deliver this in a number of
ways, including promoting fair customer
outcomes by always putting their needs first in
our advice and decision-making, designing
products and services that are suitable for our
customers, and providing customers with
information that is both accessible and
transparent to help them make informed
decisions.
All employees must complete a declaration
that they have complied with the Code, as part
of the annual Aspire performance
management process. We take failure to
comply seriously any employees who breach
the Code are managed through a disciplinary
process, which can result in sanctions
including dismissal. All firms providing
outsourced services to the Group, must also
agree to comply with this Code, or must have
an equally suitable proprietary code of their
own.
The Board reviews the Code as needed, and
the Group Conduct Committee and BAC
review it annually. In setting our Code, we
considered the interests of key stakeholders.
The Code is aligned to the Central Bank of
Ireland’s Individual Accountability Framework
and the UK FCA’s Senior Managers and
Certification Regime. Further information
can be found on the CBI’s website and the
FCA website.
Our Code of Conduct can be found publicly on
our website.
The Board Audit Committee
receives an annual report on
awareness levels of the Code,
aspects for review, and any
breaches identified, including the
action taken.
Whistleblowing Policy
Our Whistleblowing Policy is the internal
whistleblowing policy and the process for
raising concerns of wrongdoing, as defined by
the Protected Disclosures Act 2014 and the
Public Interest Disclosures Act. It sets out how
employees, agency staff, tied agents,
suppliers, contractors, consultants, and
outsourced service providers, can raise any
issue or seek advice at any stage.This
includes staff working in or for our
subsidiaries, including Goodbody, and
contractor companies. In addition to our
Whistleblowing Policy, to deal with any staff
concerns which do not meet the definition of a
Protected Disclosure but which nevertheless
need to be brought to our attention, in 2025
we are launching a new Raising Concerns
Policy which operates in parallel whilst
maintaining a clear distinction between the two
types of concern.
Our Whistleblowing Policy, in conjunction with
our Code of Conduct, ensures that we quickly
detect and address wrongdoing and protect
our customers, colleagues and business.
Whistleblowing is also a relevant theme for our
corporate governance, ethics and
accountability material topic.
The Whistleblowing Policy and its
corresponding process provide a confidential
route for reporting actual or suspected
wrongdoing through a number of channels,
without fear of or actual retaliation.
The channels include:
• reporting issues to local management;
• reporting to a nominated member of senior
management;
• a confidential internal telephone line and a
dedicated Speak Up ‘@aib’ email address;
• an external, confidential, telephone and
email facility operated by an international
specialist charity, Protect; and
• an external portal to allow employees to
report concerns through a digital channel
that is available 24/7.
Whistleblowing reports are taken seriously,
treated confidentially, and triaged to ensure
that they are promptly, objectively and
independently investigated. Investigations are
led by HR, business representatives or a
specialised team in Group Internal Audit (GIA).
We may engage an external investigator if
necessary. In cases of suspected fraud, GIA
conducts the initial investigation, and we notify
regulatory authorities and the police if
necessary.
The Board receives an annual report on
issues raised through our Whistleblowing
process.
The Chief People Officer sponsors our
Whistleblowing Policy. The BAC approves the
policy and its chair is one of the Group’s two
Whistleblowing Champions. Both champions
are Non-Executive Directors and oversee the
integrity, independence and effectiveness of
the Whistleblowing Policy and process.
In setting our Whistleblowing Policy, we
consider the interests of key stakeholders.
Our Whistleblowing Policy can be found on
our website.
Grievance Policy and customer complaints
The Grievance Policy provides another
mechanism for our employees to raise
concerns, if they feel they have been
mistreated or subject to behaviours contrary
to our Code of Conduct. We also have a
comprehensive customer complaints process,
so our customers can be heard, and have
their concerns investigated and made good
where needed. These are both discussed in
more detail in Channels for Stakeholders to
Raise Concerns on page 96.
Reputational Risk Framework
We introduced this Framework in June 2024.
Its purpose is to ensure that we have a holistic
approach to managing Reputational Risk that
is well defined and understood, and that
everyone in the Group understands their role.
The Framework applies to all employees,
contractors and third parties providing a
service or function across AIB Group and its
regulated subsidiaries, including Goodbody,
and is published on our intranet.
We use the Framework to identify potential
Reputational Risk exposures, taking account
of the external environment, and standardising
the approach to identifying, assessing,
measuring, managing, and testing activity that
elevates the Group’s propensity to reputational
risk, associated with material risks.
The BCBS Enhancements to the Basel II
Framework July 2009 (Reputational Risk and
implicit support) is respected by implementing
this framework.
The Board approved the Framework and will
review and approve any subsequent changes,
as deemed required by the Executive
Committee. In setting the Framework, we
consider the interests of key stakeholders.
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Our actions
GOV-1
Culture and conduct
The Irish Banking Culture Board (IBCB) éist
Staff Culture survey is conducted every two
years. The survey focuses on exploring
employee views on a range of issues that lie at
the heart of banking culture. In 2024, we
started implementing a new phase in AIB’s
Culture journey to address the 2023 IBCB éist
staff survey findings. Our refreshed Culture
programme focuses on mindset shifts and
repositions culture as enterprise-wide. It is
being monitored via metrics in the AIB Engage
staff survey, which have generally shown
progress during 2024. This work, together with
the Group’s focus on reputation management,
supports AIB’s responsible and sustainable
business principles.
Two AIB Engage surveys were conducted,
with 76% and 73% response rates in 2024.
Themes were explored in detail through each
AIB Engage survey, with colleagues able to
submit comments and suggestions on how
AIB can improve. Themes are further explored
through listening sessions with focus groups.
In 2024, AIB hosted our 4th Annual Employee
Values Awards (EVAs), with 4,446
employees nominated across the group.
These awards are an opportunity to recognise
the many outstanding examples of times when
our colleagues have stepped up for each
other, our customers and our communities. All
employees have the opportunity to be involved
in the process of identifying these individuals,
beginning with an open nominations process
that progresses to a voting system. Finalists
are then invited to an in-person celebration in
November and awards are presented to the
winners in each category. The 2024 Awards
featured a new ‘Spirit of Innovation’ category
designed to recognise and encourage
innovative changes implemented by
colleagues during the year.
Our Aspire performance management
framework also promotes and encourages
regular quality one-on-one conversation
focused on employee development and
feedback, and it applies to every employee in
AIB. Based on each employee’s annual goals,
Aspire enables the equal recognition of not
just what each individual has achieved in the
year but how it was achieved and thereby
encourages the ongoing development of
behaviours in line with our values.
With the strong support and focus of our
Board and ExCo, we placed a sustained
emphasis on our Speak Up agenda
throughout 2024. This was achieved through a
series of communications, training, and
engagement. During 2024, we completed a
diagnostic exercise to understand the current
levels of confidence and willingness to Speak
Up, along with a benchmark exercise to
assess our whistleblowing arrangement
against best practice. Outputs from both
exercises have allowed us to further
strengthen our Whistleblowing Policy and
process and our wider approach to fostering
true psychological safety.
Through the Speak Up process, concerns
were raised on the following matters in 2024:
• protected disclosures regarding potential
regulatory or legal matters, health or safety
matters;
• workplace/operational issues; and
• personal grievance concerns.
In 2024, all guidance requests and concerns
raised were addressed by dedicated case
managers. Concerns raised via this policy
(including those related to potential instances
of bribery and corruption) are taken seriously,
treated confidentially, and triaged to be
investigated promptly, objectively and
independently, as deemed appropriate.
Reputational Risk
As part of the Framework, a new reputational
risk advisory process has been stood up to
ensure that Reputational Risk is considered
and documented for material change initiatives
and programmes, and other strategic activity.
Along with the Framework, we introduced or
updated related artefacts and processes to
reflect reputational risk management.
These include:
• A Risk Impact Assessment (RIA)
questionnaire to facilitate the standardised
assessment of potential material risks (in
line with the Group RMF), and the
associated reputational risk exposure.
• A Reputation Dashboard.
• A Corporate Affairs Handbook.
• A number of related policies and supporting
artefacts that have been updated, including
the Code of Conduct.
Our performance measures
Alongside these actions that AIB Group
undertakes to enable us to operate our
business in a responsible way, all our
employees are required to complete our
annual mandatory online learning curriculum.
The Code of Conduct is a feature of our
annual mandatory online training curriculum,
educating employees on the expectations of
the Code. In 2024, the completion rate of this
training was 95%. Additionally, all our
employees must adhere to our Code of
Conduct and complete a declaration of their
compliance with it.
Everyone working in and for AIB Group is also
required to complete mandatory training on
the Whistleblowing Policy annually, which
provides information about the Whistleblowing
Policy and process as well as the contact
details and channels for raising a concern. In
2024, the completion rate of this training was
95%. For methodology and significant
assumptions behind this metric, see page 93.
Code of conduct training
completion rate achieved in 2024
95%
Conduct Risk and Culture Risk continues to
be a primary focus for the Group, as described
in our Principal Risks section from page 17.
We measure our effectiveness through three
Key Risk Indicators:
• the identification of critical customer
impacting conduct issues;
• the number of product portfolio reviews
outstanding >3 months;
• completion of mandatory iLearn courses.
The identification of critical customer
impacting conduct issues and product portfolio
reviews are internally reported KRIs.
Ensuring all our employees are aware of and
understand the expectations of the Code of
Conduct through annual mandatory training
works to reducing the number of customer
impacting conduct issues.
We will continue to focus on measures of
performance in this area.
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Culture & Reputation continued
Our system of cyber security and data protection supports the
consistent and reliable functioning of our Group, as well as
safeguarding the welfare of our employees and customers.
We have laid robust foundations in cybersecurity to keep
our systems, data and customers protected against an
ever-present risk, while maintaining our track record of
leading digital enablement within Irish banking.
This is one of our seven material topics.
For each topic, we report in accordance
with the ESRS. We disclose our approach
to managing our material IROs through our
policies, actions and our performance
measures.
Value chain: Upstream, own operations, downstream
Cyber security and data protection is an entity-
specific topic. Given that the impact is in
relation to own workforce and consumers and
end-users, the disclosures of ESRS S1 and
ESRS S4 have been applied to disclose
material information. Cyber incidents can have
long-term negative impacts on our operations,
customers, and the wider society. In a cyber
landscape that is constantly changing and
intensifying, our responsibility is to keep our
customers and ecosystems safe. We do this
by ensuring that we have digital resilience,
and that we respect and enforce the rights to
privacy and data protection for all customers
and employees who are potentially subject to
negative impacts.
To meet our responsibilities, we design and
operate our systems so they remain secure,
while providing products and services that are
fit for purpose. As part of this process, we aim
to minimise complexity and enable greater
agility and functionality for our customers.
Our Enterprise Information Security team is
responsible for monitoring, protecting, and
securing our platforms, and for maintaining
their modernity to protect services for us and
our customers. The rigour of our approach is
reflected in our accreditation to ISO 20000
2018 standard certification for service
management systems (underpinning all of our
technology services).
Our DPO is responsible for engaging with
customers and the DPC when a query is
raised regarding our use of personal data. It is
also responsible for advising everyone in the
Group of their obligations under Data
Protection and ePrivacy regulations.
Risks related to cyber security and data
privacy are inherent to our business activities,
given the amount of information we handle
and the reliance of our business model on
technology services and infrastructure. If
proper safeguards are not in place, individual
data incidents, such as personal data
breaches and cyber security breaches, can
have a serious negative impact by
compromising both our employees and
customers’ right to data privacy.
Cyber risk interacts with our material risks to
varying degrees, and up to the end of 2024,
we defined it as a sub-risk within our
Operational Risk framework.
From 1st January 2025, we have deemed
Information Security (including Cyber) Risk to
be as a Principal Risk to the Group and no
longer include it as a sub-risk of Operational
Risk (please find more details in our Risk
Management section on page 242). This
followed our review of the materiality of sub-
risks within Operational Risk, as part of the
MRA process. We considered a number of
factors, including the impact on our capital,
historical loss events in AIB, external loss
events sourced from the Operational Risk data
eXchange Association (ORX) network, Risk &
Control Assessment (RCA), our assessment
of emerging risks and consideration of the
regulatory horizon.
Our policies
GOV-1, S1-1, S4-1
The policies described below apply to all
employees, contractors, consultants, agents
and third parties throughout the Group, in all
jurisdictions, who have direct or indirect
access to our information or systems. They
are applicable to all legal entities and
subsidiaries in AIB Group, including Goodbody
and, where relevant, our suppliers within our
value chain. Payzone is not covered by these
policies as it maintains its own suite of policies
which are aligned to the Group.
Information Security Policy
Our Information Security Policy sets out the
requirements for the effective and consistent
identification, evaluation, management, and
oversight of Information Security Risk, which
includes cyber risk, across AIB.
The Chief Risk Officer is the policy’s ExCo
sponsor. To ensure that the policy is kept up to
date, we carry out an annual regulatory gap
analysis and list the relevant regulations in the
latest version of the policy, which we publish
on our intranet.
Our Policy Governance Framework (PGF)
makes the policy owner responsible for
ensuring appropriate engagement with all
stakeholders to capture feedback on any
proposed changes to both the Information
Security Policy and the Technology Risk Policy
(see below).
We have a low appetite for the risk of loss or
breach of our confidential business and
customer data. We set this appetite at a level
that allows us to achieve our business goals
and objectives in a manner that complies with
the laws and regulations across the
jurisdictions in which we operate.
We cannot fully control or mitigate the
occurrence of Information Security (including
Cyber) Risk. However, we seek to minimise
our risk exposure as much as possible
through controls that extend through all
internal capabilities and third-party services,
and our focus is on identifying and protecting
our critical systems and information assets, as
well as our ability to detect, respond to and
recover from incidents. We also have
quantitative Risk Appetite Statement (RAS)
measures in place to mitigate this risk.
The Board is ultimately responsible for the
effective management of Information Security
(including Cyber) Risk, and for the Group’s
system of internal controls. The Board monitors
our exposure through its regular risk reporting
and by updates on specific cyber-related topics.
Additionally, our Chief Risk Officer regularly
reports on the Group’s risk profile and
emerging risk themes to both the Group and
Board Risk Committees.
Technology Risk Policy
The Technology Risk Policy defines our rules
for effectively managing technology, to ensure
that we identify and manage technology risks
in line with our risk appetite. It is published
internally on our Intranet.
The policy is supported by guidelines and is
aligned with the Digital Operational Resilience
Act (DORA). DORA is a key part of the
European Commission’s Digital Finance
package. It consolidates the obligations that
firms will face and is the EU’s most significant
regulatory initiative on operational resilience
and cyber security in the financial services
sector, impacting both financial entities and
their technology providers. It came into force
on 16 January 2023 and applies from
17 January 2025, following a two-year
implementation period. We have a
cross-function DORA programme to assess
our ongoing capability and close any gaps.
DORA alignment requires financial entities
to have a sound, comprehensive and
well-documented Information and
Communication Technology (ICT)
risk management framework.
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Material Topic:
Cybersecurity & Data Protection
2LOD Operational Risk reviews both the
Information Security and Technology Risk
Policies and the guidelines annually to ensure
that they comply with any new laws or
regulations and reflect changes in our
organisational structure or new business
requirements.
After consultation with internal stakeholders,
policy updates are then approved by the GRC.
As the Chief Risk Officer is the policy’s ExCo
sponsor, all documented rules governing our
approach to managing technology and
information security-related risks are approved
at Board level.
Data Protection & ePrivacy Policies
As a digitally enabled bank, we process large
volumes of customer data on a daily basis.
Our customers must be able to trust us to do
this responsibly and ethically, using
appropriate data protection and ePrivacy
mechanisms. We therefore prioritise the
protection and ethical use of our customer
data, and our Code of Conduct requires all
staff to comply with the spirit and letter of the
relevant laws and regulations, including those
related to data protection and ePrivacy. As
customers are a crucial part of our value
chain, safeguarding their right to privacy is a
key part of our Human Rights Commitment.
For more details on our Human Rights
Commitment, please refer to page 95.
Our Data Protection Policy provides clear
rules and principles for protecting personal
data within the Group, including addressing
the identification, assessment, management
and/or remediation of data protection impacts
on customers.
The policy is in line with the General Data
Protection Regulation (GDPR), (EU)
2016/679, which outlines the rules for
protecting the fundamental rights and
freedoms of natural and legal persons,
reinforces the data protection rights of
individuals, and facilitates the free flow of
personal data within the EU and other
countries where an adequate level of data
protection has been determined. This policy is
also aligned with the requirements of the Irish
Data Protection Act 2018 and the UK Data
Protection Act 2018.
The ePrivacy Policy sets out the rules and
principles, roles and responsibilities for
identifying, assessing, managing, reporting,
controlling and overseeing electronic
communications. The DPO reviewed the
ePrivacy Policy in 2024 to ensure its
continued effectiveness. The DPO also
delivered training on ePrivacy to a range of
our customer-facing business units.
The ePrivacy Policy is in line with the ePrivacy
Regulation (2017/0003(COD)), which outlines
the rules for protecting the fundamental
rights and freedoms of natural and legal
persons in the provision and use of electronic
communication services and, in particular,
the rights to respect for private life and
communications and protections with
regard to the processing of personal data.
The policy is also aligned to the requirements
of the UK Privacy and Electronic
Communications Regulations (Privacy and
Electronic Communications (EC Directive)
Regulations 2003).
Our DPOs set our Data Protection Policy and
ePrivacy Policies and oversee their effective
communication and implementation across the
organisation. We review the policies annually,
and ensure that the views and interests of key
stakeholders are taken into consideration. The
GRC reviews any material changes to the
policies, and also reviews and approves them
every three years. We complete a regulatory
gap analysis when drafting the policies, and
during each triennial review, to ensure that the
policies meet regulatory obligations and
expectations. Both policies are aligned with
the RAS, and all appropriate qualitative
statements and metrics outlined in the RAS
are reflected either directly within the policies,
or in their supporting guidelines and
procedures.
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Cybersecurity & Data Protection continued
Our actions
GOV-1, S1-4, S4-4
Ensuring information security
The cyber threat profile remains elevated, with
the threat landscape becoming more diverse
and attacks increasing in sophistication and
volume. We operate our cyber defences in line
with international standards, combining
controls that help predict, prevent, detect,
and respond to attacks.
We monitor and regularly test our controls to
prevent unauthorised parties from accessing,
manipulating, or acquiring our data. Our
internal control testing aligns with the National
Institute of Standards and Technology
Cybersecurity Framework. We have business
continuity plans and incident response
capabilities in place and test them at least
annually, running cyber simulations based on
extreme but plausible scenarios. We also
introduce new and enhanced controls. As the
threat landscape has evolved in 2024, we have
strengthened our defences with advanced,
adaptive protections that leverage real-time
threat intelligence, automated mitigation, and
scalable resilience measures. Our approach
remains dynamic, continuously evolving to stay
ahead of emerging threats and ensure the
uninterrupted security of our critical services.
Preventing and mitigating technology risk
Technology risk, as outlined above, is associated
with the use, ownership, operation, involvement,
influence, and adoption of technology within the
Bank. This includes risks associated with all
technology infrastructure, applications,
networking, data storage, information assets and
technical resources (people), and all supporting
components, processes, and procedures in use
across the Group.
The Technology Operational Risk team
is responsible for the maintenance,
communication and adherence of the
Technology Risk Policy, oversight and
challenge of the Technology & Data (T&D)
control environment, and monitoring that all
the risks identified are managed in line with
the Group’s risk appetite.
The Head of Operational Risk owns the
Technology Risk Policy, reports on the
performance of the RAS metrics to the
Operational Risk Committee (ORC) and
escalates accordingly.
Operational Risk reviews and monitors
compliance with this policy, in line with the
Technology Risk Oversight Methodology, so
that it remains within our risk appetite and
regulatory expectations. Business Units,
including T&D, record the output from
technical controls testing and other relevant
metrics in relation to the policy for onward
reporting to the ORC, as appropriate. T&D
reports any identified non-compliance with the
policy to the Head of Operational Risk.
Initiatives to safeguard customers
Our customers are a crucial part of our value
chain. We aim to safeguard them from fraud,
including by actively engaging with them to
raise awareness about potential scams,
ongoing security alerts and emerging threats.
We engage with customers on a quarterly
basis via email, and through My Messages
and In-App messages on the AIB Mobile
Banking and Business Banking (iBB) apps.
We also support and collaborate with the
BPFI, which runs the FraudSMART
awareness campaign.
Ensuring data protection
The Data Protection Policy includes rules to
ensure the timely internal reporting of personal
data breaches to the DPO, allowing sufficient
time for incidents to be reviewed, assessed
and reported to the DPC, where necessary,
and in line with our obligations under GDPR.
In addition, the policy sets timelines to ensure
that we complete a data protection
assessment before starting any new
processing activity. We also have KRIs in
place to monitor our review, assessment and
reporting of personal data breaches and the
completion of subject access requests.
Following a deep-dive analysis of personal
data breaches that occurred during 2024,
the DPO engaged directly with individual
business areas to develop action plans to
strengthen the control environment around
data protection. The DPO also engaged
with the DPC in response to its queries
relating to personal data breaches that
were reported to the Regulator.
In addition, the DPO delivered a comprehensive
training programme in 2024 to 4,239
colleagues across a range of business areas
to raise awareness of personal data breaches.
We want all of our customers to benefit from
the initiatives outlined above. We develop our
privacy-related notices, including the Data
Protection Notice (DPN), to try to make sure
that they are accessible for all customers,
including vulnerable individuals.
Phishing simulations
We use phishing simulations in the form of
internal emails to replicate the threat from
bad actors, and measure our resilience to
such attacks. We aim to do this for all
employees, at least one per quarter to
educate them about the tell-tale signs and
modus operandi of a real-life phishing scam.
We share the results of the All-Employee
exercises with our senior leadership via a
Phishing Dashboard, giving them visibility
regarding how employees reacted.
Simulation exercises
2024
All-Employee phishing
exercises
4
Phishing simulation
emails sent
58,309
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Our performance measures
S1-5, S4-5
Our Cyber Security & Data Protection
performance measures relate to AIB Group
and its subsidiaries only, whilst our total
number of personal data breaches applies to
AIB Group and its subsidiaries, as well as to
Goodbody. Payzone manage and report their
own personal data breaches independently
Cyber security spending target
To meet the challenge of ensuring that our
digital infrastructure and systems are robust
and that our customer and employee data is
safe, we are investing significant resources to
help us deliver simplified, modern, resilient and
customer-focused IT.
2024 Cyber security
spending
10.33%
Target: At least 7% of our overall
annual IT spend
IT service
availability
99.98%
Average availability of all level 1 business
services in 2024
We also calculate an IT Service Availability
metric, which is a holistic measure of the
overall health of the IT services domain within
AIB. The IT Service Availability metric is a key
risk metric for AIB and the limit and breach
thresholds have not been breached in 2024.
Performance above the limit triggers an
escalation process. It is the average
performance of all Level 1 business services
over the course of the calendar year.
To ensure our actions under the Information
Security Policy and Technology Risk Policy
are effective, we monitor the Cyber Security
Spending metric within the RAS process, as
detailed in the ‘Our Policies’ section.
We review the appropriateness of RAS limits
annually and monitor performance monthly.
The RAS process is dynamic in nature and
may be reviewed, changed or adjusted due to
both internal and external developments. At a
minimum, we review it annually. Consequently,
the concept of a baseline year or value is not
relevant. The RAS process itself operates
monthly and the limits and targets are similar
in nature to interim targets.
Data for the Cyber Security Operational Spend
metric is extracted directly from our
management information systems, while data
for the IT Service Availability metric is
extracted directly from our Incident
Management System, Remedy. No
judgements are applied to the data in IT
Service Availability metric.
Aligned to industry benchmarks, the Cyber
Security spend metric of 7% total spend of IT,
is calculated by dividing attributable
operational cyber expenditure by the total of
Technology operational expenditure. This
minimum target reflects annual mandatory
investment in AIB’s cyber capability to keep
pace with evolving threats. Any judgements
and assumptions around the attributable
operational cyber expenditure in the Cyber
Security Spend metric will be reviewed in line
with the development and implementation of
the new Cyber Strategy in 2025.
Identification of key IT Service Monitoring
criteria forms part of the methodology for
calculating the IT Service Availability metric.
All issues related to critical IT systems,
identified and reported as part of this process,
are checked against criteria to verify if they are
within set limits.
As noted in the Our policies section, our
engagement with key stakeholders includes
metrics and targets and ensures that we
consider their views and interests during an
annual review.
Mandatory training
As part of our mandatory training curriculum,
we deliver dedicated Information Security and
Data Protection modules.
The Information Security training covers our
policy, and how to report and escalate issues.
High-risk users must complete additional
training. In Q4 2024, we rolled out a new
training tool to our IT staff that provides
insights into our users’ security understanding.
We expect to roll this out to all AIB employees
in 2025.
Information security
training
95%
training completion rate achieved in 2024
The Data Protection training module covers
our Data Protection and ePrivacy policies, and
how to report a Personal Data Breach and
breach of the policies. 95% of our employees
and contractors completed the training in 2024.
Data protection
training
95%
training completion rate achieved in 2024
For details on our mandatory training
calculations and assumptions, including a note
regarding employees on long-term leave, see
page 93.
Data Protection & ePrivacy
We do not have specific targets related to the
number of personal data breaches. Instead,
we work to reduce personal data breaches
and support customers and business areas if
they occur. We use the following metric to
track the effectiveness of our data protection
actions:
Total number of
personal data breaches
1,747
This metric is extracted directly from the
Group’s governance, risk and compliance
system, Shield, and no judgements are
applied to the metric. We assessed our
performance in more detail using the sub-data
points from the table below.
Data Protection – Personal
Data Breaches & Complaints
2024
Number of substantiated
data protection complaints
received from outside
parties and substantiated
by the organisation
164
Number of substantiated
data protection complaints
from regulatory bodies
6
Number of personal data
breaches reported to the
data protection authorities
488
Total number of customers
and employees affected
by the company’s personal
data breaches
18,816
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Cybersecurity & Data Protection continued
We want our business to make a positive impact by
creating sustainable long-term shared value for all our
stakeholders. This includes advancing responsible business
practices, such as supporting the transition to a low-carbon
environment by choosing suppliers who are aligned with our
sustainability strategy.
G1-2
Managing our supplier relationships is a key
aspect of our material topic Corporate
governance, ethics & accountability. By
implementing responsible and sustainable
business practices across our own operations
and supply chain, we seek to contribute to the
wider environmental protection and social-
wellbeing. This section outlines our approach
to managing a sustainable supply chain in
terms or our policies, actions and performance
measures. In relation to our own operations,
please refer to the Climate & Environmental
Action section of this report from page 63.
Our suppliers refer to any third-party
organisation that provides goods or services
to or on behalf of AIB Group. This definition
does not include individual contractors,
agents, or intermediaries. We employ a broad
range of suppliers across multiple categories,
with 4,003 active suppliers on our database,
and we transacted with 2,528 of them in 2024.
Active suppliers are all suppliers that have
been paid within the last 12 months. The
largest cohort of our suppliers are based in
Ireland (66%). A further 26% are based in the
UK, and the remaining 8% are in other
locations, mostly other European countries,
the USA and India.
We segment our supplier base into five tiers,
based on the risk and criticality of the service
they provide. We then manage them
accordingly, with the closest management
accorded to Tier 1 suppliers who provide
critical services to us, while Tier 5 suppliers
typically provide low-value transactional goods
and services.
We use market intelligence, specific selection
criteria and best-in-class selection tools to
help us choose the most appropriate
suppliers. Our due diligence reflects the
nature, value, complexity, and criticality of the
service we are procuring. For high-value/risk
services, we perform specific due diligence
checks on the supplier and their proposed
service model. We subject lower-value and/or
lower-risk suppliers to routine company
financial and sanction scanning checks.
Our policies
Responsible Supplier Code
Our Responsible Supplier Code sets out our
expectations of our suppliers and the minimum
standards they must meet regarding human
rights, health and safety, supply chains,
inclusion and diversity, and responsible and
sustainable business. The Code uses the term
’Supplier’ to refer to the suppliers, vendors,
contractors, consultants, agents and other
providers of goods and services who do
business with us, or who seek to do business
with us as part of our upstream value chain.
We will only do business with suppliers that
adhere to our Code. We require evidence that
they have an ESG plan or are working on
putting one in place, and require all successful
suppliers to join a Supplier Financial
Qualification System, which provides a
standardised process for collecting and
managing their compliance and assurance
information. We also encourage our suppliers
to report their carbon emissions through the
CDP. In 2024, the number of suppliers who
participated in reporting to the CDP was 65,
which represented 50% of the AIB suppliers
invited.
Our suppliers must adhere to all legal
obligations in each jurisdiction in which
they operate or provide services, as well as
meeting any specific requirements in our own
policies. Our key suppliers must attest
annually that they have complied with our
policies (or clauses in them that are relevant to
our supply chain). These policies include our
Code of Conduct, CoI Policy, ABC Policy, Data
Protection Policy, Whistleblowing Policy and
our Human Rights Commitment. The GSC
reviews and approves the Code as needed.
We inform suppliers of the Code at on-
boarding and at each transaction via Purchase
Order communications. The Code is also an
agenda item during Annual Strategic Reviews
and is documented through meeting minutes.
This reinforces the Code’s message and
ensures that the supplier is aligned.
In addition to meeting the requirements of our
Code, we expect our suppliers to maintain
similar levels of compliance throughout their
own value chain, including any suppliers or
approved subcontractors that they work with
to supply goods and services to us. These
principles form part of our supplier selection
process and we continuously monitor them.
We require our Accountable Owners and
Business Owners to be familiar with the Code.
Business Owners represent us when dealing
with the supplier, while Accountable Owners
line-manage the Business Owner and control
or authorise the budget.
We expect suppliers to take appropriate
measures to secure and protect all confidential
information related to their relationship with us,
and to use it only for the purpose authorised
under our contractual agreement with them.
Our actions
Supplier Relationship Management (SRM)
Standard
Our SRM standard encapsulates best practice
SRM, which promotes mutually beneficial
relationships, coupled with effective risk
management, to deliver the following
objectives:
1. Identifying where to focus SRM resources
to maximise the benefit for us.
2. Introducing a consistent and systematic
approach to SRM across AIB.
3. Encouraging cross-functional
communication and knowledge sharing to
drive productive supplier relationships.
4. Applying best-practice SRM techniques
through practical approaches and relevant
training for Accountable and Business
Owners, such as recent training on their
obligations under changing regulations.
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Management of Our Supplier Relationships
In November 2024, we welcomed our top 100
suppliers to a Supplier Summit in Molesworth
Street. The purpose of the Summit was to
strengthen collaboration, align our suppliers
with our purpose, and reinforce their critical
role in helping us achieve our strategic goals
across Customer First, Greening the Business
and Operational Efficiency.
ESG Questionnaire
ESG factors are increasingly important for our
own performance, and for our relationships
with suppliers. The ESG Questionnaire covers
a broad range of ESG areas, and requires
responses and evidence from suppliers on
their:
• journey to establishing or achieving their
Net Zero targets;
• annual sustainability reports;
• Scope 1,2 and 3 GHG emissions;
• consideration of physical risks from climate
change;
• policies on discrimination, inclusion &
diversity, health & safety, modern slavery,
vulnerable persons, greenwashing, and
speaking up;
• Code of Conduct and their Responsible
Supplier Code for their own supply chain;
and
• commitment to ongoing ESG-related
training in their organisation.
By engaging with our suppliers through
the ESG questionnaire during the selection
process, we benefit in the following ways:
1. Aligning Our Values and Expectations
Asking suppliers to complete an ESG
Questionnaire communicates our ESG
standards and expectations to them, and
ensures that we work with partners that share
our values. This can help to build trust and
reputation, and avoid potential conflicts or
controversies.
2. Identifying Risks and Opportunities
The Questionnaire helps us to assess the
ESG performance and risks of our suppliers
and their supply chains, such as their
environmental impact, social responsibility,
human rights, labour practices, ethics, and
governance. This helps us to identify and
mitigate ESG risks, such as regulatory fines,
reputational damage, operational disruptions,
or legal liabilities. It also helps us to identify
and leverage ESG opportunities, such as
innovation, cost savings, customer loyalty, or
market differentiation.
3. Providing a Baseline and a Roadmap
The questionnaire provides a baseline for
measuring and monitoring suppliers’ ESG
performance and progress, as well as a
roadmap for improvement. By using a
standardised ESG Questionnaire, we can
benchmark and compare our suppliers, and
track their ESG performance over time. It also
allows us to provide feedback and guidance to
our suppliers and encourages them to adopt
best practices and achieve continuous
improvement.
Suppliers Portal
Our Suppliers Portal creates transparency by
providing information on how to become a
supplier. It includes our policies, procedures,
and our standard terms of purchase, which
explains our payment terms for suppliers.
Our performance measures
G1-6
Another ESRS requirement connected to
business conduct and supplier management
concerns payment practices, particularly in
relation to SMEs. Our standard payment terms
apply equally for SMEs and non-SMEs, and
are the same across our geographies.
These terms include payment on receipt of
invoices and have been flagged as approved
to pay, which account for approx 78% of our
annual value. The remaining 22% of annual
invoices are paid once any outstanding
elements of the invoice have been settled
and flagged as approved to pay.
This calculation is facilitated through the
central collection of invoice data containing all
relevant information. This is reviewed and
signed off by management. No judgements or
estimations are applied.
There are no legal proceedings currently
outstanding for late payments. All group
employees have an obligation to notify the
Litigation and Enforcement Legal Team of any
legal proceedings that are received in their area,
and a reminder email is issued annually. Each
year, all legal proceedings are recorded,
including detail on the date on which the legal
proceedings were received, the entity against
which they were issued, and the nature of the
claim. No judgements or estimations are applied.
We attempt to prevent late payments by aiming
to pay immediately on receipt of invoices, the
ongoing training and education of users, and
monitoring outstanding invoices to business. The
average time that AIB takes to pay an invoice,
from the date when the contractual or statutory
term of payment starts to be calculated, is 28
days. We calculate this by taking the average
number of days between the invoice date and the
clearing date of the payment made. This
calculation is based on all Invoices received and
paid up to the 16th of January 2025.
We are considering developing a target to
measure the results our supplier management
policies and actions to integrate sustainability and
ESG criteria into our procedures, to support
responsible business practices, including a more
sustainable supply chain.
Payment
practices
78%
Payments aligned with standard
payment terms
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Management of Our Supplier Relationships continued
List of Disclosure Requirements
IRO-2
Following the completion of the DMA process, we conducted a materiality of information assessment for each ESRS to determine material DR and data points. In doing
so, we considered the relevance of the reported information and significance for the user of the sustainability statement to inform their decision making. The following
table lists all of the DR in ESRS 2 and the topical standards, both mandatory and material to AIB.
We have omitted all the DRs in the topical standards E2 (Pollution), E3 (Water and marine resources), E4 (Biodiversity and ecosystems), E5 (Resource use and
circular economy), and S2 (Workers in the value chain), as these topics were below our materiality thresholds, except for the DRs related to IRO-1 in ESRS 2. The
index tables help the reader to navigate information in the sustainability statement and we have indicated where information has been incorporated by reference to
another section of the management’s report (such as the Governance Report, Annual Review, Remuneration Report).
We have also indicated where we have deemed a DR to be not material, or we have chosen to avail of the phase-in provisions
For 6 of our material topics, with the exception of ‘Own workforce (Equal treatment and opportunities for all)’, entity-specific disclosures in relation to metrics have been
included to support disclosure of material information. These have been introduced as additional DR or as additional data points within the ESRS DR.
ESRS 2 – General disclosures
BP-1
Basis of Preparation
45
BP-2
Our Approach to Sustainability, Basis of Preparation
44, 45
GOV-1
Our Sustainability Governance
Governance Report (GOV-1, 21 a - e, 22 c)
Risk Management (GOV-1, 22c)
51-53, 106-107, 109, 128-135,
154-155, 169, 180-183
GOV-2
Our Sustainability Governance
Risk Management (GOV-2, 26 a)
52, 180-183
GOV-3
Our Sustainability Governance
53
GOV-4
Our Sustainability Governance, Appendix 1
52, 114
GOV-5
Our Sustainability Governance
Governance Report (GOV-5, 36 d - e);
Risk Management (GOV-5, 36 b - c)
53, 147, 180-183, 245
SBM-1
Our Sustainability Strategy, Our Value Chain, Creating Value through Our Business Model
(Phase-in applied for SBM-1 40 b, 40 c)
Annual Review (SBM-1, 40 a)
46-47, 48, 50, 4-5
SBM-2
Our Stakeholder Engagement
Governance Report (SBM-2, 45 a, c)
49, 140-142
SBM-3
Our Material Impacts, Risks, and Opportunities (Phase-in applied for SBM-3 48 e)
58-61
IRO-1 (E1, E2, E3, E4, E5, G1)
Our Approach to the Double Materiality Assessment
54-57
IRO-2
Appendix 1 and Appendix 2
113 - 115
ESRS E1 – Climate Change
ESRS 2 GOV-3
Our Sustainability Governance
53
E1-1
Our approach to transition planning
66-67
ESRS 2 SBM-3
Our Material Impacts, Risks, and Opportunities, Climate & Environmental Risk
58-61, 68-69
ESRS 2 IRO-1
Our Approach to the Double Materiality Assessment, Climate & Environmental Risk
54-57, 68-69
E1-2
Our policies
70, 75
E1-3
Our actions
70-72, 75
E1-4
Our performance measures
72-75
E1-5
Our performance measures, Energy consumptions and mix
76, 79
E1-6
Our performance measures, Methodology for Calculating GHG Emissions
77- 79
E1-7
Not material
N/A
E1-8
Not material
N/A
E1-9
Phase-in
N/A
ESRS S1 – Own Workforce
ESRS 2 SBM-2
Our Stakeholder Engagement
49
ESRS 2 SBM-3
Our Material Impacts, Risks, and Opportunities, Societal & Workforce Progress, Human
Rights Commitments
58-61, 84, 95
S1-1
Our policies, Human Rights Commitment
Governance Report (S1-1, 19)
90, 93, 95, 107-108, 157-159
S1-2
Channels for Stakeholders to Raise Concerns
96, 97
S1-3
Channels for Stakeholders to Raise Concerns
97
S1-4
Our actions
90-91, 93, 109
S1-5
Our performance measures
91, 93, 110
S1-6
Supplementary performance measures
94
S1-7
Phase-in
N/A
S1-8
Not material
N/A
S1-9
Our performance measures, Gender diversity
91
S1-10
Not material
N/A
S1-11
Not material
N/A
S1-12
Phase-in
N/A
S1-13
Our performance measures
93
S1-14
Not material
N/A
S1-15
Our performance measures, Family leave
92
S1-16
Our performance measures, Gender pay gap report
92
S1-17
Supplementary performance measures, Human Rights Commitment
94, 95
DR
Sustainability Reporting
Cross-referencing
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Appendix 1
ESRS S3 – Affected communities
ESRS 2 SBM-2
Our Stakeholder Engagement
49
ESRS 2 SBM-3
Our Material Impacts, Risks, and Opportunities, Societal & Workforce Progress, Human
Rights Commitment
58-61, 84, 95
S3-1
Our policies, Human Rights Commitment
88, 95
S3-2
Channels for Stakeholders to Raise Concerns
96
S3-3
Channels for Stakeholders to Raise Concerns
96
S3-4
Our actions, Human Rights Commitment
89, 95
S3-5
Our performance measures
89
ESRS S4 – Consumers and end-users
ESRS 2 SBM-2
Our Stakeholder Engagement
49
ESRS 2 SBM-3
Our Material Impacts, Risks, and Opportunities, Societal & Workforce Progress, Human
Rights Commitment
58-61, 84, 95
S4-1
Our policies, Human Rights Commitment
85, 88, 95, 105-106, 107-108
S4-2
Channels for Stakeholders to Raise Concerns
96, 97
S4-3
Channels for Stakeholders to Raise Concerns
96, 97
S4-4
Our actions, Human Rights Commitment
86-87, 88-89, 95, 109
S4-5
Our performance measures
87, 89, 110
ESRS G1 – Business conduct
ESRS 2 GOV-1
Our Sustainability Governance
Governance Report (data point: 5 a)
51-53, 134
ESRS 2 IRO-1
Our Approach to the Double Materiality Assessment
54-57
G1-1
Our policies
101, 104-105
G1-2
Management of Our Supplier Relationships
111-112
G1-3
Our actions, Our performance measures
102, 103
G1-4
Our performance measures
103
G1-5
Our actions
102
G1-6
Our performance measures
112
DR
Sustainability Reporting
Cross-referencing
Page
Due diligence
GOV-4
The below table provides a mapping to where in our sustainability statements we provide information about our due diligence process, including how we apply the main
aspects and steps of our due diligence process.
Due diligence elements
Section
Page
(a)
Embedding due diligence in
governance, strategy and
business model
Our Sustainability Governance, Our Material Impacts, Risks, and Opportunities
52, 53, 58
(b)
Engaging with affected
stakeholders in all key steps
of the due diligence
Our Stakeholder Engagement, Our Sustainability Governance, Our Approach to the Double Materiality Assessment, Channels for Stakeholders
to Raise Concerns, Our policies (Note: for page references to topical sections, see the DR table above)
49, 52, 54-57, 96-97
(c)
Identifying and assessing
adverse impacts
Our Approach to the Double Materiality Assessment, Our Material Impacts, Risks, and Opportunities, Channels for Stakeholders to Raise
Concerns
54-57, 58-61, 96-97
(d)
Taking actions to address
those adverse impacts
Our approach to transition planning, Our actions (Note: for page references to topical sections, see the DR table above)
66-67
(e)
Taking the effectiveness of
these efforts and
communicating
Our performance measures (Note: for page references to topical sections, see the DR table above)
See note
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Appendix 1 continued
List of data points deriving from other EU legislation
IRO-2
The table below includes a list of all the data points that derive from other EU legislation as per Appendix B of ESRS 2, and where they can be located within this report.
Certain data points are considered not applicable for example based on EFRAG’s technical explanation (N/A). Some data points relate to metrics that the
corresponding DR is deemed as not material for AIB (N/M) and for others, phase-in provisions are availed of as per Appendix C in ESRS 1.
ESRS 2 – General disclosures
GOV-1, 21 (d)
Board's gender diversity
GR
129
SFDR, BR
GOV-1, 21 (e)
Percentage of board members who are independent
GR
129
BR
GOV-4, 30
Statement on due diligence
SR
114
SFDR
SBM-1, 40 (d) i
Involvement in activities related to fossil fuel activities paragraph
N/A
N/A
SFRD, Pillar 3, BR
SBM-1, 40 (d) ii
Involvement in activities related to chemical production paragraph
N/A
N/A
SFRD, BR
SBM-1, 40 (d) iii
Involvement in activities related to controversial weapons
N/A
N/A
SFRD, BR
SBM-1, 40 (d) iv
Involvement in activities related to cultivation and production of tobacco paragraph
N/A
N/A
BR
ESRS E1 – Climate Change
E1-1, 14
Transition plan to reach climate neutrality by 2050
SR
66-67
EUCL
E1-1, 16(g)
Undertakings excluded from Paris-aligned Benchmarks
SR
66
Pillar 3, BR
E1-4, 34
GHG emission reduction targets
SR
73, 75
SFDR, Pillar 3, BR
E1-5, 38
Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors)
N/A
N/A
SFDR
E1-5, 37
Energy consumption and mix
SR
76
SFDR
E1-5, 40-43
Energy intensity associated with activities in high climate impact sectors
N/A
N/A
SFDR
E1-6, 44
Gross Scope 1, 2, 3 and Total GHG emissions
SR
77- 79
SFDR, Pillar 3, BR
E1-6, 53-55
Gross GHG emissions intensity
SR
77- 79
SFDR, Pillar 3, BR
E1-7, 56
GHG removals and carbon credits
N/A
N/A
EUCL
E1-9, 66
Exposure of the benchmark portfolio to climate-related physical risks
Phase-in
N/A
BR
E1-9, 66 (a)
Disaggregation of monetary amounts by acute and chronic physical risk
Phase-in
N/A
Pillar 3
E1-9, 66 (c)
Location of significant assets at material physical risk
Phase-in
N/A
Pillar 3
E1-9, 67 (c)
Breakdown of the carrying value of its real estate assets by energy-efficiency classes
Phase-in
N/A
Pillar 3
E1-9, 69
Degree of exposure of the portfolio to climate- related opportunities
Phase-in
N/A
BR
ESRS S1 – Own Workforce
SBM-3, 14 (f)
s
o
Risk of incidents of forced labour
SR
95
SFDR
SBM-3, 14 (g)
s
Risk of incidents of child labour
SR
95
SFDR
S1-1, 20
o
l
i
Human rights policy commitments
SR
95
SFDR
S1-1, 21
m
e
n
Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8
SR
95
BR
S1-1, 22
n
t Processes and measures for preventing trafficking in human beings
SR
95
SFDR
S1-1, 23
Workplace accident prevention policy or management system paragraph
SR
95
SFDR
S1-3, 32 (c)
i
cGrievance/complaints handling mechanisms paragraph
SR
96-97
SFDR
S1-14, 88 (b), (c)
d
l
i
Number of fatalities and number and rate of work-related accidents
N/A
N/A
SFDR, BR
S1-14, 88 (e)
a
n
d
Number of days lost to injuries, accidents, fatalities or illness
N/A
N/A
SFDR
S1-16, 97 (a)
Unadjusted gender pay gap
SR
92
SFDR, BR
S1-16, 97 (b)
Excessive CEO pay ratio
SR
92
SFDR
S1-17, 103 (a)
Incidents of discrimination
SR
94
SFDR
S1-17, 104 (a)
Non-respect of UNGPs on Business and Human Rights and OECD Guidelines
SR
95
SFDR, BR
ESRS S3 – Affected Communities
S3-1, 16
Human rights policy commitments
SR
95
SFDR
S3-4, 17
Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines
SR
95
SFDR, BR
S3-4, 36
Human rights issues and incidents
SR
95
SFDR
ESRS S4 – Consumers and End-users
S4-1, 16
Policies related to consumers and end-users
SR
95
SFDR
S4-1, 17
Non-respect of UNGPs on Business and Human Rights and OECD guidelines
SR
95
SFDR, BR
S4-4, 35
Human rights issues and incidents
SR
95
SFDR
ESRS G1 – Business Conduct
G1-1, 10 (b)
United Nations Convention against Corruption
SR
101
SFDR
G1-1, 10 (d)
Protection of whistle-blowers
SR
105
SFDR
G1-4, 24 (a)
Fines for violation of anti-corruption and anti-bribery laws
SR
103
SFDR, BR
G1-4, 24 (b)
Standards of anti-corruption and anti-bribery
SR
101, 103
SFDR
Reference to DR and related data points
Section
Page
EU law reference
Section reference:
•
GR – Governance Report
•
SR – Sustainability Reporting
•
N/A – Not applicable
•
NM – Not material
EU law reference:
•
SFDR – Sustainable Finance Disclosure Regulation
•
BR – Benchmark Regulation
•
Pillar 3 Disclosure Regulation
•
EUCL – EU Climate Law
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Appendix 2
The Directors are responsible for the preparation of the Sustainability Statement in accordance with Part 28 of the Companies Act 2014 and
including the Sustainability Statement in a clearly identifiable dedicated section of the Directors’ Report.
The Directors are also responsible for designing, implementing and maintaining such internal controls that they determine are relevant to enable
the preparation of the Sustainability Statement in accordance with Part 28 of the Companies Act 2014 and that it is free from material
misstatement, whether due to fraud or error.
In preparing the Sustainability Statement, the directors are required to:
• prepare the statement in accordance with the European Sustainability Reporting Standards (ESRS) including the selection and application of
appropriate sustainability reporting methods;
• disclose the double materiality assessment process performed to identify the information required to be reported in the Sustainability Statement;
• prepare the disclosures within the environmental section of the Sustainability Statement, in compliance with Article 8 of EU Regulation 2020/852
(the ‘Taxonomy Regulations’);
• ensure that the Group maintains adequate records for the preparation of the Sustainability Statement;
• make judgements and estimates that are reasonable in the circumstances including the identification and description of any inherent limitations
in the measurement or evaluation of information in the Sustainability Statement;
• prepare forward-looking information, where applicable, on the basis of disclosed assumptions about events that may occur in the future and
possible future actions by the Group.
For and on behalf of the Board
Jim Pettigrew
Chair
Colin Hunt
Chief Executive Officer
Donal Galvin
Chief Financial Officer
4 March 2025
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Statement of Directors’ Responsibilities
for the Sustainability Statement
To the Directors of AIB Group plc
Limited assurance report on the consolidated Sustainability Statement
Limited assurance conclusion
We have conducted a limited assurance engagement on the consolidated sustainability statement of AIB Group plc (the ‘Company’), included in
pages 44 to 115 (the ‘consolidated Sustainability Statement’), as at 31 December 2024 and for the period from 1 January 2024 to 31 December
2024, prepared in accordance with Part 28 of the Companies Act 2014.
Certain required disclosures have been presented elsewhere in the Annual Report, rather than in the Sustainability Statement. These are cross
referenced from the Sustainability Statement and are identified as subject to limited assurance.
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that
the consolidated Sustainability Statement is not prepared, in all material respects, in accordance with Part 28 of the Companies Act 2014,
including:
• compliance of the sustainability reporting with the European Sustainability Reporting Standards (“ESRS”),
• the process carried out by the Company to identify the information reported pursuant to the sustainability reporting standards, is in accordance
with the description set out in the section ‘Our approach to the Double Materiality Assessment’, and
• compliance of the disclosures in subsection ‘EU Taxonomy’ within the environmental section of the consolidated Sustainability Statement with
Article 8 of EU Regulation 2020/852 (the “Taxonomy Regulation”).
Basis for conclusion
We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (Ireland) 3000,
Assurance engagements other than audits or reviews of historical financial information - assurance of sustainability reporting in Ireland (“ISAE
(Ireland) 3000 ”), issued by the Irish Auditing & Accounting Supervisory Authority (IAASA).The procedures in a limited assurance engagement vary
in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a
limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement
been performed.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this
standard are further described in the Practitioners’ responsibilities section of our report.
Our independence and quality management
We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants
(including International Independence Standards) issued by the International Ethics Standard Board for Accountants (IESBA Code), which is
founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour and
the independence requirements of the Companies Act 2014 and the Code of Ethics issued by Chartered Accountants Ireland that are relevant to
our limited assurance engagement of the consolidated Sustainability Statement in Ireland.
The firm applies International Standard on Quality Management (Ireland) 1, which requires the firm to design, implement and operate a system of
quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal
and regulatory requirements.
Responsibilities for the consolidated Sustainability Statement
As explained more fully in the Statement of Directors’ Responsibilities for the consolidated Sustainability Statement, the Directors’ of the Company
are responsible for designing and implementing a process to identify the information reported in the consolidated Sustainability Statement in
accordance with the ESRS and for disclosing this Process in note ‘Our approach to the Double Materiality Assessment’ of the consolidated
Sustainability Statement. This responsibility includes:
• understanding the context in which the Company’s activities and business relationships take place and developing an understanding of its
affected stakeholders.
• the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and
opportunities that affect, or could reasonably be expected to affect, the Company’s financial position, financial performance, cash flows, access
to finance or cost of capital over the short, medium, or long-term.
• the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying
appropriate thresholds; and
• making assumptions that are reasonable in the circumstances.
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Independent practitioners’ limited assurance report on
AIB Group plc’s consolidated Sustainability Statement
The Directors of the Company are further responsible for the preparation of the consolidated Sustainability Statement, in accordance with Part 28
of the Companies Act 2014, including:
• compliance with the ESRS.
• preparing the disclosures in ‘EU Taxonomy’ subsection of the consolidated Sustainability Statement, in compliance with the Taxonomy Regulation.
• designing, implementing and maintaining such internal control that the Directors determine is necessary to enable the preparation of the
consolidated Sustainability Statement that is free from material misstatement, whether due to fraud or error; and
• the selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasonable in
the circumstances.
Inherent limitations in preparing the consolidated Sustainability Statement
In reporting forward-looking information in accordance with ESRS, the Directors of the Company are required to prepare the forward-looking
information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual
outcomes are likely to be different since anticipated events frequently do not occur as expected.
Practitioners’ responsibilities
Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the consolidated Sustainability
Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence decisions of users taken on the basis of the consolidated Sustainability Statement as a whole.
As part of a limited assurance engagement in accordance with ISAE (Ireland) 3000 we exercise professional judgement and maintain professional
scepticism throughout the engagement. Our responsibilities in respect of the consolidated Sustainability Statement, in relation to the Process, include:
• Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Process, including the
outcome of the Process.
• Considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and
• Designing and performing procedures to evaluate whether the Process is consistent with the Company’s description of its Process set out in
subsection ‘Our approach to the Double Materiality Assessment’.
Our other responsibilities in respect of the consolidated Sustainability Statement include:
• Identifying where material misstatements are likely to arise, whether due to fraud or error; and
• Designing and performing procedures responsive to where material misstatements are likely to arise in the consolidated Sustainability
Statement. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Summary of the work performed
A limited assurance engagement involves performing procedures to obtain evidence about the consolidated Sustainability Statement. The
procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance
engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that
would have been obtained had a reasonable assurance engagement been performed.
The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material
misstatements are likely to arise in the consolidated Sustainability Statement, whether due to fraud or error.
In conducting our limited assurance engagement, with respect to the Process, we:
• Obtained an understanding of the Process by performing inquiries to understand the sources of the information used by management
(e.g., stakeholder engagement, business plans and strategy documents) and reviewing the Company’s internal documentation of its Process.
• Evaluated whether the evidence obtained from our procedures with respect to the Process implemented by the Company was consistent with
the description of the Process set out in subsection ‘Our approach to the Double Materiality Assessment’.
In conducting our limited assurance engagement, with respect to the consolidated Sustainability Statement, we:
• Obtained an understanding of the Company’s reporting processes relevant to the preparation of its consolidated Sustainability Statement by
obtaining an understanding of the Company’s control environment, processes and information systems relevant to the preparation of the
consolidated Sustainability Statement, but not for the purpose of providing a conclusion on the effectiveness of the Company’s internal control.
• Evaluated whether the information identified by the Process is included in the consolidated Sustainability Statement.
• Evaluated whether the structure and the presentation of the consolidated Sustainability Statement is in accordance with the ESRS.
• Performed substantive assurance procedures on selected information in the consolidated Sustainability Statement.
• Where applicable, compared disclosures in the consolidated Sustainability Statement with the corresponding disclosures in the Financial
Statements and Directors’ Report.
• Evaluated the methods assumptions and data for developing estimates and forward-looking information.
• Obtained an understanding of the Company’s process to identify taxonomy-eligible and taxonomy-aligned economic activities and the
corresponding disclosures in the consolidated Sustainability Statement.
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Independent practitioners’ limited assurance report on
AIB Group plc’s consolidated Sustainability Statement continued
Other Matter – Compliance with the requirement to mark-up the consolidated
Sustainability Statement
Section 1613(3)(c) of the Companies Act 2014 requires us to report on the compliance by the Entity with the requirement to mark-up the
consolidated Sustainability Statement in accordance with Section 1600 of that Act. Section 1600 of the Companies Act 2014 requires that the
Directors’ Report is prepared in the electronic reporting format specified in Article 3 of Delegated Regulation (EU) 2019/815 and shall mark-up the
consolidated Sustainability Statement. However, at the time of issuing our limited assurance report, the electronic reporting format has not been
specified nor become effective by Delegated Regulation. Consequently, the Entity is not required to mark-up the consolidated Sustainability
Statement. Our conclusion is not modified in respect of this matter.
Other Matter – References to external sources or websites
The references to external sources or websites in the Sustainability statement are not part of the Sustainability statement and therefore are not
within the scope of our limited assurance engagement.
Other Matter – Comparative Information
The comparative information included in the consolidated Sustainability Statement of the Company for any period prior to 1 January 2024 was not
subject to an assurance engagement. Our conclusion is not modified in respect of this matter.
Use of this report
Our report is made solely in accordance with Section 1613 of the Companies Act 2014 to the Directors of the Company.
Our assurance work has been undertaken so that we might state to the Directors those matters we are required to state to them in a limited
assurance report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
the Company and its Directors, as a body, for our limited assurance work, for this report, or for the conclusions we have formed.
Ronan Doyle
for and on behalf of PricewaterhouseCoopers
Chartered Accountants and Statutory Audit Firm
Dublin
4 March 2025
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In 2019, AIB was the first Irish bank to become an official supporter of the
Task Force on Climate-Related Financial Disclosures (TCFD) to identify
and assess our climate risks and opportunities. During 2024 we continued
to make good progress in aligning with TCFD recommendations across the four
key areas of Governance; Strategy; Risk Management; and Metrics and Targets.
The table below references the sections of this report that detail our progress
against the TCFD recommendations.
Pillar
Recommendation
Section
Disclosure Location
Page
Governance
(a) Board’s oversight of climate-related risks
and opportunities.
• Sustainability Statement
• Governance Report
• Our Sustainability Governance
• Report of the Sustainable
Business Advisory Committee
51 - 52
168
(b) Management’s role in assessing and
managing climate-related risks and
opportunities.
• Sustainability Statement
• Governance Report
• Our Sustainability Governance
• Report of the Sustainable
Business Advisory Committee
• Internal Controls
51 - 52
168
169
Strategy
(a) Climate-related risks and opportunities
(short, medium, and long term).
• Sustainability Statement
• Basis of preparation
• Our Approach to Double
Materiality Assessment
45
54 - 56
(b) Impact of climate-related risks and
opportunities on businesses, strategy, and
financial planning.
• Sustainability Statement
• Risk Management Report
• Our Approach to Double
Materiality Assessment
• Climate & Environmental Risk
54 - 56
242
(c) Resilience of strategy, taking into
consideration different climate related
scenarios, including a 2°C or lower scenario.
• Sustainability Statement
• Our Material Impacts, Risks and
Opportunities
• Climate & Environmental Action,
C&E Risk
58 - 61
68
Risk
Management
(a) Processes for identifying and assessing
climate related risks.
• Sustainability Statement
• Risk Management Report
• Our Approach to Double
Materiality Assessment
• Climate & Environmental Action,
C&E Risk
• Climate & Environmental Risk
54 - 56
68
242
(b) Processes for managing climate-related
risks.
• Sustainability Statement
• Risk Management Report
• Climate & Environmental Action,
C&E Risk
• Climate & Environmental Risk
68
242
(c) Integration of processes for identifying,
assessing and managing climate-related risks
into overall risk management.
• Risk Management Report
• Climate & Environmental Risk
242
Metrics and
Targets
(a) Metrics used to assess climate-related
risks and opportunities in line with strategy
and risk management.
• Sustainability Statement
• Climate & Environmental Action,
C&E Risk
• Decarbonising Our Loan Book
• Own Workforce (Equal
treatment and opportunities for
all)
68
70 - 76
92
(b) Disclose Scope 1, Scope 2 and, if
appropriate, Scope 3 greenhouse gas (GHG)
emissions and the related risks
• Sustainability Statement
• Methodology for Calculating
GHG Emissions
77
(c) Targets used to manage climate-related
risks and opportunities and performance
against targets
• Sustainability Statement
• Decarbonising Our Loan Book
70 - 76
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Task Force on Climate-Related Financial Disclosures
(TCFD)
TCFD Metrics and Targets
In this section we provide details on Transition and Physical Risk which is one of our four key groups of TCFD metrics. For more information on the
remaining groups of metrics, see Climate & Environmental Action on pages 70 to 76 and Own Workforce (Equal treatment and opportunities for all)
on page 92.
Transition and Physical Risk
Physical Risk: We continue to focus on flood risk as the most significant acute and chronic physical risk and have developed initial metrics to better
understand this risk for our property-related exposure. These metrics support the tracking of physical risk for our key property portfolios. Our
approach is subject to further evolution based on industry developments and supervisory and regulatory expectations.
Transition Risk: On the transition risk side, an ESG Questionnaire is required for all new lending over €/£/$1m in high and moderate transition risk
sectors, and for all annual reviews of Borrowers with an exposure over €/£/$10m in high and moderate transition risk sectors. An ESG
Questionnaire is also required for material waiver requests for Borrowers with limits over €/£/$1m in high transition risk sectors.
Note
2024
2023
Exposures sensitive to Flood risk secured on commercial immovable property*
2.6% (€0.19bn)
3.2% (€0.28bn)
Exposures sensitive to Flood risk secured on residential immovable property*
1.0% (€0.38bn)
NR
% of new lending to sectors with higher transition risk - flow
6 %
8 %
% of lending to sectors with higher transition risk - stock
5 %
5 %
Exclusions/Assets Excluded from EU Paris-aligned Benchmarks (% lending to non-financial
corporates)
<1%
<1%
Notes:
• *Physical flood risk shown above is aligned with our CRR449a Pillar 3 disclosure showing “sensitivity” to physical risk for Commercial and
Residential exposures secured by immovable property under an adverse climate scenario. Adverse climate scenario is defined as:
Representative Concentration Pathway (‘RCP’) 8.5 to 2035, and a 1:100 risk of a flood event. The threshold of risk for “sensitive” is set at a 1%
flooding risk (1:100) and the adverse climate change scenario to 2035. This approach aligns to the EBA 2021 ESG Risk Management guidance
in so far as there is prescriptive guidance.
• Lending to sectors with high transition risk includes term & revolver lending; 2023 figure is shown on a consistent basis to 2024 i.e. all term and
revolver lending to high transition risk sectors.
• Non-Paris Agreement aligned assets relate primarily to non-financial corporate lending to counterparties with revenue from fossil fuel activities.
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Governance
Report
An effective governance framework is a key
enabler in delivering our strategic priorities
and ensures that decision making is aligned
to our purpose, culture and values and the
long term sustainable success of the Group.
In this section
Chair’s introduction
124
Corporate governance headlines at a glance
124
Corporate Governance Framework
125
Governance in action
126
Board of Directors
128
Our Executive Committee
132
Board Leadership, Company Purpose, Culture and Values and
the Division of Responsibilities
134
Board Focus
138
Section 172 Statement and Stakeholder Engagement
139
Report of the Board Audit Committee
144
Report of the Board Risk Committee
149
Report of the Nomination and Corporate Governance Committee
152
Board composition and succession
154
Report of the Remuneration Committee
157
Corporate Governance Remuneration Statement
159
Report of the Technology and Data Advisory Committee
167
Report of the Sustainable Business Advisory Committee
168
Internal Controls
169
Viability Statement
171
Directors’ Report
172
Schedule to the Directors’ Report
175
Other Governance Information
177
Supervision and Regulation
178
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The Board is committed to
ensuring that the highest
standards of corporate
governance are adhered
to across the Group
Jim Pettigrew
Chair
Dear Shareholder,
On behalf of the Board, I am pleased to
introduce the Governance Report for
2024. This report, which is aligned to the
requirements of the UK Corporate Governance
Code 2018 (the ‘UK Code’), documents the
Group’s approach to compliance with the
UK Code. Our application of the UK Code and
links to where the key content can be found
is set out on page 125 of this report. Further
information on governance practices in place in
the Group are available on the Group’s website
at www.aib.ie/investorrelations.
The Board is committed to ensuring that the
highest standards of corporate governance
are adhered to across the Group and see it
as fundamental to our culture and achieving
our 2024-2026 strategy.
The report provides an overview of the
key responsibilities of the Board and its
Committees and gives further insight into
the work of the Directors, the Board and
its Committees.
We recognise that a robust governance
structure with an effective risk management
framework is integral to delivering long-term
sustainable growth and shareholder
returns and is a key enabler in delivering
the 2024-2026 strategy.
Jim Pettigrew
Chair
Corporate governance headlines at a glance
State ownership*
Dividend
12.39%
*as at 4 March 2025
36.984
cent per share
€18.5bn
As at 4 March 2025,
AIB Group has repaid
€ 18.5 bn to the Irish State.
dividend per ordinary share in 2023/2024:
an increase on the prior year.
Board Diversity Policy
Target Achieved
Shareholder Approval for 2024 AGM
Resolution on Remuneration
40%
Female
99%
in Favour
the percentage of females on the
Board stood at 40%. Board Diversity Policy
target at least 40% female.
99% Shareholder Approval for 2024 AGM
resolution on the Group Remuneration
Policy and Directors’ Remuneration Report.
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Governance in AIB
Chair’s introduction
36.984
26.568
2024
2023
Male (9)
Female (6)
99% in Favour
Corporate Governance Framework
The following outlines the Group’s Corporate Governance Framework,
which is anchored in the requirements of the UK Code, Central Bank of
Ireland Corporate Governance Requirements 2015 and the Irish
Corporate Governance Annex.
Statements of Compliance for 2024
This report, in conjunction with the Statement of Directors’
Responsibilities, Corporate Governance Remuneration Statement,
Risk Governance section of the Risk Management Framework report
and the Statement on Internal Control, sets out the Group’s approach
to governance in practice and the work of the Board and its
Committees, and explains how the Group applied the principles of the
Central Bank of Ireland’s Corporate Governance Requirements for
Credit Institutions 2015 (the ‘2015 Requirements’), European Union
(Capital Requirements) Regulations 2014 (S.I. 158/2014) (‘CRD’) and
UK Corporate Governance Code 2018 (the ‘UK Code’) during 2024,
under the headings prescribed by the UK Code.
UK Corporate Governance Code 2018
AIB Group plc, by virtue of its primary listing on the Main Securities
Market of the Euronext Dublin Stock Exchange and its listing on the Main
Market of the London Stock Exchange, is subject to the provisions of the
UK Code (which is publicly available on www.frc.org.uk) and the Irish
Corporate Governance Annex. Throughout the year, the Group applied
the principles and complied with all provisions of the UK Code other than
in instances related to Section 5: Remuneration, in particular Principles R
and Provisions 36, 37 and 38, and the rationale is set out in the table
opposite. From 1 January 2025, AIB Group plc is subject to the provisions
of the revised UK Corporate Governance Code (the ‘UK Code 2024’)
for financial years commencing on or after 1 January 2025. Continued
focus on stakeholder engagement, including enhanced visibility for the
Board on addressing specific Stakeholder Group’s priorities. The Board
has been briefed on the UK Code 2024 and the Group’s readiness for
same.
How we apply the principles of the UK Code
Board leadership and company purpose
Page
Chair’s Introduction
124
Strategic Report
126-127
The role of the Board
134
Purpose and culture
134
Stakeholder and workforce engagement
134-135,
141 & 148
Division of responsibilities
Board composition
154-156
Role of the Chair, Senior Independent Director,
Non-Executive Directors and Company Secretary
Time commitment, external appointments,
independence and tenure
135 & 154
Composition, succession and evaluation
Appointment to the Board and succession planning
156
Skills, experience and knowledge of the Board
156
Board diversity
155
Board evaluation
136
Audit, risk and internal control
Auditor independence and effectiveness of the audit
147
Principal and emerging risks
149-151
Risk management activities and Internal Controls
149-151
&169
Fair, balanced and understandable assessment
147
Viability Statement
171
Remuneration
Directors’ Remuneration Report
157
Directors’ Remuneration Policy
159
Engagement with stakeholders on remuneration
166
Provisions required to ‘Explain’ under the
UK Code Comply or Explain process
Principle R: Exercise of independent judgement and discretion when
authorising remuneration outcomes.
Provision 36: Remuneration schemes should promote long-term
shareholdings by Executive Directors that support alignment with long-
term shareholder interests.
Provision 37: Remuneration schemes and policies should enable the
use of discretion to override formulaic outcomes.
Provision 38: The pension contribution rates for Executive Directors, or
payments in lieu, should be aligned with those available to the workforce.
Rationale
In 2022 the Irish Government lifted the restriction on variable pay,
allowing for awards to be made to individuals up to a value of € 20,000.
However, the cap continues to restrict the Group’s ability to structure
variable remuneration. As such, both decisions relating to Principle R
and certain associated provisions (particularly Provisions 36 and 37)
and the timing of when the remuneration restrictions may change are
outside of the Board’s sphere of influence or control. Further details on
the background to these restrictions can be found in the Corporate
Governance Remuneration Statement on pages 159 to 166.
In relation to Provision 38, the current pension arrangements
are considered to be fair, due to the remuneration restrictions
in place at this time. The rates of contribution for Executive
Directors and all employees are fully transparent and are set out
in the Corporate Governance Remuneration Statement on pages
159 to 166. In the event of the removal of or any changes to the
remuneration restrictions, the Remuneration Committee would
consider the impact of this on pension arrangements.
Irish Corporate Governance Annex
Additional obligations apply to the Group under the Irish Corporate
Governance Annex for 2024 (publicly available on www.euronext.com),
due to its primary listing on the Main Securities Market of the Euronext
Dublin Stock Exchange. The Group is fully compliant with the Irish
Corporate Governance Annex. The Group applies the requirements of
the updated Euronext Dublin listing rules which set out specific rules
and continuing obligations for issuers effective 1 January 2025
replacing previous version of the Listing Rules, dated 21 July 2019.
Irish Corporate Governance Code
The Irish Corporate Governance Code (‘Irish Code’) will apply to
Irish-incorporated companies with an equity listing on Euronext Dublin
for financial years beginning on or after 1 January 2025. However, as
the Group is listed in the UK it is obliged to adhere to and report under
the UK Code. The Group will continue to comply with the UK Code for
the foreseeable future.
Central Bank of Ireland’s Corporate Governance Requirements for
Credit Institutions 2015 and European Union (Capital Requirements)
Regulations 2014
AIB Group plc is authorised as a financial holding company and is not
directly required to comply with the 2015 Requirements (which are publicly
available on www.centralbank.ie). However, Allied Irish Banks, p.l.c., the
principal subsidiary of AIB Group plc, is a credit institution and is subject to
the 2015 Requirements, including compliance with requirements specifically
relating to ‘high-impact institutions’ and additional corporate governance
obligations on credit institutions deemed significant for the purposes of the
CRD (which is publicly available on www.irishstatutebook.ie).
As the governance structures of AIB Group plc and Allied Irish Banks, p.l.c.
are mirrored, and acknowledging the importance of adherence to the 2015
Requirements, the compliance status of Allied Irish Banks, p.l.c. is
noted herein.
During 2024, Allied Irish Banks, p.l.c. was materially compliant with all
of the 2015 Requirements and with the relevant corporate governance
aspects of CRD.
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Governance in action
A robust governance structure is integral to delivering
long-term sustainable growth and shareholder returns.
The Board is acutely aware of the importance
of its role in driving sustainable value for
shareholders in the long term, with due
consideration for all stakeholder groups,
and is committed to ensuring that the
highest standards of corporate governance
are adhered to across the Group.
Set out below are a number of key examples of Board governance in
action in 2024.
Continued oversight of 2024-2026 Group Strategy
During 2024, the Board continued its dedicated oversight of the
implementation and embedding of the 2024-2026 Group Strategy
across the three strategic priorities of Customer First, Operational
Efficiency and Greening the Business.
The Board received regular updates from executive management and
conducted a number of deep dives on strategy-related items in 2024,
including Customer First spotlights and supports to the delivery of the
Group strategy.
In 2025, the Board will continue to focus on the delivery of the targets
and ambitions set out in the 2024-2026 Group Strategy. Further detail
on the Group Strategy can be found in the Our Strategic Progress on
page 14.
Capital distributions
Against the backdrop of a reduction in the Irish State shareholding
in the Group and following engagement with the regulatory authorities,
the Board recommended capital distributions of € 501m in 2024. This
comprised of a directed buyback of € 500m and, in response to
feedback received from smaller shareholders, the Board recommended
the buyback of smaller shareholdings held by investors as part of the
Odd-lot Offer, which was approved by shareholders at the AGM in
May 2024. This enabled small shareholders to realise value for their
shareholdings without dealing costs, which would otherwise render it
uneconomic for shareholders. Further, details on capital distributions
are available in the Business Review on page 41.
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Reputational Risk Framework
In 2024, the Board approved a Reputational Risk Framework for the
Group, which formalised and standardised the approach to monitoring,
assessing and managing reputational risk exposures for material
decisions, across the Three Lines of Defence. The Board considered
the interest of key stakeholders as part of the approval process.
Further information is available in Sustainability Reporting on page 43
of this report.
Culture and speaking up
The Board continued to place significant importance on the evolution of
culture to ensure that a values-led, people-based culture is in place in
the Group, to drive the right behaviours and empower colleagues to
innovate, to speak up and to deliver positive outcomes for the Group’s
customers, communities and colleagues. Additionally, the Board
continued to oversee the evolution of a culture of accountability across
the Group, aligned to the ongoing Culture Programme, and to the
requirements of the Individual Accountability Framework.
The journey to strengthen the culture of speaking up within the Group
continued in 2024. Ensuring that colleagues at AIB are able to speak up
and report concerns of wrongdoing has been an organisational priority
within the Group for over a decade.
The findings of the Irish Banking Culture Board (‘IBCB’) employee
culture survey in 2023, informed the Board’s oversight of the design
and implementation of a new Culture Programme for the Group.
In 2024, the Board monitored the implementation of these findings
through the evolved Culture Programme. Further details on how the
Board has monitored culture in 2024 are available on page 134.
Whistleblowing
Throughout the year, the Board Audit Committee (‘BAC’) received
regular updates on whistleblowing developments, which included
details of all whistleblowing reports as well as trends and thematic
analysis. During 2024, the Whistleblowing Champion had oversight
over two externally validated diagnostic exercises to ensure the
effectiveness of the Group Speak Up (Whistleblowing) Policy and
process.
The BAC Chair, Sandy Kinney Pritchard, is the Whistleblowing
Champion for the Group and continues to drive this agenda through
ongoing engagement with the Head of Group Accountability and
Performance and the Head of Speak Up, in relation to material cases
and enhancements to the Speak Up process.
A new Whistleblowing Policy, with the sole purpose of facilitating the
reporting and effective management of Protected Disclosures was
approved by Group BAC in November 2024. The new Whistleblowing
Policy is effective from January 2025, is available on the AIB Group
website www.aib.ie/investorrelations and replaces the Speak Up Policy,
which has been retired. In 2024, 95% of the workforce completed
whistleblowing training. Further information on Speak Up is available in
Sustainability Reporting on page 97 and on page 148 of this report.
AIB Group Board Governance Structure
The AIB Group Board governance structure, Board of Directors and Executive Committees biographies are set out in the following pages.
Please refer to Stakeholder Engagement on pages 139 to 143, which sets out how the Board considers its stakeholders in its decision-making.
AIB Group Board
Board Audit
Committee
Board Risk
Committee
Nomination
and Corporate
Governance
Committee
Remuneration
Committee
Technology
and Data
Advisory
Committee
Sustainable
Business
Advisory
Committee
Oversees the quality
and integrity of the
Group’s accounting
policies, financial and
narrative reporting,
non-financial
disclosures and
disclosure practices,
internal control
framework and audit,
as well as the
mechanisms through
which employees
and contractors may
raise concerns.
Read more:
page 144
Oversees and fosters
sound risk governance
across the Group’s
operations, overseeing
the risk management
framework and
compliance function
to include the risk
appetite profile and the
overall risk awareness
across the Group.
Read more:
page 149
Oversees the Board
and Executive
Committee succession
planning and keeps
the Board’s
governance
arrangements and
corporate governance
compliance under
review.
Read more:
page 152
Oversees the Group’s
Remuneration Policy
and the operation of
remuneration policies
and practices, ensuring
that the Remuneration
Policy is designed to
support the long-term
business strategy,
values and culture of
the Group, as well as
to promote effective
risk management.
Read more:
page 157
Supports the Board by
reviewing and
challenging the
strategy, governance
and execution of
matters relating to
technology, data
including cyber
security and data and
analytics, as well as
business enablement
activities.
Read more:
page 167
Supports the Board in
overseeing the Group’s
performance as a
sustainable business
and the delivery of
AIB’s sustainability
strategy in accordance
with the approved
Group Strategy and
Financial Plan, and
maintaining and
safeguarding the
Group’s social licence
to operate.
Read more:
page 168
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Jim Pettigrew
Chair
Non-Executive Director
Anik Chaumartin
Independent
Non-Executive Director
Basil Geoghegan
Independent
Non-Executive Director
Tanya Horgan
Independent
Non-Executive Director
Date of appointment
28 October 2021
Nationality
British
Date of appointment
1 July 2021
Nationality
French
Date of appointment
4 September 2019
Nationality
Irish
Date of appointment
14 September 2021
Nationality
Irish
Committee membership and tenure
3y
3y
Committee membership and tenure
3y
2y
Committee membership and tenure
5y
Committee membership and tenure
3y
3y
Skills, expertise and experience
Key skills:
Extensive financial services
experience across retail banking,
customer and conduct, governance,
strategy and culture development.
Background and experience:
Jim has over 36 years’ experience
in UK and international financial
services leadership in both public
listed and private company
environments, including at board level,
as CEO and as Chair. He was Chair of
Scottish Financial Services, the
Scottish financial services trade body.
He also served as Co-Chair of
Scotland’s Financial Services Advisory
Board and is a former President of the
Institute of Chartered Accountants of
Scotland. He retired as Chair of Virgin
Money and CYBG plc in 2020. He has
built considerable non-executive
experience over the past 14 years
across retail, wholesale and
investment banking, asset and wealth
management and the insurance
sectors. Jim is a Chartered Accountant
and Fellow of the Association of
Corporate Treasurers. He has an LLB
from Aberdeen University and a
DipACC from Glasgow University.
Skills, expertise and experience
Key skills:
Deep technical accountancy and
audit expertise in financial services,
talent and culture development, and
stakeholder management.
Background and experience:
Anik has over 39 years' international
and professional services
experience. She was a partner in
PwC in Paris for 27 years, and held
various leadership positions in the
firm for 15 of those years. During her
time in PwC, she has acted in the
roles of Global Client Relationship
Partner and Lead Audit Partner for
a number of major banking and
financial services organisations.
Skills, expertise and experience
Key skills:
In-depth knowledge of international
finance, corporate banking, strategy
and risk management.
Background and experience:
Basil has served as a Managing
Director at Goldman Sachs,
Deutsche Bank and Citigroup in
London and New York. He has broad
M&A, corporate finance and strategic
advisory experience in the US, UK,
Ireland and internationally. He
qualified as a solicitor with Slaughter
and May. He holds an LLB
from Trinity College, Dublin and
an LLM from the European
University Institute.
Skills, expertise and experience
Key skills:
Extensive risk management,
compliance, finance, accounting and
audit, customer and conduct, and
technology skills.
Background and experience:
Tanya has extensive industry-based
experience in the areas of
compliance, internal audit and risk
management and has over twenty
years’ experience in publicly listed
companies. Tanya qualified as a
chartered accountant with PwC. She
has since held roles in a number of
organisations including Tesco, Paddy
Power Betfair plc, and, Flutter
Entertainment plc, where she served
as Group Chief Risk Officer. Tanya
currently serves as the Chief Risk
Officer of Primark. Tanya has
a B.Comm in Accounting from
University College Cork.
Key external appointments
•
Chair of RBC Global Asset
Management (UK) Limited
•
Chair of Scottish Ballet
Key external appointments
•
Non-Executive Director of Ayvens
Group
•
Non-Executive Director of
La Banque Postale
•
Non-Executive Director of Saol
Assurance DAC and Saol
Assurance Holdings Ltd
Key external appointments
•
Chair of daa plc
•
Partner at PJT Partners
•
Patron of the Ireland Fund of
Great Britain
Key external appointments
•
Chief Risk Officer of Primark
•
Non-Executive Director and Chair
of Audit Committee of Mercury
Engineering Limited
Board Committees:
Remuneration
Nomination &
Corporate
Governance
Board Audit
Board Risk
Sustainable
Business
Advisory
Technology
& Data
Advisory
Committee chair
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
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Information
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Board of Directors
Sandy Kinney Pritchard
Independent
Non-Executive Director
Elaine MacLean
Independent
Non-Executive Director
Andy Maguire
Independent
Non-Executive Director
Date of appointment
22 March 2019
Nationality
Irish
Date of appointment
4 September 2019
Nationality
British
Date of appointment
15 March 2021
Nationality
Irish
Committee membership and tenure
6y
6y
Committee membership and tenure
5y
4y
Committee membership and tenure
4y
4y
Skills, expertise and experience
Key skills:
Expertise in finance, accounting and
audit, governance, regulation,
customer and conduct, risk
management, wealth management,
retail and investment banking.
Background and experience:
Sandy has significant experience
across the financial services industry.
She has previously held a number of
Non-Executive Directorship roles,
including at Irish Life and Permanent
TSB plc, TSB Bank plc, MBNA Ltd
and Credit Suisse (UK) Ltd, as well
as serving as a senior partner at
PricewaterhouseCoopers LLP.
Sandy is a qualified accountant and
a graduate of University College
Dublin.
Skills, expertise and experience
Key skills:
Significant experience in
remuneration and governance,
organisational structures, and people
and culture development.
Background and experience:
Elaine is a highly experienced
human resources director
specialising in financial services
and retail. Following her early retail
career with roles at Harrods and
Windsmoor, and later as Retail
Operations Director and Human
Resources Director with Arcadia,
Elaine moved to financial services,
culminating in her appointment as
Group Human Resources Director
for Legal and General plc in 2006.
She is the Designated Non-
Executive Director for workforce
engagement. Elaine holds an MA in
English Literature and Psychology
from the University of Glasgow.
Skills, expertise and experience
Key skills:
Extensive retail banking, technology
and digital, transformation, and risk
management skills.
Background and experience:
Andy has extensive financial
services experience spanning 36
years, including 16 years with the
Boston Consulting Group, where he
rose to become Managing Partner of
the London office covering the UK
and Ireland, prior to which he held
several global roles, including the
Global Head of Retail Banking. From
2014 to 2020, Andy was the Group
Chief Operating Officer for HSBC
Holdings plc, with responsibility for
operations, technology, real estate,
change and transformation and
operational resilience. Andy
previously held Chair positions with
Napier Technologies Limited and CX
Holdings (‘Cennox Group’). He holds
a BA and a BAI from Trinity College,
Dublin.
Key external appointments
•
Chair of Charles Stanley & Co Ltd,
Raymond James Wealth
Management Limited and
Raymond James Investment
Services Ltd
•
Non-Executive Director and Chair
of Audit Committee of Luminor
Bank AS
Key external appointments
None
Key external appointments
•
Chair of Thought Machine Group
Limited
•
Non-Executive Director of
Westpac Banking Corporation
Board Committees:
Remuneration
Nomination &
Corporate
Governance
Board Audit
Board Risk
Sustainable
Business
Advisory
Technology
& Data
Advisory
Committee chair
AIB Directors
Board (Limited assurance)
Gender (Limited assurance)
Age
Tenure
Nationalities
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Exec:
2-13%
NED:
13-87%
Female:
6-40%
Male
9-60%
46-55:
3-20%
56-64
8-53%
65-70
4-27%
0-3 yrs:
7-47%
4-6 yrs
6-40%
7-9 yrs
2-13%
Irish:
10-66%
British
2-13%
French
1-7%
Dutch
1-7%
USA
1-7%
Brendan McDonagh
Independent Non-Executive
Director and Deputy Chair
Helen Normoyle
Senior Independent
Non-Executive Director
Ann O’Brien
Independent
Non-Executive Director
Fergal O’Dwyer
Independent
Non-Executive Director
Date of appointment
27 October 2016
Nationality
Irish
Date of appointment
17 December 2015
Nationality
Irish
Date of appointment
25 April 2019
Nationality
Irish
Date of appointment
22 January 2021
Nationality
Irish
Committee membership and tenure
6y
5y
7y
8y
Committee membership and tenure
8y
4y
4y
Committee membership and tenure
4y
5y
4y
Committee membership and tenure
4y
Skills, expertise and experience
Key skills:
Significant global financial services
experience in retail and commercial
banking, strategy, governance,
regulation, and risk management.
Background and experience:
Brendan started his banking career
with HSBC in 1979, working across
Asia, Europe, North America, and the
Middle East, where he held various
roles such as Group Managing
Director for HSBC Holdings plc,
membership of the HSBC Group
Management Board, and CEO of
HSBC North America Holdings Inc.
Brendan is a former Director of
Ireland’s National Treasury
Management Agency (‘NTMA’),
Bradford & Bingley Limited and
NRAM Limited. He was previously
the Executive Chair of The Bank of
N.T. Butterfield & Son Limited.
Brendan was appointed Deputy
Chair with effect from 24 October
2019.
Skills, expertise and experience
Key skills:
Deep knowledge and experience of
sustainability, customer and conduct,
digital, stakeholder management,
and culture development.
Background and experience:
Helen is a highly experienced
marketeer with 31 years’ experience in
consumer marketing and market
research across a range of sectors and
geographies. She started her career
with Infratest+GfK. From there, she
moved to Motorola, where she held a
range of roles including Director of
Global Consumer Insights and Product
Marketing and Director of Marketing.
After working in broadcast and
telecoms regulation at Ofcom as the
Director of Market Research, she held
Marketing Director and Chief Marketing
Officer roles at the BBC, DFS,
Countrywide and Boots, where she
was also the Chair and Director of the
Boots Charitable Trust. Helen also
serves on the Board of AIB Group (UK)
p.l.c. Helen was appointed Senior
Independent Director with effect from
1 July 2022. Helen is a graduate of the
University of Limerick.
Skills, expertise and experience
Key skills:
Significant technology and digital
expertise, and highly-skilled in the
areas of sustainability, strategy
and leadership.
Background and experience:
Ann has over 30 years’ experience in
the financial services industry. Ann
has led complex management
consulting engagements at many of
the world's largest global banking
and securities organisations. Her
most recent role was as a Principal
with Deloitte in New York, where she
was based for 10 years. Ann was
appointed to the Board, on the
nomination of the Irish Minister for
Finance, under the Relationship
Framework between the Minister for
Finance and AIB Group. Ann serves
on the Board of EBS d.a.c. Ann is a
graduate of UCD and later of Trinity
College Dublin.
Skills, expertise and experience
Key skills:
Extensive experience in finance and
accounting, treasury and liquidity
management, strategy, and
capital markets.
Background and experience:
Fergal has significant experience in
financial management, treasury,
strategy, capital deployment and
development. Fergal retired in
2020 from DCC plc, the Irish,
headquartered international sales,
marketing and business support
services group, which is a FTSE100
constituent company, where he
began as an Associate Director,
later progressing to Chief Financial
Officer in 1992, and Executive
Director in 2000. Prior to joining
DCC, Fergal worked in PwC
and KPMG. Fergal serves on the
board of Goodbody Stockbrokers UC
and he was previously a director of
Focus Ireland. Fergal is a Chartered
Accountant.
Key external appointments
•
Chair of PEAL Capital Group Limited
•
Serves on the Board of The Ireland
Funds, Ireland Chapter
•
Council Member of Global Advisory
Council, Impact Ireland Fund
•
Chair of the Trinity College Dublin
Audit Committee
Key external appointments
•
Non-Executive Director of Thame
and London Limited
•
Non-Executive Director of T&L
Holdco Limited
•
Co-founder of My Menopause
Centre
•
Non-Executive Director of
Sainsbury Bank
Key external appointments
•
None
Key external appointments
•
Non-Executive Director of ABP
Food Group Unlimited
•
Director of Blackrock Healthcare
Group Unlimited
•
Board member of Focus Housing
Association
Board Committees:
Remuneration
Nomination &
Corporate
Governance
Board Audit
Board Risk
Sustainable
Business
Advisory
Technology
& Data
Advisory
Committee chair
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
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Board of Directors continued
Jan Sijbrand
Independent
Non-Executive Director
Raj Singh
Independent
Non-Executive Director
Colin Hunt
Chief Executive Officer &
Executive Director
Donal Galvin
Chief Financial Officer &
Executive Director
Date of appointment
14 September 2021
Nationality
Dutch
Date of appointment
25 April 2019
Nationality
United States
Date of appointment
8 March 2019
Nationality
Irish
Date of appointment
28 May 2021
Nationality
Irish
Committee membership and tenure
3y
2y
Committee membership and tenure
5y
5y
Committee membership and tenure
6y
Committee membership and tenure
None
Skills, expertise and experience
Key skills:
Highly skilled in the areas of risk
management, retail and commercial
banking, governance, financial
regulation and oversight.
Background and experience:
Jan has had an extensive executive
career, including roles in Royal Dutch
Shell plc, Rabobank Nederland, ABN
AMRO Holding N.V. and NIBC Bank
N.V., and was a member of the
Executive Board and Chair for
Supervision at De Nederlandsche
Bank N.V. (the central bank of the
Netherlands). He also served on the
Global Board of PwC up until June
2022. Jan has an MSc in Applied
Mathematics and a PhD in
Mathematics, both from the
University of Utrecht.
Skills, expertise and experience
Key skills:
Significant international experience
in risk management, governance,
retail and corporate banking,
insurance, wealth and asset
management and sustainability.
Background and experience:
Raj has over 40 years’ business, risk
and governance experience, gained
in large and complex global listed
financial services organisations
including Citibank, Allianz, Swiss Re,
Standard Life Aberdeen and EFG
International, with the last 21 years
at the executive committee level as
Group Chief Risk Officer. He has
served as a Non-Executive Director
of a national credit bureau and three
listed financial institutions, as well as
many of the banking, insurance,
reinsurance and asset management
subsidiaries of the firms where he
held executive roles. Raj was
appointed by the Board, on the
nomination of the Irish Minister for
Finance, under the Relationship
Framework between the Minister for
Finance and AIB Group.
Skills, expertise and experience
Key skills:
Strategic leadership, extensive
executive experience covering risk,
treasury, research, capital markets,
customer focus and sustainability.
Background and experience:
In March 2019, Colin was appointed
Chief Executive Officer of AIB Group.
He joined AIB in August 2016 as
Managing Director of Wholesale,
Institutional & Corporate Banking.
Prior to joining AIB, he was Managing
Director at Macquarie Capital in
Ireland. Previously, he was a Policy
Adviser at the Departments of
Transport and Finance, Research
Director at Goodbody Stockbrokers,
Head of Trading Research at Bank of
Ireland Group Treasury and a country
risk analyst at NatWest. He has a
PhD in Economics from Trinity
College, Dublin and BComm and
MEconSc degrees from University
College Cork, and is a Chartered
Bank Director and Fellow of the
Institute of Bankers.
Skills, expertise and experience
Key skills:
Significant international retail and
wholesale banking, capital, liquidity,
treasury, investor relations, and risk
management skills.
Background and experience:
Donal joined AIB as Group Treasurer
in September 2013 and was
appointed to the role of Chief
Financial Officer in March 2019 and
to the Board in May 2021. Donal
has gained significant experience
working in domestic and international
financial markets over the last 26
years. Prior to joining AIB, Donal
held a number of senior executive
roles, including Global Head of Asian
Fixed Income & Equities at Mizuho
Securities in Hong Kong and a
number of senior Global Financial
Market roles across Europe and Asia
Pacific for Rabobank. He serves as a
Non-Executive Director of Goodbody
Stockbrokers UC.
Key external appointments
•
Non-Executive Director of
PwC Netherlands
Key external appointments
•
Non-Executive Director of
Vanguard Ireland Limited,
Vanguard Funds PLC, Vanguard
Investment Series PLC
•
Non-Executive Director of AXA
Insurance UK plc, AXA UK plc and
AXA PPP Healthcare Limited UK
Key external appointments
•
Serves on the Board of The
Ireland Funds, Ireland Chapter
•
Ibec clg Board Member
Key external appointments
None
Board Committees:
Remuneration
Nomination &
Corporate
Governance
Board Audit
Board Risk
Sustainable
Business
Advisory
Technology
& Data
Advisory
Committee chair
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
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Cathy Bryce
Managing Director of Capital Markets
Skills, expertise and experience
Cathy started her career in investment banking with Morgan Stanley and
subsequently with ABN AMRO. She joined AIB in 1996, holding a range of
leadership positions across both international and Irish portfolios. In 2018 she
joined the National Treasury Management Agency as Director of the NDFA and
NewERA. In 2019, she returned to AIB, joining the Executive Management team
of the Bank as Managing Director of Capital Markets. She is a business graduate
of Trinity College Dublin, holds an MBA from INSEAD Business School and
completed the General Management Program at Harvard Business School.
Cathy also serves as a Non-Executive Director on the Board of Goodbody
Stockbrokers UC.
Geraldine Casey
Managing Director of Retail Banking
Skills, expertise and experience
Geraldine was appointed Managing Director of Retail Banking in October 2023,
having previously held the role of Chief People Officer since she joined AIB in
January 2020. She has significant experience in leading large teams through
culture, process and organisational change, and has driven the Bank’s
inclusion, future of work and culture agendas. Prior to joining AIB, she held
a number of senior roles at Tesco Ireland, as a member of the Executive
working across operations, IT, communications and people management
positions. Geraldine holds a Bachelor’s Degree in Commerce from University
College Cork and is a Certified Bank Director, Institute of Bankers. Geraldine
also serves as a Non-Executive Director on the Board of AIB Group (UK) p.l.c.
Graham Fagan
Chief Technology Officer
Skills, expertise and experience
Graham has held a number of senior management roles in AIB over the last
eight years, most recently as Director of Technology Transformation. He is
an experienced technology leader, having worked across a range of senior
roles in banking and multinational organisations over the last 25 years. He has
extensive experience leading large-scale, skilled teams across all aspects of
technology management, including application development, technology
infrastructure, cyber security and digital transformation. During his time in AIB,
he has been instrumental in leading the Group's technology response to
COVID-19, modernising our data centres and transforming technology operations.
Barry Field
Corporate Affairs Director
Skills, expertise and experience
Barry was appointed Corporate Affairs Director in February 2024 to lead the
bank’s engagement with internal and external stakeholders, a key role, given
the bank’s changing ownership structure and growing customer base. Barry,
who joined AIB’s graduate programme in 2008, has over 15 years’ experience
at the Group, spanning financial, regulatory, management accounting and
treasury roles. As Head of AIB’s Customer Treasury Services in New York, he
delivered AIB’s customer treasury offering across the US. He returned to Ireland
in 2021 as Chief of Staff in the Office of the CEO, working directly with the CEO
and Executive Committee to ensure the smooth delivery of the Group’s overall
strategy and the execution of the day-to-day banking agenda. Barry holds
a BA in Business Studies from Griffith College.
Michael Frawley
Chief Risk Officer
Skills, expertise and experience
Michael joined AIB as Chief Risk Officer in July 2022. A senior risk professional
with a 26-year banking career spanning retail, commercial, wholesale, asset
management, trade finance, strategy implementation and risk management
experience, he also has extensive international experience from his previous
roles at HSBC in the UK, Asia and the Americas. His most recent role prior to
AIB was as Chief Risk Officer of Permanent TSB. Michael holds an MBA from
Columbia Business School, New York and a B.Comm from University
College, Cork and is a CFA holder.
Hilary Gormley
Managing Director of AIB Group (UK) p.l.c.
Skills, expertise and experience
Hilary has been Managing Director of AIB Group UK p.l.c. since June 2022.
She has worked at the Bank for over 30 years in a range of senior leadership
positions, which include Group Head of Business Banking and Head of FSG
Strategy Implementation. Hilary has a deep understanding of the Bank and of
the market more broadly. She brings a wealth of experience, having worked
across various sectors including retail, commercial and institutional banking, to
lead the expansion of the UK business. Hilary holds a Bachelor’s degree in
Financial Services from University College Dublin, has completed the Harvard
General Management Programme, and is a member of the Institute of Bankers.
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Our Executive Committee
David McCormack
Chief People Officer
Skills, expertise and experience
David was appointed Chief People Officer in October 2023. As a senior HR
professional with over 25 years’ experience, David has held roles across all
facets of the HR function, including most recently, Group Deputy Chief People
Officer and Head of HR in AIB UK. David has been responsible for overseeing
the design and implementation of significant strategic programmes aligning
employees to the strategic and cultural ambition of the Group, while maintaining
a visionary affinity and connection with people through his authentic leadership
style. David holds a Bachelor’s Degree in Business Studies, specialising in
HR, and has completed the IESE Advanced Management Programme.
Andrew McFarlane
Chief Operating Officer
Skills, expertise and experience
Andrew joined AIB in July 2022 and has over 25 years’ experience, working
primarily in the financial services sector, in banks and management consulting
firms. His international career has spanned Canada, Australia, England and
Ireland and he has held posts such as Managing Director, Accenture Financial
Services, Canada and, more recently, Executive Director of Modernisation &
Corporate Strategy, and Chief External Relations Officer at Payments Canada.
Andrew holds a Bachelor of Business (Banking & Finance) from Monash
University, Melbourne, and a Graduate Diploma in Applied Finance and
Investment from the Securities Institute of Australia.
Orlaith Ryan*
Chief Customer Officer
*Appointed 7th October 2024
Skills, expertise and experience
Orlaith joined AIB in October 2024 as Chief Customer Officer, a role created
to drive improved customer experience by better understanding customers’
behaviour and attitudes. Orlaith joined from Sky Ireland, where she spent
eight years in senior executive positions, most recently as Chief Commercial
Officer and prior, to that, held the positions of Customer Director and Head of
Customer Value Management. Before Sky, Orlaith ran the customer practice at
FTI Consulting for over six years, working across media, telecoms, insurance,
and retail financial services, including Bank of Ireland, Rabobank and Liberty
Insurance. Orlaith also held a number of customer-focused roles with brands
with industry-leading reputations, including Vodafone and Aviva.
Paul Travers
Managing Director Climate Capital
Skills, expertise and experience
Paul joined AIB as the Head of Energy, Climate Action and Infrastructure seven
years ago and was appointed to AIB's Executive Committee as Head of Climate
Capital in February 2024. His primary role is renewables lending activities, with
a focus on renewable energy companies and projects, and critical infrastructure
with a strong ESG element across Ireland, the UK, Europe and North America.
Prior to AIB, Paul was previously the Head of Macquarie Capital Ireland, which
is an infrastructure and renewables specialist investor and one of the world’s
largest infrastructure asset managers. Paul was also a Director for numerous
investments. He is a qualified accountant.
Mary Whitelaw
Chief Strategy & Sustainability Officer
Skills, expertise and experience
Mary joined AIB in 2007 and her experience has spanned the retail, corporate
and treasury businesses. She has held a number of senior leadership roles
across the Group, including Group Chief of Staff, Head of Strategy & Business
Performance for Corporate and Institutional Banking and Head of Corporate
Treasury Sales. Prior to joining AIB, Mary trained as a Chartered Accountant
and Chartered Tax Advisor with PwC. She is a graduate of University College
Dublin. Mary is also a Non-Executive Director of Goodbody Stockbrokers UC.
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Board Leadership
Role of the Board
The Group is headed by an effective Board, which is collectively
responsible for the long-term, sustainable success of the Group,
generating value for shareholders and contributing to the wider society.
The Board has delegated the day-to-day running of the business to the
Chief Executive Officer (‘CEO’), who is supported by the Executive
Committee (‘ExCo’), this being the most senior management committee
of the Group. The ExCo operates under defined Terms of Reference and
has full authority to delegate any of its powers, authority or activities to
identified executives or to one or more of its sub-committees. The CEO
and ExCo have primary responsibility for the day-to-day operations of,
and the development of strategy for the Group.
The Board supports, and strives to operate in accordance with, the
Group’s purpose and values at all times, and challenges management
as to whether the purpose, values and strategic direction of the Group
align with its desired culture, or if they do not, whether there are options
to mitigate any potential negative stakeholder impacts.
The Board ensures there is a clear division of responsibilities between
the Chair, who is responsible for the overall leadership of the Board and
for ensuring its effectiveness, and the CEO, who manages and leads the
business. The governance framework and organisational structure are
sufficient to ensure that no one individual has unfettered powers of decision
or exercises excessive influence. Key roles and responsibilities are clearly
defined, documented and communicated to key stakeholders via the
Group’s website www.aib.ie/investorrelations. The Board is supported in
discharging its duties by a number of Board and Advisory Committees.
Whilst arrangements have been made by the Directors for the delegation
of the management, organisation and administration of the Group’s
affairs, certain matters are reserved specifically for decision by the Board.
These matters are kept under review to ensure that they remain relevant
and are available on the Group’s website www.aib.ie/investorrelations.
Conflicts of Interest
The Board-approved Code of Conduct and Conflicts of Interest Policy
for Directors sets out how actual, potential or perceived conflicts of
interest are to be identified, evaluated, reported and managed
to ensure that Directors act at all times in the best interests of the
Group and its stakeholders. Executive Directors, as employees of the
Group, are also subject to the Group’s Code of Conduct and Conflicts
of Interests Policy for employees.
Stakeholder Engagement
The six principal stakeholder groups in AIB are Customers, Employees,
Investors, Society, Suppliers and the Group’s Regulators. In order for
the Group to meet its responsibilities to its stakeholders and to ensure
that stakeholder views are taken into consideration in its discussions
and decision-making, the Board ensures that effective engagement is
maintained with these groups on a regular basis.
The Group engages with stakeholders through various means such as
face-to-face meetings, including regular and structured engagement,
and also out of course meetings on specific topics, research, focus
groups and surveys, media engagement, direct partnerships and
collaboration, sponsorship and community initiatives, participation in
expert forums and events, and through the Group’s in-house experts
liaising directly with associated business, public or charitable groups.
The Annual General Meeting (‘AGM’) is an opportunity for shareholders
to hear directly from the Board on the Group’s performance and
strategic direction and, importantly, to ask questions of Committee
Chairs on significant matters related to their areas of responsibility.
Shareholders are encouraged to attend and participate in the AGM.
The Chair provides the Board with updates on engagements with
major shareholders to ensure that there is a clear understanding of
the views of shareholders on governance and performance against
strategy. Details in relation to the 2025 AGM, along with other
shareholder related information can be found on page 387 and on the
Group’s website at www.aib.ie/investorrelations.
There is a Designated Non-Executive Director for workforce
engagement, whose role is described under Key Roles &
Responsibilities, below.
Further details on how the Board engages with each of these groups
can be found on page 139 in the Section 172 Statement.
Purpose, Culture and Values
Purpose
The Board has established a purpose for the Group, which continues to
align to the overall culture, values and strategy. Following approval in
2023, the Board received updates in 2024 from management on the
implementation and embedding of the evolved purpose. ‘Empowering
People to build a Sustainable Future’, to ensure that purpose, culture,
values and strategy continue to align. Further information on the
Group’s purpose can be found in Our Sustainability Strategy on page
46.
Culture and Values in AIB
The Board has overarching responsibility for fostering a positive culture
and ensuring that a people-led, values-led culture is in place across the
Group. Culture and Conduct Risk is one of the Group’s principal risks, as
set out in Principal Risks on page 20. In 2024, the Board remained
committed to continually embedding a culture that champions customers’
interests, underpinned by values and behaviours that support the delivery
of high-quality service and fair customer outcomes.
Culture is a key enabler of the Group strategy and is based on four
themes: embedding customer-centricity, empowering our people,
promoting innovative approaches to challenges and opportunities and
connecting colleagues with each other and with AIB. Each of these
underpins the AIB Group strategy. The Group’s Purpose, Ambition and
Culture programmes amplify the commitment to our customers.
The transition to a new strategy in 2024 provided an opportunity to
further evolve the Culture programme and embed a culture that
enables AIB’s new strategy and serves the Group’s customers,
communities and colleagues. Further details on culture are available on
in the Sustainability Statement on page 104.
How the Board monitors Culture
Throughout 2024, the Board continued to embed the Group’s values and
drive the cultural mindset shift required to support the strategy for
2024-2026. Further details can be found in Culture and Reputation page
104 to 106. In 2024, the Board assessed and monitored culture through
the AIB Culture Tracker and received regular updates on the
implementation of the updated Culture Programme and the AIB Employee
Engagement Approach, which comprises of both internal and external
surveys and listening sessions. The Board monitored the implementation
of the refreshed Culture Programme through updates from management
on the AIB Engage staff survey metrics. Furthermore, the Board continued
to build on the output of the listening sessions conducted in 2023, which
provided the Board with insights that underpin the priority areas for culture
and represent the mindset shifts required to evolve the culture in AIB.
Regular updates on Culture were also provided to Board Committees.
The monitoring of Culture and Conduct Risk is fundamental to
establishing the right culture. There is a Board-approved Code of
Conduct (the ‘Code’) in place that supports the Group’s values and helps
deliver on the Group’s purpose. The Code sets out clear expectations for
behaviour and how employees and contractors conduct business. The
Code guides behaviours and emphasises the Group’s commitment to
acting ethically, honestly and with integrity, while demonstrating
trustworthiness. There is a separate Board-approved Code of Conduct in
place for Independent Non-Executive Directors.
An updated Group Culture Risk and Conduct Risk Framework,
approved by the Board Risk Committee, was put in place in November
2024. It sets out how the Group manages and governs Culture Risk and
Conduct Risk in line with the AIB Group Risk Appetite Statement.
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Board Leadership, Company Purpose, Culture and
Values and the Division of Responsibilities
The Framework has been strengthened to include more focus on our
purpose, ambition, values and behaviours, recognising that they are a
significant focus to our Culture. The Three Lines of Defence model is
used to monitor and govern compliance with the policies that underpin
the Group Culture Risk and Conduct Risk Framework.
The Code is periodically reviewed by the AIB Group Board and
reviewed annually by the Group Conduct Committee and by the Board
Audit Committee. An annual report is provided to the AIB Group Board
on the awareness levels of the Code amongst employees and
contractors, aspects for review, and any breaches that have been
identified and action taken.
Workforce Engagement and Culture
Elaine MacLean is the Designated Non-Executive Director with
responsibility for Workforce Engagement and acts as the link between
the Board and employees. A number of listening sessions on a range of
topics were conducted in 2024 with Elaine MacLean and a nominated
group of AIB staff representatives, to facilitate a two-way communication
flow between the Board and the workforce. Further details of the
interactions and themes discussed between the Designated
Non-Executive Director and employees are set out on page 141.
Division of Responsibilities
Key Roles & Responsibilities
Chair
The Chair leads the Board, setting its agenda, ensuring that Directors
receive adequate and timely information, facilitating the effective
contribution of Non-Executive Directors, ensuring the ongoing training
and development of all Directors, and reviewing the performance of
individual Directors. Jim Pettigrew was appointed as Chair on
28 October 2021. His biographical details are available on page 128.
Deputy Chair
The Deputy Chair, Brendan McDonagh, deputises for the Chair as may
be required from time to time and is available to the Directors for
consultation and advice. Further biographical details are available on
page 130.
Senior Independent Director
Helen Normoyle is the Board’s Senior Independent Director (‘SID’). The
SID acts as a conduit for the views of shareholders and is available as
an alternate point of contact to address any concerns or issues they
feel have not been adequately dealt with through the usual channels of
communication. The SID also leads the annual review of the Chair’s
performance with the Non-Executive Directors and succession planning
for the Chair role. Further biographical details are available in Our
Board on page 130.
Designated Non-Executive Director for Workforce Engagement
Elaine MacLean was appointed as the Group’s Designated Non-
Executive Director (‘DNED’) for Workforce Engagement in 2021 in
order to enhance the Group’s existing workforce engagement
mechanisms. The purpose of this role is to engage directly with
employees, facilitate two-way communication between employees and
the Board, and enhance the Board’s understanding of workforce views.
The DNED provides regular updates on workforce engagement at
Board meetings and the Board keeps the mechanism selected to
engage with employees under. Further biographical details are
available in Our Board on page 129 and details of how the interactions
between the Designated Non-Executive Director and employees are
set out in Stakeholder Engagement on page 141.
Independent Non-Executive Directors
Independent Non-Executive Directors provide a key layer of oversight,
scrutinising the performance of management in meeting agreed
objectives and monitoring reporting against performance. They bring an
independent viewpoint to the deliberations of the Board that is objective
and independent of the activities of the management and of the Group.
They constructively challenge and help develop proposals on strategy
and other key matters. In addition, they contribute to maintaining
oversight of the Group’s strategy through one-to-one meetings with
members of the senior management, such as the Group Chief
Executive, Chief Financial Officer, Chief Risk Officer and other
members of the Group Executive Committee. Independent
Non-Executive Directors play a key role in appointing and
removing Executive Directors.
At 31 December 2024, Helen Normoyle has served on the Board for
nine years. In December 2024, the Board, having considered her
independence, approved her reappointment for a further term of up to
one year to facilitate an orderly transition to her successor, in
accordance with the approved Board succession plan. Further details
are included in the Nomination and Corporate Governance Chair
Report on page 154. Biographical details for each Independent Non-
Executive Director are available on pages 128 to 131.
Chief Executive Officer (‘CEO’)
The CEO, Colin Hunt, manages the Group on a day-to-day basis and
makes decisions on matters affecting the Group. The ExCo assists and
advises him in reaching decisions on the Group’s strategy, governance,
internal controls, performance and risk management. He was appointed
with effect from 8 March 2019 and his biographical details are available
on page 131.
Company Secretary and Head of Corporate Governance
The Directors have access to the advice and services of Conor
Gouldson, the Company Secretary, and Aeilish McGovern, Head of
Corporate Governance, who advise the Board and Board Committees
on all governance matters, and corporate governance best practice,
ensuring that Board procedures are followed and that the Group is in
compliance with applicable rules and regulations. Both the appointment
and removal of the Company Secretary are matters for the Board as
a whole.
Board and Advisory Committees
The Board is assisted in the discharge of its duties and contribution to
the delivery of its strategy by a number of Board Committees, whose
purpose is to consider, in greater depth than would be practicable at
Board meetings, those matters for which the Board retains
responsibility. Each Committee operates under terms of reference
approved by the Board and their terms of reference are available on the
Group’s website at www.aib.ie/investorrelations.
The Board governance structure is available on page 127, and
reports from the Board Audit Committee, the Board Risk Committee,
the Nomination and Corporate Governance Committee and the
Remuneration Committee are presented later in the Annual
Financial Report.
In addition to the four main Board Committees, the Board also has
a Sustainable Business Advisory Committee and a Technology and
Data Advisory Committee. The Advisory Committees are comprised of
Non-Executive Directors and members of senior management from
relevant business areas. Overviews of the role and areas of focus of
both the Technology and Data Advisory Committee and the Sustainable
Business Advisory Committee are available on pages 167 to 168.
Chairman’s Committee
Additionally, a Chairman’s Committee acts on behalf of the Board
between its scheduled meetings to deal with matters of an
administrative nature, and take decisions on urgent matters in
accordance with the authority delegated to it by the Board, or as
specifically set out in its Terms of Reference. These responsibilities
include the consideration of individual cases in line with the
requirements of the Central Bank of Ireland Code of Practice on
Lending to Related Parties. The Executive Directors or any impacted
Directors are excluded from the decision-making process for these
individual cases.
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Board and Committee Meetings and Attendance
Board
Board Audit
Committee
Board Risk
Committee
Nomination and
Corporate Governance
Committee
Remuneration
Committee
Eligible to
attend
Attended
Eligible to
attend
Attended
Eligible to
attend
Attended
Eligible to
attend
Attended
Eligible to
attend
Attended
Anik Chaumartin
14
13
14
13
—
—
—
—
—
—
Donal Galvin
14
14
—
—
—
—
—
—
—
—
Basil Geoghegan
14
14
—
—
12
12
—
—
—
—
Tanya Horgan
14
14
—
—
12
12
—
—
—
—
Colin Hunt
14
14
—
—
—
—
—
—
—
—
Sandy Kinney Pritchard
14
14
14
14
12
12
—
—
—
—
Elaine MacLean
14
13
—
—
—
—
11
11
11
11
Andy Maguire
14
13
—
—
12
12
—
—
—
—
Brendan McDonagh
14
14
14
12
12
12
11
11
11
11
Helen Normoyle
14
14
—
—
—
—
11
11
—
—
Ann O’Brien
14
14
14
14
—
—
—
—
11
10
Fergal O’Dwyer
14
13
14
14
—
—
—
—
—
—
Jim Pettigrew
14
14
—
—
—
—
11
11
11
11
Jan Sijbrand
14
14
—
—
12
11
—
—
—
—
Raj Singh
14
14
—
—
12
11
—
—
—
—
The Board met on 14 occasions during 2024. The Chair and the
Chairs of each Committee ensure that Board and Committee meetings
are structured to facilitate open discussion, constructive challenge and
debate. The Board receives a comprehensive executive management
report on a regular basis. The remainder of its agenda is built from the
indicative annual work programme, and includes strategic items for
consideration, any activities out of the ordinary course of business,
requested in-depth reviews and scheduled updates on key projects.
There is a set escalation process in place through Executive and
Board Committees, which ensures that the Board receives the
necessary information at the appropriate time to enable the right
decisions to be taken. The Chair leads the agenda-setting process,
supported by the CEO and Group Company Secretary.
In its work, the Board is supported by the Board Committees, which
make recommendations and decisions where appropriate on matters
delegated to them under their respective terms of reference. Each
Committee Chair provides an update to the Board on matters
considered at the preceding Committee meeting. The agenda,
papers and minutes of Committee meetings are generally available
to all Directors.
Attendance at the Board and Board Committee meetings is outlined
in the table above. Attendance at the Advisory Committees is captured
within their respective Committee overviews. Where a Director is
unable to attend a meeting, papers are provided in advance and the
Director has the opportunity to provide comments to the Chair of the
Board or to the relevant Committee Chair. The Non-Executive Directors
also met throughout the year in the absence of the Executive Directors
or other members of management.
Board Effectiveness
Each year, the Board evaluates its effectiveness, including that of its
Committees, Directors and Chair. As required by the UK Code, the
Board effectiveness evaluation is externally facilitated at least once
every three years. In 2022, the evaluation was externally facilitated by
Praesta Ireland Limited (‘Praesta Ireland’). In 2023 and 2024, as
agreed by the Board, on the recommendation of its Nomination and
Corporate Governance Committee (‘NomCo’), the review was internally
facilitated by the Company Secretary.
The process for the 2024 Board Evaluation consisted of:
1
A confidential questionnaire completed by the
Directors, including narrative responses.
2
Committee-specific confidential questionnaires
completed by the members of each Committee,
including narrative responses.
3
Feedback from the Chair from his meetings
with each member of the Board.
4
Feedback from the Senior Independent Director
who met with each member of the Board to
review the performance of the Chair.
5
The findings were reviewed by the Board in
February 2025 with agreement on the areas for
focus for 2025.
The 2024 Board Evaluation confirmed that the Board was performing
very effectively, was very clear on its role and responsibilities and had
a clear understanding of the Board’s role in such areas as strategy,
finance, governance and compliance. The Chair was believed to
demonstrate a deep understanding of the Group’s business and to
encourage and welcome challenge at and between meetings.
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Board Leadership, Company Purpose, Culture and Values and the
Division of Responsibilities continued
The Board strongly agreed that it had the appropriate Committee
structure in place with clearly defined roles for each of the Board and
Advisory Committees. Reporting from these Committees was very
highly regarded by the Directors and appropriate time was given over
to agenda items. There was sufficient awareness, diversity and
experience on the Board to avoid groupthink and the Directors were
satisfied that the Board engaged in genuine discussion and debate
at meetings.
In the pursuit of continuous improvement, a number of focus areas
were agreed by the Board for 2025 including:
Areas of Focus for 2025
Board papers and Reporting
Maintaining a momentum of recent years of continual
improvement in Board and Committee papers and
meeting materials.
Stakeholder Engagement
Continued focus on stakeholder engagement, including
enhanced visibility for the Board on addressing specific
Stakeholder Group’s priorities.
Strategic Focus
Increasing focus on strategy over a longer time horizon
than the three year strategic cycle.
The Senior Independent Director, Helen Normoyle, led the process for
reviewing the performance of the Chair. She held individual meetings
with all of the Directors, including the Executive Directors, following
which she collated the feedback which she then provided directly to
the Chair. The Chair’s performance was very highly regarded by the
Directors. He is considered to be very effective and his leadership
of the Board is recognised and highly valued. He demonstrates
objectivity, promotes a culture of openness and debate and
encourages and facilitates effective contributions from all of the
Directors. The Board supported his continuation in office, including
his proposed re-election at the 2025 Annual General Meeting.
2025 Board Performance Evaluation
After two years of internal facilitation of the evaluation process, it is
required that the 2025 evaluation will be performed by an external firm.
Composition, Succession and Evaluation
Further details on the composition on the Board and succession
process are set out on page 154.
Audit, Risk and Internal Control
The Board has delegated responsibility for the consideration and
approval of certain items pertaining to audit, risk and internal control
to the Board Audit Committee and Board Risk Committee. Where
required, topics are referred onward to the Board as a whole for
further discussion or approval.
The Board monitors the Group’s risk management and internal
control framework and, at least annually, carries out a review of its
effectiveness. Information on this can be found on page 179.
Information on the activities of the Board Audit Committee and Board
Risk Committee in 2024 can be found in their respective reports on
pages 144 to 151.
Remuneration
The Board has delegated responsibility for the consideration and
approval of the remuneration arrangements of the Chair, Executive
Directors, ExCo members, the Group Company Secretary and certain
other senior executives to the Remuneration Committee. A group
of senior management executives and the Company Secretary are
responsible for recommending to the Board the fees to be paid
to Non-Executive Directors, within the limits set by shareholders at
the AGM and in accordance with the Articles of Association.
Information on the activities of the Remuneration Committee in 2024
can be found in the Report of the Remuneration Committee on
pages 157 to 158.
Relationship with the Irish State
The Group received significant support from the Irish State (the ‘State’)
in the context of the financial crisis, due to its systemic importance to
the Irish financial system. Following a reduction in its shareholding
during 2017, and further reductions to date, the State currently holds
12.39% of the issued ordinary shares of AIB Group plc1.
The relationship between the Group and the State is governed by a
Relationship Framework, which is available on the Group’s website at
www.aib.ie/investorrelations.
Within the Relationship Framework, with the exception of a number of
items requiring advance consultation with or consent by the State, the
Board retains responsibility and authority for all of the operations and
business of the Group in accordance with its legal and fiduciary duties,
and retains responsibility and authority for ensuring compliance with the
Group’s regulatory and legal obligations.
The matters requiring advance consultation with, or consent from,
the Minister for Finance (the ‘Minister’), are outlined in the
Relationship Framework.
The Board is satisfied that the Group has complied with the relevant
provisions set out in the Relationship Framework. The Board is
also satisfied, as far as it is aware, that the Minister has complied
with the relevant independence provisions set out within the
Relationship Framework.
1. % State ownership at 4th March 2025.
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Key focus areas
During 2024, the Board focused on the implementation of the
Board-approved three year strategy for 2024-2026 and ensured
that the appropriate structures were in place to support the
delivery of the strategy. This saw the establishment of both
the Climate Capital Segment and a new Chief Customer Office,
the leaders of which joined the Executive Committee.
In addition, the Board focused on productivity improvements and ensured that appropriate
mechanisms were in place to track, monitor and challenge progress. The table below contains
a snapshot of some of the business that was addressed by the Board during 2024.
Key Matters considered
Most impacted
Financial
• AIB Group plc 2023 Annual Financial Report and
related Stock Exchange Announcements
and analyst presentations;
• Capital Distributions (included two Directed
Buybacks of Shares);
• Macroeconomic Environment;
• Capital Adequacy Statement & Liquidity
Adequacy Statement;
• Trading Updates;
• 2024 Half-Yearly Financial Report;
• 2025-2027 Financial and Investment Plan;
• Consideration of Going Concern and Associated
Matters;
• Recovery Planning and Resolvability Plan;
• Pillar 3;
• Legacy matters.
Culture and
Values
• Culture Evolution Programme Updates;
• People Strategy Updates;
• Balanced Scorecard Updates;
• ESG Transformation Programme Roadmap
Update;
• Modern Slavery Act Statement;
• Workforce Engagement;
• Health & Safety Annual Update and Whistleblowing;
• Code of Conduct.
Strategy
• Annual Group Strategy Update;
• Mortgage Market Strategy;
• Outsourcing Strategy;
• Transformation Plan Implementation;
• Sustainability Strategy, Objectives and Annual
Conference;
• Cyber Strategy Update;
• NPE Strategy;
• Stakeholder Perspectives;
• Customer First Programme Updates;
• Corporate Development Opportunities;
• External Environment;
• Review of 2024-2026 Group Strategy;
• Chief Economist Updates;
• Investor Perception Study.
Regulatory
• Regulatory engagement updates;
• JST Discussion on the Supervisory Review
Evaluation Process;
• Anti-Money Laundering and Counter-Terrorism
Financing Updates;
• Companies Act, Directors Compliance Statement;
• Annual Compliance Statement with CBI Requirements
2015;
• Consideration of Regulatory Directive Programmes;
• Related Party Lending (Chairman’s Committee);
• Individual Accountability Framework.
Governance
• Board and Committee Effectiveness Evaluation,
Outcomes and Actions;
• Board Committee Terms of Reference;
• Board Succession Planning;
• Annual General Meeting;
• Extraordinary General Meeting;
• Odd-lot Offers to Shareholders;
• Board Diversity Policy and Targets;
• Board and Committee Composition and Appointments;
• Annual Review of Non-Executive Director
Independence;
• Review of Directors & Officers Insurance;
• Renewal of Non-Executive Director Terms of Office;
• Annual Reappointment of Chair;
• Governance Frameworks;
• Upstream Corporate Governance Developments.
Risk
Management
• Group Risk Appetite Statement;
• Material Risk Assessments;
• Risk Frameworks and Policies;
• Control Effectiveness Review;
• Annual Review of Group Connected Customers &
Large Exposure Credit Policy;
• Second Line Opinion Papers on all Material Decisions
e.g. Strategy or the Financial and Investment Plan.
Regular
Updates
• Executive Management Updates;
• Business and Financial Performance;
• Chair Activities;
• Board Committee Updates;
• Investor Relations Updates for Equity and Debt
Investors.
Matters considered by the Board Committees, which in certain cases were also considered by the Board as a whole, are detailed in the individual
Board Committee and Board Advisory Committee Reports that follow over pages 144 to 168.
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Board Focus
Stakeholder key:
Customers
Investors
Employees
Regulators
Suppliers
Society &
Community
Section 172 statement
In their discussions and decisions during
2024, the Directors have acted in the way
that they consider, in good faith, would most
likely promote the success of the Group for
the benefit of its members as a whole, having
regard to stakeholders and the matters set
out in sub-sections 172(1) (a) to (f) of the
2006 UK Companies Act (the ‘Act’).
Our Board’s approach to stakeholder engagement is aligned with the
UK Code, which applies to the Group by virtue of its listing on the
London Stock Exchange. Whilst, Section 172 of the Act is not directly
applicable to the Group, given that it is referenced in the UK Code, the
Board continues to recognise the importance and benefits
of considering the spirit intended by it as part of its decision-
making process.
A balance of stakeholder interests is deemed to be critical to any
decision taken by the Board. The relevance of each of the stakeholders
defined in Section 172 to the decision-making process, and the method
of engagement, may vary depending on the deliberations being
undertaken by the Board. See further details on key stakeholder
interaction during 2024 within Stakeholder Engagement on pages 141
to 143.
The Board considers the matters set out in Section 172 of the Act in its
discussions and decision-making, including:
(a) the likely consequence of any decision in the long term: The Board
is cognisant of their responsibility to run the company for the
long-term sustainable benefit of the shareholders and to contribute
to wider society and, in doing so, the Directors consider the impact
of their decisions on our key stakeholders. All executive proposals
tabled for decision require clear articulation of the potential impacts
of those decisions under each of the strategic pillars, which drives
consideration of the interests of stakeholder groups within decision-
making processes.
(b) the interests of the company's employees: The Board is fully aware
that our people are the key resource and enabler for the Group to
deliver the overall ambition and strategy in a manner underpinned
by the Group’s values. Accordingly, the Board and its committees
ensure that when it is making decisions, it has due regard for
its employees.
(c) the need to foster the company's business relationships with its
suppliers, customers, and others: The Board recognises that our
customers are at the core of our strategy and ambition. The Board
considers the impact of all relevant decisions on customers and
suppliers, ensuring that the Group strives to meet the full range of
their financial needs conveniently and responsibly.
(d) the impact of the company's operations on the community and
the environment: The Board considers the impact of its decision-
making on the community and the environment, pursuant to the
Group strategy to deliver a more sustainable future for all. As
a recognised leader of sustainability in Ireland and through the
Group’s Pledge to Do More, the Board is committed to building
long-term resilience and sustainability for our business, economy,
and society.
(e) the desirability of the company maintaining a reputation for high
standards of business conduct: The Board Risk Committee
approves the Culture Risk and Conduct Risk Framework, which
is aligned with the Group’s Purpose, Strategy and Values as set out
on page 134. The Board Risk Committee monitors key updates on
culture and conduct risk from management. The Board Audit
Committee has oversight responsibility for the Code of Conduct,
which sets out the core conduct standards that are applicable to all
employees and contractors. Furthermore, the Board has an
approved Reputational Risk Framework for the Group approach to
monitoring, assessing and managing reputational risk exposures
for material decisions across the Three Lines of Defence. The
Board always maintains an open and constructive engagement with
its regulators with respect to business conduct matters.
(f)
the need to act fairly as between Members of the Company:
The Group has a diverse range of institutional and individual
investors and at all times endeavours to act fairly between all
members of the company. During 2024, the Board, represented by
the Chair, CEO and CFO, engaged in an ongoing investor relations
engagement programme that allowed the Board to gain feedback
and views from investors. The outcomes of such engagements are
communicated to the other Directors to ensure that the views of all
shareholders and the investment community are considered by the
Board in their decision-making.
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Section 172 Statement and Stakeholder Engagement
Decisions Made
Decisions made during the year
The following are some of the decisions made by the Board this year that demonstrate how the
Section 172 matters outlined on pages 141 to 143 have been taken into account as part of Board
discussions and decision-making. In arriving at its decisions during the year, the Board assessed
and challenged the implications of decisions in accordance with the Group’s strategic pillars that
broadly aligned with our stakeholder groups.
Significant Risk
Transfer
transaction
In March 2024, the Board approved the establishment of a Significant Risk Transfer (‘SRT’) framework for the
purposes of facilitating an SRT transaction, in line with the approved Financial Plan 2024-2026. The SRT is a
balance sheet management transaction that involves the transfer of credit risk on a portfolio of assets from the
issuer to third party investors.
What did the Board consider?
In its deliberations, the Board considered:
• whether there were any implications from a customer perspective in approving the framework and concluded that
there was no impact on customers as the loan facilities remained on the balance sheet with no change to
contractual terms and no impact on customer personal data;
• ensured that there was a robust SRT Operational Framework, processes, procedures and controls in place to
mitigate operational risk on the execution of a transaction;
• considered the transaction in terms of the impact on the Group’s material risks. A comprehensive regulatory
review process was performed in respect of regulatory and compliance risk;
• oversight by the Board Risk Committee in advance of execution, with regular updates brought to the committee;
• engaged with external investors and regulatory bodies.
Outcome:
Successfully executed AIB’s first SRT, transferring a portfolio of € 1 bn of corporate loans in November 2024. The
benefits of the transaction included increased capital efficiency from a regulatory perspective.
Save As You
Earn Scheme
(‘SAYE’)
In 2022, AIB Group confirmed its intention to introduce a Save As You Earn (‘SAYE’) scheme and commenced work
on establishing a commercial product to operate as a savings carrier in Ireland. Having received approval from the
Irish tax authority to operate as a savings carrier, the Board, following a recommendation from the Remuneration
Committee, approved the launch of a SAYE tax-approved, all-employee share option scheme that allows
participating employees to purchase shares in AIB Group at a fixed price at a date in the future.
What did the Board consider?
In its deliberations, the Board considered:
• stakeholder implications across each of the strategic pillars, with particular reference to the impact on customers,
regulators, employees and society;
• no adverse impacts were identified in terms of all stakeholder impacts;
• from a regulatory perspective, external advisers were appointed to ensure that the scheme was consistent with
regulatory requirements and industry best practice.
Outcome:
As an approved savings carrier for SAYE, AIB can serve the wider community. Following approval by the Board in
November 2024, the approval process with the tax authorities in the Republic of Ireland and the UK commenced.
The scheme will require shareholder approval at the Annual General Meeting scheduled for May 2025.
Onboarding
of remaining
tracker
mortgage
portfolio from
Ulster Bank
Throughout 2024, the Board maintained dedicated oversight over the implementation and execution of the transfer
of the remaining portfolio of tracker mortgages from Ulster Bank. Given the nature and complexity of the transaction
and the potential impact on customers, regular updates, accompanied by the relevant risk opinions, were presented
to the Board Risk Committee and Board in 2024. In August 2024, the Board approved the transfer.
What did the Board consider?
In its deliberations on the final Go/No-Go decision, the Board considered:
• outcome of assurance work performed by both internally and external independent assurance providers;
• ensured that a customer-centric lens was applied at all times. In this regard, the Board received updates on the
remediation of system errors, the level of automated controls in place and the stabilisation of the platform for
arrears management. Updates to the detailed Customer and Conduct Impact Assessment approved by Executive
Management considered the key conduct risk associated with the migration, agreed customer service levels to be
achieved and consistent treatment of customers-post migration;
• received updates on the lessons learned from the dress rehearsals performed and recommendations implemented;
• reviewed updates on Key Performance Indicators (‘KPI’) on migration readiness;
• engaged with the regulator in advance of migration;
• considered post-migration risks and impact on customers.
Outcome:
Successfully migrated customers in a safe and controlled manner in conjunction with its third party supplier.
Decision & Impacted
Stakeholder
What happened and what did the Board consider?
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Section 172 Statement and Stakeholder Engagement continued
Stakeholder key:
Customers
Investors
Employees
Regulators
Suppliers
Society &
Community
Stakeholder
Engagement
The manner in which the Board and wider Group interact
with our stakeholders continued to evolve in 2024, with a
focus on active engagement to ensure that the interests
of all stakeholder groups were taken into consideration
in our decision-making, as set out in the Section 172
Statement on page 139.
The way the Board engages with its stakeholders varies and ranges from direct
engagement to receiving management reports and updates on relevant matters,
which assist the Board in understanding the impacts of the Group’s operations on its key
stakeholders. Further information on our key stakeholders is available on pages 48 and 49.
Customers
Our purpose is to empower people to build a sustainable future, while remaining at the heart of our customers’
financial lives. The Customer First approach is a core pillar of AIB’s 2024-2026 strategy. Further details on the strategy
and strategic progress from a Customer First perspective is available in Our Strategy on page 14 of the report.
How we engaged in 2024:
• the Board received regular updates on Key Performance Indicators (Net Promoter Scores, Customer
Journeys and complaints metrics) and the Customer First strategic pillar;
• established a new Executive Committee role for a Chief Customer Officer;
• applied a Customer First approach to all decision making, for example on inorganic transactions, to ensure
that customers were safely onboarded to the Group;
• the Board committees received updates on how AIB informed and educated its customers on sustainability
matters (sustainability knowledge sharing through the AIB Green Living hub and the Sustainability Sector
Guides, SME Steps to Sustainability, which provides guidance, tools and practical support to customers;
• featured customer segments at internal (AIB All-Employee update) and external events (AIB Sustainability
Conference) attended by Board members setting out the positive sustainability actions taken by customers,
which are supported by AIB;
• the Board Committees received updates on our approach to vulnerable customers, including the supports
available.
Employees
The Group employed 10,469 people across Ireland, the United Kingdom and the United States of America. We
aim to ensure that all employees are engaged and empowered in their roles. Ensuring that the Group’s
workforce is engaged and motivated is critical to delivery for all our stakeholder groups.
How we engaged in 2024:
• the Board monitored performance against key metrics (Employee Engagement, Wellbeing, Inclusion and
Diversity and Talent Development);
• the Designated Non-Executive Director for workforce engagement engaged directly with employees on two
occasions in 2024 to enhance the Board’s understanding of workforce views. The sessions focused on core
themes such as career and talent progression, career supports and deep dives on Women in Leadership and
hybrid working. Both sessions were positively received;
• the Board members participated in internal employee conversations for ‘Risk in Conversation’ week on the
topic of ‘Risk Ready: The Future is Now’ with the objective of demystifying risk by bringing it to life and
building a strong risk culture across the Group. The conversations focused on ESG and Climate,
Governance, Culture and Reputational Risk;
• members of the Board visited a branch, where they engaged with teams across the branch and in customer care;
• an Executive Directors Leadership summit for 3,000 people leaders, which focused on AIB’s new strategy
and highlighted the pivotal role that colleagues play in the successful delivery of the strategic ambition, was
attended by Executive Directors;
• launched the AIB Employee Value Proposition (‘PACT’), which included employee benefits; reward and recognition,
AIB’s role in supporting communities, people-led culture, along with wellbeing, inclusion and engagement initiatives.
Introduced health-care benefits and a variable remuneration scheme approved by the Board in 2023, to further
enhance our employee value proposition by offering a progressive and sustainable level of benefit;
• regular Whistleblowing updates to the Board and Board Committees, Sandy Kinney Pritchard, Chair of the
Board Audit Committee, is the Group’s Whistleblowing Champion;
• conducted internal engagement surveys with employees to explore engagement and culture drivers, which
provided insights into elements that influence each other and customer outcomes, the results of which were
presented to the Board. Further details are included on page 106;
• recognised employee contributions to AIB through the annual Employee Value Awards and the Long Service
Recognition Awards.
Stakeholder
How we engaged
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Stakeholder key:
Customers
Investors
Employees
Regulators
Suppliers
Society &
Community
Suppliers
The Group is committed to conducting all its business activities to the expected standard of professionalism
and ethical conduct and to support and improve the communities where we operate from an environmental,
social and economic perspective. We expect suppliers to do the same, through adherence to the Group
Responsible Supplier Code. It reflects the Group’s values, and it sets out the minimum standards to which we
hold ourselves, and to which suppliers are expected to also adopt. There is a Group-wide Third Party
Management programme in place that sets out the oversight of activities at various stages of the Third-Party
Management lifecycle.
How we engaged in 2024:
• hosted a Supplier Summit with AIB’s suppliers, attended by Board and ExCo members;
• Board-approved updates to the Modern Slavery Statement in May 2024. Further details can be found on
page 95;
• the Board and Board Committee approved the Third-Party Risk Management Policy and assessments;
• annual attestation to the Group’s Responsible Supplier Code for larger suppliers;
• announced the launch of a Supplier Programme in November 2024. The programme’s ambition is to build a
community of partners that drives sustainability progress across our supply chain;
• held supplier spotlights at the AIB Sustainability Conference in November 2024;
• the Board received updates with respect to the supply chain on a bi-annual basis;
Investors
Transparent and frequent communication with the Group’s shareholders is a key priority for the Group. All
relevant information is reported to the market on a timely basis and in line with Market Abuse Directive and
Stock Exchange Rules.
How we engaged in 2024:
• a comprehensive investor relations programme and schedule of market engagement was managed by the
Investor Relations Team, in which the CEO, CFO, and selected Business representatives participated. This
included targeted roadshows, fireside chats and industry conferences, as well as investor meetings and
calls. During 2024, over 300 interactions across 15 jurisdictions, covering topics such as the Group’s
strategy, its purpose and its financial performance, were held with institutional investors;
• the Group reported Annual and Half-Yearly Financial Results live via webcast and a simultaneous conference
call twice a year and issued quarterly updates on trading following the Q1 and Q3 periods;
• members of the Board independently met with shareholders at the Annual General Meeting and are
committed to understanding the needs and expectations of our shareholders. Committee Chairs were
available to meet with shareholders as necessary;
• the Chair participated in specific roadshows, primarily of a governance nature. Following these
engagements, the Chair briefed the full Board on feedback at Board meetings or by e-mail to the Directors
on time-sensitive matters this is a standing item on the agenda for meetings of the Board;
• a perception study was conducted in 2024, the results of which including shareholder views, were presented
to the Board;
• the CEO, CFO and Head of Investor Relations provided regular updates on market views and shareholder
sentiment to the Board to ensure that Board members are aware of the investment community’s perception
of the Group;
• the Group published all results, including webcasts, stock exchange announcements and presentations to a
dedicated Investor Relations website, www.aib.ie/investorrelations;
• the Board recommended an Odd-lot Offer for approval at the 2024 AGM to shareholders holding 20 or fewer
shares. Further details can be found in the Directors’ Report on page 172.
Stakeholder
How we engaged
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Section 172 Statement and Stakeholder Engagement continued
Stakeholder key:
Customers
Employees
Suppliers
Investors
Regulators
Society &
Community
Regulators
The Board maintains an open relationship with the regulatory and supervisory authorities, which includes the
Central Bank of Ireland, Bank of England, European Central Bank, European Commission, Single Resolution
Board, Prudential Regulatory Authority, Financial Conduct Authority, and Federal Reserve Bank of New York.
The Board strives to ensure that the Group supports financial stability, consumer protection and market integrity
across the jurisdictions in which the Group operates. Continued strong engagement with our regulators ensures
that the Group is set up to meet regulatory requirements and expectations.
How we engaged in 2024:
• constructive engagement with supervisory authorities on themes of common interest across consumer,
business strategy, capital, liquidity and risk management;
• supervisory engagement through regulatory on-site inspections and thematic reviews;
• regular engagement between the Board and the Joint Supervisory Team (‘JST’) through one-to-one
interactions with Committee Chairs and Executive Directors, as well as the annual meeting on the
Supervisory Review and Evaluation Process;
• regular updates to Board and Board Committees from the Group Regulatory Relations team.
Society and
Community
Our communities, and society as a whole, are at the forefront of all of our stakeholder considerations and are
also central to the sustainability strategy. The Board considered the wider impact of all decisions taken by the
Group on society and community as part of the wider governance framework in operation in the Group.
How we engaged in 2024:
• approved the Detailed Sustainability Report in March 2024;
• the Board and Board Committee oversight of CSRD;
• approved the Modern Slavery statement, which sets out the AIB’s human rights commitment and
demonstrates how the Group mitigates against human rights breaches in business and across its supply
chain. Further details are available on page 95;
• the Board and Board Committees received updates during the year:
– on societal progress on various matters concerning vulnerable customers, including AIB’s Human Rights
Commitment;
– on Community and Partnerships.
• hosted an in-person ‘AIB in the Community’ event, which highlighted the power and impact of AIB community
activity nationwide and included updates from some of the recipient charities of the AIB € 1 m Community
Fund and branch engagement;
• the Board and Executive Committee members attended the 8th Annual AIB Sustainability Conference and
participated in regional events in Ireland and the UK;
• members of the Executive Committee engaged with business customers to hear directly from customers
about how sustainability drives their business strategy and the role of AIB in supporting their journey.
Stakeholder
How we engaged
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Stakeholder key:
Customers
Employees
Suppliers
Investors
Regulators
Society &
Community
As external expectations of sustainability
reporting continued to evolve, the
Committee remained steadfast in its
commitment to ensuring the integrity
of the financial and non-financial
disclosures and the supporting
internal control environment
Sandy Kinney Pritchard
Committee Chair
Chair Overview
On behalf of the Board Audit Committee (the ‘Committee’), I am
pleased to report on the activities undertaken by the Committee, and
how it has discharged its duties over the course of 2024.
In line with its Terms of Reference, which can be found on the Group’s
website at www.aib.ie/investorrelations, the Committee is responsible
for supporting the Board in its independent oversight responsibilities as
they relate to the monitoring of the quality and integrity of the Group’s
financial statements, with reference to financial and narrative reporting,
Non-Financial Disclosures and disclosure practices. The Committee
monitors and reviews the independence and effectiveness of the
internal and external audit functions. The Committee is also tasked with
reviewing and monitoring the effectiveness of risk management and
internal control systems, in conjunction with the Board Risk Committee.
Over the course of 2024, the Committee continued to provide oversight
to ensure a robust and effective control environment, which is
considered a key enabler for the Group in delivering on its strategic
ambitions.
Committee Membership
The Committee currently comprises five Non-Executive Directors, all of
whom are considered by the Board to be independent and whom the
Board has determined have the relevant mix of skills, competence and
capability, as required under the applicable regulatory requirements.
This includes the need for recent and relevant financial experience and
competence in accounting or auditing. There were no changes to the
Committee composition over the last three years, with members
continuing to enhance their deep understanding of the key judgements
and issues facing the Group in what has been another stable year for the
Committee.
To ensure co-ordination of the work of the Committee with the Board
Risk Committee, two members of the Committee, Sandy Kinney
Pritchard and Brendan McDonagh, are also members of the Board Risk
Committee, with this common membership providing ongoing oversight
of risk and finance issues and the collaborative governance of internal
controls. Joint meetings of the Committee and the Board Risk
Committee were also held during the year to allow discussion on
matters of common interest. One member of the Committee, Anik
Chaumartin, is also a member of the Sustainable Business Advisory
Committee, and this has been important in ensuring alignment with the
work of that Committee around Sustainability Disclosure requirements.
To ensure co-ordination with the work of the Committee and that of the
Technology and Data Advisory Committee, Ann O’Brien is a member of
both Committees. The biographies of Committee members are set out
on pages 128 to 131, with details of the Committee’s membership and
attendance at meetings outlined on page 136.
The Chief Financial Officer, Chief Risk Officer, Group Head of Internal
Audit and the Lead External Audit Partner normally attend all scheduled
Committee meetings. The Committee also held closed sessions with
these key individuals over the course of the year, in order to ensure
continued open dialogue.
PricewaterhouseCoopers (‘PwC’) was appointed as the Group’s
External Auditor on 04 May 2023, following an external tender process
in 2021 and has since been reappointed following consideration by the
Committee and approval by the shareholders at the Annual General
Meeting on 02 May 2024. The Committee has built a constructive
working relationship with the Lead Audit Partner, Mr Ronan Doyle who
has held the role since the appointment of PwC. I look forward to
continuing this and I look forward to continuing this in the coming years.
This year, after a robust selection process, Conor McGrath was
appointed as the Group’s Head of Internal Audit, following the
resignation of Maria Rogers. A key role for the Committee during 2024
was providing support to Conor McGrath to ensure the continued
effectiveness of the Internal Audit function. The Committee developed
a positive working rapport with Conor McGrath during the transition
period, which I look forward to continuing into 2025 and beyond.
Assessing the appropriateness of the key judgements, assumptions
and estimates made by management in the financial reporting process
was central to our focus once again this year. The related Committee
deliberations and conclusions are set out on the following pages.
Another key area of focus for the Committee this year was on the
Whistleblowing process and procedures. The Committee received
regular updates on whistleblowing developments and approved a new
Whistleblowing Policy, with the sole purpose of facilitating the reporting
and effective management of Protected Disclosures in November 2024.
The new Whistleblowing Policy replaces the Speak Up Policy and is
effective from January 2025.
In 2024, the Committee also dedicated a considerable amount of time
to developing their knowledge and understanding of sustainability
reporting requirements, given the enhanced role of the Committee in
this regard in overseeing the Group's first set of disclosures under the
Corporate Sustainability Reporting Directive (‘CSRD’).
I would like to take the opportunity to thank my fellow Committee
Members for their contribution and support over the course of 2024.
Sandy Kinney Pritchard
Committee Chair
Q&A What do you see as the key priorities for the
Committee in the coming year?
A. In 2025, the Committee will continue to focus on delivery against
its mandated responsibilities, with oversight of the continued
effectiveness of the Three Lines of Defence model across the Group
and scrutiny of the overall control environment as we traverse the
external challenges posed by global economic and geopolitical
uncertainty and also continuing our journey on CSRD reporting.
These external uncertainties will require the Committee to ensure
that the control environment remains resilient and sufficiently agile
to adapt to rapid change, while safeguarding our reputation and
long-term stability.
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Report of the Board Audit Committee
Key areas of focus
Financial reporting
A key activity for the Committee is the consideration of significant matters relating to the Group’s Financial Statements for 2024. Significant
matters, including critical accounting judgements and estimates and the related disclosures, are subject to detailed review with management and
the External Auditor.
A summary of the Committee’s considerations in relation to those judgements and estimates is set out below, and further detail on these matters is
disclosed in note 2 on page 280.
Significant Financial Reporting Matters – Committee assessment
Key issues
Committee considerations
Committee conclusion
Deferred taxation
The Group has recognised deferred tax assets for unutilised losses of
€ 2,203 million (2023: € 2,474 million). Deferred tax assets are recognised for
unused tax losses when it is probable that there will be sufficient future
taxable profits against which the losses can be used. The recognition of
deferred tax assets for unutilised losses by the Group requires significant
judgements to be made about the long-term future profitability of the Group.
In assessing the future profitability of the Group in Ireland, the Committee
considered a range of positive and negative evidence, including
management’s assessment of the number of years that it will take for the
deferred tax asset to be utilised, which is underpinned by the Group’s long-
term financial and strategic plans and related assumptions therein. Given the
relative size of the Group’s operations in the UK, the judgement that the
recognition of deferred tax assets in its UK subsidiary be limited to the
amount projected to be realised within 15 years was reappraised by the
Committee and considered to be reasonable.
The Committee agreed that the management judgements applied were
appropriately supported by the Group’s long-term financial and strategic plans.
In light of the evidence presented by
management, the Committee provided
their continued support of the recognition
policy in place for deferred tax assets.
Impairment of
financial assets
The Group has an ECL allowance of € 1,347 million (2023: € 1,525 million).
The Group recognises loss allowances for expected credit losses at each
balance sheet reporting date. The calculation of the ECL allowance is
complex and requires the use of a number of accounting judgements and
estimates, some of which, by their nature, are highly subjective.
In conjunction with the Board Risk Committee, the Committee assessed and
challenged the inputs and outcome of macroeconomic scenarios for use in
the ECL models, as well as the weightings applied to those scenarios, in
advance of the onward recommendation of the scenarios to the Board for
approval.
In assessing key judgements and estimates, the Committee reviewed and
approved updates regarding the ECL outcome provided by management,
including the appropriate application of post model adjustments where
modelled outcomes were adjusted for management judgement. Through this
assessment, the Committee also considered inputs from the Risk function on
their independent challenge relating to ECL levels.
The Committee is satisfied that the
classification and measurement of
financial assets, including the impairment
loss allowances and the net impairment
loss for the year, have been appropriately
determined in accordance with the
requirements of IFRS.
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Retirement benefit
obligations
The Group has net defined benefit assets of € 22 million (2023: € 17 million)
and gross defined benefit obligations of € 4,950 million (2023: € 5,023 million).
There is a significant degree of judgement and estimation in the calculation of
retirement benefit obligations.
The Committee gave due consideration to the reasonableness of defined
benefit obligations and of the underlying actuarial assumptions in use, including
the discount rate, inflation rates and pensions in payment increases, and
approved these assumptions as inputs in the calculation of the IAS 19 pensions
position for the AIB Group Irish pension scheme.
Based on the work performed, the
Committee is satisfied that the
assumptions supporting the retirement
benefit obligations are reasonable.
Investment in
subsidiary in the
separate financial
statements
AIB Group plc’s investment in subsidiary, in its separate financial statements,
comprises the entire ordinary share capital and Additional Tier 1 Securities
issued by Allied Irish Banks, p.l.c. The total investment in subsidiary was
€ 13,883 million (2023: € 13,758 million).
The investment in subsidiary is reviewed for impairment when there are
indications that impairment losses may have occurred. An impairment review
is undertaken by comparing the carrying value of the investment in the
subsidiary with its estimated recoverable amount, with any shortfall being
reported as an impairment charge in the standalone financial statements.
The estimated recoverable amount is based on a value-in-use calculation.
The Committee considered a number of estimates and assumptions used in
assessing the value in use, including an estimation of the expected future
profitability of the subsidiary and the appropriate discount rate to apply.
Based on the work undertaken, no
impairment was identified for this
investment at 31 December 2024.
Going concern
and long-term
viability
In preparing the financial statements, the directors are responsible for
assessing the Group’s ability to continue as a going concern over a period of
at least twelve months from the date of approval of the financial statements.
Separately, and in line with the requirements of the UK Corporate
Governance Code, the directors are required to assess the longer-term
viability of the Group.
In assessing the Group as a going concern and in support of the viability
statement, the Committee considered a range of factors, including the
Group’s detailed financial planning forecasts, the outcomes of which are
reflected in the 2025-2027 Strategy and Financial Plan, as well as the robust
capital and liquidity position of the Group, having considered the potential
impact of stress events, including a challenging macroeconomic global
environment.
The Committee also assessed a number of activities undertaken over the
course of the year relating to the risk profile, capital, liquidity and funding
positions, and recovery and resolution planning.
In the absence of any material
uncertainties or doubts as to the Group’s
ability to continue as a going concern, the
Committee recommended to the Board
that the financial statements be prepared
on a going concern basis.
Based on the assessment undertaken,
the Committee was satisfied that three
years was a suitable timeframe for the
Viability Statement and recommended
the Viability Statement to the Board for
approval.
The Committee also concluded that the
related disclosures on going concern and
viability are appropriately described in
the annual financial report.
Key issues
Committee considerations
Committee conclusion
Provisions for
liabilities and
commitments
The Group has recognised provisions (excluding ECLs on loan commitments
and financial guarantees) of € 146 million (2023: € 138 million). The Group
recognises provisions where it has a present obligation as a result of past
events, and it is more likely than not that these obligations will result in an
outflow of resources to settle the obligations.
Judgement is required in determining whether the Group has a present
obligation and whether it is probable that an outflow of economic benefits will
be required to settle this obligation. This judgement is applied to information
available at the time of determining the provision, including, but not limited to,
judgements around interpretations of legislation, regulations and case law,
depending on the nature of the provision.
The Committee reviewed the proposed provisions for 2024 and while noting
that these matters are uncertain and therefore a range of outcomes are
possible; the provision in place at 31 December 2024 reflects management’s
best estimate of provision amounts, based on the available information.
Based on the assessments undertaken,
the Committee is satisfied that the
provision for liabilities and commitments
is reasonable, and reflective of the
related uncertainties and the judgemental
nature of key assumptions. The
Committee also concluded that the
related disclosures, in the financial
statements, are appropriate.
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Report of the Board Audit Committee continued
Other key areas of focus
External
Reporting
The Committee considered each of the areas above and the significant matters pertaining to this Annual Financial Report
and the Group’s Half-Yearly Financial Report for the six months ended 30 June 2024. The Committee concluded that it
could recommend the annual and half-yearly financial reports to the Board for approval, on the basis that they are
considered to be a fair, balanced and understandable assessment of the Group’s financial position, and provided the
information necessary for shareholders to assess the Group’s performance, business model and strategy. To enable this
detailed assessment, financial reporting matters were considered at several Committee meetings, with a comprehensive
governance pathway put in place for all significant matters for Committee review as part of the year-end and half-year
reporting processes. Recognising the first year of reporting under the CSRD and its enhanced role with respect to
sustainability reporting, the Committee reviewed in detail the disclosures contained within the Sustainability Statement in
this Annual Financial Report, underpinned by robust governance and assurance processes, enabling it to discharge its
responsibilities in this area. Further details on the governance of sustainability reporting can be found on page 99.
When reviewing both this Annual Financial Report and the Half-Yearly Financial Report, the Committee considered the
minutes of the Group Disclosure Committee, an Executive-level Committee that is tasked with providing oversight of
material Group disclosures, in advance of making any recommendations to the Board. Pillar 3 reporting is also subject
to robust governance and review processes, and the Committee reviewed and approved the annual and half-yearly
Pillar 3 disclosures.
Internal Audit
The Committee is responsible for considering and approving the remit of the Internal Audit function, approving the Internal
Audit charter, the annual and the three year internal audit plans and ensuring that Internal Audit has adequate resources,
skills and appropriate access to information to enable it to perform its function effectively and in accordance with the
relevant professional standards. It also receives the function’s reports and evaluates the adequacy and timeliness of the
Group’s responses to them. The Committee ensures that the Internal Audit function has adequate standing and is free
from oversight or other restrictions that may impair its independence.
Following approval of the annual audit plan, the Committee receives updates on a regular basis regarding audit plan
delivery, and any revisions to the annual plan, which are considered with due regard for the overall risk profile of the
Group. Significant findings of the Internal Audit reports and management’s responses were discussed at meetings of the
Committee throughout the year. Any overdue actions were reviewed and challenged by the Committee.
The Group Head of Internal Audit provides the Committee with regular assessments of the skills and resources required to
deliver the audit plan and whether the Internal Audit budget is sufficient to recruit and retain staff, or to procure subject-
matter expert resources with the relevant experience. During the year, the Chair of the Committee met regularly with the
Group Head of Internal Audit between scheduled meetings of the Committee to discuss audit issues arising and insights
into the control environment. The Group Head of Internal Audit has unrestricted access to the Chair of the Board Audit
Committee.
The Committee also considered the annual and half-year Internal Audit opinion in relation to the overall control
environment, which provides the Committee with an independent assessment of the Group’s management of its material
risks from a control environment and a control culture perspective. Additionally, the Committee considered the Group
Internal Audit annual skills and capability assessment and their approach for ensuring adherence to Article 191 of the
Capital Requirements Regulation, including the output of the Annual General Risk Assessment relating to Internal Models
and the related annual work plan.
External Audit
The Committee has primary responsibility for overseeing the relationship with, and performance of the External Auditor,
including a review of the Auditor’s internal policies and procedures for maintaining independence and objectivity and a
consideration of their approach to audit quality and materiality. The Committee reviewed the terms of engagement and
monitored the independence and effectiveness of the Auditor, facilitated by ongoing observation and the consideration of
submissions from PwC over the reporting period. The remuneration of the Auditor for the year 2024 was also considered by
the Committee and recommended to the Board for approval.
The Committee carefully considered the half-year review report and audit plan as presented to it by PwC, as well as the final
report on the 2024 audit and the year-end audit opinion, including key audit matters. The Committee assessed the
qualifications and expertise of their resources, as well as considering the Auditor’s findings, conclusions and
recommendations arising from their work. In line with monitoring the objectivity, independence and effectiveness of the
Auditor, and in accordance with the EU Audit Regulations 537/2014 and Directive 2014/56/EU, an update was received in
relation to the Group’s policy on the hiring of former employees of the Auditor. The Group’s policy is that the Auditor and its
affiliates may be used for non-audit services that are not in conflict with the Auditor’s independence and where sound
commercial reasons exist. This policy, which outlines the types of non-audit fees for which the use of the Auditor is pre-
approved or requires specific approval, was reviewed and approved by the Committee at its last annual review cycle, and all
non-audit services and fees were approved in accordance with Group policy. Details of the fees paid for audit and non-audit
services are outlined in note 12 on page 289.
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Other key areas of focus continued
Whistleblowing
and Code of
Conduct
The Group is committed to providing a safe, respectful and inclusive environment for all employees. The Committee
reviews the arrangements in place that allow employees and contractors to raise any concerns, confidently and
confidentially, about possible wrongdoings in the workplace. Given this important role in relation to whistleblowing and
protected disclosures, the Committee Chair, who is also the Whistleblowing Champion for the Group, met with the Head of
Group Accountability & Performance and Head of Speak Up to discuss all the material cases and enhancements to the
Whistleblowing process over the course of the year. The Committee received regular updates from management on the
effectiveness of the Group’s whistleblowing procedures and whistleblowing developments throughout the year.
During 2024, the Whistleblowing Champion had oversight over two externally validated diagnostic exercises to ensure the
effectiveness of the Group Speak Up (Whistleblowing) Policy and process. The first exercise was performed to obtain a
diagnostic assessment of the Group’s current levels of psychological safety and comfort with speaking up. The second
related to a benchmark exercise for the Board-approved Speak Up (Whistleblowing) Policy and procedures against
regulatory requirements and established best practice on effective whistleblowing arrangements. The outputs of both
exercises and the proposed priority areas for attention to realise tangible improvements were shared with the Committee
and there has been regular engagement on the matter with Executive Management.
In 2025, the Group will continue to enhance and evolve its approach to the management of protected disclosures in line
with the definitions sets out in relevant legislative regimes across the jurisdictions in which AIB has a presence, whilst
ensuring that the appropriate channels remain in place for all other concerns that may be raised, which are outside the
remit of the legislation specifically related to Protected Disclosures.
Internal Controls
The Group’s internal control and risk management systems are embedded within the organisation structure and it is the
Committee’s responsibility to review the adequacy and effectiveness of the control environment on behalf of the Board.
Throughout the year, the Committee:
• Received updates from the Chief Financial Officer, aligned to the half-year and year-end reporting timelines, regarding
the testing, operation and effectiveness of the system of controls over financial reporting and mandatory non-financial
disclosures.
• Reviewed and advised the Board on the appropriateness of the Directors’ Statements in this Annual Financial Report
relating to the Group’s systems of internal controls.
• Reviewed the outcomes of half-year and year-end overall assessments of the control environment undertaken by Group
Internal Audit.
• Reviewed the internal control report from the External Auditor and management’s responses to the recommendations set
out therein, including in relation to IT Privileged User Access Management.
• Reviewed quarterly reports from the Group Chief Risk Officer regarding the credit control environment.
• Received updates regarding the evolution of the approach to aligned assurance across the Three Lines of Defence, with
progress updates on delivery of the aligned assurance plan, as well as the key themes arising from the work undertaken
across the Three Lines of Defence.
• Received updates from management regarding the oversight of internal fraud risk, as well as the internal and external
fraud environment.
The Committee, having assessed the above information over the year, is satisfied that the Internal Control and Risk
Management Framework is operating effectively.
Subsidiary
Oversight
Over the course of the year, the Committee Chair met with a number of the material subsidiary audit committee Chairs
outside of the regular scheduled Committee meetings, in order to discuss audit committee priorities and to gain a full
understanding of matters of relevance or concern for the individual subsidiaries. In his role as Chair of the Goodbody Audit
Committee, Committee member Fergal O’Dwyer also provides a strong link from the Committee to that entity. The
Committee Chair also attended a number of material subsidiary audit committee meetings throughout the year. The
Committee received an annual report from the audit committees of each of AIB Group (UK) p.l.c., EBS d.a.c., AIB Mortgage
Bank u.c., and Goodbody Stockbrokers UC and also regularly reviewed the minutes of those audit committees to ensure
effective oversight and awareness of any issues and discussion themes.
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Report of the Board Audit Committee continued
As we face a period of considerable
geopolitical and macroeconomic
uncertainty, the Committee will continue
to support the Board in ensuring the
Group’s strategy is executed in
accordance with the principles of sound
risk governance
Brendan McDonagh
Committee Chair
Chair Overview
On behalf of the Board Risk Committee (the ‘Committee’), I am pleased
to report on the Committee’s activities and how it has discharged its
duties during 2024. The purpose of this report is to provide an insight
into the workings of, and the key matters considered by, the Committee
over the course of the year.
The primary purpose of the Committee is to assist and advise the
Board in fulfilling its risk governance and oversight role. In addition to
fulfilling its comprehensive responsibilities, as set out in the
Committee’s Terms of Reference, which can be found on the Group’s
website at www.aib.ie/investorrelations, detailed consideration was
given to a broad range of existing risks. Key areas of focus included
concluding a Customer First-led approach to the migration of the
performing tracker mortgage loan book from Ulster Bank, executive
management retention and the embedding of climate and
environmental risk in the Group’s risk management framework and
conduct and culture risk. From an external perspective, the Committee
considered the uncertainty posed by geopolitical and macroeconomic
risk, ECB interest rate cuts, cooling inflation, the real estate market,
and the potential impact of these factors on the delivery of the Group’s
Strategy in a safe and controlled manner. The Committee also provided
risk oversight of the increasingly challenging and evolving cyber and
technology control environment, as well as receiving regular updates
on fraud events and the Group’s mitigating actions.
Committee Membership
The Committee currently consists of seven Non-Executive Directors, all
considered by the Board to be independent. There was no change to
Committee membership during the year.
To ensure co-ordination between the work of the Committee and that of
the Board Audit Committee, Sandy Kinney Pritchard, Chair of the Board
Audit Committee, and I are members of both Committees. This
approach assists with providing effective oversight of risk, audit, and
finance matters. To ensure co-ordination between the work of the
Committee with that of the Sustainable Business Advisory Committee,
Raj Singh and Jan Sijbrand are members of both Committees.
To ensure co-ordination with the work of the Committee and that of the
Technology and Data Advisory Committee, Tanya Horgan and Andy
Maguire are members of both Committees. To ensure that the Group’s
remuneration policies and practices are consistent with and promote
sound and effective risk management, I also sit on the Remuneration
Committee.
The Group Chief Risk Officer has unrestricted access to the Committee
and attends all Committee meetings. The Chief Financial Officer, Group
Head of Internal Audit, the lead External Audit partner and the Chair of
AIB Group (UK) p.l.c. are also invited to attend all Committee meetings.
Looking ahead to 2025, the Committee’s focus will continue to be on
ensuring appropriate oversight of the Group’s risk appetite, risk
management structure, frameworks and policies to support safe
delivery of the Group Strategy in an appropriately risk-controlled
manner. The Committee will continue to closely monitor emerging risks
such as geopolitical risks, macroeconomic developments, and
continued threats posed by the external cyber landscape. The
Committee is increasingly cognisant of the potential risks arising from
the rapid growth of Artificial Intelligence technologies. The management
and mitigation of these risks will be a key focus of the Committee
in 2025.
Additionally, the Committee will provide ongoing oversight and
challenge of the Group’s planned enhancements in relation to Data
Risk and the embedding of the ECB Guide on Effective Risk Data
Aggregation and Risk Reporting, to support the Group’s ambition to be
a data-driven organisation. The oversight of the continued delivery of
the Group’s IRB Enterprise Programme will also continue to be a key
focus area of the Committee during 2025.
In what has been another busy year for the Committee, I would like to
thank my fellow Committee Members and Executive colleagues for
their significant contributions over the past twelve months.
Brendan McDonagh
Committee Chair
Q&A How is the Committee ensuring the appropriate
consideration of geopolitical risk?
A. In the past year, the Committee regularly considered ongoing
shifts in the geopolitical landscape, the impact of such movements
on the macroeconomic environment and the subsequent risks
posed to the Group’s risk profile, business model and strategy.
Key topics included the Irish, European, UK and US elections,
ongoing, escalating global conflict, changes to economic policy and
global fragmentation and the potential impacts they may have on
the Irish economy Such considerations are incorporated into the
Group’s ICAAP, which the Committee considers on a regular basis.
How is the Committee overseeing the risks associated with
cyber and information security threats?
A. The Committee receives regular updates from both the first
and second lines on the Group’s management of Cyber Risk and
provides oversight and challenge of the Group’s management of
significant cyber threats. Further, the Committee is advised by the
Technology & Data Advisory Committee on Cyber Security matters
and leverages their expertise on relevant matters. As of January
2025, Cyber Risk has been reclassified as a Principal Risk,
reflecting the increasing frequency, changing nature and evolving
sophistication of cyber threats and the significant potential impact
on the Group. Further detail on the Group’s management of cyber
security is provided in the Sustainability Report on page 107.
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Report of the Board Risk Committee
Key areas of focus
Credit Risk
The Committee continued to regularly consider the overall asset quality and credit risk profile of the Group, with a particular
focus in 2024 on credit performance given the evolving geopolitical and macroeconomic environment. The Credit Risk
profile was reported to the Committee as remaining stable throughout 2024, and the Committee remained alert to any
potential emerging signs of deterioration through regular monitoring of the credit risk profile and overall business
performance, as well as considering changes to the Group’s expanded risk appetite in relation to corporate renewable
energy and related infrastructure. Furthermore, the Committee paid particular attention to the nature of the Group’s
Commercial Real Estate portfolio and specific CRE sector limits, with careful consideration given to the Group’s exposure
to Office Real Estate. There was also continued focus on the Group’s credit control environment. In conjunction with the
Board Audit Committee, the Committee reviewed, challenged, and approved the macroeconomic scenarios for use in the
Group’s Expected Credit Loss models. Furthermore, the Committee provided a detailed review of the Group’s Significant
Risk Transfer Framework before making a recommendation for approval to the Board, and provided ongoing oversight of
the Group’s first such transaction.
Market and Equity
Risk
The Committee received regular updates with respect to Market and Equity risk throughout 2024, including the impact of
financial market volatility on the Group’s overall risk profile. The Committee also had an enhanced oversight of the
integrated management of the Group’s balance sheet from a risk perspective and considered financial risk deep-dives on
Interest Rate Risk in the Banking Book and the impact of the cooling inflation data on the Group’s approach to managing
interest rate exposure, in particular Net Interest Income and the Structural Hedging Programme.
Capital Adequacy
Risk
The Committee assessed reports from management to ensure that the Group had appropriate buffers in place above the
Group’s own minimum capital targets, as well as regulatory capital requirements. The Committee also reviewed capital
plans/planning, including consideration of the Group’s ICAAP report, with reference to contingent capital and the related
Group-wide stress test scenarios, including climate stress testing. In conjunction with the Board Audit Committee, the
Committee recommended macroeconomic scenarios for use within the ICAAP to the Board for approval. The Committee
was satisfied that the capital adequacy of the Group has been well demonstrated in a range of scenarios. The Committee
also considered deep dives and regular reporting in relation to risk-adjusted return on capital.
Liquidity and
Funding Risk
The Committee received regular updates throughout 2024 with respect to the status of the Liquidity and Funding Risk
profile. The Committee assessed reports from management to ensure that the Group had appropriate buffers in place in
excess of the Group’s liquidity requirements. The Committee also reviewed liquidity and funding plans/planning, including
consideration of the Group ILAAP report, which included climate stress testing. The Committee was satisfied that the
liquidity adequacy of the Group has been well demonstrated in a range of scenarios.
Business Model
Risk
The Committee received regular reports regarding the status of Business Model risk in the context of delivery of the Group
Strategy 2024-2026, performance against the Financial Plan and the Group’s medium-term targets. The Committee
provided management with detailed feedback on the Business Model Risk Framework and the associated reporting during
the year, ensuring that meaningful information is provided to support decision-making. The Committee considered the
increased risk arising from the current geopolitical and macroeconomic environment, being cognisant of the potential risks
arising from any deterioration in that regard, and how this might impact Business Model Risk; therefore, this will remain an
area of continued focus in 2025.
Operational Risk
The Committee reviewed the ongoing and evolving operational risk profile throughout 2024. Given the level of change in
the Group, the Committee remained focused on Execution Risk and Change Risk and continued to monitor the challenges
associated with delivering the business-as-usual agenda alongside the delivery of key change initiatives. The Committee
provided oversight of the migration of the remaining tracker mortgages from Ulster Bank, ensuring that a Customer First-
led approach was adopted. The Committee provided oversight and insight on People Risk management, with a particular
focus on the impact of various change initiatives and in light of ongoing concerns with respect to staff retention and talent
management. In 2024, the Committee conducted a number of deep dives on this topic.
The Committee continued to provide detailed oversight of the Group’s Operational Resilience Strategy, the Group
Outsourcing Strategy and key outsourcing and critical arrangements across the Group. During the year, the Committee
also regularly considered the Group’s Data Risk governance and arrangements, receiving updates from the first line and
second lines of defence and considering the implications of the ECB Guide on effective risk data aggregation and risk
reporting for the Group. Furthermore, significant time was spent by the Committee overseeing Cyber Risk, including the
Group’s response to cyber threats experienced throughout the year.
Climate and
Environment Risk
In its first full year as a principal risk, the Committee continued to provide specific oversight of Climate and Environment
Risk, its embedding into the risk management framework and deepening of its integration into the management of other
material risks. Areas of focus during 2024 included the identification of appropriate key risk indicators, incorporation into the
Group Risk Appetite Statement, the continued development of the Climate and Environment Risk Framework and the
incorporation of Climate and Environment Risk considerations across other relevant risk policies and frameworks. The
Committee received regular updates throughout 2024 with respect to the status of the Capital Adequacy Risk profile.
Model Risk
The Committee continued to receive regular reports on the Model Risk profile and model capabilities across the Group, as
well as progress against key regulatory deliverables. The Committee maintained risk oversight of the delivery against the
IRB programme, receiving regular programme updates throughout the year. Regular Model Risk Reports for all model
types were also considered, with an assessment of model risk improvements and progress against deadlines undertaken.
The status of the quality and adequacy of models were assessed through independent validation, the outcome of which
was also reported to the Committee.
Principal Risk considerations
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Report of the Board Risk Committee continued
Conduct Risk and
Culture Risk
The management of Conduct Risk and ensuring fair outcomes for customers continued to be a core focus for the Group.
The Committee received regular reporting throughout the year regarding the status of the Conduct Risk profile, including
updates on open restitutions, customer complaints metrics and the continued onboarding of Ulster Bank customers. The
Committee also received updates on the status of the Culture Risk profile during the year. Following the combination of
Culture Risk within Conduct Risk into one material risk category, in the previous year, the Committee supported the further
integration through the development of the Conduct Risk and Culture Risk Framework and the identification of appropriate
risk metrics and reporting.
Regulatory
Compliance Risk
The Committee continued to maintain oversight of the Group’s adherence to and delivery of regulatory compliance
commitments. Throughout the year, the Committee received regular updates from the Chief Risk Officer and the Group
Chief Compliance Officer regarding the status of the regulatory compliance risk profile, including updates on prudential
regulation, conduct of business regulation, Financial Crime and Data Protection. The Committee also received updates
regarding the delivery of specific regulatory change programmes, including the Operational Resilience programme, as well
as deep dives on data protection, EBA Transparency Reviews and RDARR. Financial Crime risk was considered
throughout the year, through ongoing reporting as well as standalone updates provided by the Money Laundering
Reporting Officer. The Committee received reports regarding the outcome of the 2024 Group Financial Crime Business
Risk Assessment, which reviewed the Anti-Money Laundering/Counter-Terrorist Financing and Financial Sanctions control
environment across the Group.
Principal Risk considerations
Other risk considerations
Risk Appetite,
Risk Profile and
Risk Strategy
The Committee reviewed and recommended the 2025 Group Risk Appetite Statement (‘RAS’) to the Board for approval
during the year and also exercised oversight of performance against the 2024 Group RAS, making recommendations to
the Board as appropriate. Performance against the 2024 Group RAS was overseen through the ongoing monitoring of the
risk profile against agreed Group RAS metrics whilst ensuring alignment to the Group’s strategic objectives. The
Committee also reviewed regular reports from the Chief Risk Officer, which provided an overview of the status, profile and
trajectory of the Group’s key material risks and considered and recommended the assessment of the material risks facing
the Group to the Board for approval.
Regulatory
Engagement
Throughout the year, the Committee considered regular updates regarding the status of Risk Mitigation Programme action
plans, as well as the upstream regulatory horizon. The Committee also considered and recommended, as appropriate,
management action plans put in place to address those findings identified as part of regulatory inspections. During 2024,
the Committee Chair engaged directly with the Group’s regulators, providing further detail on the Group’s approach to
regulatory areas of focus.
Cyber Risk
During 2024, the Committee maintained oversight of Cyber Risk and IT Risk. Recognising the significance of Cyber Risk to
the Group, the increasing pace with which the frequency and sophistication of cyber threats evolve and the overall impact
on the Group’s wider operating model, the Committee recommended to the Board that it be considered as a material risk
from January 2025. Throughout the year, the Committee continued to receive regular updates on Cyber Security covering
the main internal and external cyber threats facing the Group. The Committee also benefits from the advice and expertise
provided by the Technology & Data Advisory Committee.
Subsidiary
Oversight
During the year, the Committee Chair met with the a number of material subsidiaries' risk committees and board chairs to
ensure that appropriate connection with the Group is maintained on risk matters. Furthermore, the Committee Chair
attended at least one risk committee or board meeting for each material subsidiary and reports were received by the risk
committee chairs of both AIB Group (UK) p.l.c. and Goodbody Stockbrokers UC.
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The focus of the Committee in 2025
will be on onboarding new Directors
as some of the longer-serving
Directors step away after a period
of nine years on the Board
Elaine MacLean
Committee Chair
Chair Overview
This report provides an overview of the Nomination and Corporate
Governance Committee’s (the ‘Committee’) key areas of focus for the
year ended 31 December 2024 and its priorities for the year ahead. The
focus of the Committee in 2025 will be on onboarding new Directors as
some of the longer-serving Directors step away after a period of nine
years on the Board. Work on this commenced in 2024 and the
Committee will ensure that the Board and its Committees continue to
have the skills and experience necessary to undertake its work and the
diversity, in all of its forms, which has served the Group so well to date.
On the recommendation of the Committee, the Board reappointed
Andy Maguire, Jan Sijbrand, Anik Chaumartin and Tanya Horgan for a
second three-year term, and Brendan McDonagh and Helen Normoyle
for an additional term of up to one year each.
In 2024, the Committee completed its annual assessment of the
independence of the Non-Executive Directors.
In line with its Terms of Reference, which can be found on the Group’s
website at www.aib.ie/investorrelations, the Committee has also continued
its focus on the development of the succession plans and processes for
the members of the Group’s Executive Committee and Heads of Control
Functions, as they are critical to the delivery of the Group’s strategy and
the success of the Group in the years ahead. Central to such
considerations are diversity, gender balance and the planned development
of core competencies for the Executive Committee members, which reflect
a changing business and regulatory environment.
In addition to its review of the Corporate Governance Frameworks, the
Committee also reviewed the Code of Conduct and Conflicts of Interest
Policy for Directors and the Board Diversity Policy, and there were no
material changes.
Committee Membership
The Committee consists of four members: three Independent Non-
Executive Directors, namely, myself, Brendan McDonagh and Helen
Normoyle, Senior Independent Director, and the Chair of the Board,
Jim Pettigrew.
Brendan McDonagh is the Chair of the Board Risk Committee with
Helen Normoyle serving as Chair of the Sustainable Business Advisory
Committee while I am serving as Chair of the Remuneration
Committee. This cross-membership supports information flow and co-
ordination between the work of the Committees. The biographies of the
Committee members and a record of attendance at meetings are set
out on pages 128 to 131 and page 136.
The Chief Executive Officer and Chief People Officer attended Committee
meetings, except where the business of the meeting related to their
successors. The Committee also met with no members of management
present during 2024. A summary of the other key areas of focus for the
Committee throughout 2024 is set out below.
I would like to thank my fellow Committee members for their continued
commitment through another busy year.
Q&A How have you dealt with the ongoing remuneration
restrictions in Ireland?
A. I highlighted previously that every well-governed business
that places value on diversity, such as AIB, needs to continually
inject new talent, fresh ideas and external perspectives into its
leadership. This has not changed. We have worked extremely
hard to remain attractive as a place for ambitious, talented
people to grow and develop. We have done this in the
expectation that the remuneration restrictions will be removed
as the Irish State continues to sell down its stake in pursuit of
the Government’s stated strategy to reduce its holding in the
Irish banks. The Group is strong and has a clear, compelling
strategy. Our Executive Committee members have placed their
trust in the future of this Group and their place within it, and our
HR team have been successful in painting a clear picture in
recent years as we have, despite the restrictions, attracted
excellent Executives who have been able to see beyond the
reward challenges today.
Elaine MacLean
Committee Chair
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Report of the Nomination and
Corporate Governance Committee
Key areas of focus
Board Succession
Planning,
Renewals and
Board Committee
Composition
The size, structure, composition and succession plan of the Board, Board Committees and Executive Committee was a
standing item on the agenda of scheduled Committee meetings in 2024.
The Committee used the services of Teneo in 2024, to support Non-Executive Director searches. The firm has no other
connection to the Group other than, from time to time, assisting with executive searches, providing leadership
development and assessment services and leadership advisory services. It has no other connection to individual Directors
other than, from time to time, assisting external entities, of which the individual directors may be a Director, in candidate
searches or considering individual Directors as potential candidates for external roles.
Chair
Reappointment
In line with the CBI Corporate Governance Requirements for Credit Institutions 2015, the Board approved the
reappointment of Jim Pettigrew as Chair of the Board on the recommendation of the Committee.
Executive
Succession
Planning &
Appointments
Review of the Executive Committee’s composition and succession planning was considered on an ongoing basis by the
Committee during the year. In addition to broader succession-planning activities, the Committee considered specific
proposals regarding Heads of Control Function and Executive Committee member appointments. The Committee
approved the appointment of preferred candidates for the roles of the Chief Customer Officer and Head of Internal Audit.
Development of the Executive Committee leaders remains a key priority for 2025, with robust personal development plans
in place to meet specific individual needs, including Executive Committee Buddies, Board Mentors and External Coaches,
to ensure accountability for personal development goals.
Diversity
The Board recognises the importance of gender, social and ethnic diversity, and the strengths diversity brings to Board
effectiveness. Diversity is taken into account in its broadest sense when considering succession plans and appointments
at both Board and Executive Committee levels, as well as more broadly across the Group. The Board Diversity Policy
includes a target that a woman holds at least one of the senior Board positions of Chair, Chief Executive, Senior
Independent Director or Chief Financial Officer. Our gender diversity statistics for the Board can be found on pages 129
and 155.
Board Evaluation
In accordance with the CBI Corporate Governance Requirements and the UK Corporate Governance Code, the Board
is required to complete an annual evaluation of its performance, which should be externally facilitated at least every
three years.
Having successfully concluded a comprehensive external evaluation in 2022, facilitated by Praesta Ireland, the 2023 and
2024 reviews were facilitated internally by the Company Secretary and Corporate Governance Teams. The key findings
of the evaluation review are described on page 136.
Corporate
Governance
The Committee oversees and monitors corporate governance arrangements and makes recommendations to the Board to
ensure that the standards and arrangements across the Group are consistent with existing corporate governance
standards and emerging best practice. The Committee undertook its annual schedule of work in relation to the Group’s
governance arrangements, corporate governance compliance, and related policies, including:
• a review of the Board’s Code of Conduct and Conflicts of Interest Policy for Directors;
• a review of the Board Diversity Policy and diversity targets;
• oversight of compliance with applicable corporate governance requirements and guidelines;
• oversight of upstream regulatory developments in corporate governance and best practice;
• oversight of the internal Board Effectiveness Evaluation; and
• consideration of workforce engagement processes via the Designated Non-Executive Director, who is also Chair of
the Committee.
Subsidiary Board
and Committee
Composition
The Committee considered a number of executive and non-executive appointments to the Group’s material subsidiary
Boards and the respective Board Committee membership, including for AIB Mortgage Bank u.c., EBS d.a.c. and
Goodbody Stockbrokers UC. Such appointments, where established, ensure appropriate information flow, oversight,
consistency and alignment between the Group and its subsidiaries.
The Committee also considered Non-Executive Director term anniversaries and made recommendations for reappointment
to the subsidiary Boards where relevant, taking account of ongoing suitability considerations.
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Board composition
and succession
Board Composition
At 31 December 2024, the Board consisted of the Chair, who was
deemed independent on appointment, twelve Independent Non-
Executive Directors and two Executive Directors, being the Chief
Executive Officer and the Chief Financial Officer.
There were no changes to the Board or Board Committee membership
in 2024. Changes that occurred subsequent to 31 December 2024 are
set out in the table below.
Board Advisory Committee Changes
2024 Changes
Committee Roles
Joined/
Stepped down
When
Orlaith
Ryan
Member of the
Sustainable Business
Advisory Committee
Joined
1 January
2025
David
McCormack
Member of the
Sustainable Business
Advisory Committee
Stepped down
1 January
2025
Professional development and continuous education programme
The Board’s professional development and continuous education
programme continued throughout 2024 and was designed in conjunction
with the indicative work programme to ensure that training was
delivered at a time when it would be of most benefit or relevance to
the Board.
The sessions were delivered by a mix of internal and external subject-
matter experts, and the topics included sustainability, climate-related
disclosures, inclusion and diversity, cyber security, operational
resilience (including vital business services), financial crime (including
Anti-Money Laundering, Anti-Bribery and Corruption and Counter-
Terrorist Financing), CBI fitness and probity requirements, the CBI
Individual Accountability Framework and Senior Executive
Accountability Regime, credit risk models and Market Abuse
Regulation. Directors also have access to an online corporate
governance library and a suite of AIB Group-specific online training
courses. Additional training and individual sessions with subject-matter
experts on areas of interest to the Directors are facilitated upon
request.
A structured induction programme is delivered to any incoming Director
and includes a series of meetings with senior management and
relevant briefings, together with any specific training identified during
the course of the appointment of the individual.
Access to Advice
There is a procedure in place to enable the Directors to take
independent professional advice, at the Group’s expense, on matters
concerning their role as Directors. The Group holds insurance to protect
Directors and Officers against liability arising from legal actions brought
against them in the course of their duties.
Time commitment
Non-Executive Directors are required to devote such time as is
necessary for the effective discharge of their duties. The expected time
commitment of the Chair and Non-Executive Directors is agreed and
set out in writing in a letter of appointment. This is issued following
confirmation of an individual’s capacity to take on the role and involves
an assessment of existing external commitments and demands on
time. Any changes, such as additional external appointments that could
impair the ability to meet the above requirements, can only be accepted
following approval of the Chair and Group Company Secretary and,
in certain cases, the approval of the Board as a whole and/or the
Central Bank of Ireland, must also be sought.
There is a procedure in place to assess and seek Board approval for
any additional external roles proposed by Directors, to ensure that
there will be no impact on their ongoing suitability or ability to continue
to dedicate sufficient time to their Group roles.
The estimated minimum time commitment set out in the letters of
appointment is 30 to 60 days per annum for Non-Executive Directors
and 100 days per annum for the Chair, including attendance at
Committee meetings.
Balance and Independence
Responsibility has been delegated by the Board to the Committee for
ensuring an appropriate balance of experience, skills and independence
on the Board. Non-Executive Directors are appointed so as to provide
strong and effective leadership and appropriate challenge to
management. The independence of each Non-Executive Director
is considered by the Committee prior to appointment and reviewed
annually thereafter. It was determined that the following Non-Executive
Directors in office during 2024, namely, Anik Chaumartin,
Basil Geoghegan, Tanya Horgan, Elaine MacLean, Andy Maguire,
Brendan McDonagh, Helen Normoyle, Ann O’Brien, Fergal O’Dwyer,
Sandy Kinney Pritchard, Jan Sijbrand, and Raj Singh, were
independent in character and judgement and free from any business or
other relationship with the Group that could affect their judgement. This
conclusion was reached after consideration of all relevant circumstances
that are likely to impair, or could appear to impair, independence.
In determining independence, the Board had particular regard to the
fact that Ann O’Brien and Raj Singh were appointed in 2019, following
their nomination by the Minister for Finance in Ireland. In determining
that they should properly be considered to be independent, the Board
gave due regard to the following matters: the nature and history of the
shareholding and the alignment of the Irish State’s interests with other
shareholders, the nature of the individuals nominated and the process
followed in identifying them for nomination, their performance and the
nature of their contribution to the business of and matters discussed at
the Board, and the Relationship Framework with the State. The Board
is satisfied that in carrying out their duties as Directors, Ann O’Brien
and Raj Singh are able to exercise independent and objective
judgement without external influence.
The Board also considered the fact that in December 2024, Helen
Normoyle had served on the Board for nine years and whether this
could impair her independence. In confirming independence, the Board
agreed that Helen Normoyle continues to demonstrate the ability to
offer constructive challenge and perform her role on the Group Board
and its Committees effectively and with independence of mind and that
her independence is evident at each meeting, where she provides well
considered views, together with articulate and constructive challenge.
The Chair, Jim Pettigrew, was determined as independent
on appointment.
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Report of the Nomination and Corporate Governance continued
Inclusion and Diversity
Employee inclusion and diversity in the Group is addressed through
policy, practices and values, which recognise that a productive
workforce comprises diverse backgrounds, cultures, experiences,
characteristics and work styles. The Group has implemented a Diversity
and Inclusion Code and opposes all forms of discrimination. The
efficacy of related policy and practices and the embedding of the
Group’s values is overseen by the Board, which has endorsed the
Group’s inclusion and diversity strategy, supported by short-term
activities and targets, as one of the key focus areas of the Culture
Programme. The Board also considers inclusion and diversity within the
context of the Group’s People strategy and Future of Work strategy.
The Board is supported in its oversight by its Committees, specifically
by the Nomination and Corporate Governance Committee, which
considers diversity as a key element within the context of succession
planning for the Executive Committee and its succession pipeline within
the Group. In addition, the Sustainable Business Advisory Committee
considers inclusion and diversity in the Group as it relates to that
Committee’s role in overseeing the Group’s efforts to promote
economic and social inclusion as part of the sustainability agenda.
With regard to diversity among Directors, there is a Board Diversity
Policy in place that sets out our commitment to, and also details our
approach to achieving, our diversity ambitions. This policy is available
on the Group’s website at www.aib.ie/investorrelations.
The Committee is responsible for developing measurable objectives to
effect the implementation of this Policy and for monitoring progress
towards achievement of the objectives. The Policy and performance
relative to the target is reviewed annually by the Committee, in
conjunction with Board succession and skills planning, and any
proposed changes to the Policy are presented to the Board for
approval. The Board’s target, as set out in its Diversity Policy, is that it
shall maintain at least 40% female representation. In addition, at least
one Board member shall be from a minority ethnic group and at least
one senior Board position shall be held by a female.
The Board recognises that diversity in its widest sense is important,
is inclusive of all individuals and is focused on ensuring a truly diverse
Board. The Board embraces the benefits of diversity among its members
and, through its succession planning, is committed to achieving the most
appropriate blend and balance of diversity possible over time.
In terms of implementation of the Board Diversity Policy, the
Committee reviews and assesses the Group Board composition and has
responsibility for leading the process of identifying and nominating,
for approval by the Board, candidates for appointment as Directors.
In reviewing the Board composition, balance and appointments, the
Committee considers candidates on merit against objective criteria and
with due regard for the benefits of diversity, in order to maintain an
appropriate range and balance of skills, experience and background
on the Board and in consideration of the Group’s future strategic plans.
Where external search firms are engaged to assist in a candidate search,
they are requested to aim for a fair representation of both genders to be
included in the initial list of potential candidates, so the Committee has a
balanced list from which to select candidates for interview.
At 31 December 2024, the percentage of females on the Board stood
at 40% and one Director was from a minority ethnic group, thereby
meeting the Board’s Diversity Policy targets as well as the regulatory
requirements on gender diversity and ethnicity. Additionally, in
compliance with the UK Listing Rule Requirements, at least one senior
Board position, that of the Senior Independent Director, was held by
a female. The gender balance of those in the senior management and
their direct reports is 43%1.
1. Direct reports as referenced in the UK Code has been interpreted as those
individuals who hold management positions.
Gender and Ethnic Diversity
The tables below outline the gender and ethnic diversity of the Board and Executive Management as at 31 December 2024, reflecting data
gathered through self-identification based on the criteria set out in the tables below.
Gender (Limited assurance)
Number of
Board members
Percentage of
the Board1
Number of senior
positions on the Board2
Number in
Executive
management3,4
Percentage of
Executive
management3,4
Men
9
60 %
3
9
60 %
Women
6
40 %
1
6
40 %
1. The Board comprises the Non-Executive and Executive Directors.
2. Senior positions on the Board comprises the Group Chair, Chief Executive Officer, Chief Financial Officer and Senior Independent Non-Executive Director.
3. Executive management comprises the Chief Executive Officer, his direct reports, and the Group Company Secretary.
4. Helen Dooley ceased employment with AIB on 31 December 2024. The role of Group General Counsel is no longer considered an Executive Member from
1 January 2025.
Ethnic Diversity
Number of
Board members
Percentage of
the Board1
Number of senior
positions on the Board2
Number in
Executive
management3,4
Percentage of
Executive
management3,4
White Irish or other white
(including minority-white groups)
14
93 %
4
15
100 %
Mixed/multiple ethnic groups
—
—
—
—
—
Asian/Asian Irish
1
7 %
—
—
—
Black/African/Caribbean/Black Irish
—
—
—
—
—
Other ethnic group, including Arab
—
—
—
—
—
1. The Board comprises the Non-Executive and Executive Directors.
2. Senior positions on the Board comprises the Group Chair, Chief Executive Officer, Chief Financial Officer and Senior Independent Non-Executive Director.
3. Executive management comprises the Chief Executive Officer, his direct reports, and the Group Company Secretary.
4. Helen Dooley ceased employment with AIB on 31 December 2024. The role of the Group General Counsel role is no longer considered an Executive Committee Member.
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Board Succession Planning and Appointments
The review of the appropriateness of the composition of the Board and
Board Committees is a continuous process, and recommendations for
appointment are made based on merit and objective criteria, having
regard to the collective skills, experience, independence and
knowledge of the Board, along with its diversity requirements. The
Board recognises that the size of the Board may vary temporarily at
times, particularly at times of heightened succession. A search process
for Directors is underway as some of the longer serving Directors are
expected to step away after a period of nine years on the Board. The
optimal composition of the Board will remain a key focus for the
Nomination and Corporate Governance Committee and the Board in
2025. The Board Succession Plan is reviewed by the Committee
alongside the Board Skills Matrix at each scheduled meeting to allow
for proactive and continuous succession planning and, in turn, the
timely commencement of Director search processes.
The Board Succession Plan details planned Board composition, as well
as Board Committee membership, the likely tenure of Non-Executive
Directors and upcoming actions to be undertaken. The skills included in
the Board Skills Matrix were identified, taking into account the Group’s
strategic priorities and relevant regulatory requirements. Each Director
was selected for appointment on the basis of their knowledge, skills
and experience, which enable them to effectively discharge their duties,
ensure the effective governance of the Group, and contribute to its long
-term, sustainable success. The biographies on pages 128 to 131 set
out the key skills and experience that each Director brings to the Board.
In addressing appointments to the Board, a role profile for the proposed
new Directors is prepared on the basis of the criteria laid down by the
Committee, taking into account the existing skills and expertise of the
Board and the anticipated time commitment required. The services of
experienced third party professional search firms are retained for Non-
Executive Director appointments where required and deemed
necessary by the Committee. In all Director selection activity, the Group
ensures that a formal and rigorous process is followed.
Prior to the recommendation for appointment of any given candidate,
a comprehensive due diligence process is undertaken, which includes
the candidate’s self-certification of probity and financial soundness, as
well as external checks and enhanced due diligence. The due diligence
process enables the Committee to satisfy itself as to the candidate’s
independence, fitness and probity, and their capacity to devote
sufficient time to the role. A final recommendation is made to the Board
by the Committee.
The Relationship Framework specified by the Minister for Finance (the
‘Minister’), which governs the relationship between AIB and the
Minister, on behalf of the Irish State as shareholder, requires the Group
to consult with the Minister before appointing, reappointing or removing
the Chair or Chief Executive Officer and in respect of any other
proposed Board appointments.
A Board-approved Policy is in place for the assessment of the suitability
of members of the Board, which outlines the Board appointment
process, and is in compliance with applicable joint guidelines issued by
the European Securities and Markets Authority and the European
Banking Authority.
Terms of appointment
Non-Executive Directors are generally appointed for a three-year term,
with the possibility of renewal for a further three years on the
recommendation of the Committee. Any additional term beyond six
years is subject to annual review and approval by the Board. In
accordance with practice in recent years and the provisions of the
UK Corporate Governance Code, all Directors submit themselves for
re-election at each Annual General Meeting. Details of the appointment
dates and length of tenure of each Director are available from their
appointment dates, included in their biographies on pages 128 to 131.
Board skills and experience
The summary below provides an overview of the skills and experience held by the Group’s Non-Executive Directors on the Board.
This is based on the current skills matrix, which is reviewed annually by the Nomination and Corporate Governance Committee to ensure
that the Board has the skills and experience required to effectively discharge its duties and to support succession-planning discussions.
Diversity of Core Skills
& Competencies
• Leadership
• Strategy
• Governance
• Risk Management
• Capital & Liquidity
• Customer & Conduct
• Stakeholder Management
• Finance, Accounting & Audit
Diversity of
Professional Experience
• Non-Executive Director
• Retail Banking
• Corporate, Institutional &
Business Banking
• Treasury Management
• People Management & Development
• Stakeholder Engagement
• Outsourcing & Change Management
Areas of Focus
Under 2024 Board Training Plan
Aligned with Strategy & Material Risks:
• Climate & Environmental Risk
(incl. Sustainability)
• Inclusion & Diversity
• Cyber & Operational Resilience
• Data & AI
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Report of the Nomination and Corporate Governance continued
While managing remuneration within the
restrictions applicable to AIB remains a
challenge, the Committee is pleased with
the changes made so far and the positive
impact for our colleagues and the business.
However, as a result of the remaining
remuneration restrictions, the remuneration
of our Executive Directors remains
significantly below market
Elaine MacLean
Committee Chair
Chair Overview
I am pleased to present the 2024 Remuneration Report on behalf of the
Committee, which provides an overview of our key areas of focus for the
year ended 31 December 2024 and the Committee’s priorities for 2025.
2024 was the first year of variable remuneration payments to
colleagues, and healthcare benefits also became available during
the year. While managing remuneration within the restrictions
applicable to AIB remains a challenge, the Committee is pleased
with the changes made so far and with the positive impact on our
colleagues and the business.
However, as a result of the continued remuneration restrictions, the
remuneration of our Executive Directors remains significantly below
market. The Group’s inability to remunerate senior talent on par with
its competitors represents a material risk to its capacity and capability
to attract, reward and retain the level of experienced talent necessary
for the long-term, sustainable success of the Group.
The main areas of focus for the Committee in 2024 included Workforce
Remuneration, the Save As You Earn (‘SAYE’) Scheme 2025, Business
Performance & Remuneration Outcomes, variable remuneration
scheme outcomes, Executive Director Remuneration and Workforce
Engagement. Please refer to the key areas of focus on page 158 for
further details.
Committee Membership
The Committee currently comprises four Non-Executive Directors,
each of whom have been deemed by the Board to possess the
relevant skills, competence and capability required by the Committee.
The purpose of the Committee is to ensure that the Group
Remuneration Policy is designed to support the long-term business
strategy, values and the culture of the Group, as well as to promote
effective risk management, and reward fairly and responsibly, with a
clear link to corporate and individual performance, in compliance with
applicable legal and regulatory requirements.
The Committee oversees the operation of Group-wide remuneration
policies and practices for all employees, with specific reference to the
Company’s Executive Directors, Group Executive Committee members,
Group Heads of Control Functions, the Group Company Secretary,
and Material Risk Takers.
The Committee’s governance role is outlined in detail in its Terms of
Reference, which are published on the AIB Group website at
www.aib.ie/investorrelations.
Brendan McDonagh is the Chair of the Board Risk Committee, with
myself serving as Chair of the Nomination and Corporate Governance
Committee. This cross-membership supports information flow and co-
ordination between the work of the Committees. The biographies of the
Committee members and a record of attendance at meetings are
outlined on pages 128 to 131 and page 136.
The Chief Executive Officer, Chief People Officer and other members of
Management are invited to attend meetings at the Committee’s request
and where required for the business of relevant meetings.
The Chief Risk Officer is a permanent attendee at meetings to provide
a risk view on any matters submitted for the Committee’s consideration,
except where the Committee is considering the Chief Risk Officer’s own
remuneration or that of peers.
The Committee operates under the principle that no individual shall be
involved in decisions regarding their own remuneration and no member
of management is permitted to attend when a matter for decision
relates to their own remuneration.
The Group Company Secretary is the Secretary to the Committee.
In relation to the shareholders, on behalf of the Committee, thank you
for your support at the 2024 AGM regarding the pay-related resolutions.
I welcome any feedback from shareholders regarding this report, or,
more generally, our approach to remuneration. I can be contacted
through our Company Secretary.
Finally, I would like to thank my fellow Committee members for their
work throughout 2024.
Elaine MacLean
Committee Chair
Q&A What is your focus for 2025?
A. Having already introduced a variable remuneration scheme
and made healthcare benefits available to all employees, the
Committee will continue to focus on providing opportunities for
our colleagues to share in the success of AIB by launching a
Save As You Earn (‘SAYE’) scheme in Ireland and the UK during
2025. As the Group’s inability to remunerate senior talent on par
with its competitors represents a material risk, we welcome the
continued reduction in the Government’s shareholding and we
continue to engage with the Department of Finance in relation
to securing the removal of the pay cap.
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Report of the Remuneration Committee
Key areas of focus
The table below provides a non-exhaustive list of the Committee’s areas of focus during 2024:
Workforce
Remuneration
in 2024
In 2023, we introduced a variable remuneration scheme for all our employees (with the option to invest awards in AIB
shares), and healthcare benefits were made available to all employees. This followed some limited easing of the
remuneration restrictions that apply to AIB. We had positive engagement with our colleagues on our approach to reward
through staff briefings, as part of the roll out of these changes, which were well-received by colleagues. The first payments
under our newly established Variable Remuneration Scheme were made in 2024, in respect of 2023 performance. This
marks a significant development in the bank’s approach to remuneration, while recognising that the remuneration
restrictions still in place mean that we are unable to structure our total remuneration offering in a manner more aligned with
the market.
The Approved Profit-Sharing Scheme (‘APSS’) and Share Incentive Plan (‘SIP’), which were introduced in 2024 enable
colleagues to invest part or all of their variable remuneration in AIB shares, better aligning their interests with shareholders.
Around a quarter of eligible employees availed themselves of this opportunity, which is in line with our expectations.
Additionally, as part of the annual pay review process, eligible employees below Executive Committee level were awarded
a one-off voucher with a value of € 1,500 or local equivalent, which was paid in January 2025.
Business
Performance &
Variable
Remuneration
Scheme
outcomes 2024
The Scheme has a Group Profit underpin as its first component, which ensures a minimum level of profit must be achieved
in order to trigger an award under the Scheme. The underpin was achieved for the 2024 performance year.
For 2024, we maintained the same approach to the Scheme as in 2023, with performance assessed against group
measures.
• The Scheme comprises three financial measures, accounting for 60% of the award, and three non-financial measures
accounting for the remaining 40%.
• The financial measures of underlying profit, RoTE and Costs, ensure a focus on key financial metrics for the business.
• The non-financial measures focusing on gender balance, green finance and customer satisfaction align with our ESG
and customer agenda and our commitment to making continued progress in these areas.
The maximum award under the scheme is the same for all employees and Executive Directors at 5% of salary, up to a
maximum of € 12,700. Details of the performance achieved during 2024 and the associated outcomes can be found on
page 164.
The Group achieved all its targets for maximum performance where relevant, under all of the non-financial and financial
measures of the variable remuneration scheme. Combined performance has resulted in a 5% award.
In conjunction with the Board Risk Committee and the Risk Management function, the application of potential risk
adjustment was considered by the Committee. The Committee carefully considered the formulaic outcome against the
overall financial and non-financial performance of the Group during 2024 and the experience of stakeholders, and
concluded that outcomes were appropriate. Therefore, the formulaic outcomes were not adjusted.
Save As You Earn
SAYE Scheme
2025
We continue to focus on providing opportunities for our colleagues to share in the success of AIB. We are working towards
launching a Save As You Earn (‘SAYE’) scheme for our colleagues in Ireland and the UK during 2025. This will enable
colleagues to save from their salary and, at the end of the savings period, to purchase shares in AIB.
The Scheme rules that will enable us to offer this scheme require shareholder approval and the approval of the relevant
taxation authorities, which will be sought at the 2025 AGM. The Committee looks forward to receiving shareholder support
for this important all-employee scheme.
Executive Director
Remuneration
2024
The salary cap, which forms part of our current remuneration restrictions, means that there were no changes to the
salaries or pension contribution of our Chief Executive Officer. The Committee took the opportunity to align the Executive
Directors within our remuneration restrictions with a non-pensionable allowance of € 30,000, equal to that received by
other members of the Executive Committee, with resulting fixed pay remaining significantly below-market.
Workforce
Engagement
We engage with our colleagues on remuneration matters through senior leader engagement with their teams; union
representatives and our senior management facilitate feedback both to and from the Remuneration Committee and the
wider Board on remuneration matters.
All employees receive the following elements of remuneration (base salary, benefits, pension contributions and variable
pay of no more than € 12,700). As a result, executive remuneration structures and their operation are aligned with our
colleague remuneration structures and are simple and well understood by employees. For 2025, the Group has agreed to
a one-year pay deal for employees at career levels 1-3. Employees at career levels 4-6 will receive pay increases that are
linked to performance.
Gender Pay
The Committee received updates and analysis undertaken with regard to the Group’s public reporting of Gender Pay
in Ireland and the UK.
Group
Remuneration
Policy
The Committee conducted its programme of annual reviews, including a review of the Group Remuneration Policy, the
process for identifying Material Risk Takers and the limited variable commission schemes in operation across the Group.
Each review was accompanied by a view from Group Risk to support the Committee in its oversight of the same.
Pillar 3
The Committee also approved the quantitative and qualitative reports required under Pillar 3 for the Group and the
Investment Firms Directive for Goodbody Stockbrokers UC.
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Report of the Remuneration Committee continued
Remuneration Policy and Governance
The Director Remuneration Policy (the ‘Remuneration Policy’ or the ‘Policy’) applies to the Group’s Executive Directors. Under section 1110M of
the Irish Companies Act 2014, AIB is required to obtain shareholder approval of the Remuneration Policy by the fourth anniversary of the previous
approval, or sooner if changes are required. UK regulations, which AIB follows as a matter of best practice to the extent practicable, require a new
policy to be brought to shareholders every three years or sooner if material changes are required.
The Remuneration Policy was approved by shareholders at the 2024 AGM.
The wider Group Remuneration Policy can be found on our website – www.aib.ie/investorrelations.
Purpose and Aims of the Remuneration Policy
The Policy sets the framework for all remuneration-related policies, procedures and practices for the Directors of the Group. The principal aim of
the Remuneration Policy is to support AIB in becoming a bank to believe in, recognised for outstanding customer experience and superior financial
performance. The Group’s remuneration philosophy aims to ensure that remuneration is aligned with performance and that employees are
rewarded fairly and competitively for their contribution to the Group’s success and growth. The Group is committed to a simple, transparent and
affordable reward structure, which is fair, performance-based, and both externally and internally risk-aligned.
The Remuneration Policy is aligned to the wider Group Remuneration Policy and is designed to:
(a) foster a truly customer-focused culture;
(b) create long term sustainable value for our customers and shareholders;
(c) attract, develop and retain the best people; and
(d) safeguard the bank’s capital, liquidity and risk positions.
The Remuneration Policy is governed by the Committee on behalf of the Board. The Committee is responsible for determining the Remuneration
Policy and for overseeing its implementation.
The Committee further ensures that the Remuneration Policy and practices are reviewed at least annually alongside the wider Group
Remuneration Policy, taking into account the alignment of remuneration to the Group’s culture, and market and regulatory requirements
and developments. The annual review is informed by input from the Group Risk and Internal Audit, to ensure that remuneration policies and
practices are operating as intended, are consistently applied across the Group and are compliant with regulatory requirements.
The Group continues to comply with the applicable requirements of the UK Corporate Governance Code (the ‘Code’) and the Irish Corporate
Governance Code Annex (the ‘Irish Annex’). The Code and Irish Annex are used to inform the Group’s decision-making and disclosures.
The Group also complies with the Irish Companies Act. Due to the constraints on variable remuneration, certain requirements of the Code and
disclosure requirements are not currently applicable to the Group. The Group will continue to review these requirements alongside any future
changes to the restrictions on remuneration by the Irish Government, to ensure ongoing compliance.
Regarding Provision 40 of the Code, the Policy sets the framework that underpins remuneration policies and practices for Executive Directors. In
particular:
Clarity
Remuneration arrangements have defined parameters, which are clearly outlined in the Remuneration Policy.
Simplicity
The Group is committed to a simple reward structure, as outlined in the Remuneration Policy.
Risk
The Group’s existing remuneration arrangements operate under strict Government remuneration constraints. The
design of the new and any future variable remuneration schemes will have a robust link between pay and performance,
with safeguards in place to ensure that outcomes, including risk adjustments, are appropriate.
Predictability
The Group discloses specific details, including maximum opportunity levels, performance targets and worked examples
of Executive Director remuneration.
Proportionality
The Committee may adjust formulaic variable remuneration outcomes where they are not proportionate to the financial
or non-financial performance of the Group.
Alignment to culture
The Remuneration Policy is aligned to the Group’s culture and values. Performance measures used to determine the
outcome of variable remuneration arrangements will reflect the culture and values of the Group, including its
commitment to ESG.
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Corporate Governance Remuneration Statement
Consideration of employment conditions elsewhere in the Group
The Policy and AIB’s approach to wider employee population is based on the principle that it should be sufficient to attract and retain the best
talent and be competitive within our industry to deliver AIB’s strategy. The remuneration structure and quantum are driven by seniority and
accountability (mindful of restrictions), as well as market practice, although the remuneration structures are broadly aligned throughout the Group.
The following provides examples of areas of alignment between the remuneration of Executive Directors and the wider workforce:
(a) The Remuneration Policy and the wider Group Remuneration Policy are based on the same principles.
(b) AIB’s current remuneration structure for all employees predominantly consists of fixed-pay elements, encompassing base salary, allowances,
benefits (including healthcare) and employer pension contributions. All employees, including Executive Directors, are eligible for inclusion in a
variable remuneration scheme based on company performance, operating in line with remaining remuneration restrictions, which include a
limit on variable remuneration of € 20,000 per employee per year. Employees in the Republic of Ireland (‘ROI’), are able to participate in an
Approved Profit-Sharing Scheme (‘APSS’) and employees in the UK are able to participate in a Share Incentive Plan (‘SIP’) and from 2025,
subject to establishment and shareholder approval, ROI and UK employees will be able to participate in SAYE schemes.
(c) While there are certain benefits that increase based on seniority, e.g. non-pensionable allowances and employer pension contributions, there
are other aspects of remuneration for more junior employees that don’t apply to higher levels, e.g. overtime, progression and Temporary
Higher Level Allowance (‘THLA’).
During 2024, engagement took place with employees in relation to a number of changes made to the Group Remuneration Policy, including
healthcare benefits and variable remuneration.
Consideration of Shareholder Views
The Committee is committed to a transparent dialogue with shareholders on key remuneration matters. The Remuneration Policy and Report
provide shareholders with a detailed understanding of the decisions that have been made during the year.
The Committee keeps up to date with the proxy adviser and shareholder-written guidelines that are considered when making decisions in respect
of the remuneration of the Executive Directors.
Remaining Remuneration Constraints
AIB’s inability to implement market-aligned remuneration practices on an equal footing with competitors, in particular, for senior leadership and key
talent, represents a key material risk to the Group. The Committee monitors and endeavours to address this risk on an ongoing basis.
In December 2022, the Irish Government eased a number of remuneration restrictions impacting the Group, while retaining the cap on base
salaries of € 500,000 and a limit on variable remuneration of € 20,000 in a twelve month period.
Should the remaining restrictions be eased, the Committee would consider the need to amend the Group and Director Remuneration Policies,
including seeking the necessary shareholder approvals for any such changes.
As part of the acquisition of Goodbody in 2021, it was agreed with the Department of Finance that the remuneration restrictions that apply to AIB
would not apply to Goodbody employees, and that they could continue to remain eligible for variable remuneration.
Compliance with Relevant Regulatory Requirements
Remuneration policies, procedures and practices reflect the provisions, where applicable, of national and EU legislation, continuing Irish Government
remuneration restrictions, the Capital Requirements Directive (‘CRD’), the Investment Firms Directive, corporate governance requirements issued
by the Central Bank of Ireland, and relevant guidelines issued by the European Banking Authority (‘EBA’) and other regulatory authorities.
The provisions of the EBA Guidelines on sound remuneration will continue to be applied to AIB’s new variable remuneration scheme. In particular,
the Remuneration Policy incorporates the provisions of the EBA Guidelines in relation to the ongoing design, implementation and governance
of remuneration.
Key Components of the Director Remuneration Policy
The following table sets out the key components of the Director Remuneration Policy, including their application to the recruitment and departure of
Executive Directors, which was approved by shareholders at the 2024 AGM.
Base Salary
To attract, motivate and
retain the right calibre of
individuals to support
the Group’s future
success and growth.
To the extent possible within the salary cap,
the base salaries of the Executive Directors
are:
• Set according to appropriate market ranges
that reflect the size, skills and level of
responsibilities attached to the role.
• Typically reviewed annually as part of the
annual pay review process.
To the extent possible within the salary cap, the base
salaries of the Executive Directors are:
• Reviewed by the Committee on behalf of the Board.
Increases in base salary may be awarded following
the outcome of the annual pay review or,
alternatively, to reflect a significant increase in the
scope of responsibility of an Executive Director.
• Set out in the Directors’ Remuneration Report.
• In the event of the removal of or any changes to the
salary cap, the Committee would consider the
impact of this on base salaries and other elements
of remuneration.
Allowances
To provide a
contribution to market-
aligned benefits and
allowances generally
available in the market.
Non-pensionable cash allowances may be
provided to eligible Executive Directors.
The maximum non-pensionable allowance is € 30,000
per annum.
Pay Element
Objective
Description
Performance Assessment and Maximum Potential Value
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Corporate Governance Remuneration Statement continued
Variable
Remuneration
Scheme
To incentivise Executive
Directors to deliver
strong financial and
strategic performance
aligned with the
performance, risk profile
and culture of the
Group.
Variable remuneration
arrangements are
designed in a way that
promotes the interests
of our stakeholders and
to comply with
applicable regulatory
requirements.
Variable remuneration schemes are based on
company performance.
Performance will typically be assessed based on
a one-year performance period, considering
a combination of financial and non-financial
performance.
A limit of € 20,000 per annum on any award or
combination of awards per Executive Director
will apply.
In the event of the removal of or any changes to the
Excess Bank Remuneration Charge, the Committee
would consider the impact of the limit on variable
remuneration within the Remuneration Policy.
The award may be granted either in cash or shares,
or a combination of both. The Committee will ensure
that the form of such an award complies with
applicable regulatory requirements and the remaining
government remuneration restrictions.
Under the Approved Profit-Sharing Scheme,
Executive Directors will have the opportunity to
acquire shares with their annual variable
remuneration award.
The Remuneration Committee has the discretion to
adjust the formulaic outcome of any award, including
the ability to apply risk adjustments. Awards are
subject to the Group's policy on malus and clawback,
including where participants leave the Group during
the year.
Pension
To enable Executive
Directors to plan for an
appropriate standard of
living in retirement.
Executive Directors are entitled to participate
in one of the Group’s defined contribution
schemes.
Executive Directors whose accumulated
pension benefits have exceeded or are likely
to exceed the Standard Fund Threshold
(‘SFT’) have the option of a 20% non-
pensionable allowance in lieu of employer
pension contribution.
Executive Directors are entitled to an employer
pension contribution of up to 20% of base salary.
In the event of the removal of or any changes to the
remuneration restrictions, the Committee would
consider the impact of this on pension arrangements.
Other
Benefits
To provide affordable
benefits in accordance
with general market
practice.
Benefits include healthcare, income protection,
death-in-service cover and free banking
services.
A functional car policy is in place. The Group
does not provide company cars outside of the
policy. Executive Directors may occasionally
avail themselves of a pool car and driver.
The Committee retains the right to provide
additional benefits subject to continuing
remuneration restrictions.
AIB intends, subject to shareholder approval,
to introduce a SAYE (‘Save As You Earn’)
scheme for employees, including Executive
Directors.
Not applicable.
Pay Element
Objective
Description
Performance Assessment and Maximum Potential Value
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Recruitment and Exit Under the Remuneration Policy
Remuneration
Statement
Recruitment Policy
(subject to compliance with remuneration restrictions)
Exit Policy
The following table provides additional detail in respect of the application of the Remuneration Policy to Executive Directors upon their
appointment, to the extent permitted within the remuneration restrictions and at the end of employment. In relation to AIB employees appointed
as Executive Directors, such elements will only apply from the date of appointment (and not retrospectively), and any existing awards will be
honoured and form part of ongoing remuneration arrangements.
Salary, fees,
benefits
and pension
• Base salary would be set at an appropriate level,
considering the factors mentioned in the Policy
table above.
• Benefits and pension will also be set, in line with
the Policy.
• If notice is served by either party, the Executive Director can
continue to receive base salary, benefits and pension for the
duration of their notice period.
• The Executive Director may be asked to perform their normal
duties during their notice period, or they may be put on
garden leave.
• The company may, at its sole discretion, terminate the
contract immediately, at any time after notice is served, by
making a payment in lieu of notice equivalent to salary,
benefits and pension, with any such payments being paid in
monthly instalments over the remaining notice period.
• Benefits may also be provided in connection with termination of
employment and may include, but are not limited to, statutory
payments, outplacement, legal fees and payments in respect of
accrued holiday.
Relocation
• If an Executive Director needs to re-locate in order
to take up the role, the company may pay to cover
the costs of relocation, including (but not limited to),
actual relocation costs, temporary accommodation
and travel expenses.
Not applicable
Buyout awards
• For external candidates, the Committee may (if it is
considered appropriate) provide a buyout award
equivalent to the value of any outstanding incentive
awards that will be forfeited on cessation of
previous employment.
• To the extent possible, the buyout award will be made
on a broadly like-for-like basis. The award will take
into account the performance conditions attached to
the vesting of the forfeited incentives, the timing of
vesting, the likelihood of vesting and the nature of the
awards (cash or equity).
Not applicable
Variable
Remuneration
Scheme
• Joiners may receive a pro-rated award based on their
employment as a proportion of the financial year, and
targets may be different from those set for other
Executive Directors.
• Good leavers will remain eligible to receive a vested award
at the usual time, with performance measured at usual time.
The award will normally be pro-rated for service during the
financial year.
• Bad leavers will not normally be eligible to receive an award.
Notes to the Remuneration Policy Table
Minor amendments
The Committee may amend the arrangements for the Executive Directors, as described in the Policy, for regulatory, exchange control, tax or
administrative purposes, or to take account of a change in legislation or regulation.
Non-Executive Director Fees
Non-Executive Directors are paid a basic, non-pensionable fee of € 65,000 in respect of service as a Director, and additional non-pensionable
remuneration in respect of other responsibilities, such as for serving as Chair or being a members of Board Committees, or performing the role of
Deputy Chair or Senior Independent Director. Current or former Directors who serve on the board of any Group Irish subsidiary company are also
paid a non-pensionable flat fee for their services as a Director, chair or for membership of Board Committees. AIB will reimburse any reasonable
expenses incurred in carrying out Non-Executive Director duties (and the related tax if applicable).
Legacy arrangements
For the avoidance of doubt, the Committee may approve payments to satisfy commitments agreed prior to the approval of this Remuneration
Policy, and any commitment made to a person before that person became an Executive Director.
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Corporate Governance Remuneration Statement continued
Discretion
The Committee operates the variable remuneration scheme according to the rules of the scheme. The Committee retains discretion as to the
operation and administration of the scheme, within the limits of its rules, including but not limited to:
• participants;
• timings of grant and/or payment;
• award size and/or payment;
• settlement of the award;
• choice and adjustment of performance measures and targets;
• adjustment to outcomes if they are considered to be inappropriate, taking into account any relevant factors;
• measurement of performance in certain circumstances, such as change of control or other corporate events; and
• determination of a good leaver.
Service Agreements and Letters of Appointment
All Executive Directors have a service contract, whereas all Non-Executive Directors have a letter of appointment.
In respect of Executive Directors, no service contract exists between the company and any Director that provides for a notice period from the
company of greater than one year.
Non-Executive Directors are appointed for an initial term of three years. Terms of office for Non-Executive Directors will not be extended beyond
nine years in total, unless the Board, on the recommendation of the Nomination and Corporate Governance Committee, concludes that such
extension is necessary, appropriate and in compliance with applicable regulatory requirements and approvals.
All Directors, should they choose to stand, are subject to annual re-election by shareholders.
External appointments
Subject to the advance approval of the Board, Executive Directors may accept one external appointment as a Non-Executive Director and retain
the fees. Neither Executive Director currently serves in any external paid roles.
Malus and clawback
The circumstances under which the Committee may consider it appropriate to apply clawback and/or malus to the variable remuneration scheme
include, but are not limited to, those summarised below:
• behaviour by a participant which fails to reflect AIB’s governance and business values;
• the extent to which any condition satisfied was based on an error, or on inaccurate or misleading information or assumptions which resulted
either directly or indirectly in an award being granted or vesting to a greater extent than would have been the case had that error not been made;
• material adverse change in the financial performance of AIB or any division in which the participant works and/or worked;
• a material financial misstatement of AIB’s audited financial accounts (other than as a result of a change in accounting practice);
• any action which results in or is reasonably likely to result in reputational damage to AIB;
• a material failure in risk management;
• corporate failure;
• negligence or gross misconduct of a participant; and/or
• fraud effected by or with the knowledge of a participant.
Other elements of remuneration are not subject to malus and clawback provisions.
Executive Directors’ remuneration (audited)
The following table details the total remuneration of the Directors in office during 2024 and 2023:
2024
2023
Salary
Pension
contribution1
Annual
taxable
benefits2
Total
fixed
Variable
remuneration
Total
Salary
Pension
contribution1
Annual
taxable
benefits2
Total
fixed
Variable
remuneration
Total
Remuneration
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
Executive Directors
Colin Hunt
500
100
31 631
13
644
500
100
— 600
13
613
Donal Galvin
485
97
31 613
13
626
485
97
15 597
13
610
985
197
62 1,244
26
1,270
985
197
15 1,197
26
1,223
1. Pension Contribution represents agreed payments to a defined contribution scheme, to provide post-retirement pension benefits for Executive Directors from the
normal retirement date, and (ii) an allowance in lieu where Executive Directors’ accumulated pension benefits have exceeded or are likely to exceed the Standard
Fund Threshold (‘SFT’).
2. Annual Taxable Benefit represents a non-pensionable cash allowance in lieu of a company car, medical insurance and other contractual benefits.
Fixed Remuneration (audited)
Base salaries of the Chief Executive Officer and the Chief Financial Officer were € 500,000 and € 485,000 respectively and remained unchanged
from 2023. The Chief Executive Officer and Chief Financial Officer received a non-pensionable cash allowance of € 30,000.
The Chief Executive Officer received an employer pension contribution of 20% (€ 100,000) which was taken as an allowance in lieu of pension
contribution. The Chief Financial Officer also received an employer pension contribution of 20% (€ 97,000).
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Variable Remuneration Scheme
The table below provides a summary for the 2024 variable remuneration scheme outcome. Measures and performance targets were agreed by the
Remuneration Committee and align with the Group’s ongoing strategy.
The Scheme has a Group Profit underpin as its first component. This underpin is a minimum level of profit that must be achieved in order to trigger
an award under the Scheme. The underpin was achieved for the 2024 performance year.
Weighting
Achieved
Financial measures (60%)
Threshold
Target
Maximum
Underlying Profit
24%
90% Target
Target
110% Target
Stretch
RoTE
24%
90% Target
Target
110% Target
Stretch
Costs
12%
Target
Achieved
Achieved/Not Achieved
Non-financial measures (40%)
Green Finance
13.3%
AIB performed strongly in 2024 against its ambitious targets for green lending.
This has been a key tenet of the Group’s Sustainability Strategy.
I&D – Gender Balance
13.3%
AIB is committed to gender balance across the Group. AIB’s ongoing target
is to maintain gender balance (40%-60% female) which has been achieved.
Customer Satisfaction
13.3%
Enhancing customer experience is of the utmost importance. We track customer
satisfaction across a number of metrics and we are delivering strongly against them.
Further information on Green Finance, I&D – Gender Balance and Customer Satisfaction can be found on pages 53 of this Report.
The Committee considered the formulaic variable remuneration scheme and deemed it appropriate within the wider financial and non-financial
performance of the business, and the Executive Directors. As such no, adjustments were applied.
Based on performance during the year, the amounts that Executives will receive are set out below.
Executive
Annual incentive outcome
% of Salary
€ ’000
Colin Hunt
2.5
12.7
Donal Galvin
2.6
12.7
The 2024 variable remuneration scheme outcome will be paid in cash. Executive Directors are able to participate in the Approved Profit-Sharing
Scheme using cash awarded under the 2024 variable remuneration scheme to acquire shares in the company.
Directors’ shareholdings and share interests
Under the Remuneration Policy, Executive Directors are not currently subject to shareholding requirements, due to the remuneration restrictions in place.
Please refer to page 173 for details of the Directors’ shareholdings and interests.
Payments to former Directors and for loss of office
There were no payments made to former Directors or payments to Directors for loss of office during the 2024 financial year.
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Corporate Governance Remuneration Statement continued
Non-Executive Directors’ remuneration (audited)
The following table details the total remuneration of the Directors in office during 2024 and 2023:
20244
2023
Director’s Fees
Director’s Fees
€ 000
€ 000
Non-Executive Directors1
Anik Chaumartin
80
80
Basil Geoghegan
75
75
Tanya Horgan
80
80
Sandy Kinney Pritchard
95
95
Elaine MacLean
85
85
Andy Maguire2
115
110
Brendan McDonagh (Deputy Chair)
135
135
Helen Normoyle3
188
186
Ann O'Brien4
130
119
Fergal O'Dwyer5
155
155
Jim Pettigrew (Chair)
365
365
Jan Sijbrand
80
80
Raj Singh
80
80
Total
1,663
1,645
Former Non-Executive Directors
Anne Maher6
—
19
1. All Non-Executive Directors were paid a basic, non-pensionable fee in respect of service as a Director of € 65,000 and additional non-pensionable remuneration in
respect of other responsibilities, such as through the chairing or membership of Board Committees or performing the role of Deputy Chair or Senior Independent
Director. Current or former Directors who serve on the board of any Group Irish subsidiary company are also paid a non-pensionable flat fee for their services as a
Director, chairing or membership of Board Committees.
2. Andy Maguire was paid € 35k in 2024 (2023: € 30k, appointed 17 February 2023) in respect of his appointment as a Director of AIB Mortgage Bank U.C.
3. Current or former Non-Executive Directors of AIB Group plc and Allied Irish Banks, p.l.c., as applicable, who also serve as Directors of AIB Group (UK) p.l.c.
(‘AIB UK’) are separately paid a non-pensionable flat fee, which is independently agreed and paid by AIB UK, in respect of their service as a Director of that
company. In that regard, Helen Normoyle earned fees during 2024 of € 73k (2023: € 71k).
4. Ann O’Brien was paid € 40k in 2024 (2023: € 29k, appointed 11 April 2023) in respect of her appointment as a Director of EBS d.a.c.
5. Fergal O’Dwyer earned fees during 2024 of € 80k (2023: € 80k) in his role as Director and Chair of the Audit Committee of Goodbody.
6. Anne Maher is a former Non-Executive Director of Allied Irish Banks, p.l.c., who was a Director of the Corporate Trustee of the AIB Defined Contribution Scheme
during 2023, in respect of which she earned the fees as quoted.
Change in remuneration of Directors compared to employees
The table below shows the percentage change in total remuneration, using the single-figure methodology for the year ended 31 December 2024
for the Directors of the Company and the average of all permanent employees of the Group (excluding Executive Directors) on a full-time
equivalent basis. Over time this will build up to a five-year disclosure. The increases in total remuneration for Executive Directors resulted from
increases in their respective non-pensionable allowances. The increases for Non-Executive Directors generally related to some Directors being in
roles with subsidiary boards for the full year, having commenced these roles during 2023. The average increase for employees reflects a
combination of annual pay review, promotions where applicable, the introduction of healthcare benefits for all employees, a higher variable
remuneration scheme award and a one-off voucher award to eligible employees (which Executive Directors were not eligible for).
Remuneration
(% change)
Colin Hunt
5%
Donal Galvin
3%
Anik Chaumartin
—
Basil Geoghegan
—
Tanya Horgan
—
Sandy Kinney Pritchard
—
Elaine MacLean
—
Andy Maguire
5%
Brendan McDonagh (Deputy Chair)
—
Helen Normoyle
1%
Ann O'Brien
9%
Fergal O'Dwyer
—
Jim Pettigrew (Chair)
—
Jan Sijbrand
—
Raj Singh
—
Average for employees
8%
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Pillar 3 and other Remuneration Disclosures
The Group publishes additional remuneration disclosures in its annual Group Pillar 3 Report. These disclosures provide further information about
the Group’s remuneration policies and practices and, more specifically, qualitative information about:
(a) The bodies that oversee remuneration.
(b) The design and structure of the remuneration system for those individuals who have been identified as Material Risk Takers (‘MRTs’).
(c) The ways in which current and future risks are considered in remuneration processes.
(d) The ratios between fixed and variable remuneration, which are set in accordance with the regulatory requirements.
(e) The ways in which the Group links performance and remuneration.
(f) The adjustment of remuneration to take account of long-term performance.
(g) The main parameters and rationale for the variable remuneration schemes for which MRTs are eligible.
(h) The use of derogations in Article 94(3) of the CRD.
These disclosures also include quantitative information, in aggregate form, about the amounts and structure of the remuneration of MRTs.
The Group’s Pillar 3 Report is available on the Group website – www.aib.ie/investorrelations.
EBA remuneration benchmarking requirements require the Group to disclose remuneration data in respect of all staff, MRTs and high earners
(those earning above € 1.0 million) to the Central Bank of Ireland. The Group continued to comply with these reporting requirements during 2024.
There were no employees whose total remuneration exceeded € 1.0 million during 2024.
During 2024, the Group published its Gender Pay Gap Reports in relation to its UK- and ROI-based employees. These disclosures are available at
www.aibgb.co.uk and www.aib.ie respectively.
Material Risk Takers (‘MRTs’) and Risk Oversight
The Group is required to maintain a list of employees whose professional activities have the potential to have a material impact on the Group’s risk
profile. The list of MRTs is prepared using a combination of qualitative and quantitative criteria in accordance with the relevant EU regulations and
guidelines, together with additional criteria specific to the Group’s structure, business activities and risk profile. The list is prepared at Group and
subsidiary company levels.
Group Risk assesses the risks impacting the Group, including performance against the Group’s Risk Appetite Statement, to ensure that the
Remuneration Policy is aligned with the Group’s risk profile. The Chief Risk Officer reviews the list of MRTs in conjunction with Group Reward and
provides the Committee with an annual assessment of the risks facing the Group, to ensure that policies and practices are consistent with and
promote sound and effective risk management.
Support for Committee
The Committee was supported in its work by the Group Reward team and by Korn Ferry as the external remuneration consultants appointed by
the Committee in October 2022. Korn Ferry is a signatory to the Voluntary Code of Conduct in relation to remuneration consulting in the UK.
Aside from their work supporting the Committee, during 2024, Korn Ferry provided professional services in the ordinary course of business to AIB.
The Committee is satisfied that the advice received is independent and objective.
Performance graph and table
The chart below illustrates the TSR performance of AIB since 2022
against the ISEQ All Share/FTSE 350 Banks, which has been
selected as being an appropriate index for comparison purposes.
TSR Performance
Shareholder votes on remuneration
At the 2024 AGM the shareholders passed the annual advisory vote
on the annual remuneration report and remuneration policy. The voting
results were as follows:
Resolution
Votes/%
For
Against
Withheld
Directors’
Remuneration
Report
(2024 AGM)
Shareholder
Votes
2,200,932,220
11,996,883
1,861,493
Votes as a
Percentage
99.46%
0.54%
—
Remuneration
Policy
(2024 AGM)
Shareholder
Votes
2,164,992,566
44,233,016
5,565,014
Votes as a
Percentage
98.00%
2.00%
—
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Corporate Governance Remuneration Statement continued
AIB
ISEQ All Share
FTSE 350 Banks
31/12/2021
30/6/2022
31/12/2022
30/6/2023
31/12/2023
30/6/2024
31/12/2024
0
50
100
150
200
250
300
The Committee has overseen the
deployment of Artificial Intelligence (‘AI’)
capability as part of AIB’s ongoing
commitment to enhance its customer
service. The development of an AI centre
of excellence will be a key step towards
the successful implementation and
execution of the Group’s overall
strategic approach to AI
Ann O’Brien
Committee Chair
Chair Overview
On behalf of the Technology & Data Advisory Committee (the
‘Committee’), I am pleased to report on the Committee’s activities
during the financial year ended 31 December 2024 and provide an
overview of the workings of, and key matters considered by, the
Committee during the course of 2024.
In line with its Terms of Reference, which can be found on the Group’s
website at www.aib.ie/investorrelations, the Committee continues to
fulfil its oversight and advisory responsibilities as they relate to the
Group Technology Strategy in a number of its transformative and
evolving areas, including Data and Analytics, Cloud and Modern
Engineering, Customer Experience and Regulation and Resilience. In
particular, the Committee assesses and challenges the strategy,
governance and execution of matters relating to technology and data,
which includes cyber security (strategy) and data and analytics, and the
technology related deliverables for key change projects.
The Committee currently consists of four Non-Executive Directors and
two members of senior management, the Chief Technology Officer, and
the Chief Operating Officer, who are both members of the Executive
Committee. The Head of Technology Strategy & Transformation,
the Chief Data & Analytics Officer, the Data Protection Officer, a
representative of the Risk Function and the Group Head of Internal
Audit also attend meetings of the Committee, and the Chair of the AIB
UK Technology, Data and Resilience Committee can also attend if
required. In 2025, the Chief Information Security Officer will attend
Committee meetings.
Key Focus Areas
During 2024, the Committee considered and challenged a number of
key areas, including:
• The progress of the Group Technology Strategy in the area of
Customer Experience, in particular with regard to customer digital
functionality where a number of enhancements to the current mobile
app were delivered and upgrades to the Group’s digital offerings
were considered.
• The development of the Group’s strategic approach to AI, including
how it would be leveraged in a safe and responsible way, and its
inextricable link to the Group’s data and technology architecture.
• The ongoing delivery of key transformation programmes across the
Group, where the Committee was very focused on the positive
Customer First outcomes and the forecasted benefits associated with
these programmes.
• Closer oversight of how the Group was meeting resilience demands
as regards its technology infrastructure and progressing regulatory
obligations. Over the course of 2024, this included periodic updates
on legacy systems, AIB’s readiness for the January 2025
operationalisation of SEPA Instant (‘Incoming’) and the Digital
Operational Resilience Act, and enterprise information security.
Looking ahead to 2025
In 2025, as the momentum behind delivering the Group Technology
Strategy in a controlled manner is maintained, AIB will invest for its
future by harnessing new technology to maximise efficiency and
productivity, particularly in the areas of AI, Cloud and Modern
Engineering, and it will launch the Group’s Enterprise Cyber Security
Strategy 2025-2026. There will also be a laser focus on the delivery of
impactful digital customer capability enhancements.
Technology & Data Advisory Committee
Eligible to
attend
Attended
Ann O’Brien
Non-Executive Director – Chair
5
5
Tanya Horgan
Non-Executive Director
5
5
Andy Maguire
Non-Executive Director
5
5
Helen Normoyle
Non-Executive Director
5
5
Graham Fagan
Chief Technology Officer
5
5
Andrew McFarlane
Chief Operating Officer
5
5
I would like to take this opportunity to thank my fellow Committee
Members and the wider Technology and Data, and Operations and
Business Services teams for their significant commitment throughout 2024.
Ann O’Brien
Committee Chair
Q&A What do you see as the emerging themes for the
Committee in 2025 and do you foresee any particular challenges?
A. It is an exciting time to be a committee member with
responsibility for oversight of technology and data, particularly
with the momentum behind the Group’s strategic ambitions in the
area of digitalisation. In 2025, the Committee will continue to have
oversight of the Group’s plans to upgrade its digital offering for
customers. The Committee will also monitor the implementation of
the Group’s Enterprise Cyber Security Strategy, which will ensure
that the organisation is safeguarding its customer and digital
ecosystem to allow it to deliver its strategic priorities.
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Report of the Technology and Data Advisory Committee
Sustainability is at the heart of our strategy
and the Committee remains focused on its
execution, with an unwavering
commitment to integrating environmental,
social and governance considerations into
our strategic, financial and investment
decision-making to promote sustainable
development
Helen Normoyle
Committee Chair
Chair Overview
On behalf of the Sustainable Business Advisory Committee
(the ‘Committee’), I am pleased to report on the Committee’s activities
during the financial year ended 31 December 2024 and provide an insight
into the workings of, and key matters considered by, the Committee in
2024 and our intended focus in 2025.
In line with its Terms of Reference, which can be found on the Group’s
website at www.aib.ie/investorrelations, the Committee oversees delivery
of the group’s sustainability strategy (the ‘Strategy’) and related
performance. Throughout 2024, the Committee supported the execution
of the Strategy. Specifically, the Committee considered and advised
the Board on material sustainability matters across the Group’s three
sustainability strategic pillars, as set out below: Climate and
Environmental Action, Societal and Workforce Progress and Governance
and Responsible Business. Against a backdrop of an evolving regulatory
landscape, the Committee oversaw the development of AIB’s
sustainability-related disclosures and reporting, including the move from
voluntary reporting to the introduction of the Corporate Sustainability
Reporting Directive (‘CSRD’).
Committee Membership
As at the end of December 2024, the Committee membership consisted
of four Non-Executive Directors, one Executive Director – the Chief
Executive Officer – and three members of the Executive Committee.
The Chief Risk Officer is invited to attend all meetings of the Committee.
Effective 1 January 2025, the Chief Customer Officer, Orlaith Ryan, will
join the Committee, further strengthening the Committee’s customer,
centric focus. The Chief People Officer, David McCormack, will step down.
Recognising the importance of strong oversight and governance to our
sustainability agenda, and to ensure co-ordination with the work of our
colleagues on the Board Audit Committee (‘BAC’) and Board Risk
Committee (‘BRC’), cross-membership of these Committees is in place.
Anik Chaumartin is also a BAC member and Jan Sijbrand and Raj Singh
are also members of the BRC.
Key Focus Areas
The key matters considered and challenged by the Committee in 2024 are:
• ESG Transformation and Targets;
• Mobilisation of CSRD and readiness for implementation;
• Materiality Exercise Refresh;
• Development of the Social Agenda including Vulnerable Customers;
• ESG propositions;
• Culture and Reputation update;
• AIB’s environmental footprint;
• Detailed Sustainability Report;
• Regulatory Engagement and expectations;
• Employee communications on ESG matters;
• Collaboration with Community partners.
In 2024, AIB hosted its 8th consecutive Sustainability Conference, which
once again had record in-person and online attendance. The conference
coincided with the announcement of AIB’s € 20 m commitment to
sustainability-related education, including the sponsorship of the AIB
Trinity Climate Hub, Innovate for Ireland and AIB’s new Steps to
Sustainability Programme for small and medium-sized enterprises.
During the year, the Committee received training from subject-matter
experts on Climate Science, Climate Policy, Environmental Impacts and
Dependencies, as well as the related regulatory expectations. This
training helped the Committee to gain external insights and
perspectives to inform the work of the Committee.
In December 2024, Committee Members attended an AIB Community
event that brought to life the direct impact of AIB’s community activity.
Committee Membership
Sustainable Business Advisory Committee
Eligible
to attend
Attended
Helen Normoyle
Non-Executive Director – Chair
6
6
Anik Chaumartin
Non-Executive Director
6
6
Jan Sijbrand
Non-Executive Director
6
6
Raj Singh
Non-Executive Director
6
3
Colin Hunt
Chief Executive Officer
6
5
Mary Whitelaw
Chief Strategy and Sustainability Officer
6
6
David McCormack Chief People Officer
6
6
Paul Travers
Managing Director, Climate Capital
6
5
Looking ahead to 2025
In 2025, there will be an ongoing focus on the implementation of the
Sustainability Strategy, in line with the Group strategic ambition of
Greening Our Business.
As I prepare to complete my tenure on the Committee and Board of AIB,
I would like to take this opportunity to thank my fellow Committee Members
and the wider Sustainability Team for their unwavering commitment and
laser focus on the integrity and delivery of AIB’s Sustainability agenda.
I have been incredibly proud to Chair the AIB Sustainable Business
Advisory Committee for the last eight years as we guided, challenged and
supported the team to fully embed sustainable practices as core to the
bank’s business strategy. I would like to thank David for his significant
contribution during his membership and welcome Orlaith to the Committee.
Helen Normoyle
Committee Chair
Q&A How has the role of the Committee evolved during
your tenure?
A. It has been a privilege to have served as Chair of the Committee
since its inception in 2016 through to 2025. Over that period, AIB’s
approach to sustainability has evolved considerably. Through the
Committee, we have incubated and supported the Group’s approach
to sustainability from an environmental, social and governance
perspective and we have actively supported the integration of these into
AIB’s broader governance structures. The Committee has overseen
AIB’s successful deployment of over € 16 billion in green and transition
finance to support its customers, the delivery of key green and social
infrastructure, such as renewable energy and housing, the progress
made in significantly reducing AIB’s Scope 1 & 2 emissions, the
introduction of climate and environment-related risk management
practices, the introduction of AIB’s €1m Community Fund and the
growth of Ireland’s largest sustainability conference.
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Report of the Sustainable Business Advisory Committee
Directors’ Statement on risk management and internal controls
The Board of Directors is responsible for the Group’s system of internal
controls, which is designed to manage the risk of failure to achieve
business objectives and can provide only reasonable and not absolute
assurance against material misstatement or loss. Further details are
available in the Governance in Action section on pages 126 to 127. The
Group has implemented a framework and policy architecture covering
business and financial planning, corporate governance and risk
management. The system of internal controls is designed to ensure that
there is thorough and regular evaluation of the Group’s risks in order to
mitigate accordingly, rather than to eliminate risk. This is done through
a process of identification, assessment, management, measurement,
monitoring and reporting. This process includes an assessment of the
effectiveness of internal controls, which was in place for the full-year
under review up to the date of approval of the financial statements, and
which accords with the Central Bank of Ireland’s Corporate Governance
requirements for Credit Institutions 2015 and the UK Corporate
Governance Code 2018.
Supporting this process, the Group’s system of internal controls is
based on the following:
Board governance and oversight
• The Board has ultimate responsibility for risk appetite and for
reviewing the effectiveness of the system of internal control on a
continuous basis and is supported by a number of sub-committees,
including the Board Audit Committee (‘BAC’), Board Risk Committee
(‘BRC’), Sustainable Business Advisory Committee (‘SBAC’),
Technology and Data Advisory Committee (‘TDAC’), Remuneration
Committee (‘RemCo’) and Nomination & Corporate Governance
Committee (‘NomCo’). Further information on these sub-committees
can be found on pages 144 to 168.
• The BRC is appointed by the Board to assist the Board in fulfilling its
oversight responsibilities. It is responsible for fostering sound risk
governance across all of the Group’s finances and operations
(including all operations, legal entities and branches in ROI, the UK
and the USA), taking a forward looking perspective and anticipating
changes in business conditions. The Committee discharges its
responsibilities in ensuring that risks within the Group are
appropriately identified, reported, assessed, managed and controlled
to include the commission, receipt and consideration of reports on
key strategic and operational risk issues. It ensures that the Group’s
overall actual and future risk appetite statement and strategy, taking
into account all types of risks, are aligned with the business strategy,
objectives, corporate culture and values of the institution, while
promoting a risk awareness culture within the Group. The BRC
oversees and challenges the risk management function, which is
managed on a day-to-day basis by the Chief Risk Officer (‘CRO’),
and liaises regularly with the CRO to ensure the development and
on-going maintenance of a risk management system within the
Group that is effective and proportionate to the nature, scale and
complexity of the risks inherent in the business. The BRC provides
qualitative and quantitative input to the RemCo on the alignment of
variable remuneration to risk performance for material risk-takers.
The Committee further provides advice on the ongoing viability of the
Group, taking into account the Group’s overall position and Principal
Risks. The committee is composed of Independent Non-Executive
Directors and operates under Board-approved terms of reference.
The Chief Financial Officer (‘CFO’), the Chief Risk Officer (‘CRO’),
the Group Internal Auditor and the External Auditor attend the
meetings of the BRC, where appropriate.
• The BAC is appointed by the Board to assist it in fulfilling its
oversight responsibilities in relation to the quality and integrity of the
Group’s accounting policies, financial and narrative reports, non-
financial disclosures, and disclosure practices. The Committee also
ensures the effectiveness of the Group’s internal control, risk
management, and accounting and financial reporting systems and
the adequacy of arrangements by which staff may, in confidence,
raise concerns about possible improprieties in matters of financial
reporting or other matters. It also ensures the independence and
performance of the internal and external auditors. The BAC works to
ensure that this purpose is fully aligned to the Group’s strategy and
values, considering the interests of stakeholders while operating
within all applicable regulatory and statutory requirements. The BAC
is composed of Independent Non-Executive Directors and operates
under Board-approved terms of reference. Neither the Chair of the
Board nor the CEO are permitted to be members of the BAC. The
CFO, the CRO, the Group Internal Auditor and the External Auditor
attend the meetings of the BAC, where appropriate.
• The RemCo is appointed by the Board to ensure the Group’s overall
Remuneration Policy for employees and directors, designed to
support the long-term business strategy, values and culture of the
Group, as well as to promote effective risk management, and reward
fairly and responsibly, with a clear link to corporate and individual
performance in compliance with applicable legal and regulatory
requirements.
• The SBAC was established by the Board to act as an Advisory
Committee, supporting the execution of the Group’s sustainable
business strategy in accordance with the approved Group Strategic
and Financial Plan. The Strategy includes the development and
safeguarding of the Group’s social licence to operate through
Environmental, Social and Governance activities, alignment with the
United Nations Environmental Programme Finance Initiative
(‘UNEPFI’) Principles for Responsible Banking, UN Global Compact
and the Group’s Pledge to Do More.
• The TDAC is appointed by the Board to assist in fulfilling its oversight
responsibilities by reviewing and challenging the strategy,
governance and execution of matters relating to technology, data and
cyber security and to review and assess technology-related
deliverables for key change projects.
• The NomCo is appointed by the Board to support and advise it in
fulfilling its oversight responsibilities in relation to the composition
of the Board. It does this by ensuring that the Board comprises
individuals who are best able to discharge the duties and
responsibilities of Directors, by leading the process for nominations
and appointments to the Board and Board Committees, as
appropriate, and making the recommendations in this regard to the
Board for its approval. It also supports and advises the Board in
fulfilling its oversight responsibilities in relation to the composition of
the Group’s Executive Committee and the composition of the Boards
of its Irish material subsidiaries. It keeps Board governance
arrangements, corporate governance compliance and related
policies under review, and makes appropriate recommendations
to the Board to ensure that corporate governance practices are
consistent with best practice standards. The AIB Group (UK) p.l.c.
Board has appointed a Board Nomination Committee under a
separate Terms of Reference.
Executive Risk management and controls
• The Executive Committee (‘ExCo’) is the most senior executive
committee of the Group. Subject to the financial and risk limits set by
the Board, and excluding those matters that are reserved specifically
for the Board, the ExCo has primary authority and responsibility for
the day-to-day operations of, and the development of strategy for, the
Group. The ExCo works with and advises the CEO, ensuring a
collaborative approach to decision-making and collective ownership
of strategy development and implementation, including promoting
action to address performance issues as required. The ExCo has
delegated certain functions to a number of executive sub-
committees, which operate under Terms of Reference approved by
the ExCo and subject to formal review every two years.
• The Group Risk Committee (‘GRC’) was established by, and is
accountable to, the ExCo to set policy and monitor all risk types
across the Group and to enable delivery of the Group’s risk strategy.
It is the primary second line of defence risk management committee
of the Group. It provides oversight and monitors strategic business
initiatives that have material implications for the Group, to ensure
that they align and are consistent with the Group Risk Appetite and
other risk policies as approved by the BRC.
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Internal Controls
• The Group Asset and Liability Committee (‘ALCo’) is a sub-
committee of the ExCo and acts as the Group’s strategic
and business decision, making forum for balance sheet management
matters. It is tasked with decision-making in respect of the Group’s
balance sheet structure, including capital, funding, liquidity, Interest
Rate Risk in the Banking Book (‘IRRBB’) from an economic value
and Net Interest Margin (‘NIM’) perspective, and Foreign Exchange
(‘FX’) hedging risks and other market risks to ensure that it enables
the delivery of the Group’s strategic plan. It provides oversight of
Funding and Liquidity, Capital, Market and Equity/Investments Risk
and Balance Sheet pricing, in line with the relevant Frameworks and
policies (approved by GRC) across the Group, in accordance with
Risk Appetite.
• There is a centralised risk control function headed by the CRO, who
is responsible for independent challenge, ensuring that risks are
understood, managed, measured, monitored and reported on, and
for reporting on risk mitigation actions.
• The Risk function is responsible for establishing and embedding risk
management frameworks, ensuring that material risk policies are
reviewed, and reporting on adherence to risk limits, as set by the
Board of Directors.
• The Group’s risk profile is measured against its risk appetite and
exceptions are reported to the GRC and BRC through the CRO
report. Material breaches of risk appetite are escalated to the Board
and reported to the Central Bank of Ireland/Joint Supervisory Team
(‘JST’).
• The centralised credit function is headed by a Chief Credit Officer,
who reports to the CRO.
• Compliance, which is part of the Risk function, provides the
interpretation and assessment of compliance risk, specifically those
laws, regulations, rules and codes of conduct applicable to its
banking activities.
• There is an independent Group Internal Audit function that is
responsible for independently assessing the effectiveness of the
Group’s corporate governance, risk management and internal
controls, and reports directly to the Chair of the BAC.
• AIB employees who perform pre-approved controlled functions/
controlled functions meet the required standards as outlined in the
Group’s Fitness and Probity programme.
For further information on the risk management framework of the
Group, see pages 180 to 183 of this report.
In the event that material failings or weaknesses in the systems of risk
management or internal control are identified, Management is required
to attend the relevant Board forum to provide an explanation of the
issue and to present a proposed remediation plan. Agreed remediation
plans are tracked to conclusion, with regular status updates provided to
the relevant Board forum.
Given the work of the Board, BRC and BAC and representations made
by the ExCo during the year, the Board is satisfied that the necessary
actions to address any material failings or weaknesses identified
through the operation of the Group’s risk management and internal
control framework have been taken, or are currently being undertaken.
Taking this and all other information into consideration, as outlined
above, the Board is satisfied that there has been an effective system of
control in place throughout the year.
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Internal Controls continued
In accordance with provision 31 of the UK Corporate Governance Code
published in July 2018, the Directors have assessed the viability of the
Group, taking into account its current position, the prevailing economic
and trading conditions and principal risks facing the Group over the
next three years to the end of 2027.
Horizon
The Directors concluded that three years was an appropriate period to
assess the viability of the Group, for the following reasons:
• It is the same period used within the Group for strategic and financial
planning process.
• The Group prepares its annual Internal Capital Adequacy
Assessment (‘ICAAP’) and Internal Liquidity Adequacy Assessment
(‘ILAAP’) on an annual basis using a three-year time horizon.
• A three-year time horizon is used for both internal and regulatory
stress testing. Where certain impacts can be assessed reliably
beyond the three-year forecast horizon, a quantification is performed
and considered.
• A three-year time horizon is consistent with the internal risk
management practices within the Group, including but not limited to:
setting of the Risk Appetite and the Material Risk Assessment, as
well as Recovery and Resolution planning.
Considerations in assessing viability of the Group
Assessment of prospects
The assessment of the Group’s prospects is built up based on the
current financial position of the Group, including its liquidity and funding
and capital position.
The Group’s fully loaded CET1 at 31 December 2024 is 15.1% against
a regulatory requirement of 11.4%, as set out on pages 40 to 42. The
Group’s LCR, of 201% and NSFR of 162% demonstrate a very strong
liquidity position as described on pages 235 and 240.
The Group has completed a review of its Strategy, covering the period
of assessment which is described on pages 14 to 15. As part of the
delivery of the Group’s Strategy, the Directors consider the risks facing
the Group, including those that would threaten the competitive position
of the business and its operational capacity, as well as the Group’s
governance and internal control systems.
Profitability and growth were reassessed in the annual planning
exercise covering the period 2025 to 2027, undertaken by the Group in
the second half of 2024. Given the changing banking landscape,
evolving operating environment and the interest rate outlook, the
Financial Plan (2025-2027) shows that the Group expects strong
profitability. The Board remains cognisant of and monitors a number of
headwinds to the credit environment, most notably geopolitical risks.
Assessment of risks
During the year, the Directors rely on the following processes to identify and
assess risks that could impact on the continued viability of the Group:
• The Group’s Material Risk Assessment process seeks to ensure that
all significant risks to which the Group is exposed have been
identified and are being appropriately managed. New and emerging
risks are also identified and mitigating actions are put in place.
• As part of the setting of the Group’s Risk Appetite, consideration is
given to the amount of risk that the Group is willing to accept in
pursuit of its strategic objectives.
• Internal stress testing of the Group’s capital and liquidity position is
conducted, using a variety of different macroeconomic scenarios.
• In recovery and resolution planning, consideration is given to market
factors and the operational resiliency of the Group.
• The regular reporting of the Group’s financial performance by the
Chief Financial Officer and the reporting of the Group’s risk profile by
the Chief Risk Officer.
• The provision of independent and objective assurance of the adequacy
of the design and operational effectiveness of the risk and control
environment by the Group Internal Audit to the Board Audit Committee.
• The Board Risk Committee oversees the Group’s risk management.
A full description of the principal risks facing the Group is provided in
the Risk Management section, individual risk types pages 179 to 246.
As part of the internal capital adequacy assessment process, material
risks to the Group’s financial performance are considered in terms of
their potential impact on the Group’s position. These risks are set out
on page 179. Stress testing not only includes changes in
macroeconomic forecasts but also other factors such as; financial crime
losses, disruption to IT systems or the cost of a cyber incident, as well
as financial loss arising from compliance or conduct issues.
In addition, the Group continues to work to understand and manage
risks that could arise in relation to climate risk, both in terms of the
transition to Net Zero and the physical risks due to climate change.
Assessment of viability
The financial planning process is the main tool for assessing the
continued financial prospects of the Group. The plan is a detailed three-
year financial forecast for each segment, and includes forecasts of
operating results, headcount, investment expenditure and new strategic
initiatives. Progress against the plan is reported monthly to the
Executive Committee and the Board. Updated forecasts are prepared as
required, and mitigating management actions are taken where required.
The Board considers the independent review of the plan by the Risk
function, covering the alignment of the plan with Group strategy and the
Risk Appetite. This review also identifies the key risks to delivery of the
Group’s plan.
The Group’s base case underpins the financial plan and reflects changes in
the macro-economic and market environment, and also includes the
consideration of downside scenarios.The first downside scenario centres
around deepening geopolitical tensions that weighs on global trade,
impacting supply chains which causes a spike in commodity prices. As a
consequence, inflation proves to be sticky and, on an annual basis, only
averages the 2% target in 2028. Central Banks are forced to maintain
interest rates at current levels until Q4 2025. Conditions in financial markets
remain tight, with rises in bond yields and credit spreads, while stock
markets are weaker. All major economies experience a shallow recession in
2025-26, followed by a sluggish recovery in activity. The changing political
landscape in Europe also creates uncertainty, affects sentiment, and widens
sovereign and corporate credit spreads.
The second downside looks to the rapid tightening of monetary policy
during 2022-23 which has a delayed impact on financial markets and wider
economic activity. Geopolitical tensions depresses consumer and business
confidence and there is a sharp contraction in economic activity as a result.
The severe downturn exposes underlying vulnerabilities in the financial
sector, especially in the global commercial real estate market and potential
credit stresses lead to increased defaults and instability within the financial
system. The slump in economic activity, in addition to financial instability
concerns, prompts central banks to lower interest rates below levels
assumed in the downside scenario above.
After assessing the Group’s prospects, risks, and reviewing the financial plan
as well as the results of stress testing scenarios, the Group continues to:
• demonstrate internal capital generation through continued profitability
in each of the forecast years;
• demonstrate capacity to carry out the proposed distribution strategy
to shareholders, including sustainability of dividends, as well as the
buyback strategy to return the states’ investment in the Group;
• remain in excess of its regulatory capital requirements; and
• have significant liquidity over its regulatory liquidity coverage ratio
and net stable funding ratio.
Finally the Group did not identify any material climate related risks for
the three year period under consideration. Climate risk in isolation is
not expected to have a material impact on ECLs.
Statement of viability
On the basis of the above, the Directors have a reasonable
expectation, taking into account the Group’s current position, and
subject to the identified risks and mitigating actions, that the Group will
be able to continue in operation and meet its liabilities as they fall due
over the three-year period of assessment.
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Viability Statement
The Directors of AIB Group plc (the ‘Company’) present their report
and the audited financial statements for the financial year ended
31 December 2024. The Statement of Directors’ Responsibilities is shown
on page 248.
For the purposes of this report, AIB Group or the Group comprises
the Company and its subsidiaries in the financial year ended
31 December 2024.
Results
The Group’s profit attributable to the equity holders of the Company
amounted to € 2,354 million and was arrived at as shown in the
consolidated income statement on page 259.
Dividend
The Board proposes to pay an ordinary dividend of 36.984 cent per
share (totalling € 861 million, based on the total number of ordinary
shares currently outstanding), payable on 9 May 2025 to shareholders on
the register on 28 March 2025. This is subject to shareholder approval at
the Annual General Meeting on 1 May 2025.
On 10 May 2024, the Company paid a final dividend for the year ended
31 December 2023 of 26.568 cent per share, totalling € 696 million, to
shareholders on the register at the close of business on 22 March 2024.
Buyback of ordinary shares
At an Extraordinary General Meeting (‘EGM’) on 2 May 2024, approval
was received to enter into a share purchase deed (‘Buyback Contract’)
between AIB and the Minister for Finance (the ‘Minister’) for an off-
market directed buyback by AIB of its ordinary shares from the Minister,
in a maximum consideration amount of € 999 million. The share
buyback was to be made at a price calculated in accordance with a
formula set out in the Buyback Contract. On 3 May 2024, the Group
announced that it had repurchased 198,233,951 ordinary shares,
representing approximately 7.6% of the issued share capital from the
Minister, for a total consideration of € 998,999,996. These shares were
repurchased at a price of € 5.0395 per ordinary share, and were
cancelled upon settlement.
At the Annual General Meeting (‘AGM’), the Board normally seeks, and has
received, a renewal of its authority from shareholders to undertake on-
market purchases of up to 10% of its ordinary shares. This was renewed at
the 2024 AGM. At the 2021 AGM, approval had been sought and was
received to enter into a Directed Buyback Contract (the ‘DBB Contract’)
with the Minister, the terms of which were renewed at the 2024 AGM and
permitted the Company to make off-market purchases of shares from the
Minister of up to 4.99% of the Company’s issued share capital in any 12
month period, with the agreement of the Minister at that time. Any such off-
market purchases would be made at the relevant market price, the
calculation of which was set out in the DBB Contract. The authority of the
Company to make such off-market purchases of its ordinary shares from
the Minister has been renewed at each AGM since 2021, most recently at
the AGM on 2 May 2024. On 2 September 2024, the Group announced
that it had repurchased 91,827,364 ordinary shares, representing
approximately 3.8% of the issued share capital from the Minister, for a total
consideration of € 500 million. These shares were repurchased at a price of
€ 5.445 per ordinary share, this being the closing price of the Group’s
ordinary shares on Euronext Dublin on 30 August 2024, and were
cancelled upon settlement.
At the AGM on 2 May 2024, approval was received for the making by the
Company of an Odd-lot Offer at any time within an 18 month period. The
terms of the Odd-lot Offer, and details on eligibility to participate, were set
out in the AGM Circular, dated 3 April 2024, and the Odd-lot Purchase
Contract and the Opt-Out Form were sent to all eligible shareholders. On
9 September 2024, the Group announced the Odd-lot Offer pursuant to
which, shareholders holding 20 or fewer ordinary shares, in certificated
form, were offered the opportunity to have their shares purchased by the
Company at a 5% premium to the volume-weighted average market
price of the shares traded on Euronext Dublin over the five consecutive
trading days up to and including 6 September 2024, as calculated on that
date. Following closure of the Odd-lot Offer on 7 October 2024, the
Company purchased 253,765 ordinary shares. These shares were
purchased at a price of € 5.65 each, and were subsequently cancelled.
Following the implementation of the Odd-lot Offer, the number of
certificated shareholders has reduced by 60,055.
A summary of transactions in own shares has been set out below and
further information is available in note 35 on page 320.
Par Value
Number of Shares
€ m
000s
At 1 January 2024
1,637
2,618,753
Share buybacks*
(182)
(290,315)
At 31 December 2024
1,455
2,328,438
*all of the purchased shares were cancelled
In accordance with regulatory requirements, the Company is required
to obtain prior approval from the ECB in order to undertake any share
buybacks (including share buybacks undertaken on a directed basis
with the Minister and share buybacks undertaken by way of the Odd-lot
Offer), and such approvals were received for all share buybacks
completed during the course of 2024. In this context, the Company has
received regulatory approval from the ECB to undertake a buyback of
ordinary shares in an aggregate consideration amount of up to € 1,200
million. Discussions with the Department of Finance in relation to a
potential directed buyback of ordinary shares from the Minister for
Finance are currently underway. Any buyback of ordinary shares would
be subject to the approvals of the Board, the Minister for Finance and
shareholders.
Going concern
The financial statements for the year to 31 December 2024 have been
prepared on a going concern basis, as the Directors are satisfied,
having considered the risks and uncertainties impacting the Group, that
it has the ability to continue in business for the period of assessment.
In making this assessment, the Directors have considered a wide range
of information relating to present and future conditions. This includes
capital forecasts and internally generated stress scenarios that take
account of geopolitical risks, the impacts of inflation, increased interest
rates and related impacts on unemployment and property prices. The
period of assessment used by the Directors is at least 12 months from
the date of approval of these annual financial statements.
Directors’ Compliance Statement
As required by section 225(2) of the Companies Act 2014, the Directors
acknowledge that they are responsible for securing the Company’s
compliance with its relevant obligations (as defined in section 225(1)
and section 1374). The Directors confirm that:
(a) a compliance policy statement (as defined in section 225(3) (a))
has been drawn up that sets out the Company’s policies and, in the
Directors’ opinion, is appropriate to ensure compliance with the
Company’s relevant obligations;
(b) appropriate arrangements or structures that are, in the Directors’
opinion, designed to secure material compliance with the relevant
obligations have been put in place; and
(c) a review of those arrangements or structures has been conducted
in the financial year to which this report relates.
Capital
Information on the structure of the Company’s share capital, including
the rights and obligations attaching to shares, is set out in the Schedule
on pages 320 to 321 and is part of note 35 to the consolidated financial
statements.
Accounting policies
The principal accounting policies, together with the basis on which the
financial statements have been prepared, are set out in note 1 to the
consolidated financial statements.
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Directors’ Report
for the financial year ended 31 December 2024
Review of principal activities
The statement by the Chair on pages 6 and 7, the review by the Chief
Executive Officer on page 8, and the Operating and Financial Review on
pages 24 to 39 contain an overview of the development of the business
of the Group during the year, of recent events, and of likely future
developments.
Directors
At 31 December 2024, the Board of Directors of the Company was
comprised of Jim Pettigrew, Anik Chaumartin, Donal Galvin, Basil
Geoghegan, Tanya Horgan, Colin Hunt, Sandy Kinney Pritchard,
Elaine MacLean, Andy Maguire, Brendan McDonagh, Helen Normoyle,
Ann O’Brien, Fergal O’Dwyer, Jan Sijbrand and Raj Singh. Biographical
details of all Directors are provided on pages 128 to 131.
Helen Normoyle is the Senior Independent Non-Executive Director
and was appointed to this position on 1 July 2022. Helen Normoyle
has served as an Independent Non-Executive Director since
December 2015.
The appointment and replacement of Directors, and their powers, are
governed by law and the Constitution of the Company, and information
on these is set out in the Schedule on page 175.
Directors’ and Secretary’s Interests in Shares
The beneficial interests of the Directors and the Company Secretary
in office at 31 December 2024, and of their spouse, civil partner and
minor children, in the Company’s ordinary shares as disclosed to the
Company are as follows:
Ordinary shares
31 December
2024
1 January
2024
Directors:
Anik Chaumartin
—
—
Donal Galvin
—
—
Basil Geoghegan
9,835
9,835
Tanya Horgan
10,000
—
Colin Hunt
62,487
60,000
Sandy Kinney Pritchard
10,000
10,000
Elaine MacLean
—
—
Andy Maguire
30,000
30,000
Brendan McDonagh
20,000
20,000
Helen Normoyle
2,000
2,000
Ann O’Brien
—
—
Fergal O’Dwyer
10,000
10,000
Jim Pettigrew
25,000
25,000
Jan Sijbrand
—
—
Raj Singh
—
—
Company Secretary:
Conor Gouldson
52,226
50,210
There is no requirement for Directors, or the Company Secretary, to
hold shares in the Company.
There were no changes in the interests of the Directors and the
Company Secretary shown above between 31 December 2024 and
27 February 2025.
Directors’ Remuneration
The Group’s policy with respect to Directors’ remuneration is included
in the Corporate Governance Remuneration Statement on pages 157
to 166. Details of the total remuneration of the Directors in office during
2024 and 2023 are shown in the Corporate Governance Remuneration
Statement on pages 163 and 165.
Non-Financial Statement
Our Sustainability Statement, in accordance with Part 28 of the
Companies Act 2014, including the requirements of the European
Union (Disclosure of Non-Financial and Diversity Information by certain
large undertakings and groups) Regulations 2017 (as amended by
Statutory Instrument No. 410 of 2018), is included in the Sustainability
Report on pages 43 to 121 and forms part of this report.
Substantial interests
At 31 December 2024, the Company had been notified of the following
substantial interests:
• The Minister for Finance in Ireland held 18.99% of the total voting
rights attached to the issued share capital.
• BlackRock, Inc. held 10.59% of the total voting rights attached to the
issued share capital.
• Massachusetts Financial Services Company held 8.18% of the total
voting rights attached to the issued share capital.
• Bank of America Corporation held 4.42% of the total voting rights
attached to the issued share capital.
• Wellington Management Group LLP held 3.01% of the total voting
rights attached to the issued share capital.
The following interests were disclosed to the Company in accordance
with the Market Abuse Regulation and Part 5 of the Transparency
Regulations and the related transparency rules during the period from
31 December 2024 to 27 February 2025:
• The Minister for Finance in Ireland held 12.39% of the total voting
rights attached to the issued share capital.
• BlackRock, Inc. held 11.88% of the total voting rights attached to the
issued share capital.
• Wellington Management Group LLP held 4.47% of the total voting
rights attached to the issued share capital.
• Bank of America Corporation held 4.21% of the total voting rights
attached to the issued share capital.
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Corporate governance
The Directors’ Corporate Governance Report is set out on pages 124 to
137 and forms part of this report. Additional information, disclosed in
accordance with the European Communities (Takeover Bids (Directive
2004/25/EC)) Regulations 2006, is included in the Schedule to the
Directors’ Report on pages 175 to 176.
In accordance with sections 1097 and 1551 of the Companies Act
2014, the Directors confirm that a Board Audit Committee
is established. Details on the Board Audit Committee’s membership and
activities are shown on pages 144 to 148.
Political donations
The Directors of the Company have satisfied themselves that there
were no political contributions that require disclosure under the
Electoral Act 1997.
Accounting records
The measures taken by the Directors to secure compliance with the
Company’s obligation to keep adequate accounting records include the
use of appropriate systems and procedures, incorporating those set out
within the Internal Controls section in the Corporate Governance report
on pages 169 and 170, and the employment of competent persons. The
accounting records are kept at the Company’s Registered Office at 10
Molesworth Street, Dublin 2, Ireland and at the principal addresses
outlined on page 395.
Principal risks and uncertainties
Information concerning the principal risks and uncertainties facing the
Group, as required under the terms of the European Accounts
Modernisation Directive (2003/51/EEC) (implemented in Ireland by the
European Communities (International Financial Reporting Standards
and Miscellaneous Amendments) Regulations 2005), is set out on
pages 17 to 20.
Branches outside the State
The Company has not established any branches since incorporation.
However, the Company’s principal operating subsidiary, Allied Irish
Banks, p.l.c., has established branches in the United Kingdom and the
United States of America.
Auditor
The Auditors, PricewaterhouseCoopers (‘PwC’), were appointed to
the Group on 4 May 2023 following shareholder approval at the 2023
Annual General Meeting (‘AGM’) on that date. PwC’s continued
appointment as Auditor of the Company was approved at the last AGM
held on 2 May 2024 and they shall continue to hold office until the
conclusion of the next AGM of the Company on 1 May 2025, pursuant
to section 383(2) of the Companies Act 2014, at which time their
continued appointment will be proposed to the shareholders for
approval, pursuant to an advisory resolution. PwC have indicated a
willingness to continue in office in accordance with section 383(2) of the
Companies Act 2014.
Statement of relevant audit information
Each of the persons who is a Director at the date of approval of this
report confirms that:
(a) so far as the Director is aware, there is no relevant audit
information of which the Company’s auditor is unaware; and
(b) the Director has taken all the steps that he/she ought to have taken
as a Director in order to make himself/herself aware of any relevant
audit information and to establish that the Company’s auditor is
aware of that information.
This confirmation is given and should be interpreted in accordance with
the provisions of section 330 of the Companies Act 2014.
Other information
Other information relevant to the Directors’ Report may be found in the
following pages of the report:
Page
2024 Results – Financial Performance
2
Risk management
179
Non-adjusting events after the reporting period
346
Jim Pettigrew
Chair
Colin Hunt
Chief Executive Officer
4 March 2025
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Directors’ Report continued
Additional information required to be contained in the Directors’
Annual Report by the European Communities (Takeover Bids
(Directive 2004/25/EC)) Regulations 2006.
As required by these Regulations, the information contained below
represents the position of the Company as at 31 December 2024.
Capital structure
The authorised share capital of the Company is € 2,500,000,000,
divided into 4,000,000,000 ordinary shares of € 0.625 each (‘Ordinary
Shares’). The issued share capital of the Company is 2,328,438,575
Ordinary Shares of € 0.625 each.
Rights and obligations of each class of share
The following rights attach to Ordinary Shares:
• the right to receive duly declared dividends, in cash or, where offered
by the Directors, by the allotment of additional Ordinary Shares;
• the right to attend and speak, in person or by proxy, at general
meetings of the Company;
• the right to vote, in person or by proxy, at general meetings of the
Company having, in a vote taken by a show of hands, one vote, and,
on a poll, a vote for each Ordinary Share held;
• the right to appoint a proxy, in the required form, to attend and/or
vote at general meetings of the Company;
• the right to receive, (by post or electronically), at least 21 days before
the Annual General Meeting, a copy of the Directors’ and Auditor’s
reports, accompanied by copies of the balance sheet, profit and loss
account and other documents required by the Companies Act to be
annexed to the balance sheet or such summary financial statements
as may be permitted by the Companies Act;
• the right to receive notice of general meetings of the Company; and
• in a winding-up of the Company, and subject to payments of amounts
due to creditors and to holders of shares ranking in priority to the
Ordinary Shares, repayment of the capital paid up on the Ordinary
Shares and a proportionate part of any surplus from the realisation of
the assets of the Company.
There is, attached to the Ordinary Shares, an obligation for the holder,
when served with a notice from the Directors requiring the holder to do
so, to inform the Company in writing, within not more than 14 days after
service of such notice, of the capacity in which the shareholder holds
any share of the Company and, if such shareholder holds any share
other than as beneficial owner, to furnish in writing, so far as it is within
the shareholder’s knowledge, the name and address of the person on
whose behalf the shareholder holds such a share or, if the name or
address of such person is not forthcoming, such particulars as will
enable or assist in the identification of such a person, and the nature of
the interest of such a person in such share. Where the shareholder
served with such a notice (or any person named or identified by a
shareholder on foot of such notice) fails to furnish the Company with
the information required within the time period specified, the
shareholder shall not be entitled to attend meetings of the Company,
nor to exercise the voting rights attached to such a share, and, if the
shareholder holds 0.25% or more of the issued Ordinary Shares, the
Directors will be entitled to withhold payment of any dividend payable
on such shares, and the shareholder will not be entitled to transfer such
shares except by sale through a Stock Exchange to a bona fide
unconnected third party. Such sanctions will cease to apply after not
more than seven days from the earlier of date receipt by the Company
of notice that the member has sold the shares to an unconnected third
party or due compliance, to the satisfaction of the Company, with the
notice served as provided for above.
Restrictions on the transfer of shares
Save as is set out below, there are no limitations in Irish law or in the
Company’s Constitution on the holding of Ordinary Shares, and there is
no requirement to obtain the approval of the Company, or of other
holders of Ordinary Shares, for a transfer of Ordinary Shares.
The Ordinary Shares are, in general, freely transferable, but the
Directors may decline to register a transfer of Ordinary Shares upon
notice to the transferee, within two months after the lodgement of a
transfer with the Company, in the following cases:
(i)
a lien held by the Company on the shares;
(ii) a purported transfer to an infant or a person lawfully declared to be
incapable for the time being of dealing with their affairs; or
(iii) a single transfer of shares that is in favour of more than four
persons jointly.
Shares held are transferable in accordance with the rules or conditions
imposed by the operator of the relevant system that enables title to the
Ordinary Shares to be evidenced and transferred in accordance with
the Companies Act 2014.
The rights attaching to Ordinary Shares remain with the transferor until
the name of the transferee has been entered on the Register of
Members of the Company.
In accordance with the EU Central Securities Depository Regulation EU
909/2014 (‘CSDR’), the Dematerialisation of Irish Securities came into
effect on 1 January 2025, requiring all shares issued by AIB Group plc
to be held in uncertificated form. Therefore, effective from 1 January
2025, share certificates for AIB Group plc are no longer issued or valid
as evidence of title and entries on the shareholder register were
replaced and recorded electronically by book entry record.
Exercise of rights of shares in Employee share schemes
The SIP and APSS provide that where the relevant trustee holds shares
for a participant, the trustee may ask that participant how they should
vote in respect of those shares. The relevant trustee will vote in
accordance with any directions the participant gives (save that under
the SIP, they will only vote on a show of hands if all the participants who
have given them a direction have given the same direction). The
trustees will not vote in respect of any shares they hold that are not
allocated to a participant.
Deadlines for exercising voting rights
Voting rights at general meetings of the Company are exercised when
the Chair puts the resolution at issue to a vote of the meeting. A vote
decided by a show of hands is taken forthwith. A vote taken on a poll for
the election of the Chair or on a question of adjournment is also taken
forthwith, and a poll on any other question is taken either immediately
or at such time (not being more than 30 days from the date of the
meeting at which the poll was demanded or directed) as the Chair of
the meeting directs. Where a person is appointed to vote for
a shareholder as proxy, the instrument of appointment must be
received by the Company not less than 48 hours before the time
appointed for holding the meeting or adjourned meeting at which the
appointed proxy proposes to vote, or, in the case of a poll, not less than
48 hours before the time appointed for taking the poll.
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Schedule to the Directors’ Report
for the financial year ended 31 December 2024
Rules concerning amendment of the Company’s Constitution
As provided in the Companies Act 2014, the Company may, by special
resolution, alter or add to its Constitution. A resolution is a special
resolution when it has been passed by not less than three-fourths of the
votes cast by shareholders entitled to vote and voting in person or by
proxy, at a general meeting at which not less than 21 clear days’ notice
specifying the intention to propose the resolution as a special
resolution, has been duly given. A resolution may also be proposed and
passed as a special resolution at a meeting at which less than 21 clear
days’ notice has been given if it is so agreed by a majority in number of
the members having the right to attend and vote at any such meeting,
this being a majority together holding not less than 90% in nominal
value of the shares giving that right.
Rules concerning the appointment and replacement of Directors
of the Company
• Other than in the case of a casual vacancy, Directors are appointed
on a resolution of the shareholders at a general meeting, usually the
Annual General Meeting.
• No person, other than a Director retiring at a general meeting, is
eligible for appointment as a Director without a recommendation
by the Directors for that person’s appointment unless, not less than
42 days before the date of the general meeting, written notice by a
shareholder duly qualified to be present and vote at the meeting of
the intention to propose the person for appointment, and notice in
writing signed by the person to be proposed of willingness to act, if
so appointed, have been given to the Company.
• A shareholder may not propose himself or herself for appointment as
a Director.
• The Directors have the power to fill a casual vacancy or to appoint an
additional Director (within the maximum number of Directors fixed by
the Company in a general meeting), and any Director so appointed
holds office only until the conclusion of the next Annual General
Meeting following his/her appointment, when the Director concerned
shall retire, but shall be eligible for reappointment at that meeting.
• One-third of the Directors for the time being (or, if their number is not
three or a multiple of three, not less than one-third) are obliged to
retire from office at each Annual General Meeting on the basis of the
Directors who have been longest in office since their last
appointment. While not obliged to do so, the Directors have, in recent
years, adopted the practice of all (those wishing to continue in office)
offering themselves for re-election at the Annual General Meeting.
• A person is disqualified from being a Director, and their office as a
Director is ipso facto vacated, in any of the following circumstances:
– if at any time the person has been adjudged bankrupt or has made
any arrangement or composition with his/her creditors generally;
– if found to no longer have adequate decision-making capacity in
accordance with law;
– if the person be prohibited or restricted by law from being
a Director;
– if, without prior leave of the Directors, he/she be absent from
meetings of the Directors for six successive months (without an
alternate attending) and the Directors resolve that his/her office be
vacated on that account;
– if, unless the Directors or a court otherwise determine, he/she be
convicted of an indictable offence;
– if he/she be requested, by resolution of the Directors, to resign his/
her office as Director on foot of a unanimous resolution (excluding
the vote of the Director concerned) passed at a specially convened
meeting at which every Director is present (or represented by an
alternate) and of which not less than seven days’ written notice of
the intention to move the resolution and specifying the grounds
therefore has been given to the Director; or
– if he/she has reached an age specified by the Directors as being
that at which that person may not be appointed a Director or, being
already a Director, is required to relinquish office and a Director
who reaches the specified age continues in office until the last day
of the year in which he/she reaches that age.
• In addition, the office of Director is vacated, subject to any right of
appointment or reappointment under the Company’s Constitution, if:
– not being a Director holding for a fixed term an executive office in
his/her capacity as a Director, he/she resigns their office by a
written notice given to the Company, upon the expiry of such notice;
or
– being the holder of an executive office other than for a fixed term,
the Director ceases to hold such executive office on retirement or
otherwise; or
– the Director tenders his/her resignation to the Directors and the
Directors resolve to accept it; or
– the Director ceases to be a Director pursuant to any provision of
the Company’s Constitution.
• Notwithstanding anything in the Company’s Constitution or in any
agreement between the Company and a Director, the Company may,
by ordinary resolution of which extended notice has been given in
accordance with the Companies Act 2014, remove any Director
before the expiry of his/her period of office.
• The Minister for Finance has the power to nominate two Non-
Executive Directors in accordance with the Relationship Framework
between the Group and the State and certain provisions as outlined
therein. The Relationship Framework is available on the Group’s
website at www.aib.ie/investorrelations.
The powers of the Directors
Under the Company’s Constitution, the business of the Company is to
be managed by the Directors, who may exercise all the powers of the
Company subject to the provisions of the Companies Act, the
Constitution of the Company, and to any directions given by special
resolution of a general meeting. The Company’s Constitution further
provides that the Directors may make such arrangements as may be
thought fit for the management, organisation and administration of the
Company’s affairs, including the appointment of such executive and
administrative officers, managers and other agents as they consider
appropriate, and may delegate to such persons (with such powers of
sub-delegation as the Directors shall deem fit) such functions, powers
and duties as the Directors may deem requisite or expedient.
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Schedule to the Directors’ Report continued
Other governance information
Relations with shareholders
The Group has a number of procedures in place to allow its
shareholders and other stakeholders to stay informed about matters
affecting their interests. In addition to this Annual Financial Report,
which is available on the Group’s website at www.aib.ie/
investorrelations and sent in hard copy to those shareholders who
request it, the following communication tools are used by the Group:
Website
The Group’s website contains, for the years since 2000, the Annual
Financial Report, the Half-Yearly Financial Report, and the Annual
Report on Form 20-F for the relevant years. In accordance with the
Transparency (Directive 2004/109/EC) (Amendment) (No. 2)
Regulations 2015, this and all future Annual and Half-Yearly Financial
Reports will remain available to the public for at least ten years. For the
period 2008 to 2013, the Annual Financial Report and the Annual
Report on Form 20-F were combined. The Group’s presentation to fund
managers and analysts of annual and half-yearly financial results are
also available on the Group’s website. None of the information on the
Group’s website is incorporated in, or otherwise forms part of, this
Annual Financial Report.
Annual General Meeting (‘AGM’)
The AGM is an opportunity for shareholders to hear directly from the
Board on the Group’s performance and developments of interest for the
year to date and, importantly, to ask questions.
All shareholders of the company are invited to attend the AGM.
Separate resolutions are proposed on each separate issue and voting
is conducted by way of a poll. The votes for, against and withheld on
each resolution are subsequently published on the Group’s website.
It is usual for all Directors to attend the AGM and to be available to
meet shareholders before and after the meeting. The Chairs of the
Board Committees are available to answer questions about the
Committee’s activities. A helpdesk facility is available to shareholders
attending the AGM.
The company’s 2025 AGM is scheduled to be held on 1 May 2025.
It is intended that Notice of the Meeting will be made available on the
Group’s website and sent in hard copy to those shareholders who
request it, at least 20 working days before the meeting, in accordance
with the Financial Reporting Council’s Board Effectiveness guidelines.
The location of the meeting and attendance options will be
communicated with the distribution of the aforementioned Notice.
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Other Governance Information
Throughout 2024, the Group continued to work with its regulators,
which include the European Central Bank (‘ECB’), the Central Bank of
Ireland (‘CBI’), the Data Protection Commission (‘DPC’), the Prudential
Regulation Authority (‘PRA’), the Financial Conduct Authority (‘FCA’)
in the United Kingdom (‘UK’), the New York State Department of
Financial Services (‘NYSDFS’) and the Federal Reserve Bank of
New York in the United States of America (‘USA’) to focus on ensuring
compliance with existing regulatory requirements, together with the
management of regulatory change.
AIB Group plc is the holding company of Allied Irish Banks, p.l.c. (the
principal operating company of AIB Group) and, as such, AIB Group plc
is subject to consolidated supervision with respect to Allied Irish Banks,
p.l.c. and other credit institutions and investment firms in the Group.
Allied Irish Banks London Branch was approved by the PRA/FCA as
an incoming third country branch to operate in the UK post-Brexit.
Current climate of regulatory change
The level of regulatory change remained high in 2024 as the regulatory
landscape for the banking sector continued to evolve. 2024 saw a
continued focus by the Group’s regulators on regulatory change
implementation amidst this evolving regulatory landscape.
The regulatory focus on Conduct, Culture and Prudential, including
ESG will continue in 2025 and beyond, with the full implementation of
the Senior Executive Accountability Regime as part of the Individual
Accountability Framework, the ongoing review of the Consumer
Protection Code, and the finalisation of preparations to implement the
Basel III final reforms.
The Group is committed to proactively identifying regulatory obligations
arising in each of the Group’s operating markets in Ireland, the UK and
the USA, ensuring the timely implementation of regulatory change.
Throughout 2024, the Group continued cross-functional programmes to
ensure that it meets new regulatory requirements. In particular, the
Group focused on monitoring the development of the forthcoming EU
AML Reform package, key legislative initiatives in the areas of payments
(including plans to introduce instant payments, a digital Euro and
revisions to the EU’s payments service directive), proposed amendments
to primary EU conduct of business legislation (including the consumer
credit directive and distance marketing directive), proposals from the
Central Bank of Ireland to revise the Consumer Protection Code,
proposals to introduce new requirements concerning access to and
acceptance of cash, new standards on corporate sustainability reporting,
ongoing guidance from our Regulators and the staged implementation of
the Individual Accountability Framework.
The level of regulatory change is expected to remain at high levels in
2025 and beyond.
United Kingdom
During 2024, AIB Group (UK) p.l.c. continued to prioritise compliance
with its regulatory obligations in Great Britain and Northern Ireland and
will remain focused on this throughout 2025.
Regulatory change horizon – UK
Since the UK left the EU, the regulatory regime within the UK has
remained closely aligned with EU regulation. EU regulation has
effectively been on-shored onto the UK statute book. There has
been some regulatory divergence as a result of Brexit and the UK
has implemented changes, particularly in relation to financial crime
including sanctions. Implications for financial services regulations need
to be carefully monitored but, given that most EU regulations have
been transposed into UK law via the Financial Services and Markets
Act, the actual impact continues to be insignificant. AIB UK is well
positioned to identify and comply with any changes.
2024 saw Implementation Phase 2 of the FCA’s new Consumer Duty
rules, requiring firms to act to deliver good outcomes for retail
customers. Regulatory focus is now on embedding Consumer Duty to
ensure better outcomes for customers. Work commenced to deliver the
final item on the CMA’s Open Banking road map in 2024. 2024 also
saw the introduction of Confirmation of Payee service to better protect
customers from fraud.
Mandatory reimbursement was introduced by the Payment System
Regulator in relation to authorised push payment fraud, to further
enhance customer protection. There were a number of strategic
initiatives implemented within AIB UK during 2024. Each of these were
implemented in line with regulatory requirements and all customers’
risks and the associated mitigating actions were fully considered
through the AIB UK Conduct Committee.
UK Regulators continue to focus on enhancing operational resilience in
the UK financial services sector and requiring banks to make plans to
take account of climate change.
United States
Compliance with federal and state banking laws and regulations
AIB New York continues to prioritise compliance with its regulatory
obligations in the USA and will remain focused on this throughout 2025.
The level of regulatory change remained high in 2024.
Regulatory focus on Liquidity Risk Management, AML & Sanctions,
Climate and Cybersecurity & Resiliency continues in 2025, with
regulatory developments in Climate and Cybersecurity. The NYDFS
finalised its second amendment to its 23 NYCRR Part 500
(Cybersecurity Rules) in 2023. The new compliance requirements were
implemented throughout 2024, with further requirements to take effect
in 2025 and beyond.
The passing of the Anti-Money Laundering Act 2020 (incorporating the
Corporate Transparency Act) in 2021 contains requirements that
will continue to be a focus in 2025 and beyond.
US regulators have implemented climate-related guidance in 2024 and
AIB New York will continue to engage with AIB Group on meeting
regulatory expectations.
Expanded use of digital payments, crypto and digital assets has
increased the need for defined regulatory authority around key risk
areas.
AIB New York will continue to maintain the annual attestation of
compliance to the NYDFS for the AML and Sanctions (DFS 504) and
Cybersecurity (DFS 500) Programmes and to the FRB for its Security
and Resiliency requirements.
AIB New York is working with the California Department of Financial
Protection and Innovation to meet all regulatory requirements to open a
San Francisco Representative Office in 2025.
AIB New York will continue to work closely with AIB Group on
regulatory changes.
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Supervision and Regulation
Risk
Management
In this section
1.
Risk Management Approach
180
1.1
Risk strategy
180
1.2
Risk Governance and Oversight
180
1.3
Identification and assessment
181
1.4
Monitoring, escalating and reporting
182
1.5
Risk culture
182
1.6
Control environment
183
2.
Individual risk types
186
2.1
Credit risk
186
2.2
Market and Equity risks
231
2.3
Capital adequacy risk
235
2.4
Liquidity and funding risk
235
2.5
Business model risk
241
2.6
Operational risk
241
2.7
Climate and environmental risk
242
2.8
Model risk
244
2.9
Culture risk and conduct risk
244
2.10 Regulatory compliance risk
245
The information below in sections, paragraphs or tables denoted as audited in sections 2.1 to 2.10 in the Risk Management Report forms an
integral part of the audited financial statements as described in note 1(c) ‘basis of preparation’ to the financial statements. All other information,
including tables, in the Risk Management Report are additional disclosures and do not form an integral part of the audited financial statements.
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1. Risk Management Approach
1. Introduction
The risk summary on pages 16 to 21 provides an overview of the
Group’s core risk management principles and the key developments
in 2024. This full risk management section provides a more in-depth
picture of how risk is managed within the Group. A full analysis of
the principal risks categories are set out on pages 185 to 246, including
the framework by which risks are identified, managed, monitored and
reported. Each Principal Risk category is described
using standard headings.
The Group uses a comprehensive risk management approach
across all risk types. This is outlined in the Group’s risk management
framework, including the key practices that are implemented in
managing risks, both financial and non-financial. The framework is
reviewed, updated and approved by the Board at least annually to
reflect any changes to the Group’s business or consideration of
external regulations, corporate governance requirements and industry
best practice.
The Group’s independent Risk function designs and maintains the
framework. The Risk function is led by the Chief Risk Officer who
provides oversight and monitoring of all risk management activities.
1.1 Risk strategy
Risk strategy setting
The following section sets out at a high level the approach to Risk strategy
setting applicable across the Group, its subsidiaries and joint ventures.
The Group has a set of strategic risk objectives which supports the
delivery of the Group’s strategy. A Risk Plan is developed by the
Chief Risk Officer and is designed to align to the Group Strategy, with
enhanced oversight of compliance with regulation and much closer
involvement in the development, implementation, and safe execution of
the Group’s strategy. The Group’s Risk Appetite Statement defines the
amount and type of risk that the Group is willing to accept, in pursuit of
its strategic goals.
The focus of the Group’s new strategic cycle is centred around
customers needs and anchored in a progressive sustainability agenda.
See ‘Our Strategy’ on pages 14 to 15. Sustainability is a key strategic
objective of the Group and Sustainable Communities is one of the
Group’s five Strategic Pillars.
1.2 Risk governance and oversight
The Group’s Governance and Organisation Framework encompasses
the leadership, direction and control of the Group, reflecting policies,
guidelines and statutory obligations. This ensures that control
arrangements provide appropriate governance of the Group’s strategy,
operations and mitigation of related material risks. This is achieved
through a risk governance structure designed to facilitate the reporting,
evaluation and escalation of risk concerns from business segments and
control functions to the Board and its appointed committees and sub-
committees.
Board of Directors
The Board of Directors is ultimately responsible and accountable for the
effective management of risks and for the system of internal controls
in the Group. The Board has delegated a number of risk governance
responsibilities to various committees. The roles of the Board, the
Board Audit Committee, the Board Risk Committee, the Remuneration
Committee, Sustainable Business Advisory Committee, Technology and
Data Advisory Committee and the Nominations and Corporate
Governance Committee are all set out in the Governance and
Oversight – Corporate Governance report on pages 123 to 178.
Executive Committee (‘ExCo’)
The ExCo has primary authority and responsibility for the day to day
operations of, and the development of strategy for the Group.
While the ExCo has delegated its powers and authorities to other
committees, it retains ultimate accountability for the functions
delegated.
Group Risk Committee (‘GRC’)
The GRC is the most senior management risk committee and is
accountable to the ExCo to set policy and monitor all risk types across
the Group to enable delivery of the Group’s risk strategy.
The roles and responsibilities of the GRC are:
• Reviewing and approving (or recommending to the Board and/or its
subcommittees where appropriate) risk frameworks, risk appetite
statements, risk policies and thresholds in order to manage the risk
profile of the Group;
• Monitoring and reviewing the Group’s risk profile (enterprise wide);
• Periodically reviewing the effectiveness of the Group’s risk
management policies for identifying, evaluating, monitoring,
managing and measuring significant risks;
• Providing oversight and challenge of regulatory, operational
and conduct risk related matters;
• Providing oversight and challenge of credit risk management related
matters and periodically reviewing the credit portfolio exposures and
trends;
• Providing oversight and challenge of risk measurement matters;
• Overseeing the development of the Group’s risk management
culture;
• Monitoring and reviewing the Group’s risk profile and the business
segment limits for equity risk;
• Considering the annual Money Laundering Reporting Officer’s report;
and
• Considering and assessing management’s response to Group
Internal Audit findings.
The sub-committees of the GRC are the Group Credit Committee, the
Group Internal Ratings Based Committee, the Regulatory and Conduct
Risk Committee, the Model Risk Committee and the Operational Risk
Committee:
• The Group Credit Committee is responsible for developing and
monitoring credit policy within the Group and approval of all large
credit transactions. The Areas Credit Committees exercise approval
authority in line with the relevant Credit Approval and Review
Authorities for the business areas;
• The Group Internal Ratings Based Committee ensures delivery of the
commitments set out in the IRB Enterprise Plan;
• The Regulatory and Conduct Risk Committee is responsible for the
governance and oversight of regulatory and conduct risks;
• The Model Risk Committee reviews the technical and methodological
aspects of the Group’s material models as well as maintenance of
existing material models and approval of less material models;
• The Operational Risk Committee is responsible for the governance
and oversight of operational risks.
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Risk Management continued
1.2 Risk governance and oversight continued
Group Asset and Liability Management Committee (‘ALCo’)
ALCo has been established as a sub-committee of the Executive
Committee. ALCo is the Group’s strategic and business decision making
forum for balance sheet management matters. ALCo is tasked with
decision making in respect of the Group’s balance sheet structure,
including capital, funding, liquidity, interest rate risk in the banking book
from an economic value and net interest margin (‘NIM’) perspective,
foreign exchange (‘FX’) risks and other market risks to ensure it enables
the delivery of the Group’s Strategic Plan. ALCo provides oversight of
funding and liquidity, capital, market and equity/investments risk as well
as balance sheet pricing in line with the relevant risk frameworks
and policies in accordance with risk appetite. ALCo also monitors, reviews
and makes decisions regarding key legal, regulatory and accounting
developments affecting the measurement and control of balance sheet
risks and capital. ALCo is supported by its three subcommittees, Equity
Investment Committee, the Stress Testing Committee and the Asset and
Liability Management Technical Committee (‘ALMTC’).
Risk Data Governance
Data governance and quality is of prime importance to the risk
management process. It supports all stages of risk lifecycle and lays the
base for decision making. The Group’s principles for Data Governance
are set out in the Data Governance Framework, and the framework
ensures that high quality data is captured, used, and managed securely
and is in line with relevant laws and regulations across the Group. The
framework enhances the monitoring of material risks, risk metrics and
mitigates the risk of inadequate data and risk reporting leading to poor
decision making by the Board and senior management.
1.3 Identification and assessment
Risk is identified and assessed in the Group through a combination of
on-going risk management practices including the following:
• Material Risk Assessment (‘MRA’);
• Risk and Control Assessment(‘RCA’);
• Integrated Financial Plan;
• Internal Capital Adequacy Assessment Process (‘ICAAP’);
• Internal Liquidity Adequacy Assessment Process (‘ILAAP’);
• Stress testing & Scenario Analysis;
• Recovery planning; and
• Resolution planning.
Material Risk Assessment (‘MRA’)
The MRA is a top down process performed on at least an annual basis
for the Group which identifies the key principal risks and the identification
of emerging and evolving risks. This assessment makes use of horizon
scanning and takes into account the Group’s strategic objectives and
incorporates both internal and external risk information. The Board is
responsible for the annual approval of the Group material risk
assessment. Additionally, the transmission channel analysis is conducted
annually to analyse how different C&E risk drivers transmit through micro
and macroeconomic factors and impact on the Group’s principal risks.
Risk and Control Assessment (‘RCA’)
The first line of defence is responsible for ensuring that detailed bottom
up RCAs are undertaken for all businesses or business processes
falling under their responsibility. These assessments are performed
regularly and whenever there is a material change in organisation,
business processes or business environment.
Integrated Financial Plan
The financial plan is integral to how the Group manages its business
and monitors performance. It informs the delivery of the Group’s
strategy and is aligned to the Risk Appetite Statement. It enables
realistic business objectives to be set for Management, identifies
accountability in the Group’s delivery of planning targets and identifies
the risks to the delivery of the Group’s strategic goals as well as the
mitigants of those risks. The plan is produced under a base scenario
and assessed under a range of alternative scenarios over a three year
time horizon. This assessment forms the basis for consideration of
business model risk and internal capital adequacy.
Internal Capital Adequacy Assessment Process (‘ICAAP’)
This is the Group process to ensure adequate capital resources are
maintained at all times, having regard to the nature and scale of its
business and the risks arising from its operations. The ICAAP is the
process by which the Group performs a formal and rigorous
assessment of its balance sheet, business plans, risk profile and risk
management processes to determine whether it holds adequate capital
resources to meet both internal objectives and external regulatory
requirements. Multiple scenarios are considered for each ICAAP
including both systemic and idiosyncratic stress tests ranging from
moderate to extreme and are applied to the Group’s material risks as
identified through its material risk assessment. The stress time horizon
of three years is aligned with the planning horizon.
Internal Liquidity Adequacy Assessment Process (‘ILAAP’)
The Internal Liquidity Adequacy Assessment Process (‘ILAAP’) is a
process by which the Group performs a formal and rigorous
assessment of its balance sheet, business plans, risk profile and risk
management processes to determine whether it holds sufficient liquid
resources of appropriate quality to meet both internal objectives and
external regulatory requirements. Multiple scenarios are considered for
each ILAAP including both firm specific, systemic risk events and
a combination of both to ensure the continued stability of the Group’s
liquidity position within the Group’s pre-defined liquidity risk tolerance
levels. The stress time horizon of three years is aligned with the
planning horizon.
Stress testing
Stress testing is recognised as a key risk management process
within the Group. It seeks to ensure that risk assessment is dynamic and
forward looking, and considers not only existing risks but also potential
and emerging threats. Stress test methodologies are developed to assess
the material risks identified in the material risk assessment process.
The Group’s stress testing programme embraces a range of forward
looking stress tests and takes all the Group’s material risks into
account. The type of stress test include:
• ICAAP stress testing undertaken on an annual basis in support of
ICAAP and is integrated with the Group’s annual financial planning
process. This aims to highlight the key vulnerabilities of the Group
and inform potential future capital needs including capital buffers,
in excess of minimum regulatory capital requirements, and internal
capital requirements under both base and stressed conditions over
the planning horizon;
• Internal capital stress tests on all of the material risks of the Group.
These consider the implications of a severe shock across the
Group’s material risks and additional supporting scenarios as
deemed appropriate;
• Annual ILAAP stress testing applied to the funding and liquidity plan
to formally assess the Group’s liquidity risks;
• Internal liquidity stress tests which are performed weekly;
• The climate stress testing approach consider the impact of physical
and transition risks across a number of scenarios on the Group’s
exposures. The initial scope of climate stress testing activities and
climate modelling in the Group is primarily focused on the credit risk
implications for the loan portfolio;
• Reverse stress testing undertaken at least annually to explore the
vulnerabilities of the Group’s strategies and plans in extreme adverse
events that would cause the Group to fail. If necessary the Group will
adopt an action plan to prevent and mitigate these risks;
• Annual recovery stress tests which use scenarios to assess the
adequacy of recovery indicators of both capital and liquidity in
identifying the onset of a period of stress and the recovery plan
options used to exit that stress;
• Ad hoc stress testing on key core portfolios as required. This can
include emerging risks identified from the MRA process and as well
as in response to regulatory requests;
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1.3 Identification and assessment continued
Stress testing continued
• Sensitivity analysis assesses the marginal impact of an incremental
change in one risk parameter on the Group’s capital and liquidity
position; and
• Subsidiary stress tests conducted on in-scope subsidiaries subject to
individual regulatory capital requirements.
Stress testing methodology
Across all of the Group’s material risks, the methodology will be an
appropriate blend of model based and expert judgement approaches.
Assumptions and outputs are reviewed by impacted businesses and
central functions, and via Risk review, to ensure they are plausible and
intuitive. All models used in the stress testing process are subject to
model validation as per the Group’s Model Risk Management
Framework. The stress tests comply with all regulatory requirements,
achieved through the comprehensive review and challenge of
macroeconomic scenarios and stress test outcomes, as well as the
ongoing validation requirements of stress testing models.
Recovery planning
The Group’s recovery plan sets out the arrangements and measures that
the Group could adopt in the event of severe financial stress to restore
the Group to long term viability. A suite of indicators and options are
included in the Group’s recovery plan, which together ensures the
identification of stress events and the tangible mitigating actions available
to the Group to restore viability.
Resolution planning
Resolution is the restructuring of a bank by a resolution authority that has
failed or is likely to fail, through the use of resolution tools in order to:
• safeguard the public interest;
• ensure the continuity of the Group’s critical functions;
• ensure financial stability in the economy in which it operates; and
• minimise costs to taxpayers.
The Group is under the remit of the Single Resolution Board (‘SRB’)
due to its systemic importance. The SRB, in cooperation with the
National Resolution Authorities, (Central Bank of Ireland for Ireland and
Bank of England for the UK) draft the resolution plan for the Group. The
resolution plan describes the Preferred Resolution Strategy (‘PRS’), in
addition to ensuring the continuity of the Group’s critical functions and
the identification and addressing of any impediments to the Group’s
resolvability.
The PRS for the Group is a single point of entry bail-in. The resolution
authorities set the loss absorbing capacity requirements for Minimum
Requirements for own funds and Eligible Liabilities (MREL), in addition
to any work programmes required to mitigate any perceived
impediments to resolvability. Senior management are responsible for
implementing the measures that are needed to ensure the Group’s
resolvability. There are a number of governance fora such as subject
matter working groups and a Resolution Steering Committee that
provides governance and oversight around resolution planning. The
Risk function liaises with the resolution planning team to provide
oversight over the Resolvability Programme to ensure that deliverables
are being met as set out within the Board approved project plan and as
outlined by regulatory guideline.
1.4 Monitoring, escalating and reporting
Setting risk appetite
The Board sets the risk appetite for the Group informed by the material
risk assessment. Risk appetite is the nature and extent of risk that the
Group is willing to take, accept, or tolerate, in pursuit of its business
objectives and strategy. It also informs the Group’s strategy, and as part
of the Risk Management Framework, is a boundary condition to
strategy and guides the Group in its risk taking and related business
activities. The financial plan is tested to ensure risk appetite adherence.
The Group RAS is an articulation of the Group’s appetite for, and
tolerance of risk, expressed through qualitative statements and
quantitative limits and thresholds. The Group RAS seeks to encourage
appropriate risk taking to ensure that risks are consistent with the
Group strategy and risk appetite. The Group RAS cascades into key
business segments with separate Risk Appetite Statements for each
licenced subsidiary reflecting the risk appetite of the subsidiary as a
standalone entity.
Risk measurement
Each of the material risks has a specific approach to how the risk is
measured. The Group Risk Appetite Statement and the separate Risk
Appetite Statements for the licensed subsidiaries contain metrics which
are measured on a monthly basis against the thresholds set.
Risk management
The material risk types are actively managed and measured against
their respective frameworks, policies and processes on an ongoing
basis.
Model Risk has been identified as one of the Group's principal risks.
Risk models are a key tool utilised in the Group’s risk assessment and
ongoing monitoring. Risk models are used to measure credit, market,
liquidity and funding risk, and where appropriate, capital is allocated
(taking account of risk concentrations) to mitigate material risks.
C&E Risk has been determined as a material risk for the Group as part
of the MRA as set out on pages 242 to 243. C&E Risk is a subset of
sustainability risk which encompasses a broader set of risks related to
Environmental, Social and Governance (ESG) factors. C&E Risk is
managed through the C&E Risk Framework, the purpose is to ensure
that the C&E Risks are managed in line with the Group’s overall
purpose, empowering people to build a sustainable future, the Group’s
five key strategic pillars, as well as the Group’s risk strategy and risk
appetite.
The management and measurement of the Group’s risk profile also
informs the Group’s strategic and operational planning processes.
Risk reporting
Risk reporting facilitates management decision making and is a critical
component of risk governance and oversight. Risk reporting processes
are in place for each of the material risks under the relevant risk
frameworks and policies. This enables management, governance
committees and other stakeholders to oversee the effectiveness of the
risk management processes, adherence to risk policies, and (where
relevant) adherence to regulatory requirements.
The CRO reports actual performance against Risk Appetite Statements
to the Board Risk Committee. A material breach of a Risk Appetite
Statement limit is reported to the Board and the Group’s regulator
when appropriate.
1.5 Risk culture
Risk culture is an integral part of the Group’s overall culture and plays a
crucial role for the Group to achieve its strategic objectives. The risk
culture defines how risk is managed and owned throughout the Group.
It is the values, behaviours, beliefs, knowledge, attitudes, awareness
and understanding of, and towards risk shared by individuals. It sets
the foundation for how the Group manages risk in a consistent and
coherent manner. An effective Group Risk Appetite Statement is highly
dependent on risk culture. Risk culture is one of the key elements of the
Group’s Risk Management Framework. It is through the risk framework
and policy documents that an awareness of risk and control is set
and cascaded throughout the Group including a Culture and Conduct
Risk Framework which emphasises the criticality of ensuring fair
customer outcomes. The Group’s promotion of risk learning through
recommended risk training and education supports the embedding of
risk culture. These ongoing activities are supported by an annual Group
wide risk awareness week to reinforce key risk themes.
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Risk Management continued
1.6 Control environment
Three lines of defence model
The Group operates a three lines of defence model which defines clear
responsibilities and accountabilities and ensures effective independent
oversight and assurance activities take place covering key decisions.
The first line of defence lies with the business line who are required to
have effective governance and control frameworks in place for their
business and to act within the risk appetite parameters set out. The
second line of defence comprises the Risk function, and oversees the
first line, providing independent constructive challenge, setting the
frameworks, policies and limits, consistent with the risk appetite of the
Group. The third line of defence comprises Group Internal Audit who
provide an independent view on the key risks facing the Group, and the
adequacy and effectiveness of governance, risk management and the
internal control environment in managing these risks.
The Board and its sub committees, the Board Risk Committee (‘BRC’)
and Board Audit Committee (‘BAC’) are ultimately responsible for
ensuring the effective operation of the three lines of defence model.
They are supported by the Executive Committee (‘ExCo’) and its sub-
committees. The Terms of References for the BRC and BAC are
available on the Group’s website.
The Board is accountable for the system of internal controls, please
refer to the Internal Controls section on pages 169 and 170 or further
details.
Assurance testing
The Group has implemented testing and assurance activities with the
objective to provide assurance to the Board, and its delegated sub-
committees on the design and operating effectiveness of the control
environment within the Group. The material risk types are continuously
tested and assured in line with the Group assurance methodology,
which distinguishes between risk management, risk control and risk
assurance. Each line of defence is responsible for preparing business
controls testing plans with consideration of the adequacy of the risk
identified and the design and effectiveness of the controls in place.
The combined assurance is the alignment of governance, risk and
assurance activities, linked with the Group’s strategy with the objective
to provide better co-ordinated efforts, risk reporting, and to continuously
improve performance and resilience.
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Risk
Management
2. Individual Risk Types
2.1 Credit risk
186
Definition
186
Credit risk organisation and structure
187
Measurement, methodologies and judgements
190
2.1.1 Credit risk – Credit exposure overview
202
Maximum exposure to credit risk
202
Concentration by industry sector
204
2.1.2 Credit risk – Credit profile of the loan portfolio
206
Credit profile of the loan portfolio
206
Internal credit grade profile by ECL staging
207
Aged analysis of contractually past due loans
208
Gross loans and ECL movements
210
2.1.3 Credit risk – Impairment and write-offs
217
Income statement
217
Loans written-off and recovery of loans previously written-off
218
2.1.4 Credit risk – Asset class analysis
219
Residential mortgages
219
Other personal
222
Property and construction
223
Non-property business
225
2.1.5 Credit risk – Credit ratings
228
2.1.6 Credit risk – Forbearance overview
229
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2.1 Credit risk
Key Developments in 2024:
• The credit quality of the portfolio has remained robust during the year and new lending is in line with targeted quality levels. The Group’s risk
appetite for corporate renewable energy and related infrastructure lending was expanded, reflecting the Group’s strategy for sustainable lending.
• The Group remains focused on its evolving sustainability agenda, including the ongoing consideration of climate risk, which continues to be
incorporated and embedded within the credit assessment process.
• Expected credit losses (‘ECLs’) continue to reflect the Group’s vigilant stance on emerging risks while maintaining a comprehensive
approach to assessing the credit environment, ensuring that the level of ECL stock remains appropriately conservative.
• The Group successfully concluded on the Ulster Bank portfolio acquisitions as the final tranche of the € 0.8 billion Ulster Bank tracker (and
linked) mortgage portfolio was completed in September.
Definition of Credit risk
Credit risk is the risk that the Group will incur losses as a result of a
customer or counterparty being unable or unwilling to meet their
contractual obligations and associated bank credit exposure in respect
of loans or other financial transactions.
Based on the annual risk identification and materiality assessment
process, credit risk is grouped into the following three sub categories:
(i)
Credit default risk: The risk of losses arising as a result of the
borrower, issuer, or derivative counterparty not meeting their
contractual obligations in full and on time and the resulting credit
default risk/risk of loss leading to a risk to capital including residual
risk (which is the risk that credit risk mitigation techniques used by
the Group prove less effective than expected);
(ii) Concentration risk: The risk of excessive credit concentration
including to an individual, counterparty, group of connected
counterparties, industry sector, a geographic region, country, a type
of collateral or a type of credit facility; and
(iii) Country risk: The risk of having exposure to a country, arising from
possible changes in the business environment that may adversely
affect operating profits or the value of assets related to the country.
Credit risk exposure derives from standard on-balance sheet products
such as mortgages, loans, overdrafts and credit cards. However, credit
risk also arises from other products and activities including, but not
limited to: ‘off-balance sheet’ guarantees and commitments; securities
financing; derivatives; investment securities; asset backed securities
and partial failure of a trade in a settlement or payment system.
Group Risk Appetite Statement
The Group’s Risk Appetite Statement (‘RAS’) defines the aggregate
level and types of risks that the Group is willing to take, accept, or
tolerate in pursuit of its business objectives and strategy as set by the
Board. As part of the overall framework for risk governance, it forms a
boundary condition to strategy and guides the Group in its risk-taking
and related business activities. Credit risk appetite is set at Board level
and is described, reported and monitored through a suite of qualitative
and quantitative metrics. The credit risk metrics cover the three sub
risks identified as part of the AIB Group material risk assessment
process – credit default risk, concentration risk and country risk, and
include concentration limits on quantum of new lending, balance sheet
exposure and credit quality. Risk appetite is stress tested to ensure that
limits are within the risk-taking capacity of the Group. The Group’s risk
appetite for credit risk is reviewed and approved at least annually.
Group Credit Risk Framework (audited)
The Group implements and operates policies to govern the
identification, assessment, approval, monitoring and reporting of credit
risk. The Group Credit Risk Framework is the overarching Board
approved document which sets out the principles of how the Group
identifies, assesses, approves, monitors and reports credit risk to
ensure that robust credit risk management is in place. This document
contains the minimum standards and principles that are applied across
the Group to provide a common, robust and consistent approach to the
management of credit risk. The Group Credit Risk Framework is
supported by a suite of credit policies, standards and guidelines which
define in greater detail the minimum standards and credit risk metrics to
be applied for specific products, business lines and market segments.
Credit risk management
Credit Risk, as an independent risk management function, monitors key
credit risk metrics and trends, including policy exceptions and breaches,
reviews the overall quality of the loan book, challenges variances to
planned outcomes and tracks portfolio performance against agreed
credit risk indicators. This allows the Group, if required, to take early
and proactive mitigating actions for any potential areas of concern.
The activities which govern the management of credit risk within the
Group are as follows:
• Establish governance authority fora to provide independent oversight
and assurance to the Board with regard to credit risk management
activities and the quality of the credit portfolio;
• Formulate, implement and effectively communicate a comprehensive
credit risk strategy that is viable through various economic cycles,
supported by appropriate credit risk policies, which is aligned to the
Group’s approved Risk Appetite Statement and generates appropriate
returns on capital within acceptable levels of credit quality;
• Operate within a sound and well defined credit granting process,
within which risks for new and existing lending exposures, including
connected exposures, are consistently identified, assessed,
measured, managed, monitored and reported in line with risk
appetite and the credit risk policies;
• Ensure all management and staff involved in core credit risk activities
can conduct their duties to the highest standard in compliance with
the Group’s policies and procedures. Senior management ensure
ongoing training and support to staff to ensure strong competencies
to effect sound credit risk management;
• Establish and enforce an efficient internal review and reporting
system to effectively manage the Group’s credit risk including internal
controls and assurance practices to ensure that exceptions to
policies, deviations to credit standards and limits are monitored and
reported in a timely manner for review and action;
• Ensure sound methodology and credit policies are in place to
proactively assess credit risk, to identify deteriorating credit quality
and to take remedial action to minimise losses, provide customers
with affordable and sustainable solutions and maximise recovery for
the Group. This includes consideration of, and the granting of,
forbearance measures;
• Utilise quality management information and risk data to ensure an
effective credit risk management and measurement process when
reporting on the holistic credit risk profile of the Group, including
changes in risk profile and emerging or horizon risks. The Group’s
monitoring techniques provide adequate information on the
composition of the credit portfolio, including the identification of any
concentrations of risk;
• Mitigate potential credit risk arising from new or amended products or
activities by designing them in line with regulatory requirements,
including the identification and analysis of existing and potential risks
inherent in any credit product or activity; and
• Develop and continuously reinforce a strong, credit risk focused
culture across the credit risk management functions through
the cycle, which supports the Group’s goals and enables business
growth, provides constructive challenge and avoids credit risks that
cannot be adequately measured.
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Risk Management continued
2.1 Credit risk continued
Credit approval overview (audited)
The Group operates credit approval criteria which:
• Include a clear indication of the Group’s target market(s), in line with
Group and segment risk appetite statements;
• Require a thorough understanding and assessment of the borrower
or counterparty, as well as the purpose and structure of credit, and
the source of repayment; and
• Enforce compliance with minimum credit assessment and facility
structuring standards.
Credit risk approval is undertaken by professionals operating within a
defined delegated authority framework. However, for certain selected
retail portfolios, scorecards and automated strategies (together referred
to as ‘score enabled decisions’) are deployed to automate and to
support credit decisions and credit management (e.g. score enabled
auto-renewal of overdrafts).
The Board is the ultimate credit approval authority in the Group. The
Board has delegated credit authority to various credit committees and
to the Chief Credit Officer (‘CCO’). The CCO is permitted to further
delegate this credit authority to individuals within the Group on a risk
appropriate basis. Credit limits are approved in accordance with the
Group’s risk policies and guidelines.
All exposures above certain levels require approval by the Group Credit
Committee (‘GCC’) and/or Board. Other exposures are approved
according to a structure of tiered individual authorities which reflect
credit competence, proven judgement and experience. Depending on
the borrower/connection, grade and the level of exposure, limits are
sanctioned by the relevant credit authority. Material lending proposals
are referred to credit units for independent assessment/approval or
formulation of a recommendation and subsequent adjudication by the
applicable approval authority.
The Group also has in place an Interbank Exposure Policy which
establishes the maximum exposure for each counterparty bank,
depending on credit grade rating. Each bank is assessed for the
appropriate maximum exposure limit in line with the policy. Risk
generating business units in each segment are required to have an
approved bank and country limit prior to granting any credit facility, or
approving any credit obligation or commitment which has the potential
to create interbank or country exposure.
ECL governance (audited)
The Board has put in place a framework, incorporating the governance
and delegation structures commensurate with a material risk, to ensure
credit risk is appropriately managed throughout the Group.
The key governance points in the ECL allowance approval process
during 2024 were:
• Model Risk Committee;
• Asset and Liability Committee;
• Business level ECL Forum;
• Group Credit Committee; and
• Board Audit Committee.
For ECL governance, the Group’s senior management employ expert
judgement in assessing the adequacy of the ECL allowance. This is
supported by detailed information on the portfolios of credit risk
exposures and by the outputs of the measurement and classification
approaches, coupled with internal and external data provided on both
the short term and long term economic outlook. Business segments
and Group management are required to ensure that there are
appropriate levels of cover for all of the credit portfolios and must take
account of both accounting and regulatory compliance when assessing
the expected levels of loss.
Assessment of the credit quality of each business segment and
subsidiaries is initially informed by the output of the quantitative
analytical models but may be subject to management adjustments.
This ECL output is then scrutinised and approved at individual business
unit level (ECL Forum), which also includes subsidiaries, prior to
onward submission to the GCC.
GCC reviews and challenges ECL levels for onward recommendation
to the Board Audit Committee as the final approval authority. The Board
Audit Committee then recommends the Group’s financial results to the
Board for ultimate final approval.
Credit risk organisation and structure (audited)
The Group’s credit risk management structure operates through
a hierarchy of lending authorities. All customer loan requests are
subject to a credit assessment process. The role of the Credit Risk
function is to provide direction, independent oversight of and challenge
to credit risk-taking.
Credit risk management consideration of Environmental, Social,
and Governance (‘ESG’) risks
The Group continues to adapt its credit risk management processes and
policies to monitor ESG risks. Sector specific rules and limitations are
incorporated into credit policies within a defined climate-related and
environmental risk appetite. The ESG Questionnaire continues to be used
in credit applications for borrowers identified as carrying increased
transitional, environmental, social and/or governance related risk where
the new lending is over €/£ 1 million. Further details on climate and
environmental risk are outlined in section 2.7 on page 242.
The impact of climate change on the management, escalation and
reporting of credit risk was considered by the Group. There is currently
no reasonable and supportable information that indicates a material
impact of climate change on ECLs at a macro level, and the Group’s
approach to individual counterparty risk assessment adequately
captures climate risk where appropriate. The impact of climate risk
under various climate scenarios is assessed as part of the stress
testing process within the Group. Developments will continue to be
monitored in 2025 and on an onward basis to ensure ECLs
appropriately reflect latent risk from potentially emerging climate risks.
Internal credit ratings (audited)
One of the objectives of credit risk management is to accurately quantify
the level of credit risk to which the Group is exposed through the initial
credit approval and ongoing review process. All relevant exposures are
assigned to a rating model and within that to an internal risk grade (rating).
A grade is assigned on the basis of rating criteria within each rating model
from which estimates of probability of default (‘PD’) are derived.
Internal credit grades are fundamental in assessing the credit quality of
loan exposures, and for assessing capital requirements for portfolios
where prior regulatory approval has been received. Internal credit
grades are key to management reporting, credit portfolio analysis,
credit quality monitoring and in determining the level and nature of
management attention applied to exposures. Changes in the objective
information are reflected in the credit grade of the borrower/loan with
the resultant grade influencing the management of individual loans. In
line with the Group’s credit management lifecycle, heightened credit
management and special attention is paid to lower quality performing
loans or ‘criticised’ loans and non-performing/defaulted loans, which are
defined on page 188.
Using internal models, the Group utilises a credit grading masterscale
that gives it the ability to categorise credit risk across different rating
models and portfolios in a consistent manner. The masterscale
consolidates complex credit information into a single attribute, aligning
the output from the risk models with the Group’s Forbearance and
Definition of Default and Credit Impairment policies. The masterscale
grades are driven by grading model appropriate through the cycle PDs
combined with other asset quality indicators such as default, forbearance
and arrears in order to provide the Group with a mechanism for ranking
and comparing credit risk associated with a range of customers.
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2.1 Credit risk continued
Internal credit ratings continued (audited)
Masterscale categorises loans into a broad range of grades which can be
summarised into the following categories: strong/satisfactory grades;
criticised grades; and non-performing/default loans. The profile of the
Group’s loan portfolio under each of the above grade categories is set out
on page 207.
The IFRS 9 PD modelling approach uses a combination of rating
grades and scores obtained from these credit risk models along with
key factors such as the current/recent arrears status or the current/
recent forbearance status and macroeconomic factors to obtain the
relevant IFRS 9 12 month and Lifetime PDs (i.e. point in time). The
Group has set out its methodologies and judgements exercised in
determining its expected credit loss under IFRS 9 on pages 190 to 201.
Strong/satisfactory (audited)
Accounts are considered strong/satisfactory if they have no current or
recent credit distress and the probability of default is typically less than
6.95%, they are not in arrears and there are no indications that they are
unlikely to repay.
• Strong (typically with a PD less than 0.99%): Strong credit with no
weakness evident.
• Satisfactory (typically with a PD greater than or equal to 0.99% and
less than 6.95%): Satisfactory credit with no weakness evident.
Criticised (audited)
Accounts of lower credit quality and considered as less than
satisfactory are referred to as criticised and include the following:
• Criticised watch: The credit is exhibiting weakness in terms of credit
quality and may need additional management attention; the credit
may or may not be in arrears.
• Criticised recovery: Includes forborne cases that are classified
as performing including those which have transitioned from
non-performing forborne, but still require additional management
attention to monitor for re-default and continuing improvement in
terms of credit quality.
Non-performing/default (audited)
The Group’s definition of default is aligned with the EBA ‘Guidelines on
the application of the definition of default’ under Article 178 of the
Capital Requirements Regulation and ECB Banking Supervision
Guidance to Banks on non-performing loans.
The Group has aligned the definitions of ‘non-performing’, ‘classification
of default’ and IFRS 9 Stage 3 ‘credit impaired’, with the exception of
loans measured at fair value through profit or loss, and those loans
which have been derecognised and newly originated in Stage 1 or
POCI (purchased or originated credit impaired) which are no longer
classified as credit impaired but continue to be classified as non-
performing and in default. This alignment ensures consistency with the
Group’s internal credit risk management and assessment practices.
Loans are identified as non-performing or defaulted by a number of
characteristics. The key criteria resulting in a classification of non-
performing are:
• Where the Group considers a borrower to be unlikely to pay their
loans in full without realisation of collateral, regardless of the
existence of any past-due amount; or
• The borrower is 90 days or more past due on any material loan. Day
count starts when any material amount of principal, interest or fee
has not been paid by a borrower on the due date.
The criteria for the definition of financial distress and forbearance are
included in the Group’s Forbearance Policy. Criteria for the
identification of non-performing exposures and unlikeliness to pay are
included in the Group’s Definition of Default and Credit Impairment
Policy.
Credit risk monitoring (audited)
The Group has developed and implemented processes and information
systems to monitor and report on individual credits and credit portfolios
in order to manage credit risk effectively. It is the Group’s practice to
ensure that adequate up-to-date credit management information is
available to support the credit management of individual account
relationships and the overall loan portfolio.
Credit risk, at a portfolio level, is monitored using key risk indicators
and early warning indicators which are reported regularly to senior
management and to the Board Risk Committee. Credit managers
proactively manage the Group’s credit risk exposures at a transaction
and relationship level. Monitoring includes credit exposure and excess
management, regular review of accounts, being up-to-date with any
developments in customer business, obtaining updated financial
information and monitoring of covenant compliance. This is reported on
a regular basis to senior management and includes information and
detailed commentary on loan book growth, quality of the loan book and
expected credit losses including individual large non-performing exposures.
Changes in sectoral and single name concentrations are tracked on
a regular basis highlighting changes to risk concentration in the Group’s
loan book. The Group allocates significant resources to ensure ongoing
monitoring and compliance with approved risk limits. Credit risk,
including compliance with key credit risk limits, is monitored monthly
and is periodically reported to senior management and to the Board
Risk Committee. Once an account has been placed on a watch list, the
exposure is carefully monitored and where appropriate, exposure
reductions are effected.
As a matter of policy, non-retail facilities are subject to a review on, at
least, an annual basis, even when they are performing satisfactorily.
Annual review processes are supplemented by more frequent portfolio
and case review processes in addition to arrears or excess
management processes. Borrowers in Stage 2 may be subject to an
‘unlikely to pay’ test at the time of annual review, or earlier, if there is a
material adverse change or event in their credit risk profile.
Through a range of forbearance solutions, as outlined on page 229, the
Group employs a dedicated approach to loan workout, monitoring and
proactive management of non-performing loans. A specialised recovery
function focuses on managing the majority of criticised loans and deals
with customers in default, collection or insolvency. Their mandate is to
support customers in difficulty while maximising the return on non-
performing loans. Whilst the basic principles for managing weaknesses
in corporate, commercial and retail exposures are broadly similar, the
solutions reflect the differing nature of the assets. Further details on
forbearance are set out in section ‘2.1.6 - forbearance overview’.
Credit risk mitigants (audited)
The perceived strength of a borrower’s repayment capacity is
the primary factor in granting a loan. However, the Group uses various
approaches to help mitigate risks relating to individual credits, including
transaction structure, collateral and guarantees. The main types of
collateral for loans and advances to customers are described under the
section on collateral. Credit policy and credit management standards
are controlled and set centrally by the Credit Risk function.
Occasionally, credit derivatives are purchased to hedge credit risk.
Current levels are modest and their use is subject to the normal credit
approval process.
The Group enters into netting agreements for derivatives with certain
counterparties, to ensure that in the event of default, all amounts
outstanding with those counterparties will be settled on a net basis.
Depending on the size of the potential exposure derivative transactions
with wholesale counterparties are typically collateralised under a
Credit Support Annex in conjunction with the International Swaps and
Derivatives Association (‘ISDA’) Master Agreement.
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Risk Management continued
2.1 Credit risk continued
Credit risk mitigants continued (audited)
Collateral (audited)
Credit risk mitigation may include a requirement to obtain collateral as
set out in the Group’s lending policies. Where collateral and/or
guarantees are required, they are usually taken as a secondary source
of repayment in the event of a borrower’s default. The Group maintains
policies which detail the acceptability of specific classes of collateral.
The principal collateral types for loans and advances are:
• Charges over business assets such as premises, inventory and
accounts receivable;
• Charges over other assets such as plant and machinery, marine
vessels etc.;
• Mortgage/legal charge over residential and commercial real estate;
and
• Charges over financial instruments such as debt securities
and equities.
The nature and level of collateral required depends on a number of
factors such as the type of the credit facility, the term of the credit
facility and the amount of exposure. Collateral held as security for
financial assets, other than for loans and advances, is determined by
the nature of the instrument. Debt securities and treasury products are
generally unsecured, with the exception of asset backed securities,
which are secured by a portfolio of financial assets.
Collateral is not usually held against loans and advances to banks,
including central banks, except where securities are held as part of
reverse repurchase or securities borrowing transactions or where a
collateral agreement has been entered into under a master netting
agreement or where the bank purchases covered bonds as part of its
liquidity portfolio.
For non-mortgage/non-property lending, where collateral is taken, it will
typically include a charge over the business assets such as inventory
and accounts receivable. In some cases, a charge over property
collateral or a personal guarantee supported by a lien over personal
assets may also be taken. Where cash flows arising from the
realisation of collateral held are included in the expected credit loss
assessments, in many cases management rely on valuations or
business appraisals from independent external professionals.
Methodologies for valuing collateral (audited)
Details on the valuation rule methodologies applied and processes
used to assess the value of property assets taken as collateral are
described in the Group Property Valuation Policy and Property
Valuation Guidance. Both documents are subject to an annual review.
As property loans, including residential mortgages, represent
a significant concentration within the Group’s loans and advances to
customers portfolio, some key principles have been applied in respect
of the valuation of property collateral held by the Group.
The value of property collateral is assessed at loan origination and at
certain stages throughout the credit lifecycle in accordance with the
Group Property Valuation Policy e.g. at annual review, where required.
In accordance with the Group Property Valuation Policy and guidelines,
the Group employs a number of methods to assist in reaching
appropriate valuations for property collateral held:
(a) External valuation firms on the Group’s Valuers Panel, are engaged
by the Group to undertake valuations of immovable property
collateral in accordance with the rules set out in the Group Property
Valuation Policy.
(b) Independent professional internal valuations are completed in
limited circumstances (e.g. agricultural land) using a desktop
valuation approach by professionally qualified internal valuers who
are independent of the credit process in the second line of defence.
The assets being valued by this means must have an independent
professional external valuation completed within the past 3 years.
(c) Internal valuations are completed by the first line of defence
pursuant to the rules in the Property Valuation Policy and in line
with the Property Valuation Guidance, which provides appropriate
valuation methodology guidance. These include the following
valuation methodologies:
(i)
Index valuation approach – used for residential property;
(ii) Comparable valuation approach – a basic level of valuation
methodology used to value agricultural land or as a sense check for
the valuation of residential, commercial or development land;
(iii) Commercial investment valuation approach – used for the valuation
of commercial property using the Group’s commercial investment
yield matrices;
(iv) Residual valuation approach – used for the valuation of
development land or land with development potential; and
(v) Profits valuation approach – used for the valuation of trading assets
e.g. hotels, licensed premises, convenience stores etc. using the
Group’s stabilised EBITDA matrices.
Collateral and ECLs (audited)
Applying one or a combination of the above methodologies, in line with
the Group Property Valuation Policy, has resulted in an appropriate range
of discounts to original collateral valuations, influenced by the nature,
status and year of purchase of the asset. The frequency and availability
of such up-to-date valuations remain a key factor in ECL determination.
Additionally, relevant costs likely to be associated with the realisation of
the collateral are taken into account in the cash flow forecasts. The
spread of discounts is influenced by the type of collateral, e.g. land,
developed land or investment property and also its location.
The valuation arrived at, is therefore, a function of the nature of the asset.
When assessing the level of ECL allowance required for property loans,
apart from the value to be realised from the collateral, other cash flows,
such as recourse to other assets or sponsor support, are also
considered, where available. The other key driver is the time it takes to
receive the funds from the realisation of collateral. While this depends
on the type of collateral and the stage of its development, the period of
time to realisation is typically one to five years but sometimes this time
period is exceeded. These estimates are periodically reassessed on a
case by case basis.
When undertaking an ECL review for individually assessed cases that
have been deemed unlikely to pay, the present value of future cash
flows, including the value of collateral held, and the likely time required
to realise such collateral is estimated. An ECL allowance is raised for
the difference between this present value and the carrying value of the
loan. When multiple discounted cash flows are captured where the
gross credit exposure is ≥ € 5 million (Republic of Ireland) or ≥ £ 5
million (UK) or cases in scope for the Group Leveraged Lending Policy,
the value of collateral is adjusted to reflect the impacts of up and
downside scenarios for these higher value exposures.
Summary of risk mitigants by selected portfolios
Set out below are details of risk mitigants used by the Group in relation
to financial assets detailed in the ‘maximum exposure to credit risk’
table on page 202.
Residential Mortgages
For residential mortgages, the Group takes collateral in support of
lending transactions for the purchase of residential property. Collateral
valuations are required at the time of origination of each residential
mortgage. Details regarding the estimated fair value of collateral held
for the Group’s residential mortgage portfolio are included under the
residential mortgage section on page 221.
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2.1 Credit risk continued
Credit risk mitigants continued (audited)
Securities financing (audited)
In addition to the credit risk mitigants, the Group, from time to time, enters
securities financing transactions. Securities financing consists of securities
borrowing transactions, reverse repurchase agreements and securities
sold under agreements to repurchase. At 31 December 2024, the total fair
value of the collateral received was € 6,643 million (2023: € 6,466 million)
in relation to reverse repurchase agreements and securities borrowing
transactions (note 19 to the consolidated financial statements).
Derivatives (audited)
Derivative financial instruments are recognised in the statement of
financial position at their fair value. Those with a positive fair value
are reported as assets which at 31 December 2024 amounted to
€ 2,144 million (2023: € 2,377 million) and those with a negative fair
value are reported as liabilities which at 31 December 2024 amounted
to €1,807 million (2023: € 1,902 million).
The enforcement of netting agreements would potentially reduce the
statement of financial position carrying amount of derivative assets and
liabilities by € 1,385 million at 31 December 2024 (2023: € 1,556
million). The Group also has Credit Support Annexes (‘CSAs’) in place
which provide collateral for derivative contracts. At 31 December 2024,
€ 698 million (2023: € 713 million) of CSAs are included within financial
assets as collateral for derivative liabilities and € 814 million (2023:
€ 839 million) of CSAs are included within financial liabilities as
collateral for derivative assets (note 38 to the consolidated financial
statements). Additionally, the Group has agreements in place which
may allow it to net the termination values of cross currency swaps upon
occurrence of an event of default.
Investment securities
At 31 December 2024, government guaranteed senior bank debt which
amounted to € 164 million (2023: € 202 million) was held within the
investment securities portfolio.
Risk transfer (audited)
The Group also uses other credit risk mitigation and protection
techniques such as credit risk transfers to optimise exposure to credit
risk and reduce potential credit losses associated with credit events,
such as defaults or downgrades in credit quality. At a portfolio level,
credit risk is accessed in relation to the degree of single name, sectoral
asset class and geographic concentrations. In order to manage credit
risk exposure in the event of emerging risk concentrations, the risk
capital implications are assessed and, where appropriate, risk transfer
options (e.g. loan disposals, securitisations etc.) are considered.
In November 2024, the Group entered into a Significant Risk Transfer
(‘SRT’) on a portfolio of € 1 billion corporate loan assets. This
transaction reduces the Group’s credit risk exposure, and consequently
the risk weighted assets on the reference portfolio of loan assets,
through a risk sharing structure whereby the buyers of the notes
assume the credit risk for € 97.5 million of potential credit losses on the
reference portfolio of loan assets in return for an annual coupon.
No assets were derecognised from the Group’s balance sheet. The
reference portfolio of loan assets and related customer relationships
continue to be maintained by the Group.
Measurement, methodologies and judgements
Introduction (audited)
The Group has set out the methodologies used and judgements
exercised in determining its expected credit loss allowance for the year
to 31 December 2024.
The Group, in estimating its ECL allowance does so in line with the
expected credit loss impairment model as set out by the International
Financial Reporting Standard 9 Financial Instruments (‘the standard’).
This model requires a timely recognition of ECL across the Group.
The standard does not prescribe specific approaches to be used in
estimating ECL allowance, but stresses that the approach must reflect
the following:
• An unbiased and probability weighted amount that is determined by
evaluating a range of possible outcomes;
• Underlying models should be point in time and forward looking –
recognising economic conditions;
• The ECL must reflect the time value of money;
• A lifetime ECL is calculated for financial assets in Stages 2 and 3 and
Purchased or Originated Credit Impaired (‘POCI’); and
• The ECL calculation must incorporate reasonable and supportable
information that is available without undue cost or effort at the
reporting date about past events, current conditions and forecasts of
future economic conditions.
The standard defines credit loss as the difference between all
contractual cash flows that are due to an entity in accordance with the
contract and all the cash flows that the entity expects to receive (i.e. all
cash shortfalls), discounted at the original effective interest rate (‘EIR’)
or an approximation thereof.
ECLs are defined in the standard as the weighted average of credit
losses across multiple macroeconomic scenarios, with weights
assigned based on the probability of each scenario occurring and are
an estimate of credit losses over the life of a financial instrument.
The ECL model applies to financial instruments measured at amortised
cost or at fair value through other comprehensive income. In addition,
the ECL approach applies to lease receivables, loan commitments and
financial guarantee contracts that are not measured at fair value
through profit or loss.
A key principle of the ECL model is to reflect any relative deterioration or
improvement in the credit quality of financial instruments occurring (e.g.
change in the risk of a default). The ECL amount recognised as a loss
allowance or provision depends on the extent of credit deterioration since
initial recognition together with the impact on credit risk parameters.
Bases of measurement (audited)
Under the standard, there are two measurement bases:
1. 12-month ECL (Stage 1), which applies to all financial instruments
from initial recognition as long as there has been no significant
increase in credit risk; and
2. Lifetime ECL (Stages 2 and 3 and POCI), which applies when a
significant increase in credit risk has been identified on an account
(Stage 2), an account has been identified as being credit-impaired
(Stage 3) or when an account meets the POCI criteria.
Staging (audited)
Financial assets are allocated to stages dependent on credit quality
relative to when assets were originated. A financial asset, including
financial assets acquired by the Group, can only originate in either
Stage 1 or POCI.
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Risk Management continued
2.1 Credit risk continued
Measurement, methodologies and judgements continued
Credit risk at origination (audited)
Credit risk at origination (‘CRAO’) is a key input into the staging allocation
process. The origination date of an account is determined by the date on
which the Group became irrevocably committed to the contractual
obligation and the account was first graded on an appropriate model.
For undrawn credit facilities, the Group uses the date of origination as the
date when it becomes party to the irrevocably contractual arrangements
or irrevocable commitment. For overdrafts which have both drawn and
undrawn components, the date of origination is the same for both. The
Group uses best available information for facilities which originated
prior to a credit risk rating model or scorecard being in place.
For accounts that originated prior to 1 January 2018, a neutral view of
the macroeconomic outlook at the time is used, i.e. where
macroeconomic variables are used in the Lifetime PD models, long-run
averages are used instead of historical forecasts.
Stage 1 characteristics (audited)
Obligations are classified Stage 1 at origination or at acquisition by the
Group, unless POCI, with a 12 month ECL being recognised. These
obligations remain in Stage 1 unless there has been a significant
increase in credit risk.
Accounts can also return to Stage 1 if they no longer meet either the
Stage 2 or Stage 3 criteria, subject to satisfaction of the appropriate
probation periods, in line with regulatory requirements.
Stage 2 characteristics (audited)
Obligations where there has been a ‘significant increase in credit
risk’ (‘SICR’) since initial recognition but do not have objective evidence
of credit impairment are classified as Stage 2. For these assets, lifetime
ECLs are recognised.
The Group assesses at each reporting date whether a significant
increase in credit risk has occurred on its financial obligations since their
initial recognition. This assessment is performed on individual
obligations rather than at a portfolio level. If the increase is considered
significant, the obligation will be allocated to Stage 2 and a lifetime
expected credit loss will apply to the obligation. If the change is not
considered significant, a 12 month expected credit loss will continue to
apply and the obligation will remain in Stage 1.
SICR assessment (audited)
The Group’s SICR assessment is determined based on both
quantitative and qualitative measures:
Quantitative measure: This measure reflects an arithmetic assessment
of the change in credit risk arising from changes in the probability of
default. The Group compares each obligation’s annualised average
probability weighted residual origination lifetime probability of default
(‘LTPD’) (see ‘Credit risk at origination’ above) to its current estimated
annualised average probability weighted residual LTPD at the reporting
date. If the difference between these two LTPDs meets the quantitative
definition of SICR, the Group transfers the financial obligation
into Stage 2. Increases in LTPD may be due to credit deterioration of
the individual obligation or due to macroeconomic factors or
a combination of both. The Group has determined that an account had
met the quantitative measure if the average residual LTPD at the
reporting date was at least double the average residual LTPD at
origination, and the difference between the LTPDs was at least 50bps
or 85bps in the case of residential mortgages. The appropriateness of
this threshold is kept under review by the Group.
Qualitative measure: This measure reflects the assessment of the
change in credit risk based on the Group’s credit management and the
individual characteristics of the financial asset. This is not model driven
and seeks to capture any change in credit quality that may not be
already captured by the quantitative criteria.
The qualitative assessment reflects pro-active credit management
including monitoring of account activity on an individual or portfolio
level, knowledge of client behaviour, and cognisance of industry and
economic trends.
The criteria for this qualitative trigger include, for example:
• A downgrade to watch grade of the borrower’s/facility’s credit grade
reflecting the increased credit management focus on these accounts;
and/or
• Forbearance has been provided and the account is within the
probationary period.
• Lender assessed SICR triggers: For non-retail portfolios, a suite of
lender assessed triggers are in place to ensure appropriate and
timely identification of increased credit risk, which when occur, trigger
a SICR event.
The criteria for this lender assessed trigger include, for example:
• A post distressed restructure payment default occurs where the
borrower is neither in default nor forborne;
• A material adverse event has occurred for the borrower which may
impact the borrower’s ability to repay such as: adverse publicity
which raises concerns over the viability of a business; loss of key
personnel (CEO/CFO/COO) which raises concerns over the strategy/
viability of the business or significant negative macroeconomic
events (including but not limited to economic or market volatility,
changes in legislation and technological threats to an industry,
changes in access to markets) where the financial impact to the
borrower is deemed material.
• Backstop indicators: The Group has adopted the rebuttable
presumption within IFRS 9 that loans greater than 30 days past due
represent a significant increase in credit risk.
Where SICR criteria are no longer a trigger, the account can exit Stage
2 and return to Stage 1.
Stage 3 characteristics (audited)
Defaulted loans (with the exception of newly originated or acquired
loans that are in Stage 1 or POCI) are classed as credit impaired and
allocated to Stage 3. Where default criteria are no longer met, the
borrower exits Stage 3 subject to a probation period, in line with
regulatory requirements.
The key criteria resulting in a classification of default are:
• Where the Group considers a borrower to be unlikely to pay their
loans in full without realisation of collateral, regardless of the
existence of any past-due amount; or
• The borrower is 90 days or more past due on any material loan (day
count starts when any material amount of principal, interest or fee
has not been paid by a borrower at the date it was due).
Identification of non-performing exposures and unlikeliness to pay are
included in the Group’s Definition of Default and Credit Impairment Policy.
Purchased or originated credit impaired (‘POCI’) (audited)
POCIs are assets originated credit impaired and have a discount to the
contractual value when measured at fair value. The Group uses an
appropriate discount rate for measuring ECL in the case of POCIs which
is the credit-adjusted effective interest rate. This rate is used to discount
the expected cash flows of such assets to fair value on initial recognition.
POCI obligations remain outside of the normal stage allocation process
for the lifetime of the obligation. The ECL for POCI obligations is always
measured at an amount equal to lifetime expected credit losses. The
amount recognised as a loss allowance for these assets is the
cumulative change in lifetime expected credit losses since the initial
recognition of the assets rather than the total amount of lifetime
expected credit losses.
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2.1 Credit risk continued
Measurement, methodologies and judgements continued
Measurement of expected credit loss (audited)
The measurement of ECL is estimated through one of the following
approaches:
(i)
Standard approach: This approach is used for the majority of
exposures where each ECL input parameter (Probability of Default
– PD, Loss Given Default – LGD, Exposure at Default – EAD, and
Prepayments – PP) is developed in line with standard modelling
methodology. The Group’s IFRS 9 models have been developed
and approved in line with the Group’s Model Risk Management
Framework.
(ii) Simplified approach: For portfolios not on the standard approach,
the Group has followed a simplified approach. This approach
consists of applying portfolio level ECL averages, drawn from
similar portfolios, where it is not possible to estimate individual
parameters. These generally relate to portfolios where specific
IFRS 9 models have not been developed due to immateriality, low
volumes or where there are no underlying grading models. As
granular PDs are not available for these portfolios, a non-standard
approach to staging is required with reliance on the qualitative
criteria (along with the 30 days past due back-stop).
(iii) Discounted cash-flows (‘DCFs’): Assets are grouped together and
modelled based on asset classification and sector with the
exception of those Stage 3 assets where a DCF is used. DCFs are
used as an input to the ECL calculation for Stage 3 credit impaired
exposures where gross credit exposure is ≥ € 1 million (Republic of
Ireland) or ≥ £ 500,000 (UK). Multiple DCFs are captured where
gross credit exposure is ≥ € 5 million (Republic of Ireland) or ≥
£ 5 million (UK) or cases in scope for the Group Leveraged Lending
Policy, to reflect the case specific impacts of up and downside
scenarios for these higher value exposures.
Collateral valuations and the estimated time to realisation of
collateral is a key component of the DCF model. The Group
incorporates forward looking information in the assessment
of individual borrowers through the credit assessment process.
Where a single DCF is utilised this assessment produces a base
case ECL. This is then adjusted to incorporate the impact of
multiple scenarios on the base ECL, by using a proportional uplift
obtained from ECL modelled sensitivities in the same/similar
portfolio. Where a range of scenarios are captured through multiple
DCFs these are probability weighted to produce the final ECL. An
adjustment is made for cases with a very low final ECL to ensure a
minimum level of ECL is maintained, this is derived through
reference to ECL model outputs.
(iv) Management judgement: Where the estimate of ECL does not
adequately capture all available forward looking information about
the range of possible outcomes, or where there is a significant
degree of uncertainty, management judgement may be considered
appropriate for an adjustment to ECL. The management adjustment
must consider all relevant and supportable information, including
but not limited to, historical data analysis, predictive modelling and
management experience. The methodology to incorporate the
adjustment should consider the degree of any relevant over
collateralisation (headroom) and should not result in a zero overall
ECL unless there is sufficient headroom to support this. The key
judgements in the 2024 year end ECL estimates are outlined on
pages 200 and 201.
Effective interest rate (audited)
The ECL must incorporate the time value of money discounted to the
reporting date using the effective interest rate (‘EIR’) determined at
initial recognition or an approximation thereof.
• The Group uses an approximation approach based on the account
level interest rate when calculating ECL which is applied to both
drawn and undrawn commitments.
• This approach is subject to an annual assessment that all
approximations remain appropriate and do not result in a material
misstatement of the ECL.
• The Group has tested the appropriateness of using current interest
rates as an approximation for the discount rates required for
measuring ECLs. This testing determined that using the current
interest rates as the discount rates is an appropriate approximation.
Policy elections and simplifications
Low credit risk exemption (audited)
The Group utilises practical expedients, as allowed by IFRS 9, for the
stage allocation of particular financial instruments which are deemed
‘low credit risk’. This practical expedient permits the Group to assume,
without more detailed analysis, that the credit risk on a financial
instrument has not increased significantly since initial recognition if the
financial instrument is determined to have ‘low credit risk’ at the
reporting date. The Group allocates such assets to Stage 1.
Under IFRS 9, the credit risk on a financial instrument is considered low if:
• the financial instrument has a low risk of default;
• the borrower has a strong capacity to meet its contractual cash flow
obligations in the near term; and
• adverse changes in economic business conditions in the longer term
may, (but will not necessarily) reduce the ability of the borrower to
fulfil its contractual cash flow obligations.
This low credit risk exemption is applied to particular assets within the
Treasury Debt Securities Portfolio, Capital Markets Collateralised Loan
Obligation Bonds and for Loans and Receivables to Banks, specifically
assets which have an internal grade equivalent to an external
investment grade rating (BBB-) or higher.
The Group applies a quantitative backstop trigger of tripling of probability
of default subject to a minimum threshold movement of 30bps to
determine whether assets subject to the low credit risk exemption should
be allocated to Stage 2. Additionally, if any of such assets are on a watch
list based on agreed criteria, they are allocated to Stage 2.
Short term cash (audited)
The Group’s IFRS 9 Impairment Policy does not require calculation of
an ECL for short term cash at central banks and other banks which
have a low risk of default with a very low risk profile. The calculation of
the ECL at each reporting date would be immaterial given these
exposures’ short term nature and their daily management.
Lease receivables and trade receivables (audited)
For lease receivables, the Group has elected to use its standard
approach for both stage allocation and the ECL calculation and has
elected to use an expedient (simplified approach) for trade receivables.
IFRS 9 ECL Credit Risk models (audited)
The IFRS 9 ECL models provide the risk parameters which are the
inputs into the model driven estimate of ECL which is used across all
Stage 1 and Stage 2 assets plus all non-DCF Stage 3 exposures on the
standard approach to ECL.
IFRS 9 Portfolio Delineation (audited)
The IFRS 9 models are delineated into retail and non-retail portfolios.
The retail IFRS 9 portfolios provide exposure level risk parameter
estimates which take into account borrower level characteristics and
metrics where appropriate, whilst the non-retail portfolios provide
metrics which are either borrower or connection level estimates.
Probability of default (audited)
Probability of default (‘PD’) is the likelihood that an account or borrower
defaults over an observation period, given that they are not currently in
default, for each year of the expected contractual lifetime of the
exposure. The PD is a point in time estimate which is reflective of the
current and expected economic conditions.
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Risk Management continued
2.1 Credit risk continued
Measurement, methodologies and judgements continued
Probability of default continued (audited)
In order to capture the appropriate risk dynamics across the lifetime of
the exposure the development process considers:
• Macroeconomic effects captured through factors such as
unemployment rate and GDP;
• Cross-sectional risk discriminators in particular the internal rating
model outputs plus other factors such as forbearance and days past
due; and
• Seasoning factors such as product type, delinquency and
forbearance status.
Loss given default (audited)
Loss given default (‘LGD’) is a current assessment of the amount that
will not be recovered in the event of default, taking account of future
conditions. It can be thought of as the difference between the amount
owed to the Group (i.e. the exposure) and the net present value of
future cash flows less any relevant costs expected to be incurred in the
recovery process. If an account returns to performing from default
(excluding any loss making concession) or if the discounted post-
default recoveries are equal to or greater than the exposure, the
realised loss is zero.
The LGD modelling approach depends on whether the facility has
underlying security and, if so, the nature of that security. The following
sets out the general approaches for the retail and non-retail portfolios:
– Retail portfolios
For unsecured loans, a cash flow curve, which estimates the
cumulative cash received following default until the loan is written-
off or returns to performing, is used to estimate the future recovery
amount. This is discounted at the effective interest rate and
compared to the current outstanding balance. Any shortfall between
the recovery amount and the outstanding balance is the LGD used
to estimate ECL. Where appropriate, this may then be adjusted to
reflect economic conditions.
For secured loans the following may be considered:
• The value of underlying collateral is estimated at the forecasted
time of disposal (taking into account forecasted market price
growth/falls and haircuts on market values that are expected at the
date of sale plus associated costs) in order to calculate the future
recovery amount;
• The potential for the exposure to be deleveraged through a portfolio
sale taking into account the costs associated with same; and
• Paths for returning to the performing portfolios such as
forbearance and self-cure.
– Non-retail portfolios
For unsecured loans, characteristics such as borrower sector and
nature of collateral linked to affiliated accounts under the same
customer group are used to determine future losses based on
historical experience of discounted recoveries.
For secured loans, the value of the underlying property collateral is
estimated at the reporting date. This is used to estimate the ECL
based on historical experience of discounted recoveries.
Exposure at default (audited)
Exposure at default (‘EAD’) is defined as the exposure amount that
will be owed by a customer at the time of default. This will comprise
changes in the exposure amount between the reporting date and the
date that the customer defaults. This may be due to repayments,
interest and fees charged and additional drawdowns by the customer.
Prepayments (audited)
For term credit products, prepayment occurs where a customer fully
prepays an account prior to the end of its contractual term.
For revolving credit products, ‘prepayment’ is defined as the cessation
of use and withdrawal of the facility provided that the account was not
in default prior to closure.
Prepayment is used in the lifetime ECL calculation for Stage 2 loans to
account for the proportion of the facilities/customers that prepay each year.
Determining the period over which to measure ECL (audited)
Both the origination date and the expected maturity of a facility must be
determined for ECL purposes. The origination date is used to measure
credit risk at origination.
The expected maturity is used for assets in Stage 2, where the ECL
must be estimated over the remaining life of the facility.
The expected maturity approach is:
• Term credit products: the contractual maturity date, with exposure
and survival probability adjusted to reflect behaviour i.e. amortisation
and prepayment;
• Revolving credit products: the period may extend beyond the
contractual period over which the Group is exposed to credit risk,
e.g. overdrafts and credit cards. The Group’s approach is to use a
modelled behavioural life estimate for these obligations for ECL
calculation purposes.
Forward looking indicators in the models (audited)
For ECL calculations reliant on models in the standard and simplified
approaches, forward looking indicators are incorporated into the models
through the use of macroeconomic variables. These have been identified
statistically as the key macroeconomic variables that drive the parameter
being assessed (e.g. PD or LGD). The final model structure incorporates
these as inputs with the 12 month and lifetime calculations utilising the
macroeconomic forecasts for each scenario. See the ‘macroeconomic
scenarios and weightings’ section for more detail on the process for
generating scenarios and associated key macroeconomic factors relevant
for the models. In circumstances where there is a risk that the modelled
output fails to capture the appropriate response to changes in the
macroeconomic environment such as inflation and interest rate changes,
these risks are captured through the use of post model adjustments.
Write-offs (audited)
When the prospects of recovering a loan, either partially or fully, do not
improve, a point may come when it will be concluded that as there is no
realistic prospect of recovery, the loan and any related ECL will be
written-off. The Group determines, based on specific criteria, the point
at which there is no reasonable expectation of recovery. When the
following criteria exist (or comparable circumstances arise), the loan
can be subject to a partial or full write-off:
• A decision has been taken to enforce on a loan, due to no agreement
with the customer for a restructure/settlement and all customer
engagement with the Group regarding their loan agreement has ceased;
• Inception of informal insolvency proceedings has commenced or is
about to commence;
• Receivership or other formal recovery action (e.g. where expectation
of recovery of collateral is expected through enforcement activity but
no additional recoveries above the collateral value are anticipated)
has commenced or is about to commence; and
• A loan is substantially provided for or no material repayments have
been received for a period of time (minimum 12 months) and all
customer engagement with the Group regarding their loan
agreement has ceased.
Debt forgiveness may subsequently arise where there is a formal
contract with the customer for the write-off of the loan. In addition,
certain forbearance solutions and restructuring agreements may include
an element of debt write down (debt forgiveness). Further details on
forbearance are set out in section ‘2.1.6 - forbearance overview’.
The contractual amount outstanding of loans written-off during the year
that are still subject to enforcement activity are outlined on page 218 and
relate to non-contracted write-offs, both full and partial. The Group
recognises cash received from the customer in excess of the carrying
value of the loan after a non-contracted write-off as ‘recoveries of
amounts previously written-off’ in the income statement.
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2.1 Credit risk continued
Measurement, methodologies and judgements continued
Management judgements during the year:
• The international backdrop remains fragile, with the global
economy forecast to grow at a relatively modest pace. Inflation
rates are forecast to ease further in the major economies, enabling
additional interest rate reductions which will help support the real
economy and property markets.
• Despite the recent period of restrictive, anti-inflationary, monetary
policies, unemployment rates have remained low in most
economies. Although there are some signs of softening in labour
markets (e.g., falling vacancy rates etc.) conditions are forecast to
remain resilient.
• There are significant downside risks to the outlook, including
current geopolitical tensions as well as uncertainties over
economic and trade policies related to the new US administration.
• The Group is of the view that risks to the economic outlook remain
tilted to the downside and, for the purposes of IFRS 9 ECL
reporting, has applied the following weightings for 31 December
2024: Base 50% (no change compared to 31 December 2023),
Moderate Upside 5% (change -5%), Moderate Downside 40%
(change +10%) and Severe 5% (change -5%). Further details
are outlined in the macroeconomic scenarios and weightings
section below.
• The Group’s sensitivity analysis to the macroeconomic scenario
weightings are outlined on page 199. Under the 100% Downside 2
(‘Credit crunch’) scenario, a 45% increase in ECL compared to the
Reported ECL allowance stock is estimated.
• ECL allowance stock relating to post model adjustments ('PMAs')
has decreased by € 181 million in the year to € 353 million. ECL
allowance stock relating to PMAs as a percentage of total ECL
stock on loans and advances to customers is 26% (2023: 35%).
The reduction in PMA stock is largely driven by utilisation as risks
previously identified are now captured in the modelled outcomes
or deemed no longer to be present, and through portfolio
disposals. New PMAs in the year seek to capture the potential
impacts of the recalibrated investment property model, due for
deployment in 2025 and the latent risk of potential forbearance
activity. Further details are outlined under the post model
adjustments section on pages 200 and 201.
Macroeconomic scenarios and weightings
The macroeconomic scenarios used by the Group for ECL allowance
calculation purposes have been developed in a consistent way with that
set out in the 2023 Annual Financial Report and have been subject to
the Group’s established governance process covering the development
and approval of macroeconomic scenarios used for planning and
internal stress testing purposes. The macroeconomic scenarios are
reviewed by the Asset and Liability Committee (‘ALCo’) regularly, and
such reviews took place frequently during 2024 in response to
economic developments. The macroeconomic scenarios are then
reviewed by the Board Risk Committee (‘BRC’) and approved for use
by the Board. The scenario probabilities are approved by the Board
Audit Committee (‘BAC’).
The parameters used within the Group’s ECL models include
macroeconomic factors which have been established as drivers of the
default risk and loss estimates. Therefore, a different credit loss
estimate is produced for each scenario based on a combination of
these identified macroeconomic factors. The credit loss estimates for
each scenario are then weighted by the assessed likelihood of
occurrence of the respective scenarios to yield the ECL outcome.
The IMF expects below average global growth of 3.3% in both 2025
and 2026 with headline inflation projected to converge back to target
earlier in advanced economies amid a gradual cooling of labour
markets. The UK saw a slight upturn in activity in 2024 following a weak
2023. There are significant downside risks to the outlook, including
geopolitical tensions, geo-economic fragmentation, as well as elevated
economic and trade policy uncertainty associated with the new US
administration, which has the potential to reinforce signs of weakness in
the European economy. Upside potential exists in the form of improved
business and consumer sentiment that could boost economic activity if
geopolitical tensions subside and monetary policy continues to ease,
productivity gains from Artificial Intelligence, and the use of savings to
support higher consumer spending in countries such as Ireland.
As part of the process of deriving an ECL calculation, a range of
plausible scenarios was considered given the prevailing trends,
emerging risks and uncertainties facing the domestic and global
economies, as at the financial reporting date.
The Group has applied four scenarios in the calculation of ECL that, in
its view, reflect ongoing uncertainty regarding the economic outlook, as
at the reporting date. These four scenarios consist of a base case
scenario and three alternative scenarios (consisting of one upside and
two downside scenarios). These alternative scenarios consider inter
alia higher inflation due to geopolitical tensions, compared to Base
('Downside 1'), a tightening of financial conditions linked to the material
manifestation of geopolitical risks, leading to a credit crunch ('Downside
2') and the impact of a de-escalation of geopolitical tensions on global
economic activity ('Upside'). Non-linear effects are captured in the
development of the respective risk parameters.
The Group's Economic Research Unit ('ERU') provide the assumptions
for each scenario over five years. These are then independently
reviewed and challenged, on both a quantitative and qualitative basis,
by the Group’s Risk function. The base case is benchmarked against
the outlook available from official sources (e.g., Central Bank of Ireland,
IMF, ECB, Bank of England, etc.) to ensure it is appropriate.
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Risk Management continued
2.1 Credit risk continued
Measurement, methodologies and judgements continued
Macroeconomic scenarios and weightings continued
The long term projections reflect the relatively limited climate change
mitigation policies, mainly comprising the continued gradual substitution
of gas for coal, that have been announced so far. Without significantly
enhanced mitigating actions, the world is on course to warm by about
2°C above pre-industrial levels by 2050. The long term baseline
scenario seeks to follow the International Energy Agency (‘IEA’) “stated
policies” scenario and implies emissions remaining roughly constant.
The scenarios used for the year-end ECL process are described below
and reflect the views of the Group as at the reporting date.
Base case: The economic backdrop is characterised by modest, but
fragile growth. Falling inflation and expected cuts to central bank rates
should support economic activity in the near term. Geopolitical tensions
act as a headwind to growth via higher commodity prices and further
fragmentation in global trade patterns.
Ireland’s economy is projected to grow moderately, by 2.7% in 2025.
The outlook is for low and stable inflation (averaging 2% over the
2025-2029 period). Labour market performance remains strong with
unemployment expected to average 4.5%. House prices are anticipated
to rise modestly due to strong demand and limited supply, while a
similar trend in commercial property prices is expected following
weakness in recent years.
UK economic momentum has significantly decelerated recently, though
GDP growth is expected to pick up and average 1.6% in 2025.
Unemployment is projected to remain low. Property prices are likely to
rise modestly driven by factors such as falling interest rates, gains in
real incomes and supply shortages. Gains are also expected for
commercial property prices.
Growth in the US economy is forecasted to decelerate with average
growth of 1.8% over the 2025-2029 period expected. Interest rates are
projected to decline during 2025 as inflation moderates.
A slight acceleration in GDP growth to 1.5% is anticipated for the Euro
in 2025, with interest rates projected to be reduced further during 2025
as inflation falls back to target.
Downside 1 (‘Geopolitical tensions’): In this scenario, deepening
geopolitical tensions and global fragmentation weighs on global trade,
impacting supply chains and leads to a spike in commodity prices. As a
consequence, inflation proves to be sticky and, on an annual basis,
only reaches the 2% target by 2028. Central Banks are forced to
maintain restrictive monetary policy until towards the end of 2025.
Conditions in financial markets remain tight, with rises in bond yields
and credit spreads while stock markets are weaker.
As well as adding to inflation expectations, the potential escalation of
protectionist trade policy by the new US government creates
uncertainty on the outlook for the US and global economy. As a result,
all major economies experience a shallow recession in 2025-2026,
followed by a sluggish recovery in activity. The changing political
landscape in Europe also creates uncertainty, affects sentiment, and
widens sovereign and corporate credit spreads.
Downside 2 (‘Credit crunch’): In this scenario, the rapid tightening of
monetary policy during 2022-2023 has a delayed impact on financial
markets and wider economic activity. These developments, combined
with rising geopolitical tensions depresses consumer and business
confidence. There is a sharp contraction in economic activity as a
result. Moreover, a tightening of financial conditions requires fiscal
tightening, as central banks maintain high interest rates to combat
inflation, which amplifies the downturn and hinders economic recovery.
The severe downturn exposes underlying vulnerabilities in the financial
sector, especially in the global commercial real estate market and
potential credit stresses lead to increased defaults and instability within
the financial system. The slump in economic activity, in addition to
financial instability concerns, prompts central banks to lower interest
rates below levels assumed in the Downside 1 scenario.
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2.1 Credit risk continued
Measurement, methodologies and judgements continued
Macroeconomic scenarios and weightings continued
Upside (‘Quick recovery’): In this more benign scenario, we see the
combination of easing geopolitical tensions and a faster than
anticipated rundown of personal and corporate savings. This boosts
both business and consumer confidence and has a positive impact on
financial markets. Combined with faster labour force growth, this raises
global economic activity which benefits the Group’s key markets.
The table below sets out the five year average forecast for each
of the key macroeconomic variables that are required to generate
the scenarios or are material drivers of the ECL under (i) Base,
(ii) Downside 1, (iii) Downside 2 and (iv) Upside scenarios at
31 December 2024 (average over 2025-2029) and at 31 December 2023
(average over 2024-2028).
December 2024
5 year (2025-2029) average forecast
December 2023
5 year (2024-2028) average forecast
Macroeconomic factor (%)
Base
Downside 1
(‘Geopolitical
tensions’)
Downside 2
(‘Credit
crunch’)
Upside
(‘Quick
recovery’)
Base
Downside 1
(‘Persistent
inflation’)
Downside 2
(‘Credit
crunch’)
Upside
(‘Quick
recovery’)
Republic of Ireland
GDP growth
3.0
1.8
0.7
3.8
3.5
3.0
1.1
4.2
Residential property price growth
2.5
(0.1)
(4.7)
4.2
2.1
(0.5)
(4.7)
3.6
Unemployment rate
4.5
7.4
10.1
3.9
5.5
7.1
10.4
3.6
Commercial property price growth
3.4
(1.2)
(5.2)
5.8
2.5
(1.4)
(5.2)
4.7
Employment growth
1.5
1.0
(0.6)
1.9
1.6
0.9
(0.6)
1.9
Average disposable Income growth
4.4
4.0
3.0
6.5
5.2
4.9
3.3
6.5
Inflation
2.0
2.9
1.9
3.1
2.3
3.3
2.1
3.4
United Kingdom
GDP growth
1.5
0.6
(0.1)
2.1
1.2
0.4
(0.1)
1.8
Residential property price growth
2.6
(1.1)
(5.4)
4.6
1.2
(1.2)
(5.4)
3.0
Unemployment rate
4.6
7.6
9.1
3.8
5.0
7.2
9.1
3.8
Commercial property price growth
2.8
(1.8)
(6.1)
5.1
3.3
(2.0)
(6.1)
5.5
Inflation
2.1
2.7
1.8
3.4
2.4
3.9
2.3
4.0
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Risk Management continued
2.1 Credit risk continued
Measurement, methodologies and judgements continued
Macroeconomic scenarios and weightings continued
Additional information is provided in the table below which details the individual macroeconomic factor forecast for each year across the four
scenarios, at 31 December 2024.
Estimate
Base
Downside 1 (‘Geopolitical tensions’)
Macroeconomic factor
2024
%
2025
%
2026
%
2027
%
2028
%
2029
%
2025
%
2026
%
2027
%
2028
%
2029
%
Republic of Ireland
GDP growth1
(0.2)
2.7
3.0
3.2
3.1
3.0
1.0
0.6
2.4
2.5
2.5
Residential property price growth
5.5
3.5
2.5
2.5
2.0
2.0
(6.5)
(3.0)
4.0
2.5
2.5
Unemployment rate
4.5
4.5
4.5
4.6
4.6
4.6
5.9
7.4
8.3
8.1
7.4
Commercial property price growth
(5.0)
3.0
5.0
3.0
3.0
3.0
(11.0)
(3.0)
3.0
3.0
2.0
Employment growth
2.3
1.6
1.5
1.5
1.5
1.5
—
(0.3)
0.7
2.0
2.6
Average disposable income growth
8.8
5.0
4.4
4.2
4.1
4.2
5.0
3.8
3.1
4.0
4.0
Inflation
1.9
2.0
2.0
2.0
2.0
2.0
4.4
3.5
2.5
2.0
2.0
United Kingdom
GDP growth
1.1
1.6
1.5
1.5
1.5
1.5
—
(0.6)
0.6
1.3
1.5
Residential property price growth
4.5
4.0
3.0
2.0
2.0
2.0
(10.0)
(3.5)
2.0
3.0
3.0
Unemployment rate
4.5
4.6
4.6
4.6
4.6
4.6
6.2
7.8
8.5
7.9
7.5
Commercial property price growth
3.5
4.0
3.0
3.0
2.0
2.0
(11.5)
(3.0)
1.5
2.0
2.0
Inflation
2.6
2.3
2.0
2.0
2.0
2.0
4.5
2.8
2.1
2.0
2.0
1. The macroeconomic scenario assumptions presented in these tables were prepared in Quarter 4 2024 using information available at the time. In the case of Irish
GDP growth, subsequent data released by the CSO now indicates that GDP may have contracted for 2024 as a whole.
Downside 2 (‘Credit crunch’)
Upside (‘Quick recovery’)
Macroeconomic factor
2025
%
2026
%
2027
%
2028
%
2029
%
2025
%
2026
%
2027
%
2028
%
2029
%
Republic of Ireland
GDP growth
(1.5)
(3.5)
0.2
3.8
4.4
6.0
3.4
3.2
3.5
3.1
Residential property price growth
(12.0) (13.0)
(1.0)
1.0
1.5
6.5
5.0
4.0
3.0
2.5
Unemployment rate
6.4
9.1
11.3
12.0
11.6
4.2
4.0
3.8
3.8
3.9
Commercial property price growth
(15.0) (16.0)
(1.0)
2.5
3.5
7.0 10.0
5.0
4.0
3.0
Employment growth
(1.2)
(2.4)
(1.7)
0.4
2.0
2.5
2.0
2.0
1.5
1.3
Average disposable income growth
3.3
2.1
2.5
3.2
4.0
8.2
7.5
6.5
5.2
5.0
Inflation
2.0
1.5
1.8
2.0
2.0
4.5
3.5
3.0
2.5
2.0
United Kingdom
GDP growth
(2.1)
(1.9)
0.5
1.5
1.7
2.6
3.0
2.0
1.5
1.3
Residential property price growth
(12.0) (15.0)
(2.5)
1.0
1.5
6.0
7.0
4.0
3.0
3.0
Unemployment rate
6.3
8.5
10.0
10.5
10.0
4.3
3.9
3.7
3.5
3.6
Commercial property price growth
(15.5) (17.0)
(4.5)
2.5
4.0
7.0
6.0
4.5
4.0
4.0
Inflation
2.0
1.5
1.5
2.0
2.0
5.0
4.5
3.0
2.5
2.0
The key differences to the scenario forecasts versus 31 December 2023 relate to downward revisions to inflation in our main markets, with
somewhat stronger economic growth in the US, UK and Euro area, though Irish GDP projections have been scaled back. Moreover, labour
markets in all our key markets have outperformed and unemployment rates are lower. In addition, house price growth has been revised upwards
on the basis of stronger than expected recent momentum in property markets. The four scenarios detailed above are designed to capture a
reasonable range of plausible outcomes. The ECL allowance reflects a weighted average of the credit loss estimates under the four scenarios.
The four scenarios detailed above are used to reflect a representative sample of possible outcomes. The ECL allowance reflects a weighted
average of the credit loss estimates under the four scenarios.
Similar to the scenario forecasts, the probability weight assigned to each scenario is proposed by the ERU, with a review and challenge from the
Group Risk function. The probabilities described below reflect the views of the Group at the reporting date.
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2.1 Credit risk continued
Measurement, methodologies and judgements continued
Macroeconomic scenarios and weightings continued
The weights for the scenarios at the reporting date are ultimately based on expert judgement, with reference to external market information where
possible, though the decision is also informed by analysis using more formal econometric methods (e.g., early warning indicators of economic
activity) to assess the relative probabilities of moderate and more severe economic downturns. The increase in weightings for Downside 1 for this
reporting period reflects an escalation of geopolitical risks affecting inflation via supply chain disruption through key global trade channels and
higher commodity prices. The decrease in the weighing for Downside 2 for this reporting period reflects the strength of ongoing economic data and
evidence of a lower likelihood of more extreme macroeconomic outcomes.
The weightings that have been applied as at 31 December 2024 are:
Scenario (audited)
Weighting
Weighting
December 2024
December 2023
Base
50 %
Base
50 %
Downside 1 (‘Geopolitical tensions’)
40 %
Downside 1 (‘Persistent inflation’)
30 %
Downside 2 (‘Credit crunch’)
5 %
Downside 2 (‘Credit crunch’)
10 %
Upside (‘Quick recovery’)
5 %
Upside (‘Quick recovery’)
10 %
In assessing the adequacy of the ECL allowance, the Group has considered all available forward looking information as of the balance sheet date
in order to estimate the future expected credit losses. The Group, through its risk management processes (including the use of expert credit
judgement and other techniques) assesses its ECL allowance for events that cannot be captured by the statistical models it uses and for other risks
and uncertainties. The assessment of ECL at the balance sheet date does not reflect the worst case outcome, but rather a probability-weighted
outcome of the four scenarios. Should the credit environment deteriorate beyond the Group’s expectation, the Group’s estimate of ECL would
increase accordingly.
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Risk Management continued
2.1 Credit risk continued
Measurement, methodologies and judgements continued
Sensitivities (audited)
The Group’s estimates of expected credit losses are responsive
to varying economic conditions and forward looking information. These
estimates are driven by the relationship between historic experienced
loss and the combination of macroeconomic variables. Given the co-
relationship of each of the macroeconomic variables to one another
and the fact that loss estimates do not follow a linear path, a sensitivity
to any single economic variable is not meaningful. As such, the
following sensitivities provide an indication of ECL movements that
include changes in model estimates and quantitative SICR staging
assignments, with a single 100% weighting applied individually.
Increased sensitivity for the Downside 2 ‘Credit crunch’ scenario is
evident in the 2024 sensitivities compared to the Reported ECL and
100% Base, driven predominantly by underlying model and staging
sensitivities (including the redeveloped corporate models and an
element of macro sensitive PMA allocation where relevant). Further
details on post model adjustments are outlined on pages 200 and 201.
Relative to the Base scenario, in the 100% Downside ‘Geopolitical
tensions’ and ‘Credit crunch’ scenarios, the ECL allowance increases
by 30% and 64%, respectively. In the 100% Upside scenario, the ECL
allowance declines by 6%. At 31 December 2024, a 100% Downside
‘Geopolitical tensions’ and ‘Credit crunch’ scenario sees a higher ECL
allowance sensitivity of € 373 million and € 794 million respectively
compared to Base (€ 214 million and € 635 million respectively
compared to the Reported ECL). Lower relative impacts are observed
for the AIB UK portfolio.
ECL allowance at 31 December 2024
Reported
100% Base
100% Downside
Scenario 1
(‘Geopolitical
tensions’)
100% Downside
Scenario 2
(‘Credit crunch’)
100% Upside
Scenario
(‘Quick recovery’)
Loans and advances to customers (audited)
€ m
€ m
€ m
€ m
€ m
Residential mortgages
270
241
304
464
223
Other personal
137
128
145
167
124
Property and construction
464
410
569
689
384
Non-property business
473
415
535
636
393
Total
1,344
1,194
1,553
1,956
1,124
Off-balance sheet loan commitments
44
36
46
60
34
Financial guarantee contracts
13
12
16
20
12
1,401
1,242
1,615
2,036
1,170
Of which:
AIB UK segment
174
160
192
206
151
ECL allowance at 31 December 2023
Reported
100% Base
100% Downside
Scenario 1
(‘Persistent
inflation’)
100% Downside
Scenario 2
(‘Credit crunch’)
100% Upside
Scenario
(‘Quick recovery’)
Loans and advances to customers (audited)
€ m
€ m
€ m
€ m
€ m
Residential mortgages
309
291
329
540
262
Other personal
97
94
98
119
90
Property and construction
541
501
567
796
433
Non-property business
573
543
618
749
490
Total
1,520
1,429
1,612
2,204
1,275
Off-balance sheet loan commitments
43
37
44
65
32
Financial guarantee contracts
16
16
17
26
15
1,579
1,482
1,673
2,295
1,322
Of which:
AIB UK segment
221
214
232
233
208
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2.1 Credit risk continued
Measurement, methodologies and judgements continued
Post model adjustments (‘PMAs’) (audited)
Post model adjustments (‘PMAs’) are applied where management
believe that they are necessary to ensure an adequate level of ECL
provision and to address known model limitations and/or novel risks not
captured in the models. They may also be used where models are
being redeveloped but are not yet deployed, where the impact of
introducing the new models can be accurately quantified.
PMAs are approved through the ECL governance process within which
the appropriateness of PMAs is considered against the backdrop of the
risk profile of the loan book, recent loss history or changes in
underlying resolution strategies not captured in the models and
management’s view of novel risks. Release of PMAs will occur as new
models are deployed or where the risk has been judged by
management to be captured in the modelled outcomes, or to have
passed.
The PMAs approved for 31 December 2024 (and 2023 comparison),
are set out below and are categorised as follows:
• NPE resolution – ECL adjustments where the current model does
not take into account downside risks that should be incorporated into
the final loss estimate.
• Sectoral/Emerging risks – ECL adjustments which reflect novel
risks within a sector or portfolio for which there has not been time to
embed an adjustment within the related models or where the models
are incapable of differentiating the nuanced sectoral impacts of each
novel risk.
• Future model developments/Other – ECL adjustments required
where the impact of upcoming model changes or recalibrations
is known with sufficient accuracy and ECL adjustments where it was
judged that an amendment to the modelled ECL was required for
reasons other than the above.
2024
Post model adjustments
(audited)
ECL allowance
before PMAs
NPE resolution
Sectoral/
Emerging risks
Future model
developments/
Other1
Total PMAs
Total ECL
allowance
Proportion of
PMAs to total
ECL allowance
€ m
€ m
€ m
€ m
€ m
€ m
%
Residential mortgages
222
48
—
—
48
270
18
Other personal
125
12
—
—
12
137
9
Property and construction
234
76
60
94
230
464
50
Non-property business
410
6
3
54
63
473
13
Total loans and advances to
customers
991
142
63
148
353
1,344
26
Loan commitments and
financial guarantees issued
57
—
—
—
—
57
—
Total ECL allowance
1,048
142
63
148
353
1,401
25
2023
Post model adjustments
(audited)
ECL allowance
before PMAs
NPE resolution
Sectoral/
Emerging risks
Future model
developments/
Other1
Total PMAs
Total ECL
allowance
Proportion of
PMAs to total
ECL allowance
€ m
€ m
€ m
€ m
€ m
€ m
%
Residential mortgages
229
58
22
—
80
309
26
Other personal
97
—
—
—
—
97
—
Property and construction
259
113
149
20
282
541
52
Non-property business
401
29
15
128
172
573
30
Total loans and advances to
customers
986
200
186
148
534
1,520
35
Loan commitments and
financial guarantees issued
59
—
—
—
—
59
—
Total ECL allowance
1,045
200
186
148
534
1,579
34
1. The Capital Markets non-property business PMA of € 34 million at 31 December 2024 has been recategorised from 'Sectoral/Emerging risks' to 'Future model
development/Other' and the 31 December 2023 comparative (€ 47 million) has also been re-presented to reflect this change.
NPE resolution (audited)
A PMA of € 58 million was implemented at 31 December 2023 on
Stage 3 mortgages, primarily to address potential ECL underestimation
from higher yields in the current interest rate environment impacting
portfolio sale assumptions within the mortgage model and uncertainty
of the timing to transact NPE mortgage portfolio sales. During 2024,
€10 million of this PMA was released due to the deployment of model
enhancements and a reduction in interest rates versus the original
PMA, with € 48 million retained at 31 December 2024.
Within the Retail Banking personal lending Stage 3 portfolio, a new
PMA of € 12 million was introduced at 31 December 2024 to reflect the
experience of recent loan sale transactions for similar portfolios not
currently captured in the modelled outcomes.
PMAs relating to non-performing property (€ 76 million) and
non-property business (€ 6 million) loans reflect an adjustment to
account for latent risks, idiosyncratic concentration risk, and alternative
resolution strategies, such as NPE portfolio loan sales. This PMA is to
address the potential range of ECL outcomes depending on the
ultimate resolution type. At 31 December 2024, this PMA reflects the
potential reduction in asset values, particularly within commercial real
estate and potential impacts from NPE portfolio loan sales. There has
been a partial unwind of this PMA in the year where the risk has now
been captured through an update to valuations or where borrowings
have been repaid. This PMA is expected to unwind over time as
Stage 3 property cases are resolved and the property market
uncertainty reduces.
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Risk Management continued
2.1 Credit risk continued
Measurement, methodologies and judgements continued
Sectoral/Emerging risks (audited)
At 31 December 2024, previous PMAs in this category relating to
inflationary pressures / cost of living have been largely unwound and
are now reflected in the modelled outcomes. This also applies to risks
relating to higher interest rates which have eased, with portfolio
performance remaining strong at current levels. However, a new PMA
of € 56 million was introduced to address model and novel risks and
specifically relates to the latent risk of potential forbearance activity.
This PMA predominately relates to the commercial real estate Stage 2
portfolio.
Within AIB UK, a PMA of € 7 million (€ 1 million non-property business
and € 6 million property) is in place to reflect the full expected impact of
the external environment, including interest rate and property market
dynamics. This PMA has reduced in the year as the risks have been
captured in the modelled outcomes or assessed to have moderated.
Future model developments/Other (audited)
Within the Capital Markets property portfolio, the recalibrated
investment property model scheduled for deployment in the first half of
2025 is expected to result in additional exposures migrating to Stage 2.
At 31 December 2024, a new PMA of € 90 million was introduced to
reflect the potential increase in Stage 2 balances and associated ECL
levels. This PMA also includes the impact of a staging adjustment to
transfer € 0.2 billion of Stage 1 loans to Stage 2. This PMA will unwind
over the 12 months post implementation, as cases are regraded and
migrate to Stage 2 as appropriate.
The Capital Markets non-property business PMA (€ 34 million)
continues to reflect the potential impact of inflation (including higher
energy costs), high interest rates on non-property business, and an
assessment that the modelled probabilities of default do not fully
capture the expected credit losses. The PMA has been retained at a
reduced level for 31 December 2024 reflecting resilient performance of
the underlying portfolios and implementation of the recalibrated IFRS 9
models which better capture the underlying risk. This PMA adjustment
has been reclassified in the year from 'Sectoral/Emerging risks' to
'Future model developments/Other' as this PMA is expected to unwind
further in the second half of 2025 if satisfactory performance continues
and as cases are regraded on the recalibrated models.
For the Syndicated and International Finance (‘SIF’) portfolio in Capital
Markets, it was previously determined that historically observed
relationships between default rates and macroeconomic factors in the
modelled probabilities of default do not fully capture the expected credit
losses and therefore needed to be increased for this portfolio. The PMA
has been retained at a reduced level for 31 December 2024 at € 11
million reflecting the implementation of the recalibrated IFRS 9 models.
This PMA is expected to unwind further in the second half of 2025 if
satisfactory performance continues and all elements of the updated
models are fully deployed.
Within AIB UK, a PMA of € 8 million has been retained at 31 December
2024 and relates to AIB Group’s decision to continue its exit strategy in
respect of a cohort of legacy loans.
Other PMAs amounting to a further € 5 million in this category are not
individually significant.
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2.1.1 Credit risk – Credit exposure overview
Key Credit Profile Metrics in 2024:
• Overall credit quality has remained robust throughout the year,
however latent and novel risks in the portfolio continue to be closely
monitored. There was a net credit impairment charge of € 55 million
in 2024 (2023: € 172 million) comprising a € 60 million charge on
loans and advances to customers (2023: € 189 million) partially
offset by a € 3 million writeback for off-balance sheet exposures
(2023: € 17 million writeback) and a further € 2 million writeback for
investment securities exposures (2023: Nil).
• The staging composition of the portfolio has remained stable during
the year with Stage 1 loans at 86%, Stage 2 loans at 11% and Stage 3
loans at 3%. Stage 1 loans have increased by € 3.8 billion to € 61.1
billion (2023: € 57.3 billion) due to strong new lending and the
migration of the final tranche of the Ulster Bank tracker (and linked)
mortgage portfolio. Stage 2 loans have increased by € 0.3 billion to
€ 8.0 billion (2023: € 7.7 billion). The increase in Stage 2 loans was
driven by the non-property business and other personal portfolios
which increased by € 0.5 billion and € 0.4 billion respectively. The
increase in these portfolios was impacted by the deployment in the
year of the recalibrated grading models which reflects an improvement
in how the Group measures the risk in these portfolios as opposed to
any deterioration in customer asset quality. These increases were
slightly offset by a € 0.5 billion reduction in the residential mortgages
portfolio. Non-performing loans at € 2.0 billion, have remained
unchanged in the year and now represent 2.8% of total gross loans
(2023: 3.0%).
• Total gross loans and advances to customers have increased
from € 67.0 billion to € 71.2 billion in the year driven by strong new
lending of € 14.5 billion and a further € 0.8 billion relating to the final
tranche of the Ulster Bank tracker (and linked) mortgage portfolio
acquisition, offset by redemptions/repayments of € 11.4 billion
and portfolio disposals of € 0.3 billion. ECL stock of € 1.3 billion
represents 1.9% ECL cover (2023: € 1.5 billion, 2.3%). The reduction
in cover primarily reflects the impact of the recalibrated models and
deleveraging activity in higher cover portfolios.
• Total new lending in the year was € 14.5 billion which
reflects an increase of € 2.2 billion or 17% versus last year
(2023: € 12.3 billion). The increase reflects strong new lending in the
non-property business sector which increased by 36% primarily driven
by growth in the renewable energy and infrastructure sector. Mortgage
lending also performed strongly, increasing by 16% and other personal
increased by 7%. However, property related lending was 21% lower
than last year reflecting reduced activity levels in the commercial real
estate sector.
Maximum exposure to credit risk (audited)
Maximum exposure to credit risk from on-balance sheet and off-balance sheet financial instruments is presented before taking account of any
collateral held or other credit enhancements (unless such enhancements meet accounting offsetting requirements). For financial assets recognised
on the statement of financial position, the maximum exposure to credit risk is their carrying amount, and for financial guarantees and similar
contracts granted, it is the maximum amount the Group would have to pay if the guarantees were called upon. For loan commitments and other
credit related commitments that are irrevocable over the life of the respective facilities, it is generally the full amount of the committed facilities.
Credit risk exposure derives from standard on-balance sheet products such as mortgages, loans, overdrafts and credit cards. In addition, credit
risk arises from other products and activities including, but not limited to: ‘off-balance sheet’ guarantees and commitments; securities financing;
investment securities; asset backed securities; and the failure/partial failure of a trade in a settlement or payments system.
The following table sets out the financial instruments in the statement of financial position and the Group’s maximum exposure to credit risk on
those financial instruments at 31 December 2024 and 2023.
2024
Statement of financial position
Maximum exposure
Maximum exposure to credit risk (audited)
Exposure
ECL
allowance
Carrying
amount
Amortised
cost
Fair value
Total
€ m
€ m
€ m
€ m
€ m
€ m
Cash and balances at central banks
37,315
—
37,315 1
36,651
—
36,651 1
Derivative financial instruments
2,144
—
2,144
—
2,144
2,144
Loans and advances to banks
1,321
—
1,321
1,321
—
1,321
Loans and advances to customers
71,233
(1,344)
69,889
69,825
64
69,889
Securities financing
6,644
(1)
6,643
6,643
—
6,643
Investment securities2
18,372
(1)
18,371
4,803
13,568
18,371
Trading portfolio financial assets
136
—
136
—
136
136
Included elsewhere:
Trade receivables
176
(1)
175
176
—
176
Items in course of collection
35
—
35
35
—
35
Accrued interest
381
—
381
381
—
381
137,757
(1,347)
136,410
119,835
15,912
135,747
Loan commitments and other credit
related commitment
16,823
(44)
(44)
16,823
—
16,823
Financial guarantees
976
(13)
(13)
976
—
976
17,799 3
(57)
(57)
17,799
—
17,799
Total
155,556
(1,404)
136,353
137,634
15,912
153,546
1. Comprises balances at central banks of € 36,651 million and other cash on hand of € 664 million.
2. Excluding equity shares of € 297 million.
3. Comprises off-balance sheet instruments.
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Risk Management continued
2.1.1 Credit risk – Credit exposure overview continued
2023
Statement of financial position
Maximum Exposure
Maximum exposure to credit risk (audited)
Exposure
ECL
allowance
Carrying
amount
Amortised
cost
Fair value
Total
€ m
€ m
€ m
€ m
€ m
€ m
Cash and balances at central banks
38,018
—
38,018 1
37,420
—
37,420
1
Derivative financial instruments
2,377
—
2,377
—
2,377
2,377
Loans and advances to banks
1,329
—
1,329
1,329
—
1,329
Loans and advances to customers
67,011
(1,520)
65,491
65,449
42
65,491
Securities financing
6,467
(1)
6,466
6,466
—
6,466
Investment securities2
17,001
(3)
16,998
4,510
12,488
16,998
Trading portfolio financial assets
93
—
93
—
93
93
Included elsewhere:
Trade receivables
102
(1)
101
101
—
101
Items in course of collection
42
—
42
42
—
42
Accrued interest
396
—
396
396
—
396
132,836
(1,525)
131,311
115,713
15,000
130,713
Loan commitments and other credit
related commitments
16,136
(43)
(43)
16,136
—
16,136
Financial guarantees
857
(16)
(16)
857
—
857
16,993 3
(59)
(59)
16,993
—
16,993
Total
149,829
(1,584)
131,252
132,706
15,000
147,706
1. Comprises balances at central banks of € 37,420 million and other cash on hand of € 598 million.
2. Excluding equity shares of € 355 million.
3. Comprises off-balance sheet instruments.
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2.1.1 Credit risk – Credit exposure overview continued
Concentration by industry sector
The following tables set out the concentration of credit by industry sector and geography for loans and advances to customers and loan commitments
and financial guarantee contracts issued together with the related ECL allowance analysed by the ECL stage profile at 31 December 2024 and 2023:
Gross exposures to customers
2024
At amortised cost
At FVTPL
Gross carrying amount
Analysed by stage profile
Loans and
advances to
customers
Loan
commitments
and financial
guarantees
issued
Total
Stage 1
Stage 2
Stage 3
POCI
Total
Total
Concentration by industry sector
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
4,995
2,221
7,216
6,904
294
18
—
7,216
29
Of which renewables
4,479
1,506
5,985
5,734
248
3
—
5,985
—
Leisure
2,942
490
3,432
2,706
605
118
3
3,432
—
Manufacturing
2,753
2,234
4,987
4,409
537
40
1
4,987
—
Health, education and social work
1,879
358
2,237
1,774
442
19
2
2,237
—
Services
2,250
1,311
3,561
3,156
361
41
3
3,561
—
Agriculture, forestry and fishing
1,691
685
2,376
1,875
405
89
7
2,376
—
Retail and wholesale trade
1,895
1,916
3,811
3,126
617
63
5
3,811
17
Transport and storage
1,848
699
2,547
2,226
244
77
—
2,547
—
Telecommunications, media and technology
1,450
201
1,651
1,436
165
50
—
1,651
18
Financial, insurance and other
government activities
470
1,018
1,488
1,417
59
12
—
1,488
—
Total non-property business
22,173
11,133
33,306
29,029 3,729
527
21
33,306
64
Property and construction
8,761
2,103
10,864
7,274
3,013
574
3
10,864
—
Residential mortgages
36,970
1,577
38,547
35,731 1,870
776
170
38,547
—
Other personal
3,265
2,986
6,251
5,322
820
109
—
6,251
—
Total
71,169
17,799
88,968
77,356 9,432
1,986
194
88,968
64
Concentration by location1
Republic of Ireland
56,215
13,103
69,318
59,738 7,759
1,627
194
69,318
64
United Kingdom
9,132
3,378
12,510
11,058 1,163
289
—
12,510
—
North America
2,850
705
3,555
3,514
41
—
—
3,555
—
Rest of the World
2,972
613
3,585
3,046
469
70
—
3,585
—
71,169
17,799
88,968
77,356 9,432
1,986
194
88,968
64
ECL allowance
2024
At amortised cost
ECL allowance
Analysed by stage profile
Loans and
advances to
customers
Loan
commitments
and financial
guarantees
issued
Total
Stage 1
Stage 2
Stage 3
POCI
Total
Concentration by industry sector
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
32
2
34
17
15
2
—
34
Of which renewables
23
1
24
15
9
—
—
24
Leisure
86
5
91
21
38
33
(1)
91
Manufacturing
59
6
65
10
36
19
—
65
Health, education and social work
51
2
53
12
37
5
(1)
53
Services
34
4
38
10
16
12
—
38
Agriculture, forestry and fishing
37
3
40
5
16
23
(4)
40
Retail and wholesale trade
56
5
61
10
31
21
(1)
61
Transport and storage
73
2
75
8
7
60
—
75
Telecommunications, media and technology
31
1
32
8
13
11
—
32
Financial, insurance and other government activities
14
—
14
2
2
10
—
14
Total non-property business
473
30
503
103
211
196
(7)
503
Property and construction
464
20
484
67
230
188
(1)
484
Residential mortgages
270
1
271
11
53
210
(3)
271
Other personal
137
6
143
20
57
66
—
143
Total
1,344
57
1,401
201
551
660
(11) 1,401
Concentration by location1
Republic of Ireland
1,071
46
1,117
127
467
534
(11) 1,117
United Kingdom
196
9
205
51
42
112
—
205
North America
12
1
13
11
2
—
—
13
Rest of the World
65
1
66
12
40
14
—
66
1,344
57
1,401
201
551
660
(11) 1,401
1. Based on country of risk.
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Risk Management continued
2.1.1 Credit risk – Credit exposure overview continued
Concentration by industry sector continued
Gross exposures to customers
2023
At amortised cost
At FVTPL
Gross carrying amount
Analysed by stage profile
Loans and
advances
to
customers
Loan
commitments
and financial
guarantees
issued
Total
Stage 1
Stage 2
Stage 3
POCI
Total
Total
Concentration by industry sector
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
3,610
2,113
5,723
5,502
198
23
—
5,723
27
Of which renewables
2,907
1,133
4,040
3,960
80
—
—
4,040
—
Leisure
2,666
555
3,221
2,428
603
185
5
3,221
—
Manufacturing
2,519
2,179
4,698
4,281
375
40
2
4,698
—
Health, education and social work
2,032
385
2,417
1,928
448
39
2
2,417
—
Services
2,064
1,333
3,397
3,103
247
43
4
3,397
—
Agriculture, forestry and fishing
1,780
707
2,487
2,071
323
84
9
2,487
—
Retail and wholesale trade
1,747
1,516
3,263
2,915
279
63
6
3,263
15
Transport and storage
1,710
596
2,306
2,094
171
40
1
2,306
—
Telecommunications, media and technology
1,394
332
1,726
1,621
93
12
—
1,726
—
Financial, insurance and other government activities
506
891
1,397
1,360
26
11
—
1,397
—
Total non-property business
20,028
10,607
30,635
27,303 2,763
540
29
30,635
42
Property and construction
9,237
2,224
11,461
7,504
3,270
683
4
11,461
—
Residential mortgages
34,764
1,236
36,000
32,817 2,390
695
98
36,000
—
Other personal
2,940
2,926
5,866
5,339
437
90
—
5,866
—
Total
66,969
16,993
83,962
72,963 8,860
2,008
131
83,962
42
Concentration by location1
Republic of Ireland
53,887
12,887
66,774
57,876 7,280
1,487
131
66,774
42
United Kingdom
8,240
3,082
11,322
10,068
922
332
—
11,322
—
North America
2,007
365
2,372
2,124
240
8
—
2,372
—
Rest of the World
2,835
659
3,494
2,895
418
181
—
3,494
—
66,969
16,993
83,962
72,963 8,860
2,008
131
83,962
42
ECL allowance
2023
At amortised cost
ECL allowance
Analysed by stage profile
Loans and
advances to
customers
Loan
commitments
and financial
guarantees
issued
Total
Stage 1
Stage 2
Stage 3
POCI
Total
Concentration by industry sector
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
40
3
43
17
12
14
—
43
Of which renewables
17
2
19
13
6
—
—
19
Leisure
168
3
171
19
107
46
(1)
171
Manufacturing
58
5
63
13
32
18
—
63
Health, education and social work
83
2
85
34
41
12
(2)
85
Services
48
4
52
16
20
16
—
52
Agriculture, forestry and fishing
50
3
53
7
15
36
(5)
53
Retail and wholesale trade
55
7
62
10
31
21
—
62
Transport and storage
29
1
30
9
10
11
—
30
Telecommunications, media and technology
22
1
23
9
9
5
—
23
Financial, insurance and other government activities
20
—
20
6
3
11
—
20
Total non-property business
573
29
602
140
280
190
(8)
602
Property and construction
541
23
564
87
273
205
(1)
564
Residential mortgages
309
1
310
19
77
207
7
310
Other personal
97
6
103
22
36
45
—
103
Total
1,520
59
1,579
268
666
647
(2) 1,579
Concentration by location1
Republic of Ireland
1,085
52
1,137
137
495
507
(2) 1,137
United Kingdom
236
6
242
104
59
79
—
242
North America
51
1
52
13
34
5
—
52
Rest of the World
148
—
148
14
78
56
—
148
1,520
59
1,579
268
666
647
(2) 1,579
1. Based on country of risk.
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2.1.2 Credit risk – Credit profile of the loan portfolio
The Group’s customer loan portfolio comprises loans (including overdrafts), instalment credit and finance lease receivables. An overdraft provides
a demand credit facility combined with a current account. Borrowings occur when the customer’s drawings take the current account into debit.
The balance may, therefore, fluctuate with the requirements of the customer. Although overdrafts are contractually repayable on demand (unless
a fixed term has been agreed), provided the account is deemed to be satisfactory, full repayment is not generally demanded without notice.
Credit profile of the loan portfolio
The following table analyses loans and advances to customers at amortised cost by segment, internal credit ratings and ECL staging at
31 December 2024 and 2023:
Amortised cost
2024
2023
Retail
Banking
Capital
Markets
Climate
Capital
AIB
UK
Group
Total
Retail
Banking
Capital
Markets
Climate
Capital
AIB
UK
Group
Total
Gross carrying amount
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Residential mortgages
35,520
479
—
971
—
36,970 33,383
476
—
905
—
34,764
Other personal
3,106
93
—
66
—
3,265
2,825
45
—
70
—
2,940
Property and construction
428
5,912
—
2,421
—
8,761
456
6,553
—
2,228
—
9,237
Non-property business
3,033
11,018
5,528
2,544
50
22,173 3,107
10,337 4,118
2,438
28
20,028
Total
42,087
17,502
5,528
6,002
50
71,169 39,771
17,411 4,118
5,641
28
66,969
Analysed by internal credit ratings1
Strong
29,594
10,467
4,858
3,468
20
48,407 28,088
11,458 3,751
3,790
9
47,096
Satisfactory
9,058
5,568
579
2,083
30
17,318 8,964
4,229
302
1,203
19
14,717
Total strong/satisfactory
38,652
16,035
5,437
5,551
50
65,725 37,052
15,687 4,053
4,993
28
61,813
Criticised watch
2,039
466
2
59
—
2,566
1,330
854
37
176
—
2,397
Criticised recovery
221
471
51
132
—
875
360
219
28
171
—
778
Total criticised
2,260
937
53
191
—
3,441
1,690
1,073
65
347
—
3,175
Non-performing
1,175
530
38
260
—
2,003
1,029
651
—
301
—
1,981
Gross carrying amount
42,087
17,502
5,528
6,002
50
71,169 39,771
17,411 4,118
5,641
28
66,969
Analysed by ECL staging
Stage 1
37,728
12,976
5,206
5,159
50
61,119 35,646
12,937 4,023
4,618
28
57,252
Stage 2
3,112
3,995
284
583
—
7,974
3,032
3,824
95
721
—
7,672
Stage 3
1,062
529
38
260
—
1,889
974
647
—
302
—
1,923
POCI
185
2
—
—
—
187
119
3
—
—
—
122
Total
42,087
17,502
5,528
6,002
50
71,169 39,771
17,411 4,118
5,641
28
66,969
ECL allowance – statement of financial position
Stage 1
39
91
19
35
—
184
54
94
17
89
—
254
Stage 2
138
335
20
31
—
524
144
433
10
48
—
635
Stage 3
351
192
6
99
—
648
348
219
—
67
—
634
POCI
(11)
(1)
—
—
—
(12)
(2)
(1)
—
—
—
(3)
Total
517
617
45
165
—
1,344
544
745
27
204
—
1,520
ECL allowance cover
percentage
%
%
%
%
%
%
%
%
%
%
%
%
Stage 1
0.1
0.7
0.4
0.7
—
0.3
0.2
0.7
0.4
1.9
—
0.4
Stage 2
4.4
8.4
6.9
5.4
—
6.6
4.8
11.3
10.5
6.7
—
8.3
Stage 3
33.1
36.4
16.0
38.1
—
34.3
35.7
33.8
—
22.2
—
33.0
POCI
(5.7)
(59.6)
—
—
—
(6.2)
(1.5)
(33.3)
—
—
—
(2.5)
Income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Net remeasurement of ECL
allowance
50
(69)
22
89
—
92
82
96
(7)
45
—
216
Recoveries of amounts previously
written-off
(20)
(10)
—
(2)
—
(32)
(22)
(2)
—
(3)
—
(27)
Net credit impairment charge/
(writeback)
30
(79)
22
87
—
60
60
94
(7)
42
—
189
1. Further analysis of internal credit grade profile by ECL staging is set out on page 207.
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Risk Management continued
2.1.2 Credit risk – Credit profile of the loan portfolio continued
Credit profile of the loan portfolio continued
The following table analyses loans and advances to customers at FVTPL by segment and internal credit ratings at 31 December 2024 and 2023:
FVTPL
2024
2023
Retail
Banking
Capital
Markets
Climate
Capital
AIB
UK
Group
Total
Retail
Banking
Capital
Markets
Climate
Capital
AIB
UK
Group
Total
Carrying amount
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business
—
64
—
—
—
64
—
42
—
—
—
42
Total
—
64
—
—
—
64
—
42
—
—
—
42
Analysed by internal credit ratings
Strong
—
64
—
—
—
64
—
42
—
—
—
42
Satisfactory
—
—
—
—
—
—
—
—
—
—
—
—
Total strong/satisfactory
—
64
—
—
—
64
—
42
—
—
—
42
Total criticised
—
—
—
—
—
—
—
—
—
—
—
—
Non-performing
—
—
—
—
—
—
—
—
—
—
—
—
Total
—
64
—
—
—
64
—
42
—
—
—
42
Internal credit grade profile by ECL staging (audited)
The table below analyses the internal credit grading profile by ECL staging for the Group’s loans and advances to customers at 31 December 2024
and 2023:
Total
Strong
45,774
2,593
—
40
48,407
44,273
2,808
—
15
47,096
Satisfactory
14,598
2,706
—
14
17,318
12,014
2,697
—
6
14,717
Total strong/satisfactory
60,372
5,299
—
54
65,725
56,287
5,505
—
21
61,813
Criticised watch
728
1,828
—
10
2,566
919
1,473
—
5
2,397
Criticised recovery
18
847
—
10
875
44
694
—
40
778
Total criticised
746
2,675
—
20
3,441
963
2,167
—
45
3,175
Non-performing
1
—
1,889
113
2,003
2
—
1,923
56
1,981
Gross carrying amount
61,119
7,974
1,889
187
71,169
57,252
7,672
1,923
122
66,969
ECL allowance
(184)
(524)
(648)
12
(1,344)
(254)
(635)
(634)
3
(1,520)
Carrying amount
60,935
7,450
1,241
199
69,825
56,998
7,037
1,289
125
65,449
Amortised cost (audited)
2024
2023
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Credit exposure by midpoint PD grade
The table below represents the credit risk profile for loans and advances to customers at amortised cost via the mapping of credit risk management
midpoint PD grades at 31 December 2024 and 2023. The ‘Internal credit grading profile by ECL staging’ table above includes qualitative factors such
as financial distress and arrears (in addition to PD to prioritise credit risk management activity) which the midpoint PD table below does not reflect.
2024
2023
Quality
Code
Lower
Bound PD
Upper
Bound PD
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
1 - 3
0.00%
1.23%
51,152
2,962
—
47
54,161
49,359
3,296
—
40
52,695
4 - 7
1.23%
6.94%
9,305
2,461
—
11
11,777
7,376
2,300
—
8
9,684
8 - 10
6.94%
99.99%
661
2,551
—
16
3,228
515
2,076
—
18
2,609
11
100.00%
100.00%
1
—
1,889
113
2,003
2
—
1,923
56
1,981
Gross carrying amount
61,119
7,974
1,889
187
71,169
57,252
7,672
1,923
122
66,969
At 31 December 2024, 93% of the portfolio is in quality codes 1 to 7 which are typically strong/satisfactory (2023: 93%), 4% of the portfolio is in
quality codes 8 to 10 which are typically criticised (2023: 4%) and the final 3% is in quality code 11 which is in default (2023: 3%).
IFRS 9 Stage 1 and Stage 2 classification is not dependent solely on the absolute probability of default but includes significant increase in credit
risk (SICR), including relative movement in IFRS 9 probability of default since initial recognition. Therefore, there is no direct relationship between
internal PD grades and IFRS 9 stage classification.
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2.1.2 Credit risk – Credit profile of the loan portfolio continued
Aged analysis of contractually past due loans and advances to customers
The following table shows aged analysis of contractually past due loans and advances to customers by industry sector analysed by ECL staging
and segment at 31 December 2024 and 2023:
At amortised cost
2024
Of which past due
Not past
due
1-30
days
31-60
days
61-90
days
91-180
days
181-365
days
> 365
days
Total
past due
Total
Industry sector
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
4,989
—
—
—
3
—
3
6
4,995
Of which renewables
4,476
—
—
—
3
—
—
3
4,479
Leisure
2,849
25
3
12
4
11
38
93
2,942
Manufacturing
2,617
113
—
—
1
18
4
136
2,753
Health, education and social work
1,870
—
—
—
1
1
7
9
1,879
Services
2,229
5
1
1
3
3
8
21
2,250
Agriculture, forestry and fishing
1,654
13
2
3
5
3
11
37
1,691
Retail and wholesale trade
1,849
16
1
5
9
4
11
46
1,895
Transport and storage
1,808
35
—
—
1
1
3
40
1,848
Telecomms, media and technology
1,448
—
—
—
—
1
1
2
1,450
Financial, insurance and other government activities
459
1
—
—
—
—
10
11
470
Total non-property business
21,772
208
7
21
27
42
96
401
22,173
Property and construction
8,444
57
1
7
164
28
60
317
8,761
Residential mortgages
36,350
80
14
25
50
103
348
620
36,970
Other personal
3,136
38
10
7
22
33
19
129
3,265
Total gross carrying amount
69,702
383
32
60
263
206
523
1,467
71,169
ECL staging
Stage 1
60,931
188
—
—
—
—
—
188
61,119
Stage 2
7,818
111
20
25
—
—
—
156
7,974
Stage 3
855
82
12
34
259
194
453
1,034
1,889
POCI
98
2
—
1
4
12
70
89
187
69,702
383
32
60
263
206
523
1,467
71,169
Segment
Retail Banking
41,217
148
29
34
88
153
418
870
42,087
Capital Markets
17,057
173
—
7
170
44
51
445
17,502
Climate Capital
5,528
—
—
—
—
—
—
—
5,528
AIB UK
5,850
62
3
19
5
9
54
152
6,002
Group
50
—
—
—
—
—
—
—
50
69,702
383
32
60
263
206
523
1,467
71,169
As a percentage of total gross loans at amortised cost
%
%
%
%
%
%
%
%
%
97.9
0.5
0.1
0.1
0.4
0.3
0.7
2.1
100.0
The figures reported are inclusive of overdrafts, bridging loans and cases with expired limits. There were no contractually past due loans measured
at FVTPL at 31 December 2024 and 2023.
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Risk Management continued
2.1.2 Credit risk – Credit profile of the loan portfolio continued
Aged analysis of contractually past due loans and advances to customers continued
At amortised cost
2023
Of which past due
Not past
due
1-30
days
31-60
days
61-90
days
91-180
days
181-365
days
> 365
days
Total
past due
Total
Industry sector
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
3,607
—
—
—
—
2
1
3
3,610
Of which renewables
2,907
—
—
—
—
—
—
—
2,907
Leisure
2,582
48
5
1
2
3
25
84
2,666
Manufacturing
2,493
17
1
1
1
2
4
26
2,519
Health, education and social work
1,990
29
2
—
2
7
2
42
2,032
Services
2,035
11
1
1
4
2
10
29
2,064
Agriculture, forestry and fishing
1,737
12
6
9
3
4
9
43
1,780
Retail and wholesale trade
1,706
16
1
1
3
4
16
41
1,747
Transport and storage
1,704
2
—
—
—
1
3
6
1,710
Telecommunications, media and technology
1,392
1
—
—
—
—
1
2
1,394
Financial, insurance and other government activities
488
18
—
—
—
—
—
18
506
Total non-property business
19,734
154
16
13
15
25
71
294
20,028
Property and construction
8,904
91
14
1
5
177
45
333
9,237
Residential mortgages
34,175
135
37
33
89
76
219
589
34,764
Other personal
2,829
39
10
8
20
20
14
111
2,940
Total gross carrying amount
65,642
419
77
55
129
298
349
1,327
66,969
ECL staging
Stage 1
57,154
98
—
—
—
—
—
98
57,252
Stage 2
7,438
157
45
32
—
—
—
234
7,672
Stage 3
948
161
31
23
126
294
340
975
1,923
POCI
102
3
1
—
3
4
9
20
122
65,642
419
77
55
129
298
349
1,327
66,969
Segment
Retail Banking
38,952
189
59
43
119
117
292
819
39,771
Capital Markets
17,078
127
3
7
5
167
24
333
17,411
Climate Capital
4,118
—
—
—
—
—
—
—
4,118
AIB UK
5,473
96
15
5
5
14
33
168
5,641
Group
21
7
—
—
—
—
—
7
28
65,642
419
77
55
129
298
349
1,327
66,969
As a percentage of total gross loans at amortised cost
%
%
%
%
%
%
%
%
%
98.0
0.6
0.1
0.1
0.2
0.4
0.5
2.0
100.0
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2.1.2 Credit risk – Credit profile of the loan portfolio continued
Gross loans1 and ECL movements (audited)
The following tables set out the movements in the gross carrying amount and ECL allowance for loans and advances to customers at amortised
cost by ECL staging between 1 January 2024 and 31 December 2024 and the corresponding movements between 1 January 2023 and
31 December 2023.
Accounts that triggered movements between Stage 1 and Stage 2 as a result of failing/curing a quantitative measure only (as disclosed on
page 191) and that subsequently reverted within the year to their original stage, are excluded from ‘Transferred from Stage 1 to Stage 2’
and ‘Transferred from Stage 2 to Stage 1’. The Group believes this presentation aids the understanding of the underlying credit migration.
Gross carrying amount movements – total (audited)
2024
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
At 1 January
57,252
7,672
1,923
122
66,969
Transferred from Stage 1 to Stage 2
(6,290)
6,290
—
—
—
Transferred from Stage 2 to Stage 1
4,509
(4,509)
—
—
—
Transferred to Stage 3
(149)
(907)
1,056
—
—
Transferred from Stage 3
29
217
(246)
—
—
New loans originated/top-ups
15,898
—
—
88
15,986
Redemptions/repayments
(11,842)
(2,704)
(765)
(31)
(15,342)
Interest credited
2,863
469
89
5
3,426
Write-offs
—
—
(126)
—
(126)
Derecognised due to disposals
(264)
(112)
(81)
—
(457)
Exchange translation adjustments
530
49
15
1
595
Impact of model, parameter and overlay changes
(1,499)
1,499
—
—
—
Other movements
82
10
24
2
118
At 31 December
61,119
7,974
1,889
187
71,169
2023
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
At 1 January
52,862
6,036
1,997
87
60,982
Transferred from Stage 1 to Stage 2
(7,377)
7,377
—
—
—
Transferred from Stage 2 to Stage 1
4,518
(4,518)
—
—
—
Transferred to Stage 3
(125)
(1,070)
1,195
—
—
Transferred from Stage 3
47
262
(309)
—
—
New loans originated/top-ups
17,186
—
—
36
17,222
Redemptions/repayments
(11,266)
(1,895)
(579)
(10)
(13,750)
Interest credited
2,426
419
80
3
2,928
Write-offs
—
—
(125)
—
(125)
Derecognised due to disposals
(47)
(43)
(316)
—
(406)
Exchange translation adjustments
74
21
6
—
101
Impact of model, parameter and overlay changes
(1,082)
1,082
—
—
—
Other movements
36
1
(26)
6
17
At 31 December
57,252
7,672
1,923
122
66,969
1. The gross carrying amount movement is recorded at each month end with movements calculated versus the position at previous month end. The sum of all 12 months
movement is then presented.
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Risk Management continued
2.1.2 Credit risk – Credit profile of the loan portfolio continued
Gross loans and ECL movements continued
ECL allowance movements – total (audited)
2024
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
At 1 January
254
635
634
(3)
1,520
Transferred from Stage 1 to Stage 2
(79)
277
—
—
198
Transferred from Stage 2 to Stage 1
87
(243)
—
—
(156)
Transferred to Stage 3
—
(108)
190
—
82
Transferred from Stage 3
—
21
(47)
—
(26)
Net remeasurement (within Stage)
(8)
15
75
(10)
72
New loans originated/top-ups
57
—
—
—
57
Redemptions/repayments
(33)
(69)
—
—
(102)
Impact of model and overlay changes
4
41
(37)
—
8
Impact of credit or economic risk parameters
(16)
(17)
(8)
—
(41)
Net remeasurement of ECL Allowance
12
(83)
173
(10)
92
Write-offs
—
—
(126)
—
(126)
Derecognised due to disposals
(88)
(29)
(56)
—
(173)
Exchange translation adjustments
7
4
5
—
16
Other movements
(1)
(3)
18
1
15
At 31 December
184
524
648
(12)
1,344
2023
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
At 1 January
263
646
700
9
1,618
Transferred from Stage 1 to Stage 2
(100)
252
—
—
152
Transferred from Stage 2 to Stage 1
73
(209)
—
—
(136)
Transferred to Stage 3
(1)
(99)
180
—
80
Transferred from Stage 3
2
28
(52)
—
(22)
Net remeasurement (within Stage)
29
67
56
(12)
140
New loans originated/top-ups
49
—
—
—
49
Redemptions/repayments
(25)
(99)
—
—
(124)
Impact of model and overlay changes
(16)
34
82
(4)
96
Impact of credit or economic risk parameters
(22)
19
(16)
—
(19)
Net remeasurement of ECL Allowance
(11)
(7)
250
(16)
216
Write-offs
—
—
(125)
—
(125)
Derecognised due to disposals
(9)
(8)
(183)
—
(200)
Exchange translation adjustments
—
2
2
—
4
Other movements
11
2
(10)
4
7
At 31 December
254
635
634
(3)
1,520
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2.1.2 Credit risk – Credit profile of the loan portfolio continued
Gross loans and ECL movements continued (audited)
Total exposures to which an ECL applies increased during the year by
€ 4.2 billion from € 67.0 billion at 1 January 2024 to € 71.2 billion at
31 December 2024. The increase in the year was driven by the strong
new lending in the year and the final tranche of the Ulster Bank tracker
(and linked) mortgage portfolio acquisition (which is included within
‘New loans originated/top-ups’).
Stage transfers are a key component of ECL allowance movements
(i.e. Stage 1 to Stage 2 to Stage 3 and vice versa) in addition to the net
remeasurement of ECL due to change in risk parameters within a
stage. Excluding the impact of model/overlay changes and the updated
macroeconomic scenarios, an ECL charge of € 125 million occurred
due to underlying credit management activity and a slight deterioration
in credit parameters which inform the modelled outcomes.
The impact of model and overlay changes resulted in an ECL charge of
€ 8 million. This was driven by a € 67 million charge following the
deployment of the recalibrated grading models and a € 59 million
writeback relating to post model adjustments, largely driven by
utilisation as previously identified risks have now been captured in the
modelled outcomes. Further details on the post model adjustments are
outlined on pages 200 and 201. These ensure exposures subject to
risks which are not adequately reflected in the modelled outcomes,
retain an appropriate ECL.
The updated macroeconomic scenarios and weightings resulted in an
ECL release of € 41 million. This ECL movement is presented
separately within ‘Impact of credit or economic risk parameters’. This
release was most significant within the non-property business portfolio
accounting for a release of € 32 million within the portfolio. Despite the
update to the probability weightings tilting towards the downside
scenarios, the writeback reflects a more favourable base scenario
following the observed easing inflation and a reduction in interest and
unemployment rates. However, downside risks remain a concern, as
heightened geopolitical risks necessitate the Group’s conservative
stance.
The gross loan transfers from Stage 1 to Stage 2 of € 6.3 billion are
due to underlying credit management activity where a significant
increase in credit risk occurred during the year through either the
quantitative or qualitative criteria for stage movement. 43% of the
movements relied on a qualitative or backstop indicator of significant
increase in credit risk (e.g. forbearance or movement to a watch grade)
with 4% caused solely by the backstop of 30 days past due. Of the
€ 6.3 billion which transferred from Stage 1 to Stage 2 in the year
approximately € 4.2 billion is reported as Stage 2 at 31 December 2024.
Where a movement to Stage 2 is triggered by multiple drivers
simultaneously these are reported in the following order: quantitative,
qualitative and backstop.
Similarly, transfers from Stage 2 to Stage 1 of € 4.5 billion represent
those loans where the triggers for significant increase in credit risk no
longer apply or loans that have fulfilled a probation period.
These transfers include loans which have been upgraded through
normal credit management processes and incorporates loans which
transferred due to the impact of the updated macroeconomic scenarios
and weightings.
Transfers from Stage 2 to Stage 3 of € 0.9 billion represent those loans
that defaulted during the year. These arose in cases where it was
determined that the customers were unlikely to pay their loans in full
without the realisation of collateral regardless of the existence of any
past due amount or the number of days past due. In addition, transfers
also include all borrowers that are 90 days or more past due on a
material obligation. Of the transfers from Stage 2 to Stage 3, € 0.3
billion had transferred from Stage 1 to Stage 2 earlier in the year.
Transfers from Stage 3 to Stage 2 of € 0.2 billion were mainly driven by
resolution activity with the customer, through either restructuring or
forbearance previously granted and which subsequently adhered to
default probation requirements. As part of the credit management
practices, active monitoring of loans and their adherence to default
probation requirements is in place.
In summary, the staging movements of the overall portfolio were as
follows:
Stage 1 loans have increased by € 3.8 billion to € 61.1 billion (2023:
€ 57.3 billion) due to strong new lending and the migration of the final
tranche of the Ulster Bank tracker (and linked) mortgage portfolio
acquisition.
Stage 2 loans have increased by € 0.3 billion to € 8.0 billion (2023:
€ 7.7 billion). The increase in Stage 2 loans was driven by the
non-property business and other personal portfolios which increased
by € 0.5 billion and € 0.4 billion respectively. The increase in these
portfolios was impacted by the deployment in the year of the
recalibrated grading models which reflects an improvement in how the
Group measures the risk in these portfolios as opposed to any
deterioration in customer asset quality. These increases were slightly
offset by a € 0.5 billion reduction in the residential mortgages portfolio.
Stage 3 loans remained unchanged in the year at € 1.9 billion with an
ECL of € 0.6 billion, resulting in cover of 34.3% (2023: 33.0%).
Further details on the stage movements by asset class are set out in
the following tables on pages 213 and 214.
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212
Risk Management continued
2.1.2 Credit risk – Credit profile of the loan portfolio continued
Gross loans1 and ECL movements continued
The following tables set out the movements in the gross carrying amount and ECL allowance for loans and advances to customers by asset class and ECL staging for the year to 31 December 2024 and 2023:
Gross carrying amount movements – Asset class
2024
Residential mortgages
Other personal
Property and construction
Non-property business
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
At 1 January
31,594 2,385
688
97 34,764
2,613
247
80 2,940
5,823 2,754
657
3 9,237
17,222 2,286
498
22 20,028
Transferred from Stage 1 to Stage 2
(1,472) 1,472
—
—
—
(741)
741
—
—
(1,629) 1,629
—
—
—
(2,448) 2,448
—
—
—
Transferred from Stage 2 to Stage 1
1,591 (1,591)
—
—
—
563
(563)
—
—
702
(702)
—
—
—
1,653 (1,653)
—
—
—
Transferred to Stage 3
(80)
(291)
371
—
—
(8)
(100)
108
—
(43)
(234)
277
—
—
(18)
(282)
300
—
—
Transferred from Stage 3
17
118
(135)
—
—
1
18
(19)
—
6
9
(15)
—
—
5
72
(77)
—
—
New loans originated/top-ups
5,467
—
—
88 5,555
1,354
—
— 1,354
2,048
—
—
— 2,048
7,029
—
—
— 7,029
Redemptions/repayments
(4,179)
(329)
(161)
(21) (4,690) (1,084)
(202)
(26) (1,312) (1,537) (1,122)
(375)
(2) (3,036) (5,042) (1,051)
(203)
(8) (6,304)
Interest credited
1,119
90
24
4 1,237
199
43
2
244
363
166
32
—
561
1,182
170
31
1 1,384
Write-offs
—
—
(11)
—
(11)
—
—
(16)
(16)
—
—
(40)
—
(40)
—
—
(59)
—
(59)
Derecognised due to disposals
—
—
—
—
—
—
—
(43)
(43)
(90)
(7)
(3)
—
(100)
(174)
(105)
(35)
—
(314)
Exchange translation adjustments
40
1
2
—
43
3
—
—
3
91
15
3
1
110
396
33
10
—
439
Impact of model, parameter and
overlay changes
(1)
1
—
—
—
(428)
428
—
—
(225)
225
—
—
—
(845)
845
—
—
—
Other movements
69
9
(8)
2
72
77
4
14
95
(12)
(8)
1
—
(19)
(52)
5
17
—
(30)
At 31 December
34,165 1,865
770
170 36,970
2,549
616
100 3,265
5,497 2,725
537
2 8,761
18,908 2,768
482
15 22,173
2023
Residential mortgages
Other personal
Property and construction
Non-property business
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
At 1 January
28,396 1,158
638
87 30,279
2,274
270
179 2,723
6,820 1,391
406
— 8,617
15,372 3,217
774
— 19,363
Transferred from Stage 1 to Stage 2
(1,412) 1,412
—
—
—
(329)
329
—
—
(3,737) 3,737
—
—
—
(1,899) 1,899
—
—
—
Transferred from Stage 2 to Stage 1
875
(875)
—
—
—
204
(204)
—
—
1,553 (1,553)
—
—
—
1,886 (1,886)
—
—
—
Transferred to Stage 3
(33)
(244)
277
—
—
(9)
(86)
95
—
(55)
(432)
487
—
—
(28)
(308)
336
—
—
Transferred from Stage 3
13
101
(114)
—
—
1
21
(22)
—
16
15
(31)
—
—
17
125
(142)
—
—
New loans originated/top-ups
7,896
—
—
13 7,909
1,227
—
— 1,227
2,490
—
—
4 2,494
5,573
—
—
19 5,592
Redemptions/repayments
(4,135)
(233)
(119)
(12) (4,499) (1,000)
(103)
(34) (1,137) (1,468)
(629)
(160)
— (2,257) (4,663)
(930)
(266)
2 (5,857)
Interest credited
920
55
16
2
993
196
28
6
230
326
144
22
—
492
984
192
36
1 1,213
Write-offs
—
—
(17)
—
(17)
—
—
(41)
(41)
—
—
(20)
—
(20)
—
—
(47)
—
(47)
Derecognised due to disposals
—
—
—
—
—
(2)
(7)
(80)
(89)
(2)
—
(50)
—
(52)
(43)
(36)
(186)
—
(265)
Exchange translation adjustments
19
1
1
—
21
1
—
—
1
35
7
2
—
44
19
13
3
—
35
Impact of model, parameter and
overlay changes
(1,006) 1,006
—
—
—
—
—
—
—
(76)
76
—
—
—
—
—
—
—
—
Other movements
61
4
6
7
78
50
(1)
(23)
26
(79)
(2)
1
(1)
(81)
4
—
(10)
—
(6)
At 31 December
31,594 2,385
688
97 34,764
2,613
247
80 2,940
5,823 2,754
657
3 9,237
17,222 2,286
498
22 20,028
1. The gross carrying amount movement is recorded at each month end with movements calculated versus the position at previous month end. The sum of all 12 months movement is then presented.
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213
2.1.2 Credit risk – Credit profile of the loan portfolio continued
Gross loans and ECL movements continued
ECL allowance movements – Asset class
2024
Residential mortgages
Other personal
Property and construction
Non-property business
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
At 1 January
19
77
207
6
309
21
32
44
97
83
264
195
(1)
541
131
262
188
(8)
573
Transferred from Stage 1 to Stage 2
(2)
56
—
—
54
(21)
62
—
41
(29)
52
—
—
23
(27)
107
—
—
80
Transferred from Stage 2 to Stage 1
6
(32)
—
—
(26)
11
(36)
—
(25)
33
(59)
—
—
(26)
37
(116)
—
—
(79)
Transferred to Stage 3
—
(27)
42
—
15
—
(34)
49
15
—
(13)
20
—
7
—
(34)
79
—
45
Transferred from Stage 3
—
7
(15)
—
(8)
—
5
(11)
(6)
—
1
(3)
—
(2)
—
8
(18)
—
(10)
Net remeasurement (within Stage)
(3)
(7)
4
(9)
(15)
(5)
12
1
8
(31)
(16)
43
—
(4)
31
26
27
(1)
83
New loans originated/top-ups
2
—
—
—
2
15
—
—
15
22
—
—
—
22
18
—
—
—
18
Redemptions/repayments
(1)
(4)
—
—
(5)
(2)
(1)
—
(3)
(13)
(26)
—
—
(39)
(17)
(38)
—
—
(55)
Impact of model and overlay changes
(9)
(13)
(10)
—
(32)
—
13
24
37
29
26
(32)
—
23
(16)
15
(19)
—
(20)
Impact of credit or economic risk parameters
(2)
(4)
(7)
—
(13)
(1)
(1)
1
(1)
6
1
(2)
—
5
(19)
(13)
—
—
(32)
Net remeasurement of ECL Allowance
(9)
(24)
14
(9)
(28)
(3)
20
64
81
17
(34)
26
—
9
7
(45)
69
(1)
30
Write-offs
—
—
(11)
—
(11)
—
—
(16)
(16)
—
—
(40)
—
(40)
—
—
(59)
—
(59)
Derecognised due to disposals
—
—
—
—
—
—
—
(41)
(41)
(43)
(3)
(3)
—
(49)
(45)
(26)
(12)
—
(83)
Exchange translation adjustments
—
—
—
—
—
—
—
—
—
2
1
1
—
4
5
3
4
—
12
Other movements
—
—
—
—
—
1
—
15
16
1
(2)
—
—
(1)
(3)
(1)
3
1
—
At 31 December
10
53
210
(3)
270
19
52
66
137
60
226
179
(1)
464
95
193
193
(8)
473
2023
Residential mortgages
Other personal
Property and construction
Non-property business
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
Stage 1
€ m
Stage 2
€ m
Stage 3
€ m
POCI
€ m
Total
€ m
At 1 January
40
38
196
9
283
24
37
116
177
84
117
119
—
320
115
454
269
—
838
Transferred from Stage 1 to Stage 2
(4)
36
—
—
32
(7)
53
—
46
(53)
104
—
—
51
(36)
59
—
—
23
Transferred from Stage 2 to Stage 1
6
(13)
—
—
(7)
6
(25)
—
(19)
19
(50)
—
—
(31)
42
(121)
—
—
(79)
Transferred to Stage 3
—
(14)
25
—
11
—
(29)
44
15
(1)
(22)
31
—
8
—
(34)
80
—
46
Transferred from Stage 3
—
4
(9)
—
(5)
—
4
(12)
(8)
1
2
(4)
—
(1)
1
18
(27)
—
(8)
Net remeasurement (within Stage)
4
(1)
33
(3)
33
(1)
—
9
8
13
34
10
(1)
56
13
34
4
(8)
43
New loans originated/top-ups
3
—
—
—
3
11
—
—
11
19
—
—
—
19
16
—
—
—
16
Redemptions/repayments
(2)
(3)
—
—
(5)
(2)
(1)
—
(3)
(4)
(26)
—
—
(30)
(17)
(69)
—
—
(86)
Impact of model and overlay changes
(26)
28
(19)
(4)
(21)
(8)
(2)
9
(1)
3
89
93
—
185
15
(81)
(1)
—
(67)
Impact of credit or economic risk parameters
(2)
3
(5)
—
(4)
(3)
(5)
(1)
(9)
—
19
(9)
—
10
(17)
2
(1)
—
(16)
Net remeasurement of ECL Allowance
(21)
40
25
(7)
37
(4)
(5)
49
40
(3)
150
121
(1)
267
17
(192)
55
(8)
(128)
Write-offs
—
—
(17)
—
(17)
—
—
(41)
(41)
—
—
(20)
—
(20)
—
—
(47)
—
(47)
Derecognised due to disposals
—
—
—
—
—
(1)
(6)
(71)
(78)
—
—
(27)
—
(27)
(8)
(2)
(85)
—
(95)
Exchange translation adjustments
—
—
—
—
—
—
—
—
—
—
—
1
—
1
—
2
1
—
3
Other movements
—
(1)
3
4
6
2
6
(9)
(1)
2
(3)
1
—
—
7
—
(5)
—
2
At 31 December
19
77
207
6
309
21
32
44
97
83
264
195
(1)
541
131
262
188
(8)
573
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Risk Management continued
2.1.2 Credit risk – Credit profile of the loan portfolio continued
Movements in off-balance sheet exposures (audited)
The following tables set out the movements in the nominal amount and ECL allowance for loan commitments and financial guarantees by ECL
staging for the year to 31 December 2024 and 2023:
Nominal amount movements (audited)
2024
Loan commitments
Financial guarantee contracts
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January
14,921
1,136
71
8 16,136
790
52
14
1
857
Transferred from Stage 1 to Stage 2
(835)
835
—
—
—
(71)
71
—
—
—
Transferred from Stage 2 to Stage 1
401
(401)
—
—
—
28
(28)
—
—
—
Transferred to Stage 3
(16)
(20)
36
—
—
(2)
—
2
—
—
Transferred from Stage 3
10
8
(18)
—
—
1
—
(1)
—
—
Other movements1
873
(179)
(6)
(1)
687
137
(16)
(1)
(1)
119
At 31 December
15,354
1,379
83
7 16,823
883
79
14
—
976
2023
Loan commitments
Financial guarantee contracts
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January
13,947
1,033
80
— 15,060
738
45
19
—
802
Transferred from Stage 1 to Stage 2
(631)
631
—
—
—
(40)
40
—
—
—
Transferred from Stage 2 to Stage 1
456
(456)
—
—
—
51
(51)
—
—
—
Transferred to Stage 3
(17)
(8)
25
—
—
(1)
(1)
2
—
—
Transferred from Stage 3
7
5
(12)
—
—
—
—
—
—
—
Other movements1
1,159
(69)
(22)
8
1,076
42
19
(7)
1
55
At 31 December
14,921
1,136
71
8 16,136
790
52
14
1
857
1. Includes new commitments, utilised and expired commitments.
The internal credit grade profile of loan commitments and financial guarantees is set out in the following table (audited):
2024
2023
€ m
€ m
Strong
10,858
11,942
Satisfactory
6,435
4,711
Criticised watch
381
187
Criticised recovery
22
60
Default
103
93
Total
17,799
16,993
Non-performing off-balance sheet commitments
Total non-performing off-balance sheet commitments amounted to € 103 million (2023: € 93 million).
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2.1.2 Credit risk – Credit profile of the loan portfolio continued
Movements in off-balance sheet exposures continued (audited)
ECL allowance movements (audited)
2024
Loan commitments
Financial guarantee contracts
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January
12
26
4
1
43
2
5
9
—
16
Transferred from Stage 1 to Stage 2
(3)
22
—
—
19
—
5
—
—
5
Transferred from Stage 2 to Stage 1
6
(32)
—
—
(26)
2
(3)
—
—
(1)
Transferred to Stage 3
—
—
2
—
2
—
(1)
2
—
1
Transferred from Stage 3
—
—
(1)
—
(1)
—
1
(1)
—
—
Net remeasurement
—
7
(2)
—
5
(2)
(3)
(2)
—
(7)
Net income statement charge/(credit)
3
(3)
(1)
—
(1)
—
(1)
(1)
—
(2)
Other movements
1
—
1
—
2
(1)
—
—
—
(1)
At 31 December
16
23
4
1
44
1
4
8
—
13
2023
Loan commitments
Financial guarantee contracts
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January
19
35
5
—
59
2
4
13
—
19
Transferred from Stage 1 to Stage 2
(2)
23
—
—
21
(3)
4
—
—
1
Transferred from Stage 2 to Stage 1
3
(12)
—
—
(9)
3
(5)
—
—
(2)
Transferred to Stage 3
—
(2)
3
—
1
(1)
—
1
—
—
Transferred from Stage 3
1
—
(1)
—
—
1
—
(1)
—
—
Net remeasurement
(9)
(17)
(2)
—
(28)
—
1
(2)
—
(1)
Net income statement (credit)/charge
(7)
(8)
—
—
(15)
—
—
(2)
—
(2)
Other movements
—
(1)
(1)
1
(1)
—
1
(2)
—
(1)
At 31 December
12
26
4
1
43
2
5
9
—
16
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Risk Management continued
2.1.3 Credit risk – Impairment and write-offs
Income statement
The table below analyses the key components of the income statement charge for loans and advances to customers at 31 December 2024
and 2023:
Amortised cost
2024
2023
Residential
mortgages
Other
personal
Property
and
construction
Non-
property
business
Total
Residential
mortgages
Other
personal
Property
and
construction
Non-
property
business
Total
Income Statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Net stage transfers
35
25
2
36
98
31
34
27
(18)
74
Net remeasurement
(within Stage)
(15)
8
(4)
83
72
33
8
56
43
140
New loans originated/top-ups
2
15
22
18
57
3
11
19
16
49
Redemptions/repayments
(5)
(3)
(39)
(55)
(102)
(5)
(3)
(30)
(86)
(124)
Impact of credit or economic
risk parameters
(13)
(1)
5
(32)
(41)
(4)
(9)
10
(16)
(19)
Impact of model and
overlay changes
(32)
37
23
(20)
8
(21)
(1)
185
(67)
96
Net remeasurement of ECL
allowance
(28)
81
9
30
92
37
40
267
(128)
216
Recoveries of amounts
previously written-off
(8)
(2)
(6)
(16)
(32)
(7)
(4)
(6)
(10)
(27)
Net credit impairment
(writeback)/charge
(36)
79
3
14
60
30
36
261
(138)
189
There was a € 60 million net credit impairment charge in the year to
31 December 2024 which comprised a net remeasurement of ECL
allowance charge of € 92 million and recoveries of amounts previously
written-off of € 32 million (2023: € 189 million charge comprising a net
remeasurement charge of € 216 million and € 27 million of recoveries).
The key drivers of the net remeasurement of ECL allowance charge of
€ 92 million consist of the following components and activity:
• Net stage transfers resulted in a € 98 million charge which was
evident across all asset classes. Net remeasurements within stage
resulted in a € 72 million charge driven by the non-property business
sector. Redemption and repayment activity offset by new loans
originated resulted in a € 45 million writeback. This was largely due
to strong repayments in the non-property business and property and
construction sectors, particularly within Stage 2 with a € 64 million
writeback driven by loans that fully repaid. Further details on the
ECL allowance movements are outlined on pages 210 to 216.
• Within the IFRS 9 models, € 41 million ECL writeback has been
observed due to macroeconomic factors. Despite the update to the
probability weightings tilting towards the downside scenarios, the
writeback reflects a more favourable base scenario following the
observed easing inflation and a reduction in interest and unemployment
rates. However, downside risks remain a concern, as heightened
geopolitical risks necessitate the Group’s conservative stance.
Further details on the macroeconomic scenarios and weightings are
outlined on pages 194 to 198.
• The impact of model and overlay changes resulted in a net charge
of € 8 million. This was driven by a € 67 million charge following the
deployment of the recalibrated grading models and a € 59 million
writeback relating to post model adjustments, largely driven by
utilisation as previously identified risks have now been captured in
the modelled outcomes. Further details on post model adjustments
are outlined on pages 200 and 201.
Recoveries of amounts previously written-off of € 32 million (2023: € 27
million) included € 15 million of recoveries (2023: € 13 million) due to
cash recoveries received against legacy non-performing exposures.
The remaining € 17 million (2023: € 14 million) relates to interest
recognised as a result of loans curing from Stage 3.
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2.1.3 Credit risk – Impairment and write-offs continued
Loans written-off and recoveries of previously written-off loans
The following table analyses loans written-off and recoveries of previously written-off loans by geography and industry sector for the years ended
31 December 2024 and 2023:
2024
2023
Loans
written-off
Recoveries
of amounts
previously
written-off
Loans
written-off
Recoveries
of amounts
previously
written-off
Concentration by industry sector
€ m
€ m
€ m
€ m
Non-property business:
Natural resources
29
—
16
—
Leisure
4
9
—
2
Manufacturing
1
1
2
1
Health, education and social work
—
—
14
—
Services
10
1
7
—
Agriculture, forestry and fishing
6
1
1
1
Retail and wholesale trade
1
1
3
1
Transport and storage
1
—
1
1
Telecommunications, media and technology
2
—
—
—
Financial, insurance and other government activities
5
3
3
4
Total non-property business
59
16
47
10
Property and construction
40
6
20
6
Residential mortgages
11
8
17
7
Other personal
16
2
41
4
Total
126
32
125
27
Concentration by location1
Republic of Ireland
63
23
85
23
United Kingdom
38
3
40
3
Rest of the World
25
6
—
1
126
32
125
27
1. By country of risk.
The contractual amount outstanding of loans written-off during the year that are subject to enforcement activity amounted to € 30 million
(2023: € 9 million) which includes both full and partial write-offs. Total cumulative non-contracted loans written-off at 31 December 2024 has
reduced to € 170 million (2023: € 188 million).
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Risk Management continued
2.1.4 Credit risk – Asset class analysis
Asset class summary – key points:
• The residential mortgage portfolio has increased by € 2.2 billion
in the year to € 37.0 billion driven by strong new lending and the
final tranche of the Ulster Bank tracker (and linked) mortgage
portfolio acquisition. The staging composition of the portfolio has
improved in the year as Stage 1 loans increased by € 2.5 billion
to € 34.1 billion, Stage 2 loans decreased by € 0.5 billion to € 1.9
billion and there was a marginal € 0.1 billion increase in Stage 3
loans to € 0.8 billion. Total ECL stock has remained unchanged at
€ 0.3 billion (2023: € 0.3 billion) resulting in ECL cover of 0.7%
(2023: 0.9%). There was a € 36 million net credit impairment
writeback in the year (2023: € 30 million charge).
• The other personal portfolio increased by € 0.4 billion in the year
to € 3.3 billion. New lending totalled € 1.3 billion for the year,
however this was largely offset by redemptions/repayments of
€ 1.0 billion. The staging composition has weakened in the year
as Stage 2 loans increased to € 0.6 billion (2023: € 0.2 billion),
which was primarily driven by the deployment of the recalibrated
grading models in the year. Stage 1 and Stage 3 loans remained
unchanged at € 2.6 billion and € 0.1 billion respectively. Total
ECL cover has increased to 4.2% (2023: 3.3%). There was a net
credit impairment charge of € 79 million in the year (2023: € 36
million charge).
• The property and construction portfolio has decreased by
€ 0.5 billion in the year to € 8.7 billion, as redemptions/
repayments exceeded new lending. The staging composition of
the portfolio has remained stable in the year. Stage 1 loans
decreased by € 0.3 billion to € 5.5 billion, Stage 2 loans
experienced a slight decrease to € 2.7 billion and Stage 3 loans
decreased by € 0.1 billion to € 0.5 billion. Total ECL cover has
also decreased to 5.3% (2023: 5.9%). There was a € 3 million net
credit impairment charge in the year (2023: € 261 million charge).
• The non-property business portfolio has increased by
€ 2.1 billion in the year to € 22.2 billion, primarily due to strong
new lending activity. The staging composition of the portfolio
has remained relatively stable. Stage 1 loans have increased
by € 1.6 billion to € 18.9 billion. However, Stage 2 loans have
increased by € 0.5 billion to € 2.8 billion and were impacted by
the deployment of the recalibrated grading models in the year.
Stage 3 loans have remained unchanged at € 0.5 billion.
Total ECL cover has reduced to 2.1% (2023: 2.9%). There
was a € 14 million net credit impairment charge in the year
(2023: € 138 million writeback).
Loans and advances to customers – Residential mortgages
Residential mortgages amounted to € 37.0 billion at 31 December
2024, with the majority (97%) relating to residential mortgages in the
Republic of Ireland and the remainder relating to Northern Ireland.
This compares to € 34.8 billion at 31 December 2023, of which 97%
related to residential mortgages in the Republic of Ireland. The split
of the residential mortgage portfolio was owner-occupier € 35.7 billion
and buy-to-let € 1.3 billion (2023: owner-occupier € 33.3 billion and
buy-to-let € 1.5 billion).
The portfolio increased by € 2.2 billion in the year, as strong new
lending accounted for € 4.7 billion (2023: € 4.1 billion), in addition to a
further € 0.8 billion relating to the final tranche of the Ulster Bank
tracker (and linked) mortgage portfolio acquisition, was partially offset
by redemptions/repayments.
The staging composition of the portfolio has improved in the year as
Stage 1 loans increased by € 2.5 billion to € 34.1 billion, Stage 2 loans
decreased by € 0.5 billion to € 1.9 billion and there was a marginal
€ 0.1 billion increase in Stage 3 loans to € 0.8 billion.
The split of the Mortgage portfolio comprises € 20.5 billion (55%) fixed
rate, € 9.6 billion (26%) variable rate and € 6.9 billion (19%) tracker
rate mortgages (31 December 2023: € 20.0 billion (58%) fixed rate,
€ 7.4 billion (21%) variable rate and € 7.4 billion (21%) tracker rate
mortgages).
Forbearance
Residential mortgages subject to forbearance measures reduced
slightly to € 0.6 billion at 31 December 2024 (31 December 2023
€ 0.7 billion). Details of forbearance measures are set out on
pages 229 and 230.
Income statement
There was a € 36 million net credit impairment writeback in the year
to 31 December 2024 compared to a € 30 million net credit impairment
charge in 2023. This comprises a net remeasurement of ECL allowance
writeback of € 28 million and recoveries of previously written-off loans
of € 8 million.
The ECL allowance for the portfolio totalled € 0.3 billion providing ECL
allowance cover of 0.7%. For the Stage 3 portfolio, the ECL allowance
cover is 27% (2023: € 0.3 billion, 0.9% and 30% respectively).
Residual debt, which is now unsecured following the disposal of
property on which the residential mortgage was secured, is included in
the residential mortgage portfolio and as such, is included in the tables
within this section.
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2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers – Residential mortgages continued
The following table analyses the residential mortgage portfolio at amortised cost by segment, internal credit ratings and ECL staging at
31 December 2024 and 2023:
(Audited)
2024
2023
Retail
Banking
Capital
Markets
Climate
Capital
AIB
UK
Group
Total
Retail
Banking
Capital
Markets
Climate
Capital
AIB
UK
Group
Total
Gross carrying amount
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Owner occupier
34,346
417
—
925
—
35,688
32,068
405
—
854
—
33,327
Buy-to-let
1,174
62
—
46
—
1,282
1,315
71
—
51
—
1,437
Total
35,520
479
—
971
—
36,970
33,383
476
—
905
—
34,764
Analysed by internal credit ratings
Strong
28,930
311
—
849
—
30,090
25,812
324
—
758
—
26,894
Satisfactory
4,829
150
—
72
—
5,051
5,758
140
—
68
—
5,966
Total strong/satisfactory
33,759
461
—
921
—
35,141
31,570
464
—
826
—
32,860
Criticised watch
786
15
—
11
—
812
891
10
—
33
—
934
Criticised recovery
142
—
—
3
—
145
247
—
—
4
—
251
Total criticised
928
15
—
14
—
957
1,138
10
—
37
—
1,185
Non-performing
833
3
—
36
—
872
675
2
—
42
—
719
Gross carrying amount
35,520
479
—
971
—
36,970
33,383
476
—
905
—
34,764
Analysed by ECL staging
Stage 1
32,799
441
—
925
—
34,165
30,318
436
—
840
—
31,594
Stage 2
1,820
35
—
10
—
1,865
2,324
38
—
23
—
2,385
Stage 3
731
3
—
36
—
770
644
2
—
42
—
688
POCI
170
—
—
—
—
170
97
—
—
—
—
97
Total
35,520
479
—
971
—
36,970
33,383
476
—
905
—
34,764
ECL allowance – statement of financial position
Stage 1
10
—
—
—
—
10
19
—
—
—
—
19
Stage 2
52
1
—
—
—
53
76
1
—
—
—
77
Stage 3
206
1
—
3
—
210
202
—
—
5
—
207
POCI
(3)
—
—
—
—
(3)
6
—
—
—
—
6
Total
265
2
—
3
—
270
303
1
—
5
—
309
ECL allowance cover
percentage
%
%
%
%
%
%
%
%
%
%
%
%
Stage 1
—
—
—
—
—
—
0.1
—
—
—
—
0.1
Stage 2
2.9
2.5
—
—
—
2.8
3.3
2.4
—
—
—
3.2
Stage 3
28.2
30.3
—
8.3
—
27.2
31.4
—
—
9.7
—
30.0
POCI
(1.8)
—
—
—
—
(1.8)
6.8
—
—
—
—
6.8
Income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Net remeasurement of ECL
allowance
(27)
—
—
(1)
—
(28)
36
1
—
—
—
37
Recoveries of amounts
previously written-off
(8)
—
—
—
—
(8)
(7)
—
—
—
—
(7)
Net credit impairment
(writeback)/charge
(35)
—
—
(1)
—
(36)
29
1
—
—
—
30
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Risk Management continued
2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers - residential mortgages
Estimated fair value of collateral held for the Group’s residential mortgage portfolio
The following table shows the estimated fair value of collateral held for the Group’s residential mortgage portfolio at 31 December 2024 and 2023.
The value at 31 December 2024 and 2023 is estimated based on property values at origination or date of latest valuation and applying the
CSO Residential Property Price Index (Republic of Ireland) and Nationwide House Price Index (Great Britain & Northern Ireland) to these values
to take account of price movements in the interim.
2024
2023
At amortised cost
At amortised cost
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Fully collateralised1
Loan-to-value ratio:
Less than 50%
19,051 1,191
462
104 20,808
16,866 1,275
434
55 18,630
50% – 70%
9,220
532
195
44
9,991
9,290
884
181
26 10,381
71% – 80%
3,379
95
40
7
3,521
2,500
149
35
5
2,689
81% – 90%
1,942
25
28
3
1,998
2,242
54
12
1
2,309
91% – 100%
140
1
14
2
157
615
9
8
1
633
33,732 1,844
739
160 36,475
31,513 2,371
670
88 34,642
Partially collateralised
Collateral value relating to loans over 100%
loan-to-value
64
5
20
4
93
50
8
7
—
65
Total collateral value
33,796 1,849
759
164 36,568
31,563 2,379
677
88 34,707
Gross carrying amount
34,165 1,865
770
170 36,970
31,594 2,385
688
97 34,764
ECL allowance
(10)
(53)
(210)
3
(270)
(19)
(77)
(207)
(6)
(309)
Net carrying amount
34,155 1,812
560
173 36,700
31,575 2,308
481
91 34,455
1. The value of collateral held for residential mortgages which are fully collateralised has been capped at the carrying value of the loans outstanding at each year end.
Indexed loan-to-value ratios of the Group’s residential mortgage portfolio
The following table profiles the residential mortgage portfolio by the indexed loan-to-value ratios at 31 December 2024 and 20231:
2024
2023
(Audited)
At amortised cost
At amortised cost
Stage 1
Stage 2
Stage 3
POCI
Total
Stage 1
Stage 2
Stage 3
POCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Less than 80%
31,968
1,830
702
154 34,654
28,653
2,308
652
85 31,698
81 – 100%
2,082
26
42
5
2,155
2,865
63
21
2
2,951
100 – 120%
32
2
9
1
44
27
4
5
—
36
Greater than 120%
80
6
15
3
104
47
8
6
—
61
Total with LTVs
34,162
1,864
768
163 36,957
31,592
2,383
684
87 34,746
Unsecured
3
1
2
7
13
2
2
4
10
18
Total
34,165
1,865
770
170 36,970
31,594
2,385
688
97 34,764
Of which:
Owner occupier
Less than 80%
30,950
1,669
646
146 33,411
27,504
2,111
590
85 30,290
81 – 100%
2,077
27
31
3
2,138
2,847
68
18
2
2,935
100 – 120%
31
1
7
1
40
25
6
7
—
38
Greater than 120%
76
5
10
3
94
44
7
5
—
56
Total with LTVs
33,134
1,702
694
153 35,683
30,420
2,192
620
87 33,319
Unsecured
2
—
1
2
5
1
—
2
5
8
Total
33,136
1,702
695
155 35,688
30,421
2,192
622
92 33,327
1. At 31 December 2023, this table was reported for ROI mortgages only. At 31 December 2024, this table represents the total Group mortgage portfolio and the 2023
figures have been re-presented to reflect same.
The weighted average indexed loan-to-value of the stock of residential mortgages at 31 December 2024 was 47% (2023: 49%), new residential
mortgages issued during the year was 68% (2023: 71%), and Stage 3 was 47% (2023: 47%).
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2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers – Other personal
The following table analyses other personal lending at amortised cost by segment, internal credit ratings and ECL staging at 31 December 2024
and 2023:
(Audited)
2024
2023
Retail
Banking
Capital
Markets
Climate
Capital
AIB
UK
Group
Total
Retail
Banking
Capital
Markets
Climate
Capital
AIB
UK
Group
Total
Gross carrying amount
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Credit cards
736
9
—
22
—
767
700
9
—
23
—
732
Loans/overdrafts
2,370
84
—
44
—
2,498
2,125
36
—
47
—
2,208
Total
3,106
93
—
66
—
3,265
2,825
45
—
70
—
2,940
Analysed by internal credit ratings
Strong
469
9
—
59
—
537
1,326
14
—
61
—
1,401
Satisfactory
1,797
76
—
6
—
1,879
1,153
29
—
6
—
1,188
Total strong/satisfactory
2,266
85
—
65
—
2,416
2,479
43
—
67
—
2,589
Criticised watch
728
8
—
—
—
736
253
1
—
2
—
256
Criticised recovery
13
—
—
—
—
13
14
—
—
—
—
14
Total criticised
741
8
—
—
—
749
267
1
—
2
—
270
Non-performing
99
—
—
1
—
100
79
1
—
1
—
81
Gross carrying amount
3,106
93
—
66
—
3,265
2,825
45
—
70
—
2,940
Analysed by ECL staging
Stage 1
2,403
84
—
62
—
2,549
2,511
41
—
61
—
2,613
Stage 2
604
9
—
3
—
616
235
4
—
8
—
247
Stage 3
99
—
—
1
—
100
79
—
—
1
—
80
POCI
—
—
—
—
—
—
—
—
—
—
—
—
Total
3,106
93
—
66
—
3,265
2,825
45
—
70
—
2,940
ECL allowance – statement of financial position
Stage 1
18
1
—
—
—
19
20
—
—
1
—
21
Stage 2
51
1
—
—
—
52
31
1
—
—
—
32
Stage 3
65
—
—
1
—
66
44
—
—
—
—
44
POCI
—
—
—
—
—
—
—
—
—
—
—
—
Total
134
2
—
1
—
137
95
1
—
1
—
97
ECL allowance cover
percentage
%
%
%
%
%
%
%
%
%
%
%
%
Stage 1
0.8
0.6
—
—
—
0.7
0.8
—
—
0.2
—
0.8
Stage 2
8.5
9.3
—
—
—
8.5
13.3
25.0
—
—
—
12.9
Stage 3
65.4
—
—
63.0
—
65.3
55.2
—
—
—
—
55.2
POCI
—
—
—
—
—
—
—
—
—
—
—
—
Income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Net remeasurement of ECL
allowance
81
—
—
—
—
81
40
—
—
—
—
40
Recoveries of amounts
previously written-off
(2)
—
—
—
—
(2)
(4)
—
—
—
—
(4)
Net credit impairment charge
79
—
—
—
—
79
36
—
—
—
—
36
At 31 December 2024, the other personal lending portfolio of € 3.3
billion comprises € 2.5 billion in loans and overdrafts and € 0.8 billion in
credit card facilities (2023: € 2.9 billion, € 2.2 billion and € 0.7 billion
respectively). The increase in personal lending was driven by new
lending totalling € 1.3 billion for the year to 31 December 2024 (2023:
€ 1.2 billion), however this was largely offset by redemptions/
repayments of € 1.0 billion.
The asset quality and staging composition of the portfolio has
weakened in the year, however underlying credit performance is
aligned to 31 December 2023. 26% of the portfolio is categorised as
less than satisfactory at 31 December 2024, of which non-performing
loans amounted to € 0.1 billion (2023: 12% and € 0.1 billion). Stage 1
loans remained unchanged at € 2.6 billion, however Stage 2 loans
increased in the year to € 0.6 billion (2023: € 0.2 billion) following the
deployment of the recalibrated grading models.
The recalibration reflects an improvement in how the Group measures
the risk in the portfolio as opposed to any deterioration in customer
asset quality. Stage 2 ECL cover has reduced to 8% (2023: 13%). Total
Stage 3 loans experienced a slight increase but remained unchanged
at € 0.1 billion.
Income statement
There was a net credit impairment charge of € 79 million to the income
statement in the year to 31 December 2024 compared to a € 36 million
net credit impairment charge in 2023. This comprises a net
remeasurement of ECL allowance charge of € 81 million and recoveries
of previously written-off loans of € 2 million.
The ECL allowance for the portfolio totalled € 0.1 billion providing ECL
allowance cover of 4%. For the Stage 3 portfolio, the ECL allowance
cover is 65% (2023: € 0.1 billion, 3% and 55% respectively).
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Risk Management continued
2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers – Property and construction
The following table analyses property and construction lending at amortised cost by segment, internal credit ratings and ECL staging at
31 December 2024 and 2023:
(Audited)
2024
2023
Retail
Banking
Capital
Markets
Climate
Capital
AIB
UK
Group
Total
Retail
Banking
Capital
Markets
Climate
Capital
AIB
UK
Group
Total
Gross carrying amount
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Investment:
Residential investment
40
1,671
—
409
—
2,120
51
1,682
—
244
—
1,977
Student housing
—
337
—
541
—
878
—
258
—
571
—
829
Housing associations
—
157
—
486
—
643
—
145
—
431
—
576
Commercial investment – Office
23
1,433
—
400
—
1,856
29
1,569
—
398
—
1,996
Commercial investment – Retail
35
658
—
90
—
783
47
891
—
58
—
996
Commercial investment – Mixed
49
697
—
116
—
862
66
852
—
132
—
1,050
Commercial investment –
Industrial
20
280
—
160
—
460
27
310
—
155
—
492
Total investment
167
5,233
—
2,202
—
7,602
220
5,707
—
1,989
—
7,916
Land and development:
Residential development
25
574
—
101
—
700
28
668
—
154
—
850
Commercial development
5
14
—
90
—
109
5
95
—
42
—
142
Total land and development
30
588
—
191
—
809
33
763
—
196
—
992
Contractors
231
91
—
28
—
350
203
83
—
43
—
329
Total
428
5,912
—
2,421
—
8,761
456
6,553
—
2,228
—
9,237
Analysed by internal credit ratings
Strong
54
4,473
—
1,108
—
5,635
141
4,904
—
1,430
—
6,475
Satisfactory
243
616
—
1,227
—
2,086
200
850
—
681
—
1,731
Total strong/satisfactory
297
5,089
—
2,335
—
7,721
341
5,754
—
2,111
—
8,206
Criticised watch
72
50
—
3
—
125
33
244
—
19
—
296
Criticised recovery
13
356
—
7
—
376
24
21
—
30
—
75
Total criticised
85
406
—
10
—
501
57
265
—
49
—
371
Non-performing
46
417
—
76
—
539
58
534
—
68
—
660
Gross carrying amount
428
5,912
—
2,421
—
8,761
456
6,553
—
2,228
—
9,237
Analysed by ECL staging
Stage 1
285
3,102
—
2,110
—
5,497
327
3,604
—
1,892
—
5,823
Stage 2
97
2,393
—
235
—
2,725
71
2,415
—
268
—
2,754
Stage 3
44
417
—
76
—
537
55
534
—
68
—
657
POCI
2
—
—
—
—
2
3
—
—
—
—
3
Total
428
5,912
—
2,421
—
8,761
456
6,553
—
2,228
—
9,237
ECL allowance – statement of financial position
Stage 1
1
44
—
15
—
60
2
40
—
41
—
83
Stage 2
5
208
—
13
—
226
5
241
—
18
—
264
Stage 3
15
149
—
15
—
179
19
159
—
17
—
195
POCI
(1)
—
—
—
—
(1)
(1)
—
—
—
—
(1)
Total
20
401
—
43
—
464
25
440
—
76
—
541
ECL allowance cover
percentage
%
%
%
%
%
%
%
%
%
%
%
%
Stage 1
0.4
1.4
—
0.7
—
1.1
0.5
1.1
—
2.2
—
1.4
Stage 2
5.0
8.7
—
5.6
—
8.3
7.5
10.0
—
6.7
—
9.6
Stage 3
35.2
35.8
—
19.6
—
33.4
34.5
29.8
—
24.2
—
29.7
POCI
(51.4)
—
—
—
—
(51.4)
(43.7)
—
—
—
—
(43.7)
Income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Net remeasurement of ECL
allowance
1
(6)
—
14
—
9
4
220
—
43
—
267
Recoveries of amounts
previously written-off
(3)
(3)
—
—
—
(6)
(4)
(1)
—
(1)
—
(6)
Net credit impairment
(writeback)/charge
(2)
(9)
—
14
—
3
—
219
—
42
—
261
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2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers – Property and construction
continued
The property and construction portfolio has decreased by € 0.5 billion
to € 8.7 billion in the year to 31 December 2024 (2023: € 9.2 billion).
The decrease was driven by redemptions/repayments activity of € 2.1
billion, which exceeded new lending of € 1.6 billion (2023: € 2.0 billion).
The portfolio amounted to 12% of loans and advances to customers
and comprised 87% investment loans (€ 7.6 billion), 9% land and
development loans (€ 0.8 billion) and 4% relating to loans to
contractors (€ 0.3 billion). The Capital Markets and AIB UK segments
continue to account for the majority of this portfolio at 67% and 28%
respectively.
At 31 December 2024, € 7.7 billion of the portfolio was in a strong/
satisfactory grade (2023: € 8.2 billion). The overall Stage composition
of the portfolio has remained stable in the year. Stage 1 loans
decreased by € 0.3 billion to € 5.5 billion, Stage 2 loans experienced a
slight decrease to € 2.7 billion and Stage 3 loans decreased by € 0.1
billion to € 0.5 billion.
Income statement
There was a net credit impairment charge of € 3 million to the income
statement in the year to 31 December 2024 compared to a
€ 261 million charge in 2023. This comprises a net remeasurement of
ECL allowance charge of € 9 million and recoveries of previously
written-off loans of € 6 million.
The ECL allowance for the portfolio totalled € 0.4 billion providing ECL
allowance cover of 5%. For the Stage 3 portfolio, the ECL allowance
cover is 33% (2023: € 0.5 billion, 6% and 30% respectively).
Investment
Investment property loans amounted to € 7.6 billion at 31 December
2024 (2023: € 7.9 billion), of which, € 4.0 billion related to commercial
investment. The geographic profile of the investment property portfolio
is predominantly in the Republic of Ireland (€ 5.0 billion) and the United
Kingdom (€ 2.2 billion).
The following are the key themes within the investment property
sub-sectors in relation to the total property and construction portfolio:
• The residential investment sub-sector represents 24% of the portfolio
at € 2.1 billion. The Irish housing market remains characterised by a
notable weakness in housing supply when compared with the
underlying level of demand. Consequently, house price inflation has
remained high throughout 2024 despite the higher interest rate
environment.
• The student housing residential investment sub-sector represents
10% of the portfolio at € 0.9 billion. Notwithstanding the current
inflationary market resulting in increased rental rates, this sub-sector
continues to experience strong levels of occupancy and growth due
to under-supply.
• The social housing residential investment sub-sector represents 8%
of the portfolio at € 0.6 billion. Similar to other residential sub-sectors,
social housing has remained resilient in both Ireland and the UK with
strong occupancy levels due to structural under supply and
significant waiting lists.
• The office commercial investment sub-sector represents 21% of the
portfolio at € 1.8 billion. This sub-sector continues to be impacted by
global economic challenges, hybrid working and ESG considerations.
Energy ratings of the secondary office portfolio remain a key risk and
future transition funding to meet regulations will be a challenge from
both a debt and equity perspective.
• The retail commercial investment sub-sector represents 9% of the
portfolio at € 0.8 billion. Yields have remained broadly stable over
recent quarters; occupancy has improved, and rents have stabilised.
• The mixed commercial investment sub-sector represents 10% of the
portfolio at € 0.9 billion. This sub-sector consists of mixed investment
properties including retail, office and residential with the outlook
impacted by the current interest rate environment and macro-
economic uncertainty.
• The industrial commercial investment sub-sector represents 5% of
the portfolio at € 0.5 billion. Rents continue to grow at a steady pace
as a result of sustained demand but constrained supply.
At 31 December 2024, there was a net credit impairment charge of
€ 19 million to the income statement on the investment property element
of the property and construction portfolio (2023: € 203 million charge).
Land and development
Land and development loans amounted to € 0.8 billion at 31 December
2024 (2023: € 1.0 billion) of which € 0.6 billion related to loans in the
Capital Markets segment and € 0.2 billion in the AIB UK segment.
The following are the key themes within the land and development
property sub-sectors in relation to the total property and construction
portfolio:
• The residential development sub-sector represents 8% of the
property and construction portfolio at € 0.7 billion. Structural demand
and supply imbalances continue to be enduring features of the
residential market with increased government policy intervention
aimed at underpinning supply and supporting the viability of demand.
Further expansions in housing supply will be required to address not
only the accumulated deficit but also rising levels of demand.
• The commercial development sub-sector represents 1% of the
portfolio at € 0.1 billion.
At 31 December 2024, there was a net credit impairment writeback for
the year of € 20 million (2023: € 53 million charge).
Contractors
The contractors sub-sector represents 4% of the portfolio at € 0.3 billion
(2023: € 0.3 billion). The demand for this sub-sector is underpinned
by public works and residential projects. This sub-sector continues to
face challenges in the current market such as a shortage in skilled
labourers and supply chain disruptions.
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Risk Management continued
2.1.4 Credit risk – Credit profile of the loan portfolio – Asset class analysis continued
Loans and advances to customers – Non-property business
The following table analyses non-property business lending at amortised cost by segment, internal credit ratings and ECL staging at 31 December
2024 and 2023:
(Audited)
2024
2023
Retail
Banking
Capital
Markets
Climate
Capital
AIB
UK
Group
Total
Retail
Banking
Capital
Markets
Climate
Capital
AIB
UK
Group
Total
Gross carrying amount
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Natural resources
18
531
4,204
242
—
4,995
20
334
3,000
256
—
3,610
Of which renewables
—
282
4,176
21
—
4,479
—
—
2,899
8
—
2,907
Leisure
298
2,016
—
628
—
2,942
340
1,876
—
450
—
2,666
Manufacturing
148
2,395
—
210
—
2,753
141
2,257
—
121
—
2,519
Health, education and social
work
109
1,327
—
443
—
1,879
112
1,344
—
576
—
2,032
Services
532
1,174
265
279
—
2,250
504
1,074
198
288
—
2,064
Agriculture, forestry and fishing
1,284
353
—
54
—
1,691
1,338
382
—
60
—
1,780
Retail and wholesale trade
381
1,408
—
106
—
1,895
398
1,257
—
92
—
1,747
Transport and storage
205
785
394
464
—
1,848
192
697
365
456
—
1,710
Telecomms, media and
technology
33
715
665
37
—
1,450
35
740
555
64
—
1,394
Financial, insurance and
other government activities
25
314
—
81
50
470
27
376
—
75
28
506
Total
3,033
11,018
5,528
2,544
50
22,173
3,107
10,337
4,118
2,438
28
20,028
Of which Syndicated &
International Finance (SIF)
—
2,803
—
—
—
2,803
—
2,618
—
—
—
2,618
Analysed by internal credit ratings
Strong
141
5,674
4,858
1,452
20
12,145
809
6,216
3,751
1,541
9
12,326
Satisfactory
2,189
4,726
579
778
30
8,302
1,853
3,210
302
448
19
5,832
Total strong/satisfactory
2,330
10,400
5,437
2,230
50
20,447
2,662
9,426
4,053
1,989
28
18,158
Criticised watch
453
393
2
45
—
893
153
599
37
122
—
911
Criticised recovery
53
115
51
122
—
341
75
198
28
137
—
438
Total criticised
506
508
53
167
—
1,234
228
797
65
259
—
1,349
Non-performing
197
110
38
147
—
492
217
114
—
190
—
521
Gross carrying amount
3,033
11,018
5,528
2,544
50
22,173
3,107
10,337
4,118
2,438
28
20,028
Analysed by ECL staging
Stage 1
2,241
9,349
5,206
2,062
50
18,908
2,490
8,856
4,023
1,825
28
17,222
Stage 2
591
1,558
284
335
—
2,768
402
1,367
95
422
—
2,286
Stage 3
188
109
38
147
—
482
196
111
—
191
—
498
POCI
13
2
—
—
—
15
19
3
—
—
—
22
Total
3,033
11,018
5,528
2,544
50
22,173
3,107
10,337
4,118
2,438
28
20,028
ECL allowance – statement of financial position
Stage 1
10
46
19
20
—
95
13
54
17
47
—
131
Stage 2
30
125
20
18
—
193
32
190
10
30
—
262
Stage 3
65
42
6
80
—
193
83
60
—
45
—
188
POCI
(7)
(1)
—
—
—
(8)
(7)
(1)
—
—
—
(8)
Total
98
212
45
118
—
473
121
303
27
122
—
573
ECL allowance cover
percentage
%
%
%
%
%
%
%
%
%
%
%
%
Stage 1
0.4
0.5
0.4
1.0
—
0.5
0.5
0.6
0.4
2.6
—
0.8
Stage 2
5.0
8.0
6.9
5.4
—
6.9
8.0
13.9
10.5
7.1
—
11.4
Stage 3
34.6
38.7
16.0
55.0
—
40.2
42.4
54.1
—
23.6
—
37.8
POCI
(48.6)
(57.2)
—
—
—
(49.7)
(36.9)
(33.3)
—
—
—
(39.0)
Income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Net remeasurement of ECL
allowance
(5)
(63)
22
76
—
30
2
(125)
(7)
2
—
(128)
Recoveries of amounts
previously written-off
(7)
(7)
—
(2)
—
(16)
(7)
(1)
—
(2)
—
(10)
Net credit impairment
(writeback)/charge
(12)
(70)
22
74
—
14
(5)
(126)
(7)
—
—
(138)
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2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers – Non-property business continued
The non-property business portfolio includes small and medium
enterprises (‘SMEs’) which are reliant largely on the domestic economies
in which they operate. In addition to SMEs, the portfolio also includes
exposures to larger corporate and institutional borrowers which are
impacted by global economic conditions. The largest geographic
concentration of the portfolio exposure is to Irish borrowers (50%), with the
UK (25%) and USA (13%) being the other main geographic concentrations.
The non-property business portfolio consists of € 22.2 billion in loans
and advances to customers measured at amortised cost and € 64
million of loans measured at FVTPL.
The portfolio measured at amortised cost increased by € 2.1 billion to
€ 22.2 billion in the year at 31 December 2024 (2023: € 20.1 billion).
The increased portfolio can be attributed to new lending totalling € 6.8
billion (2023: € 5.0 billion) particularly within the Climate Capital
segment as the Group continues to finance the transition to renewable
energy and infrastructure. New lending was partially offset by
redemptions/repayments of € 4.7 billion. The non-property business
portfolio amounted to 31% of total Group loans and advances to
customers in the year (2023: 30%).
The asset quality and staging composition of the portfolio has remained
relatively stable in the year. Loans graded as strong/satisfactory
increased during the year to 31 December 2024 at 92% (2023: 91%).
The value of loans graded less than satisfactory (including non-
performing loans) decreased from € 1.9 billion at 31 December 2023 to
€ 1.7 billion at 31 December 2024. Stage 1 loans have increased
by € 1.6 billion to € 18.9 billion. However, Stage 2 loans have increased
by € 0.5 billion to € 2.8 billion and were impacted by the deployment of
the recalibrated grading models in the year. Stage 3 loans have
remained unchanged at € 0.5 billion.
The performing forborne portfolio, which is also reflected within the
criticised recovery category, decreased by € 0.1 billion to € 0.3 billion in
the year (2023: € 0.4 billion), as borrowers successfully demonstrated
repayment capacity over 24 months.
The following are the key themes within the main sub-sectors of the
non-property business portfolio:
• The natural resources sub-sector comprises 23% of the portfolio at
€ 5.0 billion. This sub-sector includes renewable energy and
continues to be a strong focus of growth for the Group. The outlook
is one of continued growth with strong demand, as economies
transition away from fossil fuels to meet climate goals with projects
contributing to the EU and Ireland’s legally binding target of
generating 80% of electricity from renewable sources by 2030.
Geopolitical risks and uncertainties for the climate sector in the US
are key challenges to growth in this sector.
• The leisure sub-sector comprises 13% of the portfolio at € 2.9 billion.
The hotel sector is normalising after a period of strong growth, with
occupancy rates softening during 2024 as pent-up demand subsided
and new stock came onto the market via new hotels opening in city
centres and a reduction in emergency beds provided by the sector.
Whilst labour costs remain a key challenge, the outlook remains
reasonably optimistic due to projected, albeit modest, economic
growth indicators combined with robust household and corporate
balance sheets. This sub-sector also includes licensed premises
where further minimum wage increases, and improved employee
benefits are likely to put additional pressure on operating costs
during 2025.
• The manufacturing sub-sector comprises 12% of the portfolio at € 2.8
billion. Notwithstanding challenges in the sector including inflation
and intermittent supply chain concerns, operators are trading
strongly with deposits maintained, relatively low gearing and
continued investment by multinationals. Whilst food and drink
manufacturing has been challenged by margin pressure in recent
years due to higher input costs, the sector has broadly protected or
recovered margin through a combination of efficiencies gained, pass
through of price increases and reduced energy costs.
• The health, education and social work sub-sector comprises 8% of
the portfolio at € 1.9 billion. Some recovery is evident within the
nursing home sub-sector with fixed price contracts negotiated
upwards addressing previous cost inflation (including energy, labour
and food). A significant reduction in agency staff has normalised staff
costs.
• The services sub-sector comprises 10% of the portfolio at € 2.3
billion, and includes professional services (accounting, legal and
architectural/engineering activities) and other services, a more
diverse grouping which includes contract services, machinery and
equipment, management consultancy, research and development
and public/community groups. Performance of services businesses
in part is correlated to the performance of the domestic and global
economies, which are currently supported by a strong labour market,
falling inflation and improved global trade.
• The agriculture, forestry and fishing sub-sector represents 8% of the
portfolio at € 1.7 billion. Output prices across most farm sectors
remain relatively strong. The transition of activities to more climate
friendly and sustainable methods will continue to be a key challenge
in 2025.
• The retail and wholesale sub-sector comprises 9% of the portfolio at
€ 1.9 billion. Grocery has continued on a positive trajectory driven by
its non-discretionary status. Whilst inflation and pressure on staff
costs have driven some margin pressure, these have largely been
passed on to the end customer. Further minimum wage increases
from January 2025 are likely to impact grocery and convenience
operators. The motor sector outlook remains positive with both car
and van sales having rebounded post pandemic. Fuel operators
have performed strongly with fuel price increases passed on to
customers. The pharmacy sector remains robust with a positive
outlook for the mature pharmacy network driven by demand for
community-based services. Whilst macro indicators remain positive,
cost of business pressures remain a concern for high discretionary
price-sensitive sub-sectors with tight margins.
• The transport and storage sub-sector comprises 8% of the portfolio
at € 1.8 billion and consists primarily of logistic, storage and travel
businesses. A shortage of drivers remains a significant issue for all
transport companies. Issues facing logistics and supply chain
companies include skills shortages, property requirements and
e-commerce growth. The sector has continued to trade well whilst
some margin pressure is evident due to inflation and rising costs.
The travel sub-sector has rebounded in 2024 and is expected to
continue to perform strongly in 2025.
• The telecommunications, media and technology sub-sector
comprises 7% of the portfolio at € 1.4 billion. Telecommunications
continues to benefit from wider society changes and demand, with
the need for more connected digital and physical environments. The
acceleration of 5G will see wider growth and opportunities in the sub-
sector. The outlook for technology is positive with high demand in
Cyber and Data continuing to fuel digital transformation.
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Risk Management continued
2.1.4 Credit risk – Asset class analysis continued
Loans and advances to customers – Non-property business continued
• The financial, insurance and other government activities sub-sector
comprises 2% of the portfolio at € 0.5 billion. The financial institutions
sub-sector has benefited from the positive interest rate environment
albeit margins will compress if interest rates continue to soften during
2025. Growth is expected in the Pension industry in ROI in the
coming years with the introduction of the auto-enrolment system
expected to increase participation rates and savings levels.
Income statement
There was a net credit impairment charge of € 14 million to the income
statement in the year to 31 December 2024 compared to a
€ 138 million writeback in 2023. This comprises a net remeasurement
of ECL allowance charge of € 30 million and recoveries of previously
written-off loans of € 16 million.
The ECL allowance for the portfolio totalled € 0.5 billion providing ECL
allowance cover of 2%. For the Stage 3 portfolio, the ECL allowance
cover is 40% (2023: € 0.6 billion, 3% and 38% respectively).
Syndicated and International Finance
Syndicated and International Finance (‘SIF’) is a specialised business
unit within Capital Markets which participates in the provision of finance
to US and European corporations for mergers, acquisitions, buy-outs
and general corporate purposes.
The SIF non-property portfolio increased by € 0.2 billion to € 2.8 billion
at 31 December 2024 (2023: € 2.6 billion). Growth was driven by
increased appetite for lowly leveraged, strongly rated, large scale
international corporates. Key portfolio metrics and trends are as follows:
• S&P corporate family rating: Improving. 89% of the SIF portfolio is
rated by S&P (up from 86% at 31 December 2023) with 81% rated
B+ or above (+11% vs 2023), 8% rated B (down 5% vs 2023) and
1% rated B- or below (down 3% vs 2023).
• Grading: Stable. 100% of the SIF portfolio is in a strong/satisfactory
grade (2023: 96%).
• Staging: Improving. Stage 1 increased to 97%/€ 2.7 billion, Stage 2
decreased to 3%/€ 0.1 billion and there was Nil Stage 3 exposure
(2023: Stage 1: 85%/€ 2.2 billion, Stage 2: 15%/€ 0.4 billion and
Stage 3: Nil/€ 7 million).
• Scale: Improving. Majority of loans are to large borrowers with
EBITDA > € 250m (90% of portfolio vs 84% at 2023) with the top 20
borrowers accounting for 36% of total exposure.
• Diversification: Stable. Exposures diversified across all non-property
business sub-sectors. Primary sectoral concentrations are to
Manufacturing (24%), Telecoms, Media and Technology (20%) and
Services (18%) (2023: Manufacturing 25%, Telecoms, Media and
Technology 22% and Services 20%).
• Exposures relate to borrowers domiciled in the US (63%), UK (6%)
and Rest of World - primarily Europe (31%), (2023: US 56%, UK 7%
and Rest of World - primarily Europe 37%).
The SIF portfolio had a net credit impairment writeback to the income
statement in 2024 of € 78 million (2023: € 27 million writeback).
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2.1.5 Credit risk – Credit ratings
External credit ratings of certain financial assets (audited)
The following table sets out the credit quality of certain financial assets based on available external credit ratings at 31 December 2024 and 2023.
These comprise loans and advances to banks of € 1,321 million (2023: € 1,329 million), securities financing of € 6,643 million (2023: € 6,466 million),
and investment debt securities at amortised cost of € 4,803 million (2023: € 4,510 million) and at FVOCI of € 13,568 million (2023: € 12,488
million) and trading portfolio financial assets of € 121 million (2023: € 84 million). Information on the credit ratings for loans and advances to
customers where an external credit rating is available is disclosed on page 227.
2024
2023
(Audited)
At amortised cost
At amortised cost
Bank
Corporate
Sovereign
Other
Total
Bank
Corporate
Sovereign
Other
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
AAA/AA
1,213
—
2,412
1,946
5,571
1,725
—
2,307
1,720
5,752
A/A-
5,391
1,240
17
167
6,815
4,829
1,126
16
192
6,163
BBB+/BBB/BBB-
15
245
34
—
294
19
203
33
5
260
Sub investment
3
25
—
—
28
—
73
—
—
73
Unrated
6
53
—
—
59
2
55
—
—
57
Total
6,628
1,563
2,463
2,113 1
12,767
6,575
1,457
2,356
1,917 1
12,305
Of which:
Stage 1
6,628
1,563
2,463
2,113
12,767
6,575
1,449
2,356
1,917
12,297
Stage 2
—
—
—
—
—
—
8
—
—
8
Stage 3
—
—
—
—
—
—
—
—
—
—
2024
2023
(Audited)
At FVOCI
At FVOCI
Bank
Corporate
Sovereign
Other
Total
Bank
Corporate
Sovereign
Other
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
AAA/AA
5,164
196
5,002
153
10,515
4,630
157
4,321
454
9,562
A/A-
1,205
373
490
—
2,068
1,312
314
265
—
1,891
BBB+/BBB/BBB-
163
169
643
—
975
256
151
628
—
1,035
Sub investment
—
—
—
—
—
—
—
—
—
—
Unrated
—
—
10
—
10
—
—
—
—
—
Total
6,532
738
6,145 2
153
13,568
6,198
622
5,214 2
454
12,488
Of which:
Stage 1
6,532
738
6,145
153
13,568
6,198
622
5,214
454
12,488
Stage 2
—
—
—
—
—
—
—
—
—
—
Stage 3
—
—
—
—
—
—
—
—
—
—
2024
2023
(Audited)
At FVTPL
At FVTPL
Bank
Corporate
Sovereign
Other
Total
Bank
Corporate
Sovereign
Other
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
AAA/AA
—
—
103
—
103
—
—
84
—
84
A/A-
—
—
—
—
—
—
—
—
—
—
BBB+/BBB/BBB-
10
6
—
—
16
—
—
—
—
—
Sub investment
2
—
—
—
2
—
—
—
—
—
Unrated
—
—
—
—
—
—
—
—
—
Total
12
6
103
—
121
—
—
84
—
84
Of which:
Stage 1
12
6
103
—
121
—
—
84
—
84
Stage 2
—
—
—
—
—
—
—
—
—
—
Stage 3
—
—
—
—
—
—
—
—
—
—
1. Relates to asset backed securities.
2. Includes supranational banks and government agencies.
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Risk Management continued
2.1.6 Credit risk – Forbearance overview
Additional credit quality and forbearance disclosures on loans
and advances to customers
Forbearance
Overview
Forbearance occurs when a customer is granted a temporary or
permanent concession or an agreed change to the existing contracted
terms of a facility (‘forbearance measure’), for reasons relating to the
actual or apparent financial stress or distress of that customer. This
also includes a total or partial refinancing of existing debt due to a
customer availing of an embedded forbearance clause(s) in their
contract. A forbearance agreement is entered into where the customer
is in financial difficulty to the extent that they are unable to meet their
loans to the Group in compliance with the existing agreed contracted
terms and conditions. A concession or an agreed change to the
contracted terms can be of a temporary (e.g. interest only) or
permanent (e.g. term extension) nature.
The Group uses a range of initiatives to support its customers. The
Group considers requests from customers who are experiencing cash
flow difficulties on a case by case basis in line with the Group’s
Forbearance Policy and relevant procedures, and completes an
affordability/repayment capacity assessment taking account of factors
such as current and likely future financial circumstances, the
customer’s willingness to resolve such difficulties, and all relevant legal
and regulatory obligations to ensure appropriate and sustainable
measures are put in place.
Group credit policies, supported by relevant processes and procedures,
are in place which set out the policy rules and principles underpinning
the Group’s approach to forbearance, ensuring the forbearance
measure(s) provided to customers are affordable and sustainable, and
in line with relevant regulatory requirements. Key principles include
supporting viable small and medium enterprises, and providing support
to enable customers to remain in their family home, whenever possible.
The Group has implemented the standards for the Codes of Conduct in
relation to customers in actual or apparent financial stress or distress,
as set out by the Central Bank of Ireland (‘the Central Bank’), ensuring
these customers are dealt with in a professional and timely manner.
A request for forbearance is a trigger event for the Group to undertake
an assessment of the customer’s financial circumstances prior to any
decision to grant a forbearance measure. This may result in the
downgrading of the credit grade assigned and an increase in the
expected credit loss. Facilities to which forbearance has been applied
continue to be classified as forborne until an appropriate probation
period has passed (minimum 24 months).
The effectiveness of forbearance measures over the lifetime of the
arrangements are subject to ongoing management review and
monitoring of forbearance. A forbearance measure is deemed to be
effective if the customer meets the revised or original terms of the
contract over a sustained period of time resulting in an improved
outcome for the Group and the customer.
Mortgage portfolio
Under the mandate of the Central Bank’s Code of Conduct on
Mortgage Arrears (‘CCMA’), the Group has a four-step process called
the Mortgage Arrears Resolution Process, or MARP. This process aims
to engage with, support and find resolution for mortgage customers (for
their primary residence only) who are in arrears, or are at risk of going
into arrears.
The four step process is summarised as follows:
• Communications – We are here to listen, support and provide advice;
• Receipt of financial information – To allow us to understand the
customer’s finances;
• Assessment – We use the financial information to assess the
customer’s situation; and
• Resolution – We work with the customer to find an appropriate
resolution.
The core objective of the process is to determine appropriate and
sustainable solutions that, where possible, help to keep customers in
their family home. In addition to relevant temporary forbearance
measures (such as interest only and capital and interest moratorium),
this includes permanent forbearance measures which have been
devised to assist existing Republic of Ireland primary residential
mortgage customers in financial difficulty. This process may result in
debt write-off, where appropriate. The types of permanent forbearance
solutions currently include; arrears capitalisation, term extension, split
mortgages, mortgage to rent, voluntary sale for loss and negative
equity trade down.
Non-mortgage portfolio
The Group also has in place forbearance measures for customers in
the non-mortgage portfolio and buy-to-let mortgages who are in
financial difficulty.
This approach is based on customer affordability and sustainability by
applying the following core principles:
• Customers must be treated objectively and consistently;
• Customer circumstances and debt obligations must be viewed
holistically; and
• Solutions will be appropriately provided where customers are
co-operative, and are willing but unable to pay.
The forbearance process is one of structured engagement to assess
the long term levels of sustainable and unsustainable debt. The
commercial aspects of this process require that customer affordability is
viewed comprehensively, to include all available sources of finance for
debt repayment, including unencumbered assets.
Types of non-mortgage forbearance include temporary measures (such
as interest only and capital and interest moratorium) and permanent
measures (such as term extension and arrears capitalisation). This
process may result in debt write-off, where appropriate.
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2.1.6 Credit risk – Forbearance overview continued
Additional credit quality and forbearance disclosures on loans and advances to customers
Forbearance
The following table sets out the internal credit ratings and ECL staging of forborne loans and advances to customers at 31 December 2024 and 2023:
2024
2023
At amortised cost
At amortised cost
Analysed by
forbearance type
Residential
mortgages
Other
personal
Property
and
construction
Non-
property
business
Total
Residential
mortgages
Other
personal
Property
and
construction
Non-
property
business
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Temporary forbearance
346
6
13
189
554 1
342
7
19
225
593 1
Permanent forbearance
240
22
486
433
1,181 2
335
24
271
536
1,166 2
586
28
499
622
1,735
677
31
290
761
1,759
Analysed by internal
credit ratings
Strong
—
—
—
—
—
—
—
—
—
—
Satisfactory
—
—
—
—
—
—
—
—
—
—
Total strong/
satisfactory
—
—
—
—
—
—
—
—
—
—
Criticised watch
—
—
—
—
—
—
—
—
—
—
Criticised recovery
145
13
376
341
875
251
14
75
438
778
Total criticised
145
13
376
341
875
251
14
75
438
778
Non-performing
441
15
123
281
860
426
17
215
323
981
Gross carrying
amount
586
28
499
622
1,735
677
31
290
761
1,759
Analysed by
ECL staging
Stage 1
17
—
—
2
19
27
—
—
18
45
Stage 2
119
13
376
340
848
184
14
75
421
694
Stage 3
383
15
123
280
801
397
17
215
320
949
POCI
67
—
—
—
67
69
—
—
2
71
Total
586
28
499
622
1,735
677
31
290
761
1,759
ECL allowance
117
10
89
173
389
140
10
87
201
438
1. Of which: interest only € 244 million, payment moratorium € 154 million, reduced payment € 109 million (2023: of which: interest only € 272 million, payment
moratorium € 165 million, reduced payment € 83 million).
2. Of which: arrears capitalisation and term extension € 630 million, amendment to or non-enforcement of financial covenant € 186 million, restructure € 257 million
(2023: of which: arrears capitalisation and term extension € 585 million, amendment to or non-enforcement of financial covenant € 164 million, restructure
€ 267 million).
The Group continues to support its existing customers ensuring they are provided with the appropriate forbearance measures, particularly
given the current macro environment where customers may seek forbearance measures as a result of inflationary pressures and subsequent
affordability issues due to the higher cost of household goods and services, including mortgage repayments as a result of higher interest rates.
The total forbearance portfolio has reduced slightly to € 1.7 billion in the year (2023: € 1.8 billion). The decrease primarily reflects a reduction in the
non-performing forbearance loans as a result of loan disposals completed during the year.
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Risk Management continued
2.2 Market and Equity risks
(a) Market risk
Market risk is the uncertainty of returns attributable to fluctuations in
market factors. Where the uncertainty is expressed as a potential loss
in earnings or value, it represents a risk to the income and capital
position of the Group.
Changes in customer behaviours and the relationship between
wholesale and retail rates give rise to changes in the Group’s exposure
to market risk factors and are also an important component of market risk.
Identification and assessment
The key market risks that the Group assumes as a result of its banking
and trading book activities that have been identified as part of the
MRA are:
• Credit spread risk is the exposure of the Group’s financial position to
adverse movements in the credit spreads of bonds held in the hold-
to-collect-and-sell (‘HTCS’) securities portfolio. Credit spreads are
defined as the difference between bond yields and interest rate swap
rates of equivalent maturity. The HTCS bond portfolio is the principal
source of credit spread risk;
• Interest rate risk in the banking book (‘IRRBB’) is the current or
prospective risk to both the earnings and capital of the Group as a
result of adverse movements in interest rates. Changes in interest
rates impact the underlying value of the Group’s assets, liabilities
and off-balance sheet instruments and, hence, its economic value
(or capital position). Similarly, interest rate changes will impact the
Group’s net interest income (‘NII’) through interest-sensitive income
and expense effects; and
• The Group also assumes market risk through its trading book
activities which relate to all positions in financial instruments
(principally derivatives) that are held with trading intent or in order
to hedge positions held with trading intent. Risks associated with
valuation adjustments such as credit value adjustment (‘CVA’)
and funding value adjustment (‘FVA’) are managed by the Group’s
Treasury function. The open market risk of Goodbody Stockbrokers
is considered as part of the Group’s trading book market risk.
Market risk scenarios are developed to test the capital requirements for
this risk in the semi-annual stress testing process and the annual ICAAP.
In addition to above market risks, equity investment risk and pension
risk are also identified by the MRA process as sub-risks.
Management and measurement (audited)
The Market Risk Management framework and policies set out the key
requirements for managing market risk. The key aspects of this are:
• The Group’s Treasury function is responsible for managing market
risk. Treasury also has a mandate to trade on its own account in
selected wholesale markets with risk tolerances approved on an
annual basis through the Group’s Risk Appetite process;
• The Group documents its annual Market Risk Strategy to ensure
market risk aligns with the Group’s strategic business plan; and
• Market risk is managed against a range of Board approved internal
capital limits which cover market risk in the trading book, interest rate
risk and credit spread risk in the banking book. The Board approved
limits are supplemented by a range of ALCo approved limits which
include nominal, sensitivity limits and ‘stop loss’ limits.
Market risk is managed and measured using portfolio sensitivities,
internal capital limits Value at Risk (‘VaR’) and stress testing. Interest
rate gaps and sensitivities to various risk factors are measured and
reported on a daily basis. In terms of the VaR metric, the Group
calculates a daily historical simulation VaR to a 95% confidence level,
using a one day holding period and based on one year of historic data.
In addition to VaR, Capital at Risk (‘CaR’) is also measured to a one
year1 time horizon, a 99% confidence level and a longer set of data.
Credit risk issues inherent in the market risk portfolios are also subject
to the credit risk framework that is described in Section 2.1.
The Group maintains a Structural Hedging Programme (SHP), subject
to oversight by ALCo. The SHP provides a framework for assessing
and re-balancing the extent of earnings sensitivity (to market rate
changes) versus the economic value (or capital) attributed to IRRBB.
Forecast structural changes in the composition of the balance sheet are
a key driver of the annual SHP strategy. From an IRRBB capital
perspective the SHP strategy seeks to maintain a broadly duration-
matched repricing term profile where term asset positions (typically,
interest rate derivatives and fixed rate mortgages) are offset by stable,
non and low interest-bearing liabilities, principally comprising current
accounts and deposits, and equity.
The SHP strategy provides an effective basis for stabilising income
over the medium term and protecting income during periods of falling
interest rates. SHP interest rate derivatives are subject to either cash
flow hedging of floating-rate assets or macro fair value hedging of
customer accounts.
1. The Capital at Risk on core trading book positions is assessed using a ten day
horizon, with the exception of FX which is assessed using a one year horizon.
Monitoring, escalating and reporting (audited)
On a daily basis front office and risk functions receive a range of
valuation, sensitivity and market risk measurement reports, while ALCo
receives a monthly market risk commentary and summary risk profile.
Market risk exposures are reported to the Group Risk Committee
(‘GRC’) and Board Risk Committee (‘BRC’) on a monthly basis through
the CRO Report.
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2.2 Market and Equity risks continued
(a) Market risk continued (audited)
The following table sets out financial assets and financial liabilities at 31 December 2024 and 2023 subject to market risk analysed between
trading and non-trading portfolios, showing the principal market risks to which the assets and liabilities are exposed:
2024
(Audited)
Market risk measures
Carrying
amount
Trading
portfolios
Non-trading
portfolios
€ m
€ m
€ m
Risk factors
Assets subject to market risk
Cash and balances at central banks
37,315
—
37,315
Interest rate, foreign exchange
Trading portfolio financial assets
136
136
—
Interest rate, foreign exchange, equity
Derivative financial instruments
2,144
425
1,719
Interest rate, foreign exchange, credit
spreads, equity, inflation rates, wholesale
electricity prices
Loans and advances to banks
1,321
—
1,321
Interest rate, foreign exchange
Loans and advances to customers
69,889
—
69,889
Interest rate, foreign exchange
Securities financing
6,643
—
6,643
Interest rate, credit spreads, foreign
exchange
Investment securities
18,668
—
18,668
Interest rate, foreign exchange, credit
spreads, equity
Liabilities subject to market risk
Deposits by central banks and banks
836
—
836
Interest rate, foreign exchange
Customer accounts
109,883
—
109,883
Interest rate, foreign exchange
Securities financing
196
—
196
Interest rate, credit spreads, foreign
exchange
Trading portfolio financial liabilities
262
262
—
Interest rate, foreign exchange, equity
Derivative financial instruments
1,807
461
1,346
Interest rate, foreign exchange, credit
spreads, equity, inflation rates, wholesale
electricity prices
Debt securities in issue
8,832
—
8,832
Interest rate, credit spreads, foreign
exchange
Subordinated liabilities and other capital instruments
1,627
—
1,627
Interest rate, credit spreads
2023
(Audited)
Market risk measures
Carrying
amount
Trading
portfolios
Non-trading
portfolios
€ m
€ m
€ m
Risk factors
Assets subject to market risk
Cash and balances at central banks
38,018
—
38,018
Interest rate, foreign exchange
Trading portfolio financial assets
93
93
—
Interest rate, foreign exchange, equity
Derivative financial instruments
2,377
457
1,920
Interest rate, foreign exchange, credit
spreads, equity, inflation rates
Loans and advances to banks
1,329
—
1,329
Interest rate, foreign exchange
Loans and advances to customers
65,491
—
65,491
Interest rate, foreign exchange
Securities financing
6,466
—
6,466
Interest rate, credit spreads, foreign
exchange
Investment securities
17,353
—
17,353
Interest rate, foreign exchange, credit
spreads, equity
Liabilities subject to market risk
Deposits by central banks and banks
1,780
—
1,780
Interest rate, foreign exchange
Customer accounts
104,782
—
104,782
Interest rate, foreign exchange
Securities financing
575
—
575
Interest rate, credit spreads, foreign
exchange
Trading portfolio financial liabilities
139
139
—
Interest rate, foreign exchange, equity
Derivative financial instruments
1,902
448
1,454
Interest rate, foreign exchange, credit
spreads, equity, inflation rates
Debt securities in issue
8,423
—
8,423
Interest rate, credit spreads, foreign
exchange
Subordinated liabilities and other capital instruments
1,473
—
1,473
Interest rate, credit spreads
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Risk Management continued
2.2 Market and Equity risks continued
(a) Market risk continued
Interest rate sensitivity (audited)
The table below shows the sensitivity of the Group’s banking book to an immediate and sustained +/- 100 basis point, +/-50 basis point and
+/-25 basis point movement in interest rates, in terms of the impact on net interest income on a forward looking basis over a twelve month period,
assuming no change in the balance sheet.
Sensitivity of projected net interest income to interest rate movements:
December 2024 (audited)
€ m
€ m
€ m
€ m
€ m
€ m
- 100bps
- 50bps
- 25bps
+ 25bps
+ 50bps
+ 100bps
Euro
(385)
(189)
(93)
80
163
329
Sterling
(37)
(19)
(9)
9
19
37
Other (mainly US $)
(17)
(8)
(4)
4
8
17
Total
(439)
(216)
(106)
93
190
383
December 2023 (audited)
€ m
€ m
€ m
€ m
€ m
€ m
- 100bps
- 50bps
- 25bps
+ 25bps
+ 50bps
+ 100bps
Euro
(332)
(145)
(53)
49
130
292
Sterling
(37)
(19)
(9)
9
18
37
Other (mainly US $)
(12)
(6)
(3)
3
6
11
Total
(381)
(170)
(65)
61
154
340
The above sensitivity table is computed under the assumption of an
unchanged balance sheet and that all market rates (Risk Free Rates/
Euribors/Swaps) move upwards or downwards in parallel. Managing
interest rate sensitivity has been a key risk management priority during
2024, given the evolving interest rate environment and the more
restrictive EBA NII Supervisory Outlier Test threshold. The year-on-year
increase in the reported sensitivity has been driven by the ongoing
dynamics in the customer deposit market which includes the growth in
balances, the slow pace of deposit balance migration from interest
insensitive to interest-bearing products and the impact of retail pass-
through models. On the asset side, increases in the bond portfolio and
a change in the mix of mortgage products towards variable rates have
also contributed. Given the composition of the balance sheet, and its
expected evolution, the trade-off between managing IRRBB earnings
(NII Sensitivity) and economic value (Capital at Risk) perspectives will
continue to be a priority. In particular, the evolution of customer deposit
balance migration is closely monitored, given the ‘static balance sheet’
assumption underpinning this NII Sensitivity metric.
Group interest rate and foreign exchange rate VaR are calculated to a
95% confidence level with a one day holding period, and equity VaR is
calculated to a 99% confidence level with a one day holding period. At
31 December 2024, interest rate VaR stood at € 18.72 million, foreign
exchange rate VaR at € 0.32 million and equity VaR at € 0.2 million.
The Group recognises the limitations of VaR models, and supplements
its VaR measures with stress tests which draw from a longer set of
historical data and also with sensitivity measures.
Structural foreign exchange risk
Structural foreign exchange risk is the exposure of the Group’s capital
ratios to changes in exchange rates and results from net investment in
subsidiaries, associates and branches, the functional currencies being
currencies other than Euro. The Group is exposed to foreign exchange
risk as it translates foreign currencies into Euro at each reporting period
and the currency profile of the Group’s capital may not necessarily
match that of its assets and risk-weighted assets.
Exchange differences on structural exposures are recognised in ‘other
comprehensive income’ in the financial statements. The Group ALCo
monitors structural foreign exchange risk and the foreign exchange
sensitivity of consolidated capital ratios. This impact is measured in
terms of basis point sensitivities using scenario analysis.
The following table shows the sensitivity of the Group’s fully loaded
CET1 ratio to a hypothetical and sustained movement in GBP/EUR
and USD/EUR foreign exchange rates.
Sensitivity of CET 1 fully loaded capital to foreign
exchange movements
31 December
2024
2023
+ 10% move in GBP and USD FX rates
(0.13) % (0.14) %
– 10% move in GBP and USD FX rates
0.13 %
0.13 %
The above analysis is subject to certain simplifying assumptions such
as GBP/EUR and USD/EUR foreign exchange rates moving in the
same direction and at the same time.
(b) Pension risk
Pension risk is the risk that:
• The funding position of the Group’s defined benefit schemes would
deteriorate to such an extent that additional contributions would be
required to cover its funding obligations towards current and former
employees;
• The capital position of the Group is negatively affected as funding
deficits will be fully deductible from regulatory capital; and
• There could be a negative impact on industrial relations if the funding
level of the scheme was to deteriorate significantly.
Risk identification and assessment
The Group maintains a number of defined benefit pension schemes for
current and former employees. All defined benefit schemes operated by the
Group closed to future accrual no later than the 31 December 2013 and
staff transferred to defined contribution schemes for future pension benefits.
Each scheme has a separate trustee board and the Group has agreed
funding plans to deal with deficits where they exist. As part of any
funding agreement, the Group engages with each trustee regarding an
appropriate investment strategy to reduce the risk in that scheme.
Irish schemes that are deemed to have a deficit under the Minimum
Funding Standard must prepare funding plans to address this situation in
a timely manner and submit them to the Pensions Authority for approval.
The IAS 19 valuation of the pension scheme assets and liabilities may
vary which could impact on the Group’s capital. The Group works with
the Trustees of each scheme to monitor the performance of
investments and estimates of future liability to identify deficits.
Given that variability in the value of the pension scheme assets and
liabilities can impact on the Group’s capital, the key processes through
which pension risk is evaluated are the Internal Capital Adequacy
Assessment Process (‘ICAAP’) as well as internal stress tests and
monthly reporting of pension risk against risk appetite.
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2.2 Market and Equity risks continued
(b) Pension risk continued
Management and measurement (audited)
The pension risk framework and policies set out the key risk
management rules in place for this risk. The ability of the pension
schemes to meet the projected pension payments is managed by the
Trustees through the active management of the investment portfolios.
Although the Group has interaction with the trustees, it cannot direct
the investment strategy of the schemes.
The Group has developed a strategy for each of its defined benefit
schemes which include the following steps:
1. All defined benefit schemes are closed to future accrual.
2. They have funding plans (or are funded as required for the US
schemes) and each defined benefit scheme has an investment
strategy in place.
3. All schemes have a strategy of de-risking in line with their regulatory
requirements, funding positions and funding plans, taking into
account the nature of their liabilities.
The Irish Scheme continued to de-risk in 2024, with further sales of
equities. The Scheme has a Liability Driven Investment (‘LDI’) portfolio
in place to hedge its interest rate and inflation risk, which is compromised
of a mixture of nominal bonds, inflation linked bonds as well as interest
rate and inflation derivatives .
Independent actuarial valuations for the Irish scheme and the UK
scheme are carried out on a triennial basis by the schemes’ actuary,
Mercer. The most recent valuation of the Irish scheme was carried out at
30 June 2021 and reported the scheme to be in surplus. The next
actuarial valuation of the Irish scheme is being prepared with an effective
date of 30 June 2024 with the results expected by 31 March 2025. No
deficit funding is required at this time as the Irish scheme continues to
meet the minimum funding standard. The most recent valuation of the
UK scheme was carried out at 31 December 2020. The next actuarial
valuation of the UK scheme is being carried out for 31 December 2023
with the results expected by 31 March 2025.
As part of the investment strategy of the UK scheme, it was significantly
de-risked in December 2019. The Group agreed with the Scheme
Trustee a revised funding arrangement for the UK scheme to support
the purchase of a pensioner buy-in policy in respect of the pensioner
members and an assured payment policy (‘APP’) in respect of the
deferred members. Under this funding arrangement, the Group expects
to make a payment of £ 9.5 million in 2025. This amount is what is
expected to be required to finalise the buy-in of the scheme based on
the latest estimates from Legal & General Assurance Society LGAS. This
payment and any other related costs are subject to change prior to
finalisation.
Monitoring, escalating and reporting (audited)
Pension risk is monitored and controlled in line with the requirements of
the Group’s pension risk framework and policy. The surplus or deficit is
monitored on a monthly basis by the Group’s risk team and is currently
reported monthly in both the financial risk report to the Group Asset &
Liabilities Committee and the Group Chief Risk Officer (‘CRO’) report to
Group Risk Committee and Board Risk Committee.
Pension risk is also included in the internal stress test process. The
output of these stress tests is reviewed by ALCo and on an annual
basis an ICAAP Report is produced which is a comprehensive analysis
of the Group’s capital position in base and stress scenarios over a three
year horizon. This document is reviewed and approved by the Board
and is submitted to the Joint Supervisory Team.
The pension capital at risk exposure is measured and reported monthly
in the CRO report against a Group Risk Appetite Statement watch
trigger. While the Group has taken certain risk mitigating actions, a
level of volatility associated with pension funding remains due to
potential financial market fluctuations and possible changes to pension
and accounting regulations.
(c) Equity risk
Banking book equity investment risk refers to the possibility of losses
arising in the equity investment portfolio of the Group due to changes in
the economic value of the investments. Where the uncertainty is
expressed as a potential loss in value, it represents a risk to the income
and capital position of the Group.
Identification and assessment
All equity proposals are considered to ensure all aspects of the
proposal are fully and consistently addressed. Where a proposal for a
new equity investment or divestment opportunity arises, Risk is
involved and submits a Risk opinion. Risk reviews and comments on all
proposals and recommends proposals for approval through the
appropriate governance process. All new investments need to adhere
to relevant regulatory, Policy and accounting requirements.
Management and measurement
Exposures are reported on in line with Risk appetite requirements. Risk
measurement is also captured through stress testing. A forward looking
stress test is produced semi annually. The stress test is used to assess
the impact of severe but plausible shocks to underlying risk factors on
the capital requirements for the business. Management projections of
the future business mix must be factored into the analysis and be
consistent with projections included in business area plans for equity
risk.
Monitoring, escalating and reporting
Exposure levels are reviewed on an on-going basis to ensure no undue
risk concentration and to consider whether the level of risk exposures
remains appropriate. Exposures are currently reported monthly by
Equity Portfolio Management to Risk and the Group Asset & Liabilities
Committee (‘ALCo’) and any limit/policy breaches or exceptions that
arose during the period are recorded.
Risk provide management with an independent perspective on the risk-
taking activities within the equity investment portfolio monthly via the
Financial Risk ALCo report, RAS limit report and the CRO report.
Additionally, there is a quarterly valuation review process in place and
Board and segment limits are applied and reported on with an
escalation process as set out in the Equity Risk Policy.
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Risk Management continued
2.3 Capital adequacy risk (audited)
Capital adequacy risk is the risk that the Group breaches or may
breach regulatory capital ratios and internal targets, measured on
a forward looking basis across a range of scenarios, including a severe
but plausible stress.
Identification and assessment (audited)
An annual MRA is conducted to identify all relevant (current and
anticipated) material risks which are then assessed from a capital
perspective. The sub-risks are identified as part of the MRA process
including risks surrounding the quality and composition of capital as
well as measurement and forecasting risk. Capital adequacy risk is
primarily evaluated through the annual financial planning and the
Group’s ICAAP processes where the level of capital required to support
growth plans and meet regulatory requirements is assessed over the
three year planning horizon. Plans are assessed across a range of
scenarios ranging from base case and moderate downside scenarios
to a severe but plausible stress using the Group’s stress testing
methodologies.
Management and measurement
The ICAAP is fully integrated and embedded in the strategic, financial
and risk management processes of the Group. The Capital Adequacy
(CA) Framework sets out the key processes, governance arrangements
and roles and responsibilities which support the ICAAP. The Stress
Testing Policy and Capital Adequacy Policy were updated in 2023 and
further refined in 2024 to reflect the work of the Climate Stress Testing
project regarding Climate Stress Testing models, roles and
responsibilities and governance requirements relating to climate stress
testing across the Group. Two new C&E KRIs, Transition Risk
Depletion and Physical Risk Depletion, were introduced to the suite of
Capital Adequacy KRIs in 2024 as was a Stress CET1 management
buffer metric. Embedding of the ICAAP is facilitated through capital
planning, the setting of risk appetite and risk adjusted performance
monitoring. In addition to the capital plan, a capital contingency plan is
in place which identifies and quantifies actions which are available to
the Group in order to mitigate against the impact of a stress event.
Trigger points at which these actions will be considered are also
identified. The impact of changing regulatory requirements, changes in
the risk profile of the Group’s balance sheet, other internal factors, and
changing external risks are regularly assessed by first and second line
of defence teams via regular monitoring of performance against the
agreed financial plan, monthly capital updates to ALCo and Group Risk
Committees and are also assessed via quarterly internal stress testing.
A further set of triggers and capital options are set out in the Group’s
Recovery Plan, which presents the actions available to the Group to
restore viability in the event of extreme stress.
The Group uses risk adjusted return on capital for capital allocation
purposes and as a behavioural driver of sound risk management. The
use of risk adjusted return on capital for portfolio management and in
new lending decisions continues to be an area of focus and a key
consideration for pricing of lending products, both at portfolio level and
individually for large transactions.
The Board reviews and approves the ICAAP on an annual basis and is
also responsible for approving a capital adequacy statement attesting
that the Board has reviewed and is satisfied with the capital adequacy
of the Group.
Monitoring, escalating and reporting (audited)
The Group monitors its capital adequacy on a monthly basis through
a capital reporting pack which is presented to senior executives and
Board setting out the evolution of the Group’s capital position. The risk
profile, including performance against risk appetite, is presented to the
BRC via the CRO report which is produced independently by the
second line of defence. The escalation process, as stipulated under the
RAS policy, is commenced in the event of a breach of either the RAS
watch trigger or limit for any of the metrics. This ensures Board and
Regulator notification, where appropriate, within approved timeframes.
The output of internal stress tests is reviewed by ALCo and, on an
annual basis, an ICAAP report is produced which is a comprehensive
analysis of the Group’s capital position in base and stress scenarios over
a three year horizon. The ICAAP document is reviewed and approved
by the Board and is submitted to the Joint Supervisory Team, where it
forms the basis of their supervisory review and evaluation process.
2.4 Liquidity and funding risk
Liquidity risk is the risk that the Group will not be able to fund its assets
and meet its payment obligations as they fall due, without incurring
unacceptable costs or losses. Funding is the means by which liquidity
is generated, e.g. secured or unsecured, corporate or retail. In this
respect, funding risk is the risk that a specific form of liquidity cannot be
obtained at an acceptable cost.
Identification and assessment
Liquidity and funding risk is identified and assessed by the Group’s
Material Risk Assessment (‘MRA’) process in support of the Internal
Liquidity Adequacy Assessment Process (‘ILAAP’). The MRA process
is a ‘top-down’ assessment performed on at least an annual basis and
identifies the key material risks to the Group, taking into account its
strategic objectives, in addition to internal and external risk information.
The ILAAP is fully integrated and embedded in the strategic, financial
and risk management processes of the Group. Embedding of the
ILAAP is facilitated through the setting of risk appetite and ensuring that
liquidity considerations are factored into all key strategic decisions.
The Group has a comprehensive ILAAP Framework for managing the
Group’s liquidity risk and complying with the Board’s risk appetite, as
well as evolving regulatory standards. This is delivered through a
combination of policy formation, governance, analysis, stress testing
and limit setting and monitoring, and is part of the wider Risk
Management Framework.
Management and measurement (audited)
The objective of liquidity management is to ensure that, at all times,
the Group holds sufficient funds to meet its contracted and contingent
commitments to customers and counterparties at an economic price.
The ILAAP Framework and supporting Funding and Liquidity risk policy
set out the key requirements for managing the risk. These include:
• adherence to both internal limits and regulatory defined liquidity
ratios including the Liquidity Coverage Ratio (‘LCR’) and the Net
Stable Funding Ratio (‘NSFR’). The LCR is designed to promote
short term resilience of the Group’s liquidity risk profile by ensuring
that it has sufficient high quality liquid resources to survive an acute
stress scenario lasting for 30 days. The NSFR has a time horizon of
one year and has been developed to promote a sustainable maturity
structure of assets and liabilities;
• performing a multi-year projection of the Group’s funding sources,
taking into account its baseline scenario, strategy and operational
plans as outlined in the Group’s Funding and Liquidity Plan. The
purpose of this Plan is to set out a comprehensive, forward looking
liquidity and funding strategy for the Group, including material
subsidiary companies;
• assessing the Funding and Liquidity Plan under a range of adverse
scenarios, the outcomes of which should ensure sufficient liquidity to
implement a sustainable strategy, even in a stressed environment;
• maintaining a Contingency Funding Plan that identifies and quantifies
actions that are available to the Group in deteriorating liquidity
conditions and to help it emerge from a temporary liquidity crisis as a
credit-worthy institution;
• monitoring a further set of triggers and liquidity options outlined in the
Group’s Recovery Plan, which presents the actions available to the
Group to restore viability in the event of extreme stress; and
• having an approved liquidity cost-benefit allocation mechanism in
place to attribute funding costs, benefits and risks to the Group’s
business lines.
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2.4 Liquidity and funding risk continued
Monitoring, escalating and reporting
The Group liquidity and funding position is reported regularly to the
Finance and Risk functions, Group Asset and Liability Committee
(‘ALCo’), Group Risk Committee (‘GRC’) and Board Risk Committee
(‘BRC’). In addition, the Executive Committee (‘ExCo’) and the Board
are briefed on liquidity and funding on an ongoing basis.
On an annual basis, the Board attests to the Group’s liquidity adequacy
via the Liquidity Adequacy Statement as part of the ILAAP. The Group’s
ILAAP encompasses all aspects of liquidity and funding management,
including planning, analysis, stress testing, control, governance, policy
and contingency planning. This document is submitted to the Joint
Supervisory Team and forms the basis of their supervisory review and
evaluation process.
Management of the Group liquidity pool
The Group manages the liquidity pool on a centralised basis and
primarily comprises government guaranteed bonds, balances with
central banks and internal and external covered bonds. The composition
of the liquidity pool is subject to limits recommended by the Risk function
and approved by the Board.
At 31 December 2024, the Group held € 69,063 million (2023: € 67,776
million) in qualifying liquid assets (‘QLA’)1 of which € 7,599 million
(2023: € 6,903 million) was not available due to repurchase, secured
loans and other restrictions.
At 31 December 2024, the Group's available QLA was € 61,464 million
(2023: € 60,873 million). During 2024, the available QLA ranged from
€ 58,359 million to € 63,503 million (2023: € 52,170 million to
€ 62,747 million) and the average balance was € 60,513 million
(2023: € 55,905 million).
The Group’s available QLA increased in 2024 by € 591 million, which
was predominantly due to an increase in customer deposits in Ireland,
debt market issuance, a decrease in securities financing activities
where cash was exchanged for non-QLA eligible collateral offset by an
increase in customer loans, debt market buy-backs, contractual debt
maturities and a decrease in unsecured bank deposits.
Other contingent liquidity
The Group has access to other unencumbered assets, providing a
source of contingent liquidity, which are not in the Group’s liquidity pool.
However, these assets may be monetised in a stress scenario to
generate liquidity through use as collateral for secured funding or
outright sale.
Liquidity stress testing
Liquidity stress testing is a key component of the ILAAP framework.
The purpose of these tests is to ensure the continued stability of the
Group’s liquidity position within the Group’s pre-defined liquidity risk
tolerance levels.The Group undertakes liquidity stress testing that
includes both firm-specific and systemic risk events and a combination
of both as a key liquidity control. Stressed assumptions are applied to
the Group’s liquidity buffer and liquidity risk drivers. This estimates the
potential impact of a range of stress scenarios on the Group’s liquidity
position. Actions and strategies available to mitigate the impacts of the
stress scenarios are evaluated as to their appropriateness. Liquidity
stress test results are reported to the ALCo, ExCo and Board.
Liquidity regulation
The Group is required to comply with the liquidity requirements of the
Single Supervisory Mechanism/Central Bank of Ireland and also with
the requirements of local regulators in the jurisdictions in which it
operates. The Group adheres to these requirements.
2024
2023
Liquidity metrics
%
%
Liquidity Coverage Ratio
201
199
Net Stable Funding Ratio
162
159
The Group monitors and reports its liquidity positions against the
Capital Requirements Regulation (CRR2) and other related liquidity
regulations (LCR Delegated Act). It has fully complied with the
minimum LCR and NSFR requirements of 100% during 2024, with
ratios well in excess of this level.
Funding structure (audited)
The Group’s funding strategy is to deliver a sustainable, diversified and
robust customer deposit base at economic pricing and to further enhance
and strengthen the wholesale funding franchise, with appropriate
access to term markets to support core lending activities. The strategy
aims to deliver a solid funding structure that complies with internal and
regulatory policy requirements and reduces the probability of a liquidity
stress, i.e. an inability to meet funding obligations as they fall due.
Customer deposits represent the largest source of funding for the
Group, with the core retail franchises and accompanying deposit base
in both Ireland and the UK providing a stable and reasonably
predictable source of funds.
2024
2023
Customer accounts (audited)
€ m
€ m
Total
109,883
104,782
Of which:
Euro
98,270
93,732
Sterling
9,754
9,237
US Dollar
1,624
1,608
Other currencies
235
205
Customer accounts increased by € 5,101 million in 2024, driven by
higher personal and SME balances. This was predominantly reflected
in higher Euro time deposit accounts, coupled with an increase across
all other Group significant currencies (GBP and USD). There was a
€ 533 million increase in the value of GBP and USD deposits, mainly
due to currency movements.
1. QLA are assets that can be readily converted into cash, either with the market or with the monetary authorities, and where there is no legal, operational or prudential
impediments to their use as liquid assets.
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Risk Management continued
2.4 Liquidity and funding risk continued
Composition of wholesale funding1 (audited)
The Group maintains access to a variety of sources of wholesale funding, including bank deposits, securities financing, debt securities and
subordinated debt. At 31 December 2024, total wholesale funding outstanding was € 11,491 million (2023: € 12,251 million), of which € 2,366
million is due to mature in less than one year (2023: € 2,805 million).
(Audited)
2024
< 1
month
€ m
1–3
months
€ m
3–6
months
€ m
6–12
months
€ m
Total
< 1 year
€ m
1–3
years
€ m
3–5
years
€ m
> 5
years
€ m
Total
€ m
Deposits by central banks and banks
830
—
6
—
836
—
—
—
836
Securities financing
184
12
—
—
196
—
—
—
196
Senior debt
—
—
—
495
495
2,183
3,461
1,734
7,873
ACS
2
—
—
—
2
—
5
20
27
Credit linked notes
—
—
—
—
—
—
—
95
95
Commercial paper
539
230
68
—
837
—
—
—
837
Subordinated liabilities and
other capital instruments
—
—
—
—
—
—
—
1,627
1,627
Total 31 December
1,555
242
74
495
2,366
2,183
3,466
3,476
11,491
Of which:
Secured
186
12
6
—
204
—
5
115
324
Unsecured
1,369
230
68
495
2,162
2,183
3,461
3,361
11,167
1,555
242
74
495
2,366
2,183
3,466
3,476
11,491
(Audited)
2023
< 1 month
€ m
1–3
months
€ m
3–6
months
€ m
6–12
months
€ m
Total
< 1 year
€ m
1–3
years
€ m
3–5
years
€ m
> 5
years
€ m
Total
€ m
Deposits by central banks and banks
1,040
452
—
—
1,492
98
190
—
1,780
Securities financing
358
217
—
—
575
—
—
—
575
Senior debt
—
—
738
—
738
2,786
1,643
3,229
8,396
ACS
—
—
—
—
—
—
5
22
27
Credit linked notes
—
—
—
—
—
—
—
—
—
Commercial paper
—
—
—
—
—
—
—
—
—
Subordinated liabilities and
other capital instruments
—
—
—
—
—
—
—
1,473
1,473
Total 31 December
1,398
669
738
—
2,805
2,884
1,838
4,724
12,251
Of which:
Secured
358
217
—
—
575
98
195
22
890
Unsecured
1,040
452
738
—
2,230
2,786
1,643
4,702
11,361
1,398
669
738
—
2,805
2,884
1,838
4,724
12,251
1. The maturity analysis has been prepared using the residual contractual maturity of the liabilities.
Deposits by central banks and banks decreased by € 944 million
to € 836 million, primarily driven by lower deposits by central banks
and cash collateral received from derivative counterparties. For further
details, see note 28 to the Consolidated Financial Statements.
Securities Financing decreased € 379 million to € 196 million, reflective
of a decrease in standard bilateral bank repo activity (see the currency
split in the 'Currency composition of wholesale funding' table).
During 2024, senior debt decreased € 523 million to € 7,873 million,
primarily reflecting a $ 1 billion early redemption and a € 750 million
contractual maturity, offset by a $ 1 billion MREL bond issuance. Over
the twelve months to 31 December 2023, there was a net commercial
paper issuance of € 837 million, whilst outstanding asset-covered
securities (‘ACS’) remained flat at € 27 million. For further details,
see note 30 to the Consolidated Financial Statements. Subordinated
liabilities increased € 154 million to € 1,627 million, driven by a green
Tier 2 capital issuance of € 650 million, partially offset by € 500 million
redemption.
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2.4 Liquidity and funding risk continued
Currency composition of wholesale funding
At 31 December 2024, 70% (2023: 69%) of wholesale funding was in Euro, with the remainder held in GBP and USD. The Group manages
cross-currency refinancing risk against foreign exchange cash flow limits.
2024
2023
EUR
GBP
USD
Other
Total
EUR
GBP
USD
Other
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Deposits by central banks and banks
827
7
2
—
836
1,002
325
453
—
1,780
Securities financing
101
42
53
—
196
156
—
419
—
575
Senior debt
5,241
—
2,632
—
7,873
5,898
—
2,498
—
8,396
ACS
27
—
—
—
27
27
—
—
—
27
Credit link notes
95
—
—
—
95
—
—
—
—
—
Commercial paper
105
436
296
—
837
—
—
—
—
—
Subordinated liabilities and other capital
instruments
1,625
2
—
—
1,627
1,425
48
—
—
1,473
Total wholesale funding
8,021
487
2,983
—
11,491
8,508
373
3,370
—
12,251
% of wholesale funding
%
%
%
%
%
%
%
%
%
%
70
4
26
—
100
69
3
28
—
100
Encumbrance
An asset is defined as encumbered if it has been pledged as collateral and, as a result, is no longer available to the Group to secure funding,
satisfy collateral needs or to be sold. As part of managing its funding requirements, the Group encumbers assets as collateral to support wholesale
funding initiatives. This would include covered bonds, securities repurchase agreements and other structures that are secured over customer
loans. The Group manages encumbrance levels to ensure that the Group has sufficient contingent collateral to maximise balance sheet flexibility.
The Group’s encumbrance ratio has decreased to 4% at 31 December 2024 (2023: 6%), with € 5,885 million of the Group’s assets encumbered
(2023: € 8,295 million). The encumbrance level is based on the amount of assets that are required in order to meet regulatory and contractual
commitments.
Financial assets and financial liabilities by contractual residual maturity (audited)
The following table analyses financial assets and financial liabilities by contractual residual maturity at 31 December 2024 and 2023:
(Audited)
2024
On demand
<3 months
but not on
demand
3 months to
1 year
1–5 years
Over 5
years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Financial assets1
Cash and balances at central banks
37,315
—
—
—
—
37,315
Derivative financial instruments2
16
52
700
1,376
2,144
Loans and advances to banks3
642
679
—
—
—
1,321
Loans and advances to customers3
2,319
1,331
2,950
20,778
43,855
71,233
Securities financing
5
1,610
2,970
2,058
—
6,643
Investment securities4
—
276
603
8,002
9,490
18,371
Other financial assets
—
894
—
—
—
894
40,281
4,806
6,575
31,538
54,721
137,921
Financial liabilities5,6
Deposits by central banks and banks
26
804
6
—
—
836
Customer accounts
93,977
7,790
4,856
3,230
30
109,883
Securities financing
—
196
—
—
—
196
Derivative financial instruments2
72
78
538
1,119
1,807
Debt securities in issue
—
769
562
5,649
1,852
8,832
Subordinated liabilities and other capital instruments
—
—
—
—
1,627
1,627
Other financial liabilities
1,748
—
—
44
—
1,792
95,751
9,631
5,502
9,461
4,628
124,973
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Risk Management continued
2.4 Liquidity and funding risk continued
Financial assets and financial liabilities by contractual residual maturity continued (audited)
(Audited)
2023
On demand
<3 months
but not on
demand
3 months
to 1 year
1–5 years
Over 5
years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Financial assets1
Cash and balances at central banks
38,018
—
—
—
—
38,018
Derivative financial instruments2
—
14
56
717
1,590
2,377
Loans and advances to banks3
588
741
—
—
—
1,329
Loans and advances to customers3
2,145
1,770
3,003
18,545
41,548
67,011
Securities financing
10
849
3,329
2,278
—
6,466
Investment securities4
23
586
470
6,484
9,435
16,998
Other financial assets
—
688
—
—
—
688
40,784
4,648
6,858
28,024
52,573
132,887
Financial liabilities5,6
Deposits by central banks and banks
22
1,470
—
288
—
1,780
Customer accounts
95,095
5,297
2,943
1,418
29
104,782
Securities financing
—
575
—
—
—
575
Derivative financial instruments3
—
41
110
444
1,307
1,902
Debt securities in issue
—
—
738
4,434
3,251
8,423
Subordinated liabilities and other capital instruments
—
—
—
—
1,473
1,473
Other financial liabilities
1,571
—
—
—
—
1,571
96,688
7,383
3,791
6,584
6,060
120,506
1. Excludes trading portfolio financial assets of € 136 million (2023: € 93 million). The contractual maturity of those assets in 2024 is: € 26 million in <3 months but not on
demand; € 13 million in 1-5 years; and € 97 million over 5 years (2023: € 9 million in <3 months but not on demand; € 10 million in 3 months to 1 year; € 2 million in 1-5
years and € 72 million over 5 years).
2. Shown by maturity date of contract.
3. Shown gross of expected credit losses.
4. Excluding equity shares.
5. A maturity of lease liabilities is disclosed in note 31.
6. Excludes trading portfolio financial liabilities of € 262 million (2023: € 139 million). The contractual maturity of those liabilities in 2024 is: € 5 million in <3 months but not on
demand; € 190 million in 1-5 years and € 67 million over 5 years (2023: € 7 million in <3 months but not on demand; € 89 million in 1-5 years and € 43 million over 5 years).
Financial liabilities by undiscounted contractual maturity (audited)
The balances in the table below include the undiscounted cash flows relating to principal and interest on financial liabilities and as such will not
agree directly with the balances on the Consolidated Statement of Financial Position. All derivative financial instruments have been analysed
based on their contractual maturity undiscounted cash flows.
The following table analyses, on an undiscounted basis, financial liabilities by remaining contractual maturity at 31 December 2024 and 2023:
In the daily management of liquidity risk, the Group adjusts the contractual outflows on customer deposits to reflect the inherent stability of these
deposits. Offsetting the liability outflows are cash inflows from the assets on the Consolidated Statement of Financial Position. Additionally, the
Group holds a stock of high-quality liquid assets, which are held for the purpose of covering unexpected cash outflows.
(Audited)
2024
On
demand
<3 months
but not on
demand
3 months
to 1 year
1–5 years
Over 5
years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Financial liabilities1,2
Deposits by central banks and banks
26
804
6
—
—
836
Customer accounts
93,978
7,836
5,006
3,275
31
110,126
Securities financing
—
196
—
—
—
196
Derivative financial instruments
—
137
263
472
116
988
Debt securities in issue
—
813
880
6,761
2,232
10,686
Subordinated liabilities and other capital instruments
—
—
59
320
1,859
2,238
Other financial liabilities
1,664
—
—
64
—
1,728
95,668
9,786
6,214
10,892
4,238
126,798
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2.4 Liquidity and funding risk continued
Financial liabilities by undiscounted contractual maturity continued (audited)
(Audited)
2023
On
demand
<3 months
but not on
demand
3 months
to 1 year
1–5 years
Over 5
years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Financial liabilities1,2
Deposits by central banks and banks
22
1,473
—
312
—
1,807
Customer accounts
95,095
5,320
3,016
1,452
29
104,912
Securities financing
—
577
—
—
—
577
Derivative financial instruments
—
275
400
925
411
2,011
Debt securities in issue
—
44
1,018
5,506
3,471
10,039
Subordinated liabilities and other capital instruments
—
—
38
262
1,724
2,024
Other financial liabilities
1,571
—
—
—
—
1,571
96,688
7,689
4,472
8,457
5,635
122,941
1. Excludes trading portfolio financial liabilities of € 262 million (2023: € 139 million). The undiscounted contractual maturity for those liabilities in 2024 is: € 5 million in
<3 months but not on demand; € 190 million in 1-5 years and € 67 million over 5 years.
2. A maturity of lease liabilities is disclosed in note 32.
The undiscounted cash flows potentially payable under guarantees and similar contracts (audited)
The undiscounted cash flows that are potentially payable under guarantees and similar contracts, included below within contingent liabilities, are
classified on the basis of the earliest date the facilities can be called. The Group is only called upon to satisfy a guarantee when the guaranteed
party fails to meet their obligations. The Group expects that most guarantees it provides will expire unused. The Group has given commitments to
provide funds to customers under undrawn facilities. The undiscounted cash flows have been classified on the basis of the earliest date that the
facility can be drawn. The Group does not expect all facilities to be drawn, and some may lapse before drawdown. For further details, see note 39
to the Consolidated Financial Statements. The following table analyses undiscounted cash flows potentially payable under guarantees and similar
contracts at 31 December 2024 and 2023:
(Audited)
2024
On demand
<3 months
but not on
demand
3 months to
1 year
1–5 years
Over 5
years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Contingent liabilities
976
—
—
—
—
976
Commitments
16,823
—
—
—
—
16,823
17,799
—
—
—
—
17,799
(Audited)
2023
On demand
<3 months
but not on
demand
3 months to
1 year
1–5 years
Over 5
years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Contingent liabilities
857
—
—
—
—
857
Commitments
16,136
—
—
—
—
16,136
16,993
—
—
—
—
16,993
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Risk Management continued
2.5 Business model risk
Business model risk is the risk of not achieving the agreed Strategy
or approved business plan either as a result of an inadequate
implementation plan, or failure to execute the implementation plan as a
result of inability to secure the required investment. This also includes
the risk of implementing an unsuitable Strategy, or maintaining an
obsolete business model, in light of known internal and external factors.
Identification and assessment
The Group’s MRA process identifies the key elements of business
model risk. The process includes identifying the associated sub-risks
such as strategic planning risk, strategic execution risk and financial
performance risk and the emerging risk drivers including inflationary
pressures, macroeconomic uncertainty and market volatility.
The Group also identifies and assesses the risk as part of its integrated
planning process, which encapsulates strategic, business and financial
planning. This process drives delivery of strategic objectives aligned to
the Group’s risk appetite and enables measurable business objectives
to be set for management aligned to the short, medium and long term
strategy of the Group. The outcomes of these processes form the basis
of the Group’s ICAAP and ILAAP.
Every year, the Group prepares three-year financial plans based on
macroeconomic and market forecasts across a range of scenarios
(including a range of ‘downside’ scenarios). The plan includes an
evaluation of planned performance against a suite of key metrics,
supported by detailed analysis and commentary on underlying trends
and drivers, across the income statement, balance sheet and business
targets. This assessment includes discussions on new lending volumes
and pricing, deposits volumes and pricing, other income, cost
management initiatives and credit performance. The plan is subject to
robust review and challenge through the governance process including
an independent second line of defence review and challenge by the
Risk function prior to approval by the Board.
The Group plan is also supported by detailed business unit plans. Each
business unit plan is aligned to the Group strategy and risk appetite.
The business plan typically describes the market in which the business
operates, market and competitor dynamics, business strategy, financial
assumptions underpinning the strategy, actions/investment required to
achieve financial outcomes and any risks/opportunities to the strategy.
The Group reviews underlying assumptions on its external operating
environment to identify potential risks and, by extension, its strategic
objectives on a periodic basis. The frequency of this review is
determined by a number of factors including the speed of change of the
economic environment, changes in the financial services industry and
the competitive landscape, regulatory change and deviations in actual
business outturn from strategic targets.
Management and measurement
At a strategic level, the Group manages business model risk within its
risk appetite framework, by setting limits in respect of measures such
as financial performance, capital constraints, portfolio concentration
and risk-adjusted return. At a more operational level, the risk is
mitigated through periodic monitoring of variances to strategic and
financial plans. Where performance/progress against the plans are
respective considered to be outside of agreed tolerances or risk
appetite metrics, proposed mitigating actions are presented and
evaluated, and tracked thereafter. During the year, at least semi-annual
strategic updates and/or periodic forecast updates for the full year
financial outcome may also be produced.
At an individual level, planning targets translate into accountable
objectives to enable performance tracking across the Group and to
facilitate formulation and review of Executive Committee performance
scorecards.
Monitoring, escalating and reporting
Performance against plan is monitored at a business level on a monthly
basis and reported to senior management teams within the business. At
an overall Group level, performance against plan is monitored as part
of the monthly CFO report which is discussed at the Executive
Committee and Board. Monitoring of the risk profile, via the CRO
report, including performance against Business Model risk appetite is
presented to the Board Risk Committee. The escalation process, as
stipulated under the RAS policy, is commenced in the event of a breach
of RAS watch trigger or limit for any of the metrics which may directly or
indirectly impact on Business Model Risk. This ensures Board and
Regulator notification within an approved timeframe, when appropriate.
2.6 Operational risk
Operational risk is the risk arising from inadequate or failed internal
processes, people and systems, or from external events. This includes
legal risk - the potential for loss arising from the uncertainty of legal
proceedings and potential legal proceedings, but excludes strategic and
reputational risk.
Identification and assessment
Operational risk is identified and assessed by the Group’s MRA which
also identifies the following sub risks: Information security (including
cyber risk), technology risk, change and transformation risk, people
risk, physical safety and property risk, continuity and resilience risk,
product and proposition risk, third party risk, data risk, fraud risk and
legal risk. The risk and control assessment is the Group’s core bottom-
up process for the identification and assessment of operational risk
across the Group.
The risk and control assessment process serves to ensure that key
operational risks are proactively identified, assessed, recorded, and
reported, and that appropriate action is taken for risk mitigation. Self-
assessment of risks is completed at a business unit level and are
recorded on SHIELD which is the Group’s governance, risk and
compliance system. Service assessments and risk assessments are
performed on all critical or important outsourcing arrangements and are
recorded on SHIELD.
SHIELD provides all areas with one consistent view of the operational
risks, controls, actions and events across the Group. Risk and control
assessments are regularly reviewed and updated by business unit
management.
The potential impact of the identified risks is then used to inform
scenarios for each of the Basel event categories that are assessed
through the Operational risk ICAAP.
Management and measurement
The Operational Risk Framework sets out the principles, supporting
policies, roles and responsibilities, governance arrangements and
processes for operational risk management across the Group. Each
sub risk has a supporting policy in place to outline the minimum control
standards and core policy rules that must be adhered to. The sub risks
are owned and actively monitored under the Operational Risk
Framework and underlying policies to ensure material operational risks
are managed effectively within the Group RAS limits. The Operational
Risk Framework and policies set out the process for risk and control
assessments, identification of the key non-financial risks arising from key
business processes and activities. It also includes the process for the
escalation of the relevant RAS metric limit and watch-trigger breaches.
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2.6 Operational risk continued
In addition, operational risk is partially hedged through an insurance
programme in place, including a self-insured retention, to cover a
number of risk events which would fall under the operational risk
umbrella. These include financial lines policies such as:
• comprehensive crime/computer-crime/cyber/professional indemnity/
civil liability;
• employment practices liability;
• directors’ and officers’ liability; and
• a suite of general insurance policies to cover such things as property
and business interruption, terrorism, employers and public liability
and personal accident.
Operational risk is measured through a series of risk appetite metrics
and key risk indicators. These include metrics on operational risk losses
and events, Information Security (including cyber), change initiatives,
technical risk, people risk, quality and accessibility of priority data,
service availability and third-party risks.
From 1 January 2025 Information Security (including Cyber) Risk has
been deemed as a Principal Risk to the Group and will no longer be a
sub risk of Operational Risk. This is an outcome of a review performed
of the materiality of sub risks in Operational Risk as part of the MRA
process which considered a number of factors including impact on our
capital, historical loss events in AIB, external loss events sourced from
the Operational Risk data eXchange Association (‘ORX’) network, the
Risk and Control Assessment (‘RCA’), the assessment of emerging
risks and consideration of the regulatory horizon. Sustainability
Reporting on pages 107 to 110 provides additional information on how
the Group assesses and manages cyber security.
As part of the Group MRA approved by the Board in July 2023, People
risk, the failure on the part of the Group to plan for, acquire, develop
and retain the appropriate number of people resources with the
necessary skills and capabilities required to achieve the Group strategy
was approved to be a sub risk of Operational risk as it was primarily
deemed material through its interconnectedness with Operational risk.
Culture risk continues to be a material risk but was transferred from
People and Culture risk into Conduct Risk and Culture risk. Retention
risk continues to be a critical component of the Group’s People Risk
profile. Although the partial lifting of remuneration restrictions has been
helpful in this regard, ongoing remuneration restrictions increase the
risk of losing key senior talent in the organisation, damaging market
credibility and adversely affecting strategy execution. In addition, in
alignment with the Group’s technological and digital strategy, the ability
to recruit staff with the requisite competencies to execute this strategy
effectively will continue to be monitored as part of the Group’s people
risk profile..
Monitoring, escalating and reporting
In addition to risk appetite measures and limits, operational risk is
monitored on a regular basis via the Group’s risk governance
committees. This provides senior management, through the
Operational Risk Committee and Group Risk Committee and the Board
(through Board Risk Committee), with timely updates on the Group’s
operational risk profile. The profile update details the current status of
the Group’s key operational risks and includes an overview of current
trends. It also includes an update on recent major risk events and any
remediation actions/lessons identified following events.
Operational risk events are identified and captured in the SHIELD
system. These are escalated through a defined process depending on
impact and severity. Root causes of events are determined, and action
plans are implemented to ensure there are enhanced controls in place to
keep customers and the business safe.
2.7 Climate and Environmental risk
Climate and Environmental (‘C&E’) Risk encompasses the financial and
non-financial impacts on the Group arising from climate change,
environmental change and the transition to a sustainable economy.
These risks can affect the Group directly through our operations or
indirectly through our relationships with customers and third party
suppliers.
Identification and assessment
Risk identification and assessment for C&E Risk is completed in line
with the Groups Risk Management Framework as well as other internal
processes which consist of top-down and bottom-up approaches. The
processes included identify the sub-risks associated such as Physical
Risk, Transition Risk and Liability Risk. C&E risk drivers are far
reaching in breadth and magnitude over uncertain, often long-term time
horizons with dependency on short term action to mitigate. The Group
undertakes regular processes for the identification and assessment of
C&E impacts, risks and opportunities. These include: Material Risk
Assessment (‘MRA’), Risk and Control Assessments (‘RCAs’),
Transmission Channel Analysis, Business Environment Scans, ‘House
Views’ on key sectors, compilation of Heatmaps, C&E Stress Testing
and regulatory horizon scanning. The outputs from these processes
inform areas for focus in the Group’s strategic, financial and investment
planning processes. Further information on C&E assessment can be
found on the Sustainability Reporting on page 43.
Material Risk Assessment (‘MRA’)
The MRA is an annual top-down process, identifying the Group’s
material risks in line with the Group’s Risk Management Framework,
taking into account the Group’s strategic objectives, in addition to
internal and external risk sources including climate related and
environmental factors. The MRA is a key input into the Group’s risk
management processes, including the Risk Appetite Statement (‘RAS’),
which sets out the maximum amount of risk the Group is willing to
accept in pursuit of its strategic objectives.
Risk & Control Assessments (‘RCAs’)
The RCA process is the detailed bottom-up risk assessment identifying
the risks arising from the Group’s processes and business activities.
The risks are recorded on SHIELD which is the Group’s governance,
risk and compliance system.
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Risk Management continued
2.7 Climate and Environmental risk continued
Management and measurement
C&E Risk is actively managed through the C&E Risk Framework and
Policy. The C&E Risk Framework sets out the principles, roles and
responsibilities, governance arrangements and processes for C&E risk
management across the Group. The Framework sits within the overall
group risk architecture and is one of the material risk frameworks
supporting the Group’s Risk Management Framework.
The C&E Risk Framework is underpinned by the C&E Risk Policy,
ensuring that C&E risk is managed in line with the Group’s overall
purpose, the five key strategic pillars, as well as the Group’s strategic
objectives. The C&E Risk Framework and Policy went live in Group on
1 March 2024, and was approved and adopted by subsidiaries during
the year. Both were further updated and approved through appropriate
governance fora in December 2024. The changes reflect the maturing
approach to C&E Risk management providing greater clarity on roles
and responsibilities, due diligence, monitoring and reporting.
Due to the pervasive nature of C&E risk and its impact on other
principal risks, the C&E risk management aspects for these principal
risks are incorporated within their relevant risk frameworks and policies.
In 2024, a number of updates were made across the principal risk
policies and frameworks to enhance the management, measurement,
mitigation and reporting of C&E Risks. These updates covered financial
risk, model risk, regulatory compliance, operational risk (both own
operations and third party providers) and credit risk. These include
additional requirements for C&E Risk information and enhancements to
systems to processes to enable systematic capture of this data.
Risk Appetite Statement (‘RAS’)
Articulation of the Group’s C&E risk appetite and tolerance is expressed
through the qualitative statements about the nature and type of risk that
the Group is willing to accept as well as quantitative RAS metrics that
define the range of acceptable risk. Qualitative statements and
Quantitative metrics are linked to material C&E risk drivers as identified
through Group’s materiality assessment. The 2024 materiality
assessment showed that main impacts are expected to materialise in
the areas of Credit Risk and Operational Risk. This has been reflected
in the development of RAS metrics.
In 2024 we reviewed the RAS metrics and approved the C&E Risk
RAS metrics for 2025, which include three C&E qualitative statements
that help articulate appropriate areas of climate-related risk appetite.
In addition to this, the Group has approved six new quantitative C&E
RAS metrics, ensuring coverage across physical, transition and
environmental risks (bringing the total number of C&E related metrics
to nine). The RAS metrics are cascaded to segments and subsidiaries
as appropriate.
Monitoring, escalating and reporting
C&E risk is monitored through internal and external reporting across
the Group. The primary internal risk report, the CRO report, dedicates a
section to C&E risk providing the GRC and the BRC with relevant
updates on the C&E risk profile. The profile section encompasses the
key developments around the risk, planned initiatives and also reports
on the Group’s performance against risk appetite and against other Key
Risk Indicators.
Monitoring and reporting of the C&E quantitative RAS metrics is
conducted monthly. The escalation process, as stipulated under the
RAS policy, is commenced in the event of a breach of either the RAS
watch trigger or limit for any of the metrics. This ensures the Group’s
Board and Regulator are notified within an approved timeframe, when
appropriate.
In addition to RAS metrics, C&E Key Risk Indicators (KRIs) have been
considered, across all material risk categories, based upon the impacts
identified in the Transmission Channel Analysis and how these impacts
would manifest. These KRIs are approved, reported and escalated
through the appropriate governance pathways for the relevant material
risk. A number of enhancements to C&E KRIs were approved in 2024,
which will be reported in 2025. These include new KRIs for financial
risk, operational risk and credit risk.
Key Performance Indicators (‘KPIs’) monitors the C&E risk drivers
aligned to the C&E materiality assessment. The materiality assessment
focus efforts on managing C&E risks with particular regard to credit and
operational risk. These are reported and monitored via the Strategic
Outcome Report, Climate Dashboard and ExCo Scorecards. The KPIs
are cascaded to business lines and subsidiaries as appropriate. The
KPIs sit on the Climate & Environmental Dashboard and roll-up into the
Strategic Outcomes Report and cascade to the ExCo Scorecards. The
Group actively monitors the progress of achieving the Board approved
sustainability targets via the Climate Dashboard. The metrics contained
in the dashboard are reported in the CRO report, to the GSC and the
SBAC.
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2.8 Model risk
Model risk is the potential loss to the Group, as a consequence of
decisions that could be principally based on the output of models, due
to errors in the development, implementation or use of such models.
Identification and assessment
The Group’s MRA and the risk and control assessment forms the basis
for identifying the key elements of the risk. The MRA identifies the key
sub-risks including model oversight risk, model data risk, model
methodology and performance risk and model use and implementation
risk. The RCA is the Group’s core bottom-up process in the
identification and assessment of model risk across the Group.
The RCA includes a requirement to perform a self-assessment of the
risks at each business unit level. The potential impact of model risk is
assessed through the ICAAP. Model risk is generally mitigated through
specific model adjustments. There is no explicit capital requirement
generated from this risk; it is indirectly assessed through the other risks.
Management and measurement
There is a Model Risk Framework and supporting policies in place to
drive the consistent management of this risk. This sets out the key
controls required to mitigate model risk across the model lifecycle, from
initiation of a model build through to implementation, use and ongoing
monitoring. The key controls include:
• A complete inventory of all models in the Group, with a clear tiering
of models to ensure key controls such as model validation and
monitoring are being applied on a risk-based approach;
• Requirement for clear hand-offs between each stage in the lifecycle
to mitigate the risk of issues propagating through the lifecycle of
the model;
• Models are built, validated and monitored by suitably qualified
analytical personnel, supported by relevant business, risk and
finance functions;
• The best available data, both internal and external, must be used,
and any data weaknesses are appropriately mitigated through the
model build;
• The use of industry standard techniques are applied for stages in the
model lifecycle where appropriate; and
• All material models are validated by an appropriately qualified team
which is independent of the model build process. Where issues are
identified, appropriate mitigants are applied. This can include
temporary post model adjustments which are put in place until a
model is re-developed.
Model risk is measured using a composite assessment of model
outcomes across the lifecycle for all models in the inventory.
Monitoring, escalating and reporting
The GRC and its sub-committee, the Model Risk Committee, are the
primary committees for overseeing model risk in the Group. Model
materiality is defined in the Group Model Risk Management Policy. The
outcomes of validation and other reviews are brought to the appropriate
committee(s) for oversight to ensure all models remain fit for their
intended use and that any issues are appropriately escalated.
Model monitoring on material models is reported to committee(s)
regularly to monitor model performance with appropriate actions raised
when models fall below the required performance levels.
An overall assessment of model risk is performed on a quarterly
basis and is reported quarterly to the Model Risk committee and
semi-annually to the Group Risk Committee and Board Risk
Committee. The status of model risk is reported on a monthly basis in
the CRO report, which includes an update on recent significant events
and any remediation actions that are underway.
2.9 Culture risk and Conduct risk
Culture Risk and Conduct Risk are two distinct risks. Culture Risk is
the risk that the core values of the Group are not shared by all staff and
as a consequence are not consistently demonstrated through staff
behaviour. This includes the risk that consistent, fully understood and
risk adjusted performance measures are not in place resulting in
outcomes that are not aligned to the Group’s Strategy, Behaviour or
Values.
Conduct risk is defined as the risk that inappropriate actions or
inactions by the Group cause poor or unfair customer outcomes or
negatively impact on market integrity.
The effective management of conduct risk requires embedding of a
strong conduct culture with a customer centric approach to conduct
risk management as articulated in the Group’s values, behaviours and
Code of Conduct.
The conduct risk priorities for the Group include:
• A Customer First culture, as articulated by the Brand Values,
Behaviours and Code of Conduct, is embedded and demonstrated
throughout the organisation;
• A mature Group Conduct Risk Framework aligned with the Group
Strategy, is embedded in the organisation that provides oversight of
conduct risks at Executive Committee and Board level; and
• Customers, existing and new, are treated in a fair and transparent way.
Identification and assessment
The Group’s MRA and risk and control assessment forms the basis for
identifying the key elements of Culture risk and Conduct risk.
The Group has identified a number of risk drivers pertaining to conduct
risk and these are reviewed on an annual basis as part of the MRA
process. These include, inter alia:
• Monitoring trends of customer complaints on a regular basis;
• The pace and complexity of changing industry best practice and
clarifications received in relation to regulatory expectations can drive
an accelerated process for changing products, practices, services
and cultures;
• Potential of unintended consequences arising from the scale and
pace of inorganic and strategic change;
• Understanding the implications of the evolving global, European and
Irish economic landscape on short to medium term interest rate
environment;
• Increased competition in terms of resources, skills, industry
participants remuneration practices and customer bases;
• Negative macroeconomic environment can result in unexpected bank
and/or employee behaviour and potential increased market instability
could result in market conduct risk; and
• Environmental, Social and Governance risks (''ESG'') may result in
poor customer outcomes such as incorrect risk preferences or failing
to identify climate impacts on product offerings.
Conduct risks are identified during the risk and control assessment
process which provides documentary evidence of risk assessments. It
determines the risk profile of the business, drives risk management and
actions plans including key risk indicator development and reporting. A risk
register of the Group’s material risks is also maintained. The risk and
control assessment has identified a number of key conduct risks relating to
customer satisfaction and employee behaviour as well as clients, business
and product practice.
Group Conduct completes horizon scanning and benchmarking
to identify future conduct risk considerations within business and
regulatory environments. In addition, Compliance identify regulatory
change through its upstream and horizon scanning team. Conduct risks
are considered during the implementation of same, as appropriate.
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Risk Management continued
2.9 Culture risk and Conduct risk continued
The amalgamation of Culture risk within conduct has commenced and
further integration through frameworks, policies, procedures and
metrics is planned for 2025. Culture forms an integral part of risk
culture and overall conduct risk management and is core to all
customer and market facing decisions and interactions. It is imperative
that the Group maintains a strong customer culture in order to deliver
appropriate customer outcomes. The Group’s cultural ambition is that
all colleagues truly demonstrate and live the Group’s values and the
behaviours that underpin them. The challenge is to ensure that the
Group’s values are embedded consistently across the organisation by
all employees. The tone is set from the top leaders have a critical role
to play in shaping the Group’s culture. Culture risk captures the need
for the Group’s core values to be shared by all staff, demonstrated
through staff behaviour and that consistent fully understood
performance measures are in place resulting in outcomes aligned to
the Group’s strategy.
Management and measurement
The Group has a Culture and Conduct Risk Framework and Conduct
Risk Policy which applies to the Group including all subsidiaries. This
Framework and Policy, as well as other supporting policies, are in place
to drive consistent management of Culture risk and Conduct risk
This Policy includes the approach to vulnerable customers, which is
defined as recognising customers who are in need of additional care,
support or protection. The Vulnerable Customer team are in place to
ensure governance structures are in place for the oversight of the
Vulnerable Customer Programme, developing and ensuring execution of
the Group Vulnerable Customer Action Plan as well as developing and
delivering group level training for staff on customer vulnerability issues.
Where the Group engages in investment and wholesale services and
activities it must implement and maintain adequate policies and
procedures designed to detect any risk of failure by the Group with its
obligations, and put in place adequate measures and procedures
designed to minimise such risk. In particular, it is expected that the
Group is able to demonstrate awareness and management of
Wholesale Market Conduct Risk in the areas of strategy, governance,
culture, risk management and management information
Conduct risk measurement is considered qualitatively under normal
and stressed conditions. Any new material business development or
change in strategy would also warrant an independent assessment of
conduct risks and potential impact on reputation.
The Group Head of Culture and Conduct and team provides
independent oversight and governance of conduct risk across the
Group (and is a mandatory approver of product / propositions
proposals), including training and awareness building.
An approved Group Conduct Strategy, aligned with the Group’s
Purpose, Strategy and Values, is supported by annual Business
Conduct Action plans, delivering against key strategic objectives,
ensuring continued progress on embedding conduct and meeting
evolving regulatory expectations.
The Conduct Risk and Culture Risk RAS is recommended by the
Compliance Function and consists of qualitative statements and key risk
indicator (‘KRI’) metrics. The KRIs establish specific limits, ceilings and
floors that relate to the qualitative RAS. Risk, through the Compliance &
Group Risk Assurance function, provide independent challenge of
potential and identified conduct risks and provide advice to business
segments on conduct risk issues.
Business conduct dashboards measure key management information
trends under the five key conduct risk areas, as reflected in the Group’s
conduct strategy.
The Group Head of Conduct in the first line of defence is a member of a
number of key working groups and fora regarding the management and
measurement of conduct risk, and provides challenge on RAS metrics
which are monitored monthly, customer solutions and the resolution of
materialised conduct risks.
Monitoring, escalating and reporting
The Group Conduct Committee together with Business Conduct
Committees operating to standard terms of reference actively drive the
conduct agendas and manage conduct risk within their businesses.
Conduct risks are assessed and monitored across the Group in line
with risk management procedures. Significant conduct events are
assessed and remedial actions implemented where necessary. These
are escalated based on a materiality assessment, in line with the
Conduct Risk Framework.
Conduct risks and controls are monitored on a monthly basis via the
Group’s risk governance committees. This provides the Group Risk
Committee and the Board Risk Committee with relevant updates on the
conduct risk profile. The profile update details the current status of the
Group’s key conduct risks, includes an overview of current trends, an
update on recent significant events and any remediation actions or
lessons identified following events.
From a Prudential perspective the Group reports the financial impact of
conduct risk events through the annual operational risk ICAAP, quarterly
COREP submissions and the biennial EBA Stress Testing exercise.
The Regulatory and Conduct Risk Committee (‘CR’) is the forum that
provides risk oversight of regulatory and conduct risks of the Group
including oversight of its subsidiaries. The RCR was established by, and
is accountable to, the Group Risk Committee to oversee regulatory and
conduct risks across the Group. This includes monitoring and reviewing
the Group’s regulatory and conduct risk profile, compliance with risk
appetite and other approved policy limits, reviewing risk policies and
recommending these for approval to the Group Risk Committee.
2.10 Regulatory compliance risk
Regulatory compliance risk is defined in the Regulatory Risk
Management Framework as the risk of legal or regulatory sanctions,
material financial loss, or loss to reputation which the Group may suffer
as a result of its failure to comply with principal laws, regulations, rules,
related self-regulatory codes and related supervisory expectations which
relate to the Group’s regulated banking and financial service activities
i.e., those activities which the Group is licenced to conduct business.
Identification and assessment
The Group’s MRA and RCA forms the basis for identifying the key
drivers of regulatory compliance risk. The associated sub-risks include
prudential regulation risk, regulatory change risk, financial crime risk
and data protection risk. The MRA process also identified that the
complexity and volume of regulatory change and the rapidly evolving
international sanctions environment, raises the risk of regulatory
compliance failure and/or regulatory sanction.
The key areas of focus of both the Central Bank of Ireland (‘CBI’) and
the Joint Supervisory Teams (‘JST’) includes:
• Regulated firms, that are subject to the regulation from the CBI and
JST, are fully compliant with their obligations and are treating their
customers, existing and new, in a fair and transparent way, including
the embedding of directives and regulations;
• Continued focus on the full implementation of the suite of prudential
requirements including Capital Requirements Directive (‘CRD’) and
Capital Requirements Regulation (‘CRR’), and the binding technical
standards and guidelines;
• CBI Regulatory and Supervisory Outlook report and Dear CEO
letters;
• Climate and ESG issues where the CBI has noted its expectations
for firms including the requirements relating to governance, risk
management frameworks, scenario analysis, disclosures as well as
strategy and business model risks.
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2.10 Regulatory compliance risk continued
Management and measurement
The Regulatory Compliance Risk Management Framework sets out the
principles, roles and responsibilities, and governance arrangements
and is supported by a number of key policies.
The compliance mandate aims to ensure that the Group understands
the externals rules, laws, regulations and codes which apply to the
Group’s regulated activities and the implications of any non-compliance.
In addition, the mandate supports internal compliance with the Group’s
suite of Regulatory Compliance and Conduct Policies and Standards,
promotes the Group’s ethos of acting with integrity, honesty and fairly in
all its dealings with colleagues, customers, and stakeholders.
The Group Regulatory Compliance Risk Management Framework and
the regulatory compliance risk management lifecycle commences with
upstream regulation risk management.
The Regulatory Change Team (‘RCT’) reside within the Regulatory
Compliance Team and provide oversight and support in respect of
regulatory change risk management. The approach to regulatory
change has been designed to ensure regulatory requirements are
clearly understood from the outset with end-to-end traceability
monitored by the Regulatory Forum as part of Group Programme Board
(‘GPB’). It involves an up-front partnership between the Regulatory
Change Team and Change Operations to ensure business stakeholders
are identified with roles and accountabilities assigned. The process
provides a platform for clear monitoring, communication, effective
oversight, robust challenge and the pursuit of regulatory compliance in
a collaborative manner across both the first and second line of defence.
The regulatory compliance risk management lifecycle is reviewed on
an annual basis by the various teams within Compliance. In order to
produce a comprehensive holistic view of regulatory compliance risks
across the Group, detailed risk assessments are completed based on
the premise of identifying the regulatory compliance risks which pose
the most significant threat to the Group. Risk identification and
assessment is carried out through a combined top-down and bottom-up
approach. The output of this risk assessment process is to produce the
Compliance & Risk Assurance Plan.
Monitoring, escalating and reporting
Regulatory compliance risks are monitored on a monthly basis via the
Group’s risk governance committees. This occurs initially at the
Regulatory and Conduct Risk Committee (‘RCR’) and key items are
brought through to Group Risk Committee (‘GRC’) and Board Risk
Committee (‘BRC’) for discussion and escalation where appropriate.
This includes an update on recent significant events and any
remediation actions or lessons identified following events.
The RCR is the forum that provides risk oversight of regulatory and
conduct risks of the Group including oversight of its subsidiaries. The
RCR was established by, and is accountable to, the GRC, to oversee
regulatory and conduct risks across the Group, including monitoring,
reviewing the regulatory and conduct risk profile, compliance with risk
appetite and other approved policy limits. It is also responsible for
reviewing risk policies and recommending these for approval to
the GRC.
Regulatory Compliance establish written guidance to staff on the
appropriate implementation of relevant laws, rules and standards
through relevant regulatory compliance policies and support the first
line business units in understanding and implementing their regulatory
compliance obligations and management of the associated regulatory
compliance risks in line with the Regulatory Compliance and Conduct
Risk Appetite Statements. As part of their role engaging with the first
line, Regulatory Compliance assist the business in maintaining a
positive and transparent relationship with the Regulators in respect of
regulatory compliance and conduct matters.
Group Risk Assurance (‘GRA’) provides independent review and
objective assurance on the quality and effectiveness of the Group’s
internal control system, including the Risk Governance Policies and
Frameworks in accordance with a Board approved risk-based
assurance plan.
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Risk Management continued
Financial
Statements
In this section
1.
Statement of Directors’ Responsibilities
248
2.
Independent Auditors’ Report
249
3.
Consolidated financial statements
259
4.
Notes to the consolidated financial statements
265
5.
AIB Group plc company financial statements
347
6.
Notes to the AIB Group plc company financial statements
349
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The following statement which should be read in conjunction with the Statement of Auditor’s Responsibilities set out in their Audit Report, is made
with a view to distinguishing for shareholders the respective responsibilities of the Directors and of the Auditors in relation to the financial statements.
The Directors are responsible for preparing the Annual Financial Report and the Group and Company financial statements, in accordance with
applicable law and regulations. The Directors responsibilities for the Sustainability Statement are discussed in full in the Statement of Directors'
Responsibilities for the Sustainability Statement on page 116.
Company law requires the Directors to prepare Group and Company financial statements for each financial year. Under that law, the Directors are
required to prepare:
• The Group financial statements in accordance with International Financial Reporting Standards (‘IFRSs’) as adopted by the EU, Article 4 of the
IAS Regulation, the Asset Covered Securities Acts 2001 and 2007, and those parts of the Companies Act 2014 and the European Union (Credit
Institutions: Financial Statements) Regulations 2015 applicable to companies reporting under IFRS; and
• The Company financial statements in accordance with Irish Generally Accepted Accounting Practice (accounting standards issued by
the UK Financial Reporting Council, including Financial Reporting Standard 101 Reduced Disclosure Framework and Irish law) and the
Companies Act 2014.
In preparing both the Group and Company financial statements, the Directors are required to:
• Select suitable accounting policies and then apply them consistently;
• Make judgements and estimates that are reasonable and prudent;
• State that the financial statements have been prepared in accordance with applicable accounting standards and identify the standards in
question; and
• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and Company will continue
in business.
The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of
the Company and enable them to ensure that its financial statements comply with the Companies Act 2014. They are also responsible for taking
such steps as are reasonably open to them to safeguard the assets of the Group and Company and to prevent and detect fraud and other
irregularities. Under applicable law and corporate governance requirements, the Directors are also responsible for preparing the Directors’ Report
and the reports relating to the Directors’ remuneration and corporate governance that comply with that law and the relevant listing rules of
Euronext Dublin (the Irish Stock Exchange) and the UK Listing Authority.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.
Legislation in Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Each of the Directors whose names and functions are listed on pages 128 to 131 confirm, to the best of their knowledge and belief, that:
• They have complied with the above requirements in preparing the financial statements;
• The Group financial statements, prepared in accordance with IFRSs as adopted by the EU, Article 4 of the IAS Regulation, the Asset Covered
Securities Acts 2001 and 2007, and those parts of the Companies Act 2014 and the European Union (Credit Institutions: Financial Statements)
Regulations 2015 applicable to companies reporting under IFRS and give a true and fair view of the state of the Group’s affairs as at 31
December 2024 and of its profit for the year then ended;
• The Company financial statements are prepared in accordance with Irish Generally Accepted Accounting Practice (accounting standards issued
by the UK Financial Reporting Council, including Financial Reporting Standard 101 Reduced Disclosure Framework and Irish law) and the
Companies Act 2014;
• The Directors’ report provides a fair review of the development and performance of the business and the financial position of the Group, together
with a description of the principal risks and uncertainties faced by the Group; and
• The Annual Financial Report, taken as a whole, is fair, balanced and understandable, and provides the information necessary for shareholders
to assess the Group’s and the Company’s position and performance, business model and strategy.
For and on behalf of the Board
Jim Pettigrew
Chair
Colin Hunt
Chief Executive Officer
Donal Galvin
Chief Financial Officer
4 March 2025
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Statement of Directors’ Responsibilities
Independent auditors’ report to the members of AIB Group plc
Report on the audit of the financial statements
Opinion
In our opinion, AIB Group plc’s consolidated financial statements and Company financial statements (the ‘financial statements’):
• give a true and fair view of the Group’s and the Company’s assets, liabilities and financial position as at 31 December 2024 and of the Group’s
profit and cash flows for the year then ended;
• the consolidated financial statements have been properly prepared in accordance with International Financial Reporting Standards (’IFRSs’) as
adopted by the European Union;
• the Company financial statements have been properly prepared in accordance with Generally Accepted Accounting Practice in Ireland
(accounting standards issued by the Financial Reporting Council of the UK, including Financial Reporting Standard 101 Reduced Disclosure
Framework and Irish law); and
• the financial statements have been properly prepared in accordance with the requirements of the Companies Act 2014 and, as regards the
consolidated financial statements, Article 4 of the IAS Regulation.
We have audited the financial statements, included within the Annual Financial Report (the ‘Annual Report’), which comprise:
• the Consolidated and Company Statement of Financial Position as at 31 December 2024;
• the Consolidated Income Statement and Consolidated Statement of Comprehensive Income for the year then ended;
• the Consolidated Statement of Cash Flows for the year then ended;
• the Consolidated and Company Statement of Changes in Equity for the year then ended; and
• the Notes to the Consolidated and Company financial statements, which include a description of the accounting policies.
Certain required disclosures have been presented elsewhere in the Annual Report, rather than in the notes to the financial statements. These are
cross-referenced from the financial statements and are identified as audited.
Our opinion is consistent with our reporting to the Board Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (Ireland) (‘ISAs (Ireland)’) and applicable law. Our responsibilities
under ISAs (Ireland) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in
Ireland, which includes IAASA’s Ethical Standard as applicable to listed public interest entities, and we have fulfilled our other ethical responsibilities
in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by IAASA’s Ethical Standard were not provided to the Group
or the Company.
Other than those disclosed in note 12 to the financial statements, we have provided no other services to the Group or the Company in the period
from 1 January 2024 to 31 December 2024.
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Independent auditors’ report
Our audit approach
Overview
Materiality
Overall materiality
• €77.5 million (2023: €57.5 million) - Consolidated financial statements.
• Based on c. 3.0% of profit before tax (2023: c. 2.4% of profit before tax).
• €76.0 million (2023: €57.0 million) - Company financial statements.
• Based on c. 0.5% of total equity (2023: c. 0.4% of total equity).
Performance materiality
• €58.0 million (2023: €43.2 million) - Consolidated financial statements.
• €57.0 million (2023: €42.8 million) - Company financial statements.
Audit scope
• We completed a full scope audit of the financial information of Allied Irish Banks, p.l.c., EBS d.a.c. and AIB
Mortgage Bank Unlimited Company. In addition, we directly instructed PwC UK to conduct and report to us on
a full scope audit of the financial information of AIB Group (UK) p.l.c.
• Specific audit procedures on selected account balances, classes of transactions or disclosures were performed
for other entities within the Group based on our assessment of the risk of material misstatement and of the
materiality of the Group’s operations in these entities.
• The significant components subject to full scope audit accounted for in excess of 90% of both Profit before Tax
and Total Assets.
Key audit matters
• Expected credit loss (i) completeness and valuation of the post model adjustments (ii) judgements taken on
individually assessed exposures.
• IT (Privileged User Access).
• Recoverability of the Deferred Tax Assets.
• Recoverability of investment in subsidiary (Company only).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular,
we looked at where the directors made subjective judgements, for example in respect of significant accounting estimates that involved making
assumptions and considering future events that are inherently uncertain. As in all of our audits we also addressed the risk of management override
of internal controls, including evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due
to fraud.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit of the financial statements
of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by the
auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the
efforts of the engagement team. These matters, and any comments we make on the results of our procedures thereon, were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. This is not a complete list of all risks identified by our audit.
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Independent auditors’ report continued
Key audit matter
How our audit addressed the key audit matter
Expected credit loss (i) completeness and
valuation of the post model adjustments
(ii) judgements taken on individually
assessed exposures
Refer to Note 1 (q) ‘Impairment of financial assets’ within Note 1
‘Accounting policies’, ‘Impairment of financial assets’ within Note 2
‘Critical accounting judgements and estimates’, Note 11 ‘Net credit
impairment charge’, Note 18 ‘Loans and advances to customers’
and Section 2.1 ‘Risk management - Credit risk’ of the Risk
management report.
At 31 December 2024, the Group reported total gross loans to
customers classified at amortised cost of €71.2bn and €1.3bn of
expected credit loss (ECL).
The measurement of expected credit losses is required to reflect an
unbiased probability-weighted range of possible future outcomes.
Complex models and significant judgements are used to estimate the
probability of default (PD), loss given default (LGD) and exposure at
default (EAD) as well as in applying the staging criteria under IFRS 9.
The calculation of ECL requires a high degree of judgement to reflect
recent developments in credit quality, arrears experience and / or
emerging macroeconomic risks.
The two key areas where we identified greater levels of management
judgement and therefore increased levels of audit focus in the Group's
compliance with IFRS 9 were
1. Completeness and valuation of post model adjustments (PMAs)
The judgement surrounding the completeness and valuation of PMA’s
represents a significant estimation risk. The modelling methodologies
used to estimate ECL are developed using historical experience.
Adjustments are made to model outcomes to address known model
and data limitations, and emerging or non-modelled risks. In addition,
modelling methodologies do not incorporate all factors that are relevant
to estimating ECL. The current economic environment continues to be
uncertain and differs from recent experience, which is characterised
by elevated inflation, increased cost of living and increasing costs of
financing, which affects the debt servicing capability for borrowers.
As a result, the judgements around if and when the Group recognise
adjustments to model outcomes to account for potential model
weaknesses in coping with the current economic environment and
outlook are highly judgemental and inherently uncertain.
2. Individually assessed ECL (Stage 3)
The judgements applied with respect to the measurement of impairment of
Stage 3 individually assessed loans represents a significant estimation
risk. For individual provision assessments of larger exposures in Stage 3,
the significant judgements in determining provisions are the completeness
and appropriateness of the potential workout scenarios identified, the
probability assigned to each identified potential workout scenario and the
valuation assumptions used in determining expected recoveries.
Other assumptions
Management makes other assumptions which are less judgemental or
for which variations have a less significant impact on ECL. These
assumptions include:
• Conceptual soundness of the modelling methodologies;
• Quantitative and qualitative criteria used to assess significant
increases in credit risk which drives the allocation of assets to Stage
1, 2, or 3 using criteria in accordance with the accounting standards;
• Accounting interpretations, modelling assumptions and data used to
build and run the ECL models; and
• Inputs and assumptions used to reflect the impact of multiple economic
scenarios, including any changes to the forward looking scenarios.
Controls
In conjunction with our credit modelling specialists, we performed
end-to-end process walkthroughs to understand and identify the key
systems, applications and key controls used in the ECL processes.
We tested the design and operating effectiveness of key controls
across the processes relevant to management’s ECL calculation,
including those relating to the key judgements and estimates
involving our credit modelling specialists where appropriate. We also
tested the design and operating effectiveness of key controls over
the governance of the estimation of ECL. We attended key executive
finance and risk committee meetings where the inputs, assumptions
and adjustments to the ECL were discussed and approved and
observed management’s review and challenge in these governance
forums including the assessment of model limitations and any
resulting judgemental post model adjustments.
Conceptual Soundness
We performed a risk assessment on the models involved in the ECL
calculation to determine the models to test and the nature of the
testing required in respect of the individual models. We involved
credit modelling specialists to assist us in testing the ECL models by
testing the assumptions, inputs and implementation of model
formulae. This included a combination of assessing the
appropriateness of model design, challenger/sensitivity analyses,
recalculating the Probability of Default and Loss Given Default and
testing model implementation.
In conjunction with our credit modelling specialists, we assessed
model governance including model validation and monitoring. This
included assessing model performance by evaluating variations
between observed data and model predictions and developing an
understanding and assessment of model limitations and remedial
actions. We inquired of the model development and validation
teams to assess whether the basis for significant model
enhancements introduced were reasonable.
Post Model Adjustments
In conjunction with our credit modelling specialists, we evaluated the
conceptual soundness of the PMAs by critically assessing
management’s rationale and methodology, including the limitation
and / or risk that the PMA is seeking to address. We inspected the
PMA calculation methodology and tested, on a sample basis, the
completeness and accuracy of key data inputs into the PMA
calculation.
We challenged the overall completeness and reasonableness of
post model adjustments by comparing the PMAs recognised by
management to the key model limitations and / or data limitations
that we considered to exist in the portfolio.
Individually assessed stage 3 assets
For a sample of credit-impaired loans, we assessed the exposures
to determine if they met the definition of credit impaired under IFRS
9. We challenged the forecasts of future cash flows prepared by
management to support the calculation of the impairment loss
allowance by challenging the key assumptions and corroborating
estimates to external support where available. Where appropriate,
our work involved inspecting valuations of collateral, internal
valuation guidelines and/or externally prepared reports to determine
whether appropriate valuation methodologies and assumptions were
employed. Our selection of credit impaired loans was based on a
number of factors, including higher risk sectors identified with
reference to external sources, such as commercial real estate, retail
and leisure, as well as materiality.
We inquired of Divisional and Group management and reviewed
relevant management information to understand the emerging and
potential issues across the relevant portfolios.
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Key audit matter
How our audit addressed the key audit matter
Expected credit loss (i) completeness and
valuation of the post model adjustments
(ii) judgements taken on individually
assessed exposures continued
Quantitative and Qualitative criteria in determining specific
increases in credit risk
We challenged the appropriateness and application of the quantitative
and qualitative criteria used to assess significant increases in credit
risk which determine the allocation of an asset to Stage 1, 2 or 3 in
accordance with IFRS 9.
For a selection of performing loans, we critically assessed, by
reference to the underlying documentation and through inquiries with
management, whether the trigger for credit impaired classification
had occurred.
In conjunction with our credit modelling specialists, we reperformed
key aspects of the models underlying the calculation of expected
credit losses, including independent recalculation of the PD and LGD
for a sample of models and independent recalculation of ECL model
outcomes for a sample of models.
Economic Scenarios
In conjunction with our credit modelling specialists, we considered
the base case and alternative economic scenarios. We challenged
and assessed the reasonableness of the significant assumptions
underpinning management’s economic scenarios which we
determined to be GDP, unemployment and property prices by
comparing to independent and observable economic forecasts,
leveraging a number of external data points. We assessed
whether forecasted macroeconomic variables were reasonable
and supportable.
With the support of our credit modelling specialists, we evaluated
the overall impact of the macroeconomic factors to the ECL. This
assessment considered the sensitivity of ECL to variations in the
severity and probability weighting of the economic forecasts.
We challenged the reasonableness of management’s forward-looking
information (FLI) upside / downside scenario weightings, having
regard to relevant available information. Specifically, we challenged
the appropriateness of management’s change in the weightings in the
current year.
Overall standback
We performed an overall assessment of ECL provision levels by
IFRS 9 stage to determine if they were reasonable by considering the
overall credit quality of the Group’s portfolios, risk profile, credit risk
management practices and the macroeconomic environment by
considering trends in the economy and sectors to which the Group is
exposed. We performed peer benchmarking where available to assess
overall staging and provision coverage levels.
Disclosures
We assessed the adequacy and appropriateness of disclosures
for compliance with the accounting standards and the process and
controls management had in place to prepare and approve
the disclosures.
Conclusion
On the basis of the work performed we have concluded the stock of
Expected Credit Loss reserves at year end is within the range of
acceptable outcomes.
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Independent auditors’ report continued
Key audit matter
How our audit addressed the key audit matter
IT (Privileged User Access)
The IT environment is complex and pervasive to the operations of the
Group due to the multiplicity of systems and the large volume of
transactions processed and its reliance on automated and IT
dependent manual controls. Appropriate IT controls are required to
ensure that applications process data as expected and that changes
are made in a controlled manner.
Our audit approach includes reliance on automated and IT dependent
manual controls and therefore on the effectiveness of controls over
IT systems impacting financial reporting. Privileged user access
management controls are an integral part of the IT environment to ensure
both system access and changes made to systems are authorised and
appropriate. An integral part of our audit testing is therefore on the
effectiveness of privileged user access management controls.
In the context of our audit scope, we consider privileged user access
management controls at the application layer to be critical to ensuring
that only appropriately authorised changes are made to IT systems
deemed relevant to our audit. Moreover, appropriate privileged user
access management controls contribute to mitigating the risk of
potential fraud or error.
We considered this to be a key audit matter owing to the high level of
reliance on IT operations within the Group as well as the risk that key
IT Audit Dependencies such as automated controls and system
generated reports are not designed and operating effectively.
Through inquiries with management and inspection of internal
governance documents, we obtained an understanding of the Group’s
IT environment.
In conjunction with our Digital Audit specialists, we;
• Tested the design, implementation and where relevant, the
operating effectiveness of preventative and detective IT General
Controls (ITGC) over privileged user access management (i.e.
those relating to privileged user access provisioning, revocation,
recertification and authentication).
• Inquired of Group Internal Audit (GIA) and inspected IT related GIA
reports produced during the period to understand the nature of
findings, if any, and consider the impact on our audit.
• Where control deficiencies were identified at the design level we
considered the compensating controls in place and sought to obtain
additional evidence for the in scope IT Dependencies to obtain
reasonable assurance that there were no unauthorised changes
made to these during the financial year.
• Our risk assessment procedures included an assessment of those
deficiencies to determine the impact on our audit plan and designed
and executed additional procedures where required.
Conclusion
Having completed the additional audit procedures we concluded that
we obtained sufficient evidence for the purposes of our audit.
Recoverability of the Deferred Tax Assets
Refer to Note 1 (i) ‘Income tax, including deferred income tax’
within Note 1 ‘Accounting policies’, ‘Deferred taxation’ within Note 2
‘Critical accounting judgements and estimates’ and Note 26
‘Deferred taxation’.
The Group has deferred tax assets of €2.3bn that primarily arise due
to historical operating losses. A key judgement in the recognition of
deferred tax assets is whether there is convincing evidence of
sufficient future taxable profits against which those losses can be
utilised. This judgement relies on the assessment of the probability
and the sufficiency of future taxable profits, which in turn is based on
assumptions concerning future economic conditions and business
performance.
The Group’s considerations in respect of the recognition of the
deferred tax assets are outlined in the key accounting judgements and
estimates section within the financial statements, which also provides
an overview of the key assumptions underpinning the financial
projections. In particular, the deferred tax asset relating to the UK
subsidiary (amounting to €183m or 8% of the total) has been limited to
a recognition period of 15 years as management believe the degree of
estimation uncertainty beyond that period is high.
We regard the recoverability of the deferred tax assets as a key audit
matter owing to the degree of uncertainty given the length of recovery
periods involved. These recovery periods are driven by management
judgement over the quantum and timing of future profitability which
are, by their nature, subject to estimation uncertainty.
We performed an end-to-end walkthrough of the process for the
forecasting of profits used to support the recognition of the deferred
tax assets, including the approval process.
Management prepares a Financial Plan to forecast financial
performance over a three year period. The projections are then
extrapolated at 2% based on estimated annual long term growth rates
for the Irish economy for the purposes of projecting future taxable
profits beyond three years.
We assessed whether estimated future profits used within the
forecasts were reasonable by reference to recent performance and
challenged the key assumptions underpinning the Group's future
forecasts using our knowledge of the business, the Group’s strategy
and wider initiatives within the Group.
We assessed and challenged the reasonableness of the external
economic assumptions applied in the future forecast assessment with
reference to observable market data.
We considered whether the forecast of taxable profits provides
convincing evidence that sufficient taxable profits will be available to
utilise unused tax losses.
We assessed the basis for management’s conclusion that the recovery
period for trading losses carried forward in the UK subsidiary should
be restricted to fifteen years being the period over which the Directors
can conclude that it is probable that future taxable profits will be
available in the UK entity.
We assessed the adequacy of the financial statement disclosures in
respect of the recoverability of deferred tax assets.
Conclusion
On the basis of the work performed we have concluded the
recognition of the deferred tax asset is reasonable.
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Key audit matter
How our audit addressed the key audit matter
Recoverability of investment in subsidiary
(Company only)
Refer to ‘Investment in Subsidiary’ within Note a ‘Accounting policies’
and Note e ‘Investment in subsidiary undertaking’ to the Company
financial statements.
The Company balance sheet includes a €13.9bn investment in
Allied Irish Banks, p.l.c., the main trading entity of the Group.
The accounting policy followed by the Company is to carry the
investment at cost less impairment. Impairment testing includes the
comparison of the carrying value with its recoverable amount. The
recoverable amount is the higher of the investment’s fair value less
costs of disposal or its value in use (‘VIU’). The calculation of VIU is
dependent on certain key assumptions around the future cash flows
which have been forecasted using the Group’s three-year plan, the
discount rates and the terminal growth rates. These assumptions,
which are judgemental, are derived from a combination of
management estimates, market data and other information obtained
from external sources.
The significant assumptions that we focused on were those with
greater levels of management judgement and for which variations had
the most significant impact on the recoverable amount. Specifically,
these included the output of the financial plan for 2025 to 2027,
regulatory capital requirements, long term growth rates and discount
rates.
The investment held by the Company in Allied Irish Banks, p.l.c. is
carried at its original cost (as adjusted for additional investments and
subsequent share buybacks). Given the VIU amount was determined
to be greater than the carrying value of the Company’s investment in
Allied Irish Banks, p.l.c. as at 31 December 2024, no impairment was
required.
We considered this to be a key audit matter due to the judgement
associated with the assessment of the recoverable amount of the
investment at 31 December 2024 including, in particular, the expected
cash flows, the discount rate and the terminal growth rate.
We performed an end-to-end process walkthrough over the
recoverability of the carrying value of the investment by AIB Group plc
in Allied Irish Banks, p.l.c..
We involved our valuation specialists to assist us in evaluating
the appropriateness of the discount rate used by independently
developing discount rate ranges using external data sources and
peer bank data and assessing whether the methodology over
management’s calculation of the VIU is compliant with the
requirements of the accounting standard.
We compared key assumptions including those underlying certain
estimated future cash flows, the discount rate and the terminal growth
rate to externally derived data including, peer bank data and projected
economic growth.
We assessed the sensitivity of the VIU to reasonable variations in
discount rate. the terminal value and the terminal growth rate.
We assessed the adequacy of the financial statement disclosures in
respect of the investment in the AIB Group plc company only financial
statements.
Conclusion
On the basis of the work performed we have concluded the carrying
value is reasonable.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole,
taking into account the structure of the Group and the Company, the accounting processes and controls, and the industry in which they operate.
In establishing the overall approach to scoping the Group audit engagement, we identified components based on the Group’s legal entities and
determined that an audit of the complete financial information (a ‘full scope’ audit) should be performed by us on three legal entities due to their
size or risk characteristics and to ensure appropriate coverage. These are Allied Irish Banks, p.l.c., EBS d.a.c. and AIB Mortgage Bank Unlimited
Company.
The significant majority of Group activity outside Ireland is in the UK and PwC UK was engaged to perform a full scope audit on AIB Group (UK)
p.l.c.. No other PwC network firm was engaged for the Group audit. In relation to audit procedures that were performed by PwC UK, we arranged
joint planning meetings and regular physical and virtual meetings throughout the audit and reviewed certain audit working papers in PwC UK’s
audit file to corroborate that their audit plan was appropriately executed. The meetings also involved discussing and understanding the significant
audit risk areas and other relevant matters. We interacted regularly with PwC UK during all stages of the audit. In addition to their formal audit
report, we received a detailed memorandum of examination on work performed and relevant findings that supplemented our understanding of the
individual component. The Group Engagement Leader also physically attended several of the AIB Group (UK) p.l.c. Audit Committee meetings.
In order to achieve the desired level of audit evidence on each account balance in the Consolidated and Company financial statements, specific
audit procedures on selected account balances, classes of transactions or disclosures were performed at two other legal entities within the Group.
The nature and extent of audit procedures was determined by our risk assessment. Together with additional procedures performed at the Group
level, this gave us the evidence we needed for our opinion on the financial statements as a whole. The significant components subject to full scope
audit accounted for in excess of 90% of both Profit before Tax and Total Assets.
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Independent auditors’ report continued
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with
qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual
financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial
statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Consolidated financial statements
Company financial statements
Overall materiality
€77.5 million (2023: €57.5 million)
€76.0 million (2023: €57.0 million)
How we determined it
c.3.0% of profit before tax (2023: c.2.4% of
profit before tax).
c.0.5% of total equity (2023: c.0.4% of total
equity).
Rationale for benchmark applied
We applied this benchmark because in our
view this is a metric against which the
recurring performance of the Group is
commonly measured by its stakeholders to
assess its performance.
The Company is the ultimate holding company
of the Group and its activities are limited to its
investment in Allied Irish Banks, p.l.c. and the
issue of debt securities, subordinated liabilities
and other capital instruments. Hence a
benchmark based on total equity reflects the
focus of the users of the financial statements.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected
misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our audit and the nature and
extent of our testing of account balances, classes of transactions and disclosures, for example in determining sample sizes. Our performance
materiality was 75% of overall materiality, amounting to c. €58.0 million (Group audit) and €57.0 million (Company audit).
In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment and aggregation
risk and the effectiveness of controls - and concluded that an amount at the upper end of our normal range was appropriate.
We agreed with the Board Audit Committee that we would report to them misstatements identified during our audit above €3.75 million
(2023: € 2.75 million) (Group audit) and €3.75 million (2023: €2.75 million) (Company audit) as well as misstatements below that amount that, in
our view, warranted reporting for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the Group and Company’s ability to continue to adopt the going concern basis of accounting included:
• Obtaining management’s going concern assessment;
• Performing a risk assessment to identify factors that could impact the going concern assessment;
• Considering the Group’s Financial Plan approved by the Board in December 2024. In evaluating management’s base case forecasts and
alternative stress scenarios we considered the Group’s financial position, historic performance, its past record of achieving strategic objectives
and management’s assessment of the likely impact on financial performance, capital and liquidity for a period of 12 months from the date on
which the financial statements are authorised for issue;
• Considering whether the assumptions underlying the base cases were consistent with related assumptions used in other areas of the Group’s
and Company’s business activities, for example, in testing for non-financial asset impairment;
• Reading relevant correspondence from the Central Bank of Ireland and the ECB Joint Supervisory Team with regards to regulatory capital and
liquidity requirements of the Group; and
• Considering the adequacy of relevant disclosures made in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the Group’s or the Company’s ability to continue as a going concern for a period of at least twelve
months from the date on which the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the
financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the Group’s or the Company’s
ability to continue as a going concern.
In relation to the Company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or draw
attention to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt the
going concern basis of accounting.
We are required to report if the directors’ statement relating to going concern in accordance with the Listing Rules for Euronext Dublin and the
Listing Rules of the UK Financial Conduct Authority is materially inconsistent with our knowledge obtained in the audit. We have nothing to report
in respect of this responsibility.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon.
The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and,
accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to
conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the
work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have
nothing to report based on these responsibilities.
With respect to the Directors’ Report, we also considered whether the disclosures required by the Companies Act 2014 (excluding the information
included in the ‘Non-Financial Statement’ and the sustainability reporting required by that Act on which we are not required to report) have been
included.
Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs (Ireland) and the Companies Act 2014
require us to also report certain opinions and matters as described below.
• In our opinion, based on the work undertaken in the course of the audit, the information given in the Directors’ Report (excluding the
information included in the ‘Non-Financial Statement’ and the sustainability reporting on which we are not required to report) for the year ended
31 December 2024 is consistent with the financial statements and has been prepared in accordance with the applicable legal requirements.
• Based on our knowledge and understanding of the Group and Company and their environment obtained in the course of the audit, we did not
identify any material misstatements in the Directors’ Report (excluding the information included in the ‘Non-Financial Statement’ and the
sustainability reporting on which we are not required to report).
• In our opinion, based on the work undertaken in the course of the audit of the financial statements,
– the description of the main features of the internal control and risk management systems in relation to the financial reporting process; and
– the information required by Section 1373(2)(d) of the Companies Act 2014;
included in the Corporate Governance Statement, is consistent with the financial statements and has been prepared in accordance with
section 1373(2) of the Companies Act 2014.
• Based on our knowledge and understanding of the Company and its environment obtained in the course of the audit of the financial statements,
we have not identified material misstatements in the description of the main features of the internal control and risk management systems in
relation to the financial reporting process and the information required by section 1373(2)(d) of the Companies Act 2014 included in the
Corporate Governance Statement.
• In our opinion, based on the work undertaken during the course of the audit of the financial statements, the information required by section
1373(2)(a),(b),(e) and (f) of the Companies Act 2014 and regulation 6 of the European Union (Disclosure of Non-Financial and Diversity
Information by certain large undertakings and groups) Regulations 2017 is contained in the Corporate Governance Statement.
Corporate Governance Statement
The Listing Rules and ISAs (Ireland) require us to review the directors’ statements in relation to going concern, longer-term viability and that part of
the Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK Corporate Governance Code and the
Irish Corporate Governance Annex (the ‘Code’) specified for our review. Our additional responsibilities with respect to the Corporate Governance
Statement as other information are described in the Reporting on other information section of this report.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance
Statement is materially consistent with the financial statements and our knowledge obtained during the audit and we have nothing material to add
or draw attention to in relation to:
• The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
• The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify emerging risks and an
explanation of how these are being managed or mitigated;
• The directors’ statement in the financial statements about whether they considered it appropriate to adopt the going concern basis of accounting
in preparing them, and their identification of any material uncertainties to the Group’s and Company’s ability to continue to do so over a period of
at least twelve months from the date of approval of the financial statements;
• The directors’ explanation as to their assessment of the Group’s and Company’s prospects, the period this assessment covers and why the
period is appropriate; and
• The directors’ statement as to whether they have a reasonable expectation that the Company will be able to continue in operation and meet its
liabilities as they fall due over the period of its assessment, including any related disclosures drawing attention to any necessary qualifications or
assumptions.
Our review of the directors’ statement regarding the longer-term viability of the Group was substantially less in scope than an audit and only
consisted of making inquiries and considering the directors’ process supporting their statement; checking that the statement is in alignment with
the relevant provisions of the UK Corporate Governance Code; and considering whether the statement is consistent with the financial statements
and our knowledge and understanding of the Group and Company and their environment obtained in the course of the audit.
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Independent auditors’ report continued
In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit:
• The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable, and provides the
information necessary for the members to assess the Group’s and Company’s position, performance, business model and strategy;
• The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems; and
• The section of the Annual Report describing the work of the Board Audit Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the Company’s compliance with the
Code does not properly disclose a departure from a relevant provision of the Code specified under the Listing Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements
in accordance with the applicable framework and for being satisfied that they give a true and fair view.
The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the Company’s ability to continue as a going
concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either
intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is
not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities,
outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of
detecting irregularities, including fraud, is detailed below.
Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related
to breaches of banking laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial
statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the
Companies Act 2014. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including
the risk of override of controls), and determined that the principal risks were related to the potential for management bias through judgement and
assumptions in significant accounting estimates and manual journal entries being recorded in order to affect performance. Audit procedures
performed by the engagement team included:
• Discussions with the Board Audit Committee, management and Group Legal including consideration of known or suspected instances of non-
compliance with laws and regulations or fraud;
• Reading the meeting minutes of the Board of Directors, Board Audit Committee, Board Risk Committee, Board Remuneration Committee and
the Board Nomination & Corporate Governance Committee;
• Consideration of the results of reporting from PwC UK relating to compliance with applicable laws and regulations and procedures performed to
address assessed fraud risk;
• Discussions with Group Internal Audit and consideration of internal audit reports in so far as they related to the financial statements;
• Evaluating whether there was evidence of management bias that represents a risk of material misstatement due to fraud;
• Inspection of relevant regulatory correspondence from the Central Bank of Ireland and the ECB Joint Supervisory Team;
• Challenging assumptions and judgements made by management in their accounting estimates, in particular in relation to the matters set out in
our key audit matters;
• Applying risk-based criteria to journal entries posted in the audit period to determine journal entries for testing purposes; and
• Designing audit procedures to incorporate elements of unpredictability around the nature and extent of audit procedures performed.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with
laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a
material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by,
for example, forgery or intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing techniques.
However, it typically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek to target
particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion
about the population from which the sample is selected.
A further description of our responsibilities for the audit of the financial statements is located on the IAASA website at:
https://www.iaasa.ie/getmedia/b2389013-1cf6-458b-9b8f-a98202dc9c3a/Description_of_auditors_responsibilities_for_audit.pdf
This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the Company’s members as a body in accordance with section 391 of the
Companies Act 2014 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to
any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
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Other required reporting
Companies Act 2014 opinions on other matters
• We have obtained all the information and explanations which we consider necessary for the purposes of our audit.
• In our opinion the accounting records of the Company were sufficient to permit the Company financial statements to be readily and properly audited.
• The Company Statement of Financial Position is in agreement with the accounting records.
Other exception reporting
Directors’ remuneration and transactions
Under the Companies Act 2014 we are required to report to you if, in our opinion, the disclosures of directors’ remuneration and transactions
specified by sections 305 to 312 of that Act have not been made. We have no exceptions to report arising from this responsibility.
We are required by the Listing Rules to review the six specified elements of disclosures in the report to shareholders by the Board on directors’
remuneration. We have no exceptions to report arising from this responsibility.
Prior financial year Non-Financial Statement
We are required to report if the Company has not provided the information required by Regulation 5(2) to 5(7) of the European Union (Disclosure
of Non-Financial and Diversity Information by certain large undertakings and groups) Regulations 2017 in respect of the prior financial year.
We have nothing to report arising from this responsibility.
Prior financial year Remuneration Report
We are required to report if the Company has not provided the information required by Section 1110N of the Companies Act 2014 in respect of the
prior financial year. We have nothing to report arising from this responsibility.
Appointment
We were appointed by the members at the Annual General Meeting on 4 May 2023 to audit the financial statements for the year ended
31 December 2023 and subsequent financial periods. The period of total uninterrupted engagement is two years, covering the years ended
31 December 2023 to 31 December 2024.
Ronan Doyle
for and on behalf of PricewaterhouseCoopers
Chartered Accountants and Statutory Audit Firm
Dublin
4 March 2025
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Independent auditors’ report continued
2024
2023
Note
€ m
€ m
Interest income calculated using the effective interest rate method
4
5,273
4,549
Other interest income and similar income
4
103
96
Interest and similar income
4
5,376
4,645
Interest and similar expense
5
(1,247)
(804)
Net interest income
4,129
3,841
Fee and commission income
3
845
806
Fee and commission expense
3
(164)
(173)
Net trading income
6
50
210
Net gain on other financial assets measured at FVTPL
7
82
30
Net gain/(loss) on derecognition of financial assets measured at amortised cost
8
2
(9)
Other (expense)/income
9
(16)
17
Other income
799
881
Total operating income
4,928
4,722
Operating expenses
10
(1,894)
(1,847)
Impairment and amortisation of intangible assets
23
(224)
(221)
Impairment and depreciation of property, plant and equipment
24
(77)
(74)
Total operating expenses
(2,195)
(2,142)
Operating profit before impairment losses
2,733
2,580
Net credit impairment charge
11
(55)
(172)
Operating profit
2,678
2,408
Income from equity accounted investments
22
26
12
Loss on disposal of business
13
(2)
(26)
Profit before taxation
2,702
2,394
Income tax charge
14
(351)
(336)
Profit for the year
2,351
2,058
Attributable to:
– Equity holders of the parent
2,354
2,061
– Non-controlling interests
(3)
(3)
Profit for the year
2,351
2,058
Earnings per share
Basic earnings per ordinary share
35
92.5 c
75.7 c
Diluted earnings per ordinary share
35
92.5 c
75.7 c
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Consolidated Income Statement
for the financial year ended 31 December 2024
2024
2023
Note
€ m
€ m
Profit for the year
2,351
2,058
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit assets/(liabilities), net of tax
14
(13)
(2)
Total items that will not be reclassified subsequently to profit or loss
(13)
(2)
Items that will be reclassified subsequently to profit or loss when specific conditions are met
Net change in foreign currency translation reserves, net of tax
14
69
57
Net change in cash flow hedges, net of tax
14
167
1,182
Net change in fair value of investment debt securities at FVOCI, net of tax
14
(57)
(41)
Total items that will be reclassified subsequently to profit or loss when specific conditions are met
179
1,198
Other comprehensive income for the year, net of tax
166
1,196
Total comprehensive income for the year
2,517
3,254
Attributable to:
– Equity holders of the parent
2,520
3,257
– Non-controlling interests
(3)
(3)
Total comprehensive income for the year
2,517
3,254
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Consolidated Statement
of Comprehensive Income
for the financial year ended 31 December 2024
2024
2023
Note
€ m
€ m
Assets
Cash and balances at central banks
44
37,315
38,018
Trading portfolio financial assets
15
136
93
Derivative financial instruments
16
2,144
2,377
Loans and advances to banks
17
1,321
1,329
Loans and advances to customers
18
69,889
65,491
Securities financing
19
6,643
6,466
Investment securities
21
18,668
17,353
Investments accounted for using the equity method
22
348
310
Intangible assets and goodwill
23
934
925
Property, plant and equipment
24
516
558
Other assets
25
475
260
Current taxation
21
17
Deferred tax assets
26
2,303
2,581
Prepayments and accrued income
522
540
Retirement benefit assets
27
31
31
Total assets
141,266
136,349
Liabilities
Deposits by central banks and banks
28
836
1,780
Customer accounts
29
109,883
104,782
Securities financing
19
196
575
Trading portfolio financial liabilities
15
262
139
Derivative financial instruments
16
1,807
1,902
Debt securities in issue
30
8,832
8,423
Lease liabilities
31
258
282
Fair value changes of hedged items in portfolio hedges of interest rate risk
16
64
—
Current taxation
2
1
Deferred tax liabilities
26
14
23
Retirement benefit liabilities
27
9
14
Other liabilities
32
1,111
1,082
Accruals and deferred income
735
607
Subordinated liabilities and other capital instruments
33
1,627
1,473
Provisions for liabilities and commitments
34
203
197
Total liabilities
125,839
121,280
Equity
Share capital
35
1,455
1,637
Reserves
12,742
12,323
Total shareholders’ equity
14,197
13,960
Other equity interests
36
1,239
1,115
Non-controlling interests
(9)
(6)
Total equity
15,427
15,069
Total liabilities and equity
141,266
136,349
Jim Pettigrew
Chair
Colin Hunt
Chief Executive Officer
Donal Galvin
Chief Financial Officer
Conor Gouldson
Group Company Secretary
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Consolidated Statement
of Financial Position
as at 31 December 2024
Attributable to equity holders of parent
Reserves
Note
Share
capital
Revenue
Other
Other
equity
interests
Total
Non-
controlling
interests
Total
equity
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January 2024
1,637
15,618
(3,295)
1,115
15,075
(6) 15,069
Profit for the year
—
2,354
—
—
2,354
(3) 2,351
Other comprehensive income
14
—
(13)
179
—
166
—
166
Total comprehensive income for the year
—
2,341
179
—
2,520
(3) 2,517
Transactions with owners, recorded directly
in equity
Issuance of Additional Tier 1 securities
36
—
—
—
620
620
—
620
Buyback of Additional Tier 1 securities
36
—
(5)
—
(496)
(501)
—
(501)
Dividends paid on ordinary shares
50
—
(696)
—
—
(696)
—
(696)
Distributions paid to other equity interests
36
—
(80)
—
—
(80)
—
(80)
Buyback of ordinary shares
35
(182)
(1,502)
182
—
(1,502)
— (1,502)
Other movements
—
—
—
—
—
—
—
Total transactions with owners
(182)
(2,283)
182
124
(2,159)
— (2,159)
At 31 December 2024
1,455
15,676
(2,934)
1,239
15,436
(9) 15,427
Other reserves comprise the following:
Note
Capital
reserves
Merger
reserves
Capital
redemption
reserves
Revaluation
reserves
Investment
securities
reserves
Cash flow
hedging
reserves
Foreign
currency
translation
reserves
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January 2024
1,133 (3,622)
73
12
(77)
(288)
(526) (3,295)
Profit for the year
—
—
—
—
—
—
—
—
Other comprehensive income
14
—
—
—
—
(57)
167
69
179
Comprehensive income for the year
—
—
—
—
(57)
167
69
179
Transactions with owners, recorded directly
in equity
Buyback of ordinary shares
35
—
—
182
—
—
—
—
182
Other movements
—
—
—
—
—
—
—
—
Transactions with owners
—
—
182
—
—
—
—
182
At 31 December 2024
1,133 (3,622)
255
12
(134)
(121)
(457) (2,934)
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Consolidated Statement
of Changes in Equity
for the financial year ended 31 December 2024
Attributable to equity holders of parent
Reserves
Note
Share
capital
Revenue
Other
Other
equity
interests
Total
Non-
controlling
interests
Total
equity
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January 2023
1,671
14,004
(4,526)
1,115
12,264
(3) 12,261
Profit for the year
—
2,061
—
—
2,061
(3) 2,058
Other comprehensive income
14
—
(2)
1,198
—
1,196
— 1,196
Total comprehensive income for the year
—
2,059
1,198
—
3,257
(3) 3,254
Transactions with owners, recorded directly
in equity
Issuance of Additional Tier 1 securities
36
—
—
—
—
—
—
—
Buyback of Additional Tier 1 securities
36
—
—
—
—
—
—
—
Dividends paid on ordinary shares
50
—
(166)
—
—
(166)
—
(166)
Distributions paid to other equity interests
36
—
(65)
—
—
(65)
—
(65)
Buyback of ordinary shares
35
(34)
(215)
34
—
(215)
—
(215)
Other movements
—
1
(1)
—
—
—
—
Total transactions with owners
(34)
(445)
33
—
(446)
—
(446)
At 31 December 2023
1,637
15,618
(3,295)
1,115
15,075
(6)
15,069
Other reserves comprise the following:
Note
Capital
reserves
Merger
reserves
Capital
redemption
reserves
Revaluation
reserves
Investment
securities
reserves
Cash flow
hedging
reserves
Foreign
currency
translation
reserves
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January 2023
1,133 (3,622)
39
13
(36)
(1,470)
(583) (4,526)
Profit for the year
—
—
—
—
—
—
—
—
Other comprehensive income
14
—
—
—
—
(41)
1,182
57 1,198
Comprehensive income for the year
—
—
—
—
(41)
1,182
57 1,198
Transactions with owners, recorded directly
in equity
Buyback of ordinary shares
35
—
—
34
—
—
—
—
34
Other movements
—
—
—
(1)
—
—
—
(1)
Transactions with owners
—
—
34
(1)
—
—
—
33
At 31 December 2023
1,133 (3,622)
73
12
(77)
(288)
(526) (3,295)
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263
Consolidated Statement
of Changes in Equity
for the financial year ended 31 December 2023
2024
2023
Note
€ m
€ m
Cash flows from operating activities
Profit before taxation for the year
2,702
2,394
Adjustments for:
– Non-cash and other items
45
1,023
984
– Change in operating assets
45
(4,176)
(6,291)
– Change in operating liabilities
45
3,938
2,146
– Taxation paid
(62)
(71)
Net cash flow from operating activities1
3,425
(838)
Cash flows from investing activities
Purchase of investment securities
21
(4,081)
(3,199)
Proceeds from sales, redemptions and maturity of investment securities
21
3,241
2,713
Additions to property, plant and equipment
24
(25)
(34)
Disposal of property, plant and equipment
5
7
Additions to intangible assets
23
(232)
(206)
Acquisition of subsidiaries
—
(6)
Investments accounted for using the equity method
22
(37)
(125)
Dividends received from associated undertakings
22
25
—
Net cash flow from investing activities
(1,104)
(850)
Cash flows from financing activities
Proceeds on issue of other equity interests
36
620
—
Repurchase of other equity interests
36
(501)
—
Proceeds on issue of debt securities2
30
923
2,431
Maturity of debt securities2
(1,680)
(382)
Proceeds on issue of subordinated liabilities
33
650
—
Repurchase and redemption of subordinated liabilities
33
(565)
—
Dividends paid on ordinary shares
50
(696)
(166)
Buyback of ordinary shares
35
(1,502)
(215)
Distributions paid to other equity interests
36
(80)
(65)
Repayment of lease liabilities
(34)
(35)
Interest paid on debt securities2
(350)
(204)
Interest paid on subordinated liabilities and other capital instruments
(34)
(38)
Net cash flow from financing activities
(3,249)
1,326
Change in cash and cash equivalents
(928)
(362)
Opening cash and cash equivalents
39,041
39,316
Effect of exchange translation adjustments
214
87
Closing cash and cash equivalents
44
38,327
39,041
1. Net cash flow from operating activities, including the impact of related cash flow hedges, includes interest received of € 5,354 million (2023: € 4,499 million) and
interest paid of € 466 million (2023: € 137 million).
2. Relates to debt securities classified at origination as MREL.
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Consolidated Statement
of Cash Flows
for the financial year ended 31 December 2024
Notes to the
Consolidated
Financial Statements
1
Accounting policies
266
2
Critical accounting judgements and estimates
280
3
Segmental information
283
4
Interest and similar income
287
5
Interest and similar expense
287
6
Net trading income
287
7
Net gain on other financial assets measured at FVTPL
287
8
Net gain/(loss) on derecognition of financial assets
measured at amortised cost
288
9
Other (expense)/income
288
10
Operating expenses
288
11
Net credit impairment charge
289
12
Auditor's remuneration
289
13
Loss on disposal of business
289
14
Taxation
290
15
Trading portfolio
291
16
Derivative financial instruments
292
17
Loans and advances to banks
301
18
Loans and advances to customers
301
19
Securities financing
302
20
ECL allowance on financial assets
303
21
Investment securities
304
22
Investments accounted for using the equity method
305
23
Intangible assets and goodwill
306
24
Property, plant and equipment
307
25
Other assets
308
26
Deferred taxation
309
27
Retirement benefits
310
28
Deposits by central banks and banks
315
29
Customer accounts
315
30
Debt securities in issue
316
31
Lease liabilities
317
32
Other liabilities
317
33
Subordinated liabilities and other capital instruments
318
34
Provisions for liabilities and commitments
319
35
Share capital
320
36
Other equity interests
321
37
Capital reserves, merger reserve and capital
redemption reserves
322
38
Offsetting financial assets and financial liabilities
323
39
Contingent liabilities and commitments
325
40
Subsidiaries and structured entities
326
41
Off-balance sheet arrangements and transferred
financial assets
328
42
Classification and measurement of financial assets
and financial liabilities
330
Note
Page
43
Fair value of financial instruments
332
44
Cash and cash equivalents
338
45
Statement of cash flows
339
46
Related party transactions
340
47
Employees
345
48
Regulatory compliance
345
49
Financial and other information
346
50
Dividends
346
51
Non-adjusting events after the reporting period
346
52
Approval of financial statements
346
Note
Page
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1 Accounting policies
The material accounting policies that the Group applied in the
preparation of the financial statements are set out in this section. The
Group, as a pillar bank with diverse stakeholder groups, has considered
both quantitative and qualitative factors (including the complexity of its
financial statements and the range of users of its financial statements)
in its assessment of which accounting policies to disclose as material.
(a) Reporting entity
AIB Group plc (‘the parent company’ or ‘the Company’) is a company
domiciled in Ireland. The address of the Company’s registered office is
10 Molesworth Street, Dublin 2, Ireland. AIB Group plc is registered
under the Companies Act 2014 as a public limited company under the
company number 594283 and is the holding company of the Group.
The consolidated financial statements for the year ended 31 December
2024 include the financial statements of AIB Group plc and its subsidiary
undertakings, collectively referred to as ‘AIB Group’ or ‘the Group’,
where appropriate, including certain structured entities and the Group’s
interest in associates/joint ventures using the equity method of
accounting and are prepared to the end of the financial period. The
Group is and has been primarily involved in retail and corporate banking.
(b) Statement of compliance
The consolidated financial statements have been prepared in
accordance with International Accounting Standards and International
Financial Reporting Standards (collectively 'IFRSs') as adopted by the
European Union ('EU') and applicable for the financial year ended
31 December 2024. The consolidated financial statements also comply
with those parts of the Companies Act 2014 and the European Union
(Credit Institutions: Financial Statements) Regulations 2015 applicable
to companies reporting under IFRS, and the Asset Covered Securities
Acts 2001 and 2007 and Article 4 of the IAS Regulation. The
accounting policies have been consistently applied by Group entities
and are consistent with the previous year, unless otherwise described.
(c) Basis of preparation
Functional and presentation currency
The financial statements are presented in Euro, which is the functional
currency of the parent company and a significant number of its
subsidiaries, rounded to the nearest million.
Basis of measurement and presentation
The financial statements have been prepared under the historical cost
basis, with the exception of the following assets and liabilities which are
stated at their fair value: derivative financial instruments, financial
instruments at fair value through profit or loss, certain hedged financial
assets and financial liabilities and investment securities at fair value
through other comprehensive income ('FVOCI'). The carrying values of
recognised assets and liabilities that are hedged items in fair value
hedges, other than portfolio hedges, and otherwise carried at amortised
cost, are adjusted to record changes in fair value attributable to the
risks that are being hedged.
The financial statements comprise the consolidated income statement,
the consolidated statement of comprehensive income, the consolidated
statement of financial position, the consolidated statement of cash
flows, and the consolidated statement of changes in equity together
with the related notes. The financial statements include the information
that is described as being an integral part of the audited financial
statements contained in: (i) Sections 2.1, 2.2, 2.3 and 2.4 of the
Risk Management Report as described further on page 179 and
(ii) the Directors' remuneration section of the Corporate Governance
Remuneration Statement as described further on pages 163 and 165.
Change in presentation for certain items in the primary statements
The Group has changed the presentation of reserves in the
consolidated statement of changes in equity to better align with the
presentation in the consolidated statement of financial position. The
related comparatives for 2023 have been re-presented.
Change in presentation for certain notes to the financial statements
(i) Segmental information
The Group has changed the presentation in note 3 following the
introduction of the new Climate Capital segment. The related
comparatives for 2023 have been re-presented. For further information,
please refer to page 283.
The Group has also changed the description of certain line items in the
'Net fee and commission income' table in note 3 to more appropriately
reflect the nature of the fee and commission income and expenses.
‘Foreign exchange fees’ was changed to ‘customer related foreign
exchange’, ‘credit related fees’ was changed to ‘lending related fees’,
‘specialised payment services fees’ was changed to ‘specialised
payment services fees (Payzone)’ and ‘specialised payment services
expenses’ was changed to ‘specialised payment services expenses
(Payzone)’.
(ii) Derivative financial instruments
In 2024 the Group revised the maturity analysis disclosure to better align
it with the current maturity profile of the Group’s hedging instruments.
The related comparatives for 2023 have been re-presented.
(iii) Provisions for liabilities and commitments
The Group has presented legal claims, customer redress and other
provisions as separate classes of provisions in 2024. Belfry related
provisions, the FSPO provision and other individually immaterial
customer redress provisions (which were previously presented within
other provisions) are now all presented as customer redress provisions.
The related comparatives for 2023 have been re-presented. The Group
has also changed the description of the related line item in the
operating expenses note from 'restitution and associated costs' to
'customer redress'.
(iv) Credit risk
The Group has changed the presentation of certain credit risk tables.
The related comparatives for 2023 have been re-presented. For further
information please refer to ‘Post model adjustments’ on page 200 and
‘Indexed loan-to-value ratios of the Group’s residential mortgage
portfolio’ on page 221.
Adoption of new accounting policies
The Group commenced portfolio fair value hedging to hedge on-demand
deposits and current accounts with low/zero fixed interest rates and
entered into a credit risk transfer transaction in 2024. The policies are
described in ‘(o) derivatives and hedge accounting’ and ‘(s) financial
guarantees and loan commitment contracts’ respectively.
Use of judgements and estimates
The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application of
policies and reported amounts of certain assets, liabilities, revenues
and expenses, and disclosures of contingent assets and liabilities. The
estimates and assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances. Since management’s judgement may involve making
estimates concerning the likelihood of future events, the actual results
could differ from those estimates. The estimates and assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any
future period affected. The judgements that have a significant effect on
the consolidated financial statements and estimates with a significant
risk of material adjustment in the next year relate to:
• Impairment of financial assets;
• Deferred taxation;
• Retirement benefit obligations; and
• Provisions for liabilities and commitments.
A description of these judgements and estimates is set out in note 2.
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Notes to the Consolidated Financial Statements
1 Accounting policies continued
(c) Basis of preparation continued
Consideration of climate change
In preparing the financial statements, the Directors have considered the
impact of climate change, particularly in the context of the risks identified
in the ‘Sustainability Statement’ in this Annual Financial Report. There
has been no material impact identified on the financial reporting
judgements and estimates of the Group. In particular, the Directors
considered the impact of climate change in respect of the following areas:
• Credit risk: The impact of climate risk on the management,
escalating and reporting of credit risk was considered by the Group.
There is currently no reasonable and supportable information that
indicates a material impact of climate change on estimated credit
losses ('ECL') at a macro level and the Group’s approach to
individual counterparty risk assessment adequately captures climate
risk where appropriate.
• Going concern and viability: The assessment of the group’s going
concern and viability over the next three years did not identify
material climate-related risks, both in terms of our decarbonisation
commitments and the physical risks from climate change. This is set
out in further detail on page 171.
• Provisions and contingent liabilities: The Group’s publicly
announced commitment to reduce absolute Scope 1 greenhouse gas
(‘GHG’) emissions 34% by 2027 from a 2019 base year and to
increase annual sourcing of renewable electricity from 1% in 2019 to
100% by 2030 are not considered a constructive obligation or a
contingent liability. The timeframe allows opportunities for the Group
to evolve its plans for how the decarbonisation strategy will be met
and therefore the Group should not currently recognise a provision or
a contingent liability in relation to its commitment (i.e. as the Group
does not have an obligation as a result of a past event). IAS 37
Provisions, Contingent Liabilities and Contingent Assets sets out that
it is only those obligations arising from past events existing
independently of an entity's future actions that are recognised as
provisions or disclosed as contingent liabilities.
• Impairment of non-financial assets: The Group applies the
requirements of IAS 36 Impairment of Assets in assessing whether
impacted assets are impaired at a reporting date. The Group has a
robust process to identify assets that may be impaired which requires the
identification of all material potential impairment triggers including
identification of climate related impairment triggers. The Group’s
impairment charge for 2024 includes the impact of the Greener Branches
Refurbishments Programme to improve branch and office buildings’
energy efficiency. In addition, the Group’s published decarbonisation
commitments do not impact the useful lives of the Group’s impacted
assets as the Group proposes to replace impacted assets as their useful
lives expire. In 2024, the Group continued our phased approach to
transitioning our fleet, which is on track for full electrification by 2027.
Going concern
The financial statements for the year ended 31 December 2024 have
been prepared on a going concern basis as the Directors are satisfied,
having considered the risks and uncertainties impacting the Group, that it
has the ability to continue in business for the period of assessment. In
making this assessment, the Directors have considered a wide range of
information relating to present and future conditions. This includes capital
forecasts and internally generated stress scenarios to take account of
geopolitical risks, the impacts of inflation, increased interest rates and
related impacts on unemployment and property prices. The period of
assessment used by the Directors is at least 12 months from the date of
approval of these annual financial statements.
(d) Basis of consolidation – Notes 13, 22 and 40
The consolidated financial statements comprise the financial statements
of the Group and its subsidiaries including controlled structured entities.
Subsidiary undertakings
Subsidiary undertakings are all entities (including structured entities)
over which the group has control. The Group controls an entity where
the Group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns
through its power to direct the activities of the entity. Subsidiary
undertakings are fully consolidated from the date on which control is
transferred to the Group. They are derecognised from the date that
control ceases.
Inter-company transactions, balances and unrealised gains on
transactions between group companies are eliminated. Unrealised
losses are also eliminated, unless the transaction provides evidence of
an impairment of the transferred asset. Accounting policies of
subsidiaries have been updated where necessary to ensure
consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are
shown separately in the consolidated income statement, statement of
comprehensive income, statement of changes in equity and
consolidated statement of financial position respectively.
If the Group loses control over a subsidiary undertaking, it
derecognises the related assets (including goodwill), liabilities,
non-controlling interest and other components of equity, while any
resultant gain or loss is recognised in profit or loss.
Investments accounted for using the equity method
The Group’s investments accounted for using the equity method
comprise its investments in associates and joint ventures.
An associated undertaking is an entity over which the Group has
significant influence, but not control, over the entity’s operating and
financial policy decisions. If the Group holds 20% or more of the voting
power of an entity, it is presumed that the Group has significant
influence, unless it can be clearly demonstrated that this is not
the case.
A joint venture is a joint arrangement whereby the parties that have
joint control of the arrangement have rights to the net assets of
the arrangement.
Under the equity method of accounting, the investments are initially
recognised at cost and adjusted thereafter to recognise the Group’s
share of the post-acquisition profits or losses of the investee in profit or
loss, and the Group’s share of movements in other comprehensive
income of the investee in other comprehensive income. Dividends
received or receivable from associates and joint ventures are
recognised as a reduction in the carrying amount of the investment.
Where the Group’s share of losses in an equity-accounted investment
equals or exceeds its interest in the entity, including any other
unsecured long-term receivables, the Group does not recognise further
losses, unless it has incurred obligations or made payments on behalf
of the other entity.
Unrealised gains on transactions between the Group and its associates
and joint ventures are eliminated to the extent of the Group’s interest in
these entities. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the asset
transferred.
Since the goodwill that forms part of the carrying amount of the
investment in an associate is not recognised separately, it is, therefore,
not tested for impairment separately. Instead, the entire amount of the
investment in an associate is tested for impairment as a single asset
when there is objective evidence that the investment in an associate
may be impaired.
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1 Accounting policies continued
(e) Foreign currency translation
Items included in the financial statements of each of the Group’s entities
are measured using their functional currency, being the currency of the
primary economic environment in which the entity operates.
Transactions and balances
Foreign currency transactions are translated into the respective entity’s
functional currency using the exchange rates prevailing at the dates of
the transactions. Monetary assets and liabilities denominated in foreign
currencies are re-translated at the rate prevailing at the period-end.
Foreign exchange gains and losses resulting from the settlement of
such transactions and from the re-translation at period end exchange
rates of monetary assets and liabilities denominated in foreign
currencies are recognised in the income statement.
Exchange differences on equities and similar non-monetary items held
at fair value through profit or loss are reported as part of the fair value
gain or loss. Exchange differences on a financial instruments
designated as a hedge of the net investment in a foreign operation are
reported in other comprehensive income.
Foreign operations
The results and financial position of all Group entities that have
a functional currency different from the Euro are translated into Euro
as follows:
• Assets and liabilities including goodwill and fair value adjustments
arising on consolidation of foreign operations are translated at the
closing rate;
• Income and expenses are translated into Euro at the average rates
of exchange during the period where these rates approximate to
the foreign exchange rates ruling at the dates of the transactions;
• Foreign currency translation differences are recognised in other
comprehensive income; and
• Since 1 January 2004, the Group’s date of transition to IFRS, all
such exchange differences are included in the foreign currency
cumulative translation reserve within shareholders’ equity. When a
foreign operation is disposed of in full, the relevant amount of this
reserve is transferred to the income statement. When a subsidiary is
partly disposed, the relevant proportion of foreign currency
translation reserve is re-attributed to the non-controlling interest. In
the case of a partial disposal, a pro-rata amount of the foreign
currency cumulative translation reserve is transferred to the income
statement. A partial disposal is also considered to have occurred
when a formal decision has been made to wind down an entity and
where capital is being repaid but there has not been a reduction in
the Group’s overall percentage holding.
(f) Interest income and expense recognition – Notes 4 and 5
Interest income and expense is recognised in the income statement
using the effective interest rate method.
Effective interest rate
The effective interest rate is the rate that exactly discounts the estimated
future cash payments or receipts through the expected life of the
financial instrument to:
• The gross carrying amount of the financial asset; or
• The amortised cost of the financial liability.
The application of the method has the effect of recognising income
receivable and expense payable on the instrument evenly in proportion
to the amount outstanding over the period to maturity or repayment.
In calculating the effective interest rate for financial instruments, the
Group estimates cash flows (using projections based on its experience
of customers’ behaviour) considering all contractual terms of the
financial instrument but excluding expected credit losses (except,
in the case of POCI financial assets where expected credit losses are
included in the calculation of a credit-adjusted effective interest rate).
The calculation takes into account all fees, including those for any
expected early redemption, and points paid or received between parties
to the contract that are an integral part of the effective interest rate, as
well as transaction costs and all other premiums and discounts.
All costs associated with mortgage incentive schemes are included in
the effective interest rate calculation. Fees and commissions payable to
third parties in connection with lending arrangements, where these are
direct and incremental costs related to the issue of a financial instrument,
are included in interest income as part of the effective interest rate.
Amortised cost and gross carrying amount
The amortised cost of a financial asset or financial liability is the
amount at which the financial asset or financial liability is measured at
initial recognition minus the principal repayments, plus or minus the
cumulative amortisation using the effective interest rate method of any
difference between the initial amount and the maturity amount and, for
financial assets, adjusted for any loss allowance.
The gross carrying amount of a financial asset is the amortised cost
before adjusting for any loss allowance.
Calculation of interest income and interest expense
In calculating interest income and expense, the effective interest rate is
applied to the gross carrying amount of the asset (when the asset is not
credit impaired) or to the amortised cost of the liability.
For financial assets that have become credit impaired subsequent to
initial recognition, interest income is calculated by applying the effective
interest rate to the amortised cost of the financial asset. If the asset is
no longer credit impaired, the calculation of interest income reverts to
the gross basis.
However, for financial assets that were credit impaired on initial
recognition, interest income is calculated by applying the credit
adjusted effective interest rate to the amortised cost of the financial
asset. The calculation of interest income does not revert to a gross
basis, even if the credit risk of the asset improves.
When a financial asset is no longer credit impaired or has been repaid
in full (i.e. cured without financial loss), the Group presents previously
unrecognised interest income as a reversal of credit impairment/
recovery of amounts previously written-off.
Interest income and expense on financial assets and liabilities
classified as held for trading or at fair value through profit or loss
(‘FVTPL’) is recognised in ‘other interest income and similar income’ or
‘interest expense’ in the income statement, as applicable.
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Notes to the Consolidated Financial Statements continued
1 Accounting policies continued
(f) Interest income and expense recognition continued
Presentation
Interest income and expense presented in the consolidated income
statement include:
• Interest on financial assets and financial liabilities measured at
amortised cost calculated on an effective interest rate basis;
• Interest on investment debt securities measured at FVOCI calculated
on an effective interest rate basis;
• Net interest income and expense on qualifying hedge derivatives
designated as cash flow hedges or fair value hedges which are
recognised in interest income or interest expense;
• Net interest income or expense on derivatives that are held with
hedging intent, but for which hedge accounting is not applied;
• Interest income and funding costs of trading portfolio financial assets;
• Interest income and expense on leases and hire purchase contracts;
and
• Interest income on financial assets at FVTPL.
(g) Fee and commission income – Note 3
The measurement and timing of recognition of fee and commission
income is based on the core principles of IFRS 15 Revenue from
Contracts with Customers.
Fee and commission income is recognised when the performance
obligation in the contract has been performed, either at a ‘point in time’
or ‘over time’ if the performance obligation is performed over a period of
time unless the income has been included in the effective interest
rate calculation.
The Group includes in the transaction price, some or all of an amount
of variable consideration estimated only to the extent that it is highly
probable that a significant reversal in the amount of cumulative revenue
recognised will not occur when the uncertainty associated with the
variable consideration is subsequently resolved.
The majority of the Group’s fee and commission income arises from
retail banking activities. Loan syndication fees are recognised as
revenue when the syndication has been completed and the Group has
retained no part of the loan package for itself or retained a part at the
same effective interest rate as applicable to the other participants.
Customer related foreign exchange is fee income that is derived from
arranging foreign exchange transactions on behalf of customers.
Such income is recognised when the individual performance obligation
has been fulfilled.
Portfolio and other management advisory and service fees are
recognised based on the applicable service contracts. Asset
management fees relating to investment funds are recognised over
time in line with the performance obligation. The same principle is
applied to the recognition of income from wealth management, financial
planning and custody services that are continuously provided over an
extended period of time.
Commitment fees together with related direct costs, for loan facilities
where drawdown is probable, are deferred and recognised as an
adjustment to the effective interest rate on the loan once drawn.
Commitment fees in relation to facilities where drawdown is not
probable are recognised over the term of the commitment on a straight
line basis. Other lending related fees are recognised over time in line
with the performance obligation except for arrangement fees where it is
likely that the facility will be drawn down, and which are included in the
effective interest rate calculation.
Fee income and fee expenses in respect of services and prepaid
credits for cellular phone and utilities sold to third parties are classified
as specialised payment services fees (Payzone) and are recognised
when the performance obligation is satisfied.
(h) Employee benefits – Note 27
Retirement benefit obligations
The Group provides employees with post-retirement benefits mainly in
the form of pensions.
The Group operates a number of retirement benefit schemes including
defined benefit and defined contribution schemes. This includes
benefits for some members accrued from 2007 to 2013 under a hybrid
scheme arrangement that had both defined benefit and defined
contribution elements. In addition, the Group contributes, according to
local law in the various countries in which it operates, to governmental
and other schemes which have the characteristics of defined
contribution schemes.
Full actuarial valuations of defined benefit schemes are undertaken
every three years and are updated to reflect current conditions at each
year end reporting date.
Scheme assets are measured at fair value determined by using current
bid prices, except for insurance policies acquired as part of a buy in. If
the policies are qualifying policies under IAS 19 Employee Benefits and
if the timing and amount of payments under the policies exactly match
some or all of the benefits payable under the scheme, then the present
value of the related obligation is determined and is deemed to be the
fair value of the insurance policies to be included in plan assets.
Scheme liabilities are measured on an actuarial basis by estimating the
amount of future benefit that employees have earned for their service in
current and prior periods and discounting that benefit at the market
yield on a high-quality corporate bond of equivalent term and currency
to the liability. The calculation is performed by a qualified actuary using
the projected unit credit method. The difference between the fair value
of the scheme assets and the present value of the defined benefit
obligation at the year end reporting date is recognised in the statement
of financial position. Schemes in surplus are shown as assets and
schemes in deficit, together with unfunded schemes, are shown as
liabilities. A surplus is only recognised as an asset to the extent that it is
recoverable through a refund from the scheme or through reduced
contributions in the future. Actuarial gains and losses are recognised
immediately in other comprehensive income.
The cost of providing defined benefit pension schemes to employees,
comprising the net interest on the net defined benefit liability/(asset),
calculated by applying the discount rate to the net defined benefit
liability/(asset) at the start of the annual reporting period, taking into
account contributions and benefit payments during the period, is
charged to the income statement within personnel expenses.
Remeasurements of the net defined benefit liability/(asset), comprising
actuarial gains and losses and the return on scheme assets (excluding
amounts included in net interest on the net defined benefit liability/
(asset)) are recognised in other comprehensive income. Amounts
recognised in other comprehensive income in relation to
remeasurements of the net defined benefit liability/(asset) will not be
reclassified to profit or loss in a subsequent period.
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1 Accounting policies continued
(h) Employee benefits continued
The Group recognises the effect of an amendment to a defined benefit
scheme when the plan amendment occurs, which is when the Group
introduces or withdraws a defined benefit scheme, or changes the
benefits payable under existing defined benefit schemes. A curtailment
is recognised when a significant reduction in the number of employees
covered by a defined benefit scheme occurs. A settlement is a
transaction that eliminates all further legal or constructive obligations
for part or all of the benefits provided under a defined benefit scheme.
Gains or losses on plan amendments, curtailments and settlements are
recognised in the income statement.
Changes with regard to benefits payable to retirees which represent a
constructive obligation under IAS 37 Provisions, Contingent Liabilities
and Contingent Assets are accounted for as a past service cost. These
are recognised in the income statement.
The costs of managing the defined benefit scheme assets are deducted
from the return on scheme assets. All costs of running the defined
benefit schemes are recognised in the income statement when they
are incurred.
The cost of the Group’s defined contribution schemes is charged to the
income statement in the accounting period in which it is incurred. Any
contributions unpaid at the year end reporting date are included as a
liability. The Group has no further obligation under these schemes once
these contributions have been paid.
Short term employee benefits
Short term employee benefits, such as salaries and other benefits,
are accounted for on an accruals basis over the period during which
employees have provided services. Bonuses are recognised to the
extent that the Group has a legal or constructive obligation to its
employees that can be measured reliably.
(i) Income tax, including deferred income tax – Notes 14 and 26
Income tax comprises current and deferred tax. Income tax is
recognised in the income statement except to the extent that it relates
to items recognised in other comprehensive income, in which case it
is recognised in other comprehensive income. Income tax relating to
items in equity is recognised directly in equity. However, the income tax
consequences of payments on financial instruments that are classified
as equity but treated as liabilities for tax purposes are recognised in
profit or loss if those payments are distributions of profits previously
recognised in profit or loss.
Current tax is the expected tax payable on the taxable income for the
year using tax rates enacted or substantively enacted at the reporting
date and any adjustment to tax payable in respect of previous years.
Deferred income tax is provided, using the balance sheet liability
method, on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax is determined using tax rates based on legislation
enacted or substantively enacted at the reporting date and is expected
to apply when the deferred tax asset is realised or the deferred tax
liability is settled. Deferred income tax assets are recognised when it is
probable that future taxable profits will be available against which the
temporary differences will be utilised. The deferred tax asset is
reviewed at the end of each reporting period and the carrying amount
will reflect the extent that it is probable that sufficient taxable profits will
be available to allow all of the asset to be recovered.
The tax effects of income tax losses available for carry forward are
recognised as an asset to the extent that it is probable that future taxable
profits will be available against which these losses can be utilised.
Deferred and current tax assets and liabilities are only offset when they
arise in the same tax reporting group and where there is both the legal
right and the intention to settle the current tax assets and liabilities on a
net basis or to realise the asset and settle the liability simultaneously.
The principal temporary differences arise from the depreciation of
property, plant and equipment, revaluation of certain financial assets
and financial liabilities including derivative contracts, provisions for
pensions and other post-retirement benefits, and in relation to
acquisitions, on the difference between the fair values of the net assets
acquired and their tax base.
Deferred income tax is provided on temporary differences arising from
investments in subsidiaries and associates, except where the timing of
the reversal of the temporary difference is controlled by the Group and
it is probable that the difference will not reverse in the foreseeable
future. In addition, temporary differences are not provided for assets
and liabilities the initial recognition of which, in a transaction that is not
a business combination, affects neither accounting nor taxable profit.
Income tax payable on profits arising from investments in subsidiaries
and associates, based on the applicable tax law in each jurisdiction, is
recognised as an expense in the period in which the profits arise.
The Group adopted the amendments to IAS 12 by the IASB
(International Tax Reform – Pillar Two Model Rules) in 2023. The
amendments provide a mandatory temporary exception from the
requirement to recognise and disclose deferred taxes arising from
enacted or substantively enacted tax law that implements the Pillar
Two model rules. Accordingly, the Group has not recognised any
changes to its deferred tax assets or liabilities in respect of Pillar Two.
(j) Financial assets – Notes 7, 8, 15, 17, 18, 19, 21, 25 and 42
Recognition and initial measurement
The Group initially recognises financial assets on the trade date, being
the date on which the Group commits to purchase the assets. Loan
assets are recognised when cash is advanced to borrowers. In a
situation where the Group commits to purchase financial assets under
a contract which is not considered a regular-way transaction, the assets
to be acquired are not recognised until the acquisition contract is
settled. In this case, the contract to acquire the financial asset is a
derivative that is measured at FVTPL in the period between the trade
date and the settlement date.
Financial assets measured at amortised cost or at fair value through
other comprehensive income (‘FVOCI’) are recognised initially at fair
value adjusted for direct and incremental transaction costs. Financial
assets measured at fair value through profit or loss (‘FVTPL’) are
recognised initially at fair value and transaction costs are taken directly
to the income statement.
Derivatives are measured initially at fair value on the date on which the
derivative contract is entered into. The best evidence of the fair value of
a derivative at initial recognition is the transaction price (i.e. the fair value
of the consideration given or received) unless the fair value of that
instrument is evidenced by comparison with other observable current
market transactions in the same instrument (i.e. without modification or
repackaging) or based on a valuation technique whose variables include
only data from observable markets. Profits or losses are only recognised
on the initial recognition of derivatives when there are observable current
market transactions or valuation techniques that are based on
observable market inputs.
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Notes to the Consolidated Financial Statements continued
1 Accounting policies continued
(j) Financial assets continued
Classification and subsequent measurement
On initial recognition, a financial asset is classified and subsequently
measured at amortised cost, FVOCI or FVTPL.
The classification and subsequent measurement of financial assets
depend on:
• The Group’s business model for managing the asset; and
• The cash flow characteristics of the asset (for assets in a
‘hold-to-collect’ or ‘hold-to-collect-and-sell’ business model).
Based on these factors, the Group classifies its financial assets into
one of the following categories:
– Amortised cost
Assets that have not been designated as at FVTPL, and are held within
a ‘hold-to-collect’ business model whose objective is to hold assets to
collect contractual cash flows; and whose contractual terms give rise on
specified dates to cash flows that are solely payments of principal and
interest (‘SPPI’). The carrying amount of these assets is calculated
using the effective interest rate method and is adjusted on each
measurement date by the expected credit loss allowance for each
asset, with movements recognised in profit or loss.
– Fair value through other comprehensive income (‘FVOCI’)
Assets that have not been designated as at FVTPL, and are held within
a ‘hold-to-collect-and-sell’ business model whose objective is achieved
by both collecting contractual cash flows and selling financial assets;
and whose contractual terms give rise on specified dates to cash flows
that are SPPI. Movements in the carrying amount of these assets are
taken through other comprehensive income (‘OCI’), except for the
recognition of credit impairment gains or losses, interest revenue or
foreign exchange gains and losses, which are recognised in profit or
loss. When a financial asset is derecognised, the cumulative gain or
loss previously recognised in OCI is reclassified from equity to profit or
loss other than in the case of equity instruments designated at FVOCI.
– Fair value through profit or loss (‘FVTPL’)
Financial assets that do not meet the criteria for amortised cost or
FVOCI are measured at FVTPL. Gains or losses (excluding interest
income or expense) on such assets are recognised in profit or loss on
an ongoing basis.
In addition, the Group may irrevocably designate a financial asset as at
FVTPL that otherwise meets the requirements to be measured at
amortised cost or at FVOCI if doing so eliminates or significantly
reduces an accounting mismatch that would otherwise arise.
Business model assessment
The Group makes an assessment of the objective of the business
model at a portfolio level, as this reflects how portfolios of assets are
managed to achieve a particular objective, rather than management’s
intentions for individual assets.
The assessment considers the following:
• The strategy for the portfolio as communicated by management;
• How the performance of the portfolio is evaluated and reported to
senior management;
• The risks that impact the performance of the business model, and
how those risks are managed;
• How managers of the business are compensated (i.e. based on fair
value of assets managed or on the contractual cash flows collected);
and
• The frequency, value and timing of sales in prior periods, reasons for
those sales, and expectations of future sales activity.
Financial assets that are held for trading or managed within a business
model that is evaluated on a fair value basis are measured at FVTPL
because the business objective is neither hold-to-collect contractual
cash flows nor hold-to-collect-and-sell contractual cash flows.
Characteristics of the contractual cash flows
An assessment (‘SPPI test’) is performed on all financial assets at
origination that are held within a ‘hold-to-collect’ or ‘hold-to-collect-and-
sell’ business model to determine whether the contractual terms of the
financial assets give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal outstanding.
For the purposes of this assessment, ‘principal’ is defined as the fair
value of the financial asset at initial recognition. ‘Interest’ is defined as
consideration for the time value of money, for the credit risk associated
with the principal amount outstanding, for other basic lending risks and
costs (i.e. liquidity, administrative costs) and profit margin.
The SPPI test requires an assessment of the contractual terms and
conditions to determine whether a financial asset contains any terms
that could modify the timing or amount of contractual cash flows of the
asset, to the extent that they could not be described as solely payments
of principal and interest. In making this assessment, the Group considers:
• Features that modify the time value of money element of interest
(e.g. tenor of the interest rate does not correspond with the
frequency within which it resets);
• Terms providing for prepayment and extension;
• Leverage features;
• Contingent events that could change the amount and timing of
cash flows;
• Terms that limit the Group’s claim to cash flows from specified
assets; and
• Contractually linked instruments.
Contractual terms that introduce exposure to risks or volatility in the
contractual cash flows that are unrelated to a basic lending
arrangement do not give rise to contractual cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Investments in equity instruments
Equity instruments are classified and measured at FVTPL with gains
and losses reflected in profit or loss.
(k) Financial liabilities and equity – Notes 15, 28, 29, 30, 32, 33 and 42
The Group categorises financial liabilities as at amortised cost or as at
FVTPL.
The Group recognises a financial liability when it becomes party to the
contractual provisions of the contract.
Issued financial instruments or their components are classified as
liabilities where the substance of the contractual arrangement results in
the Group having a present obligation to either deliver cash or another
financial asset to the holder, to exchange financial instruments on terms
that are potentially unfavourable or to satisfy the obligation otherwise
than by the exchange of a fixed amount of cash or another financial
asset for a fixed number of equity shares.
Financial liabilities are initially recognised at fair value, being their issue
proceeds (fair value of consideration received), net of transaction costs
incurred. Financial liabilities are subsequently measured at amortised
cost, with any difference between the proceeds net of transaction costs
and the redemption value recognised in the income statement using the
effective interest rate method.
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1 Accounting policies continued
(k) Financial liabilities and equity continued
Where financial liabilities are classified as trading they are also initially
recognised at fair value with the related transaction costs taken directly
to the income statement. Gains and losses arising from subsequent
changes in fair value are recognised directly in the income statement
within net trading income.
Issued financial instruments are classified as equity when the Group
has no contractual obligation to transfer cash, or other financial assets
or to issue a variable number of its own equity instruments. Incremental
costs directly attributable to the issue of equity instruments are shown
as a deduction from the proceeds of issue, net of tax.
On the extinguishment of equity instruments, gains or losses arising are
recognised net of tax directly in the statement of changes in equity.
(l) Leases – Notes 24 and 31
The Group applies a single recognition and measurement approach for
all leases, except for short-term leases of 12 months or less or leases of
low-value assets (i.e. the value of the underlying asset, when new, is
less than € 5,000/£ 5,000). The Group recognises lease liabilities that
represent the present value of lease payments to be made over the
lease term and right-of-use assets representing the right to use the
underlying assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of
the lease (i.e., the date the underlying asset is available for use). Right-
of-use assets are measured at cost, less any accumulated depreciation
and impairment losses, and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and lease payments
made at or before the commencement date less any lease incentives
received. Right-of-use assets are depreciated on a straight-line basis
over the lease term.
Lease liabilities
At the commencement date of the lease, the Group recognises lease
liabilities measured at the present value of lease payments to be made
over the lease term. The lease payments include fixed payments (less
any lease incentives receivable), variable lease payments that depend
on an index or a rate, and amounts expected to be paid under residual
value guarantees. The lease payments also include the exercise price
of a purchase option reasonably certain to be exercised by the Group
and payments of penalties for terminating the lease, if the lease term
reflects exercising the option to terminate. Variable lease payments that
do not depend on an index or a rate are recognised as expenses in the
period in which the event or condition that triggers the payment occurs.
(m) Determination of fair value of financial instruments – Note 43
The fair value of a financial instrument is the price that would be
received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date in
the principal market, or in its absence, the most advantageous market
to which the Group has access at that date. The Group considers the
impact of non-performance risk when valuing its financial liabilities.
Financial instruments are initially recognised at fair value and, with the
exception of financial assets at fair value through profit or loss, the
initial carrying amount is adjusted for direct and incremental transaction
costs. In the normal course of business, the fair value on initial
recognition is the transaction price (fair value of consideration given or
received). If the Group determines that the fair value at initial
recognition differs from the transaction price and the fair value is
determined by a quoted price in an active market for the same financial
instrument, or by a valuation technique which uses only observable
market inputs, the difference between the fair value at initial recognition
and the transaction price is recognised as a gain or loss. If the fair
value is calculated by a valuation technique that features significant
market inputs that are not observable, the difference between the fair
value at initial recognition and the transaction price is deferred.
Subsequently, the difference is recognised in the income statement on
an appropriate basis over the life of the financial instrument, but no
later than when the valuation is supported by wholly observable inputs;
the transaction matures; or is closed out.
Subsequent to initial recognition, the methods used to determine the
fair value of financial instruments include quoted prices in active
markets where those prices are considered to represent actual and
regularly occurring market transactions. Where quoted prices are not
available or are unreliable because of market inactivity, fair values are
determined using valuation techniques.
Quoted prices in active markets
Quoted market prices are used where those prices are considered to
represent actual and regularly occurring market transactions for
financial instruments in active markets.
Valuations for negotiable instruments such as debt and equity securities
are determined using bid prices for asset positions and ask prices for
liability positions.
Where securities are traded on an exchange, the fair value is based on
prices from the exchange. The market for debt securities largely
operates on an ‘over-the-counter’ basis which means that there is not
an official clearing or exchange price for these security instruments.
Therefore, market makers and/or investment banks (‘contributors’)
publish bid and ask levels which reflect an indicative price that they are
prepared to buy and sell a particular security. The Group’s valuation
policy requires that the prices used in determining the fair value of
securities quoted in active markets must be sourced from established
market makers and/or investment banks.
Valuation techniques
In the absence of quoted market prices, and in the case of over-the-
counter derivatives, fair value is calculated using valuation techniques.
These valuation techniques maximise the use of relevant observable
inputs and minimise the use of unobservable inputs. The valuation
techniques used incorporate the factors that market participants would
take into account in pricing a transaction. Valuation techniques include
the use of recent orderly transactions between market participants,
reference to other similar instruments, option pricing models,
discounted cash flow analysis and other valuation techniques
commonly used by market participants.
Fair value may be estimated using quoted market prices for similar
instruments, adjusted for differences between the quoted instrument
and the instrument being valued. Where the fair value is calculated
using discounted cash flow analysis, the methodology is to use, to the
greatest extent possible, market data that is either directly observable
or is implied from instrument prices, such as interest rate yield curves,
equities and commodities prices, credit spreads, option volatilities and
currency rates. In addition, the Group considers the impact of own
credit risk and counterparty risk when valuing its derivative liabilities.
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Notes to the Consolidated Financial Statements continued
1 Accounting policies continued
(m) Determination of fair value of financial instruments continued
The valuation methodology is to calculate the expected cash flows
under the terms of each specific contract and then discount these
values back to a present value. The assumptions involved in these
valuation techniques include:
• The likelihood and expected timing of future cash flows of the
instrument. These cash flows are generally governed by the terms of
the instrument, although management judgement may be required
when the ability of the counterparty to service the instrument in
accordance with the contractual terms is in doubt. In addition, future
cash flows may also be sensitive to the occurrence of future events,
including changes in market rates; and
• Selecting an appropriate discount rate for the instrument, based on
the interest rate yield curves including the determination of an
appropriate spread for the instrument over the risk-free rate. The
spread is adjusted to take into account the specific credit risk profile
of the exposure.
All adjustments in the calculation of the present value of future cash
flows are based on factors market participants would take into account
in pricing the financial instrument. Certain financial instruments
(both assets and liabilities) may be valued on the basis of valuation
techniques that feature one or more significant market inputs that are
not observable. When applying a valuation technique with
unobservable data, estimates are made to reflect uncertainties in fair
values resulting from a lack of market data, for example, as a result of
illiquidity in the market. For these instruments, the fair value
measurement is less reliable. Inputs into valuations based on non-
observable data are inherently uncertain because there is little or no
current market data available from which to determine the price at
which an orderly transaction between market participants would occur
under current market conditions. However, in most cases there is some
market data available on which to base a determination of fair value, for
example historical data, and the fair values of most financial
instruments will be based on some market observable inputs even
where the non-observable inputs are significant. All unobservable
inputs used in valuation techniques reflect the assumptions market
participants would use when fair valuing the financial instrument.
The Group tests the outputs of the valuation model to ensure that it
reflects current market conditions. The calculation of fair value for any
financial instrument may require adjustment of the quoted price or the
valuation technique output to reflect the cost of credit risk and the
liquidity of the market, if market participants would include one, where
these are not embedded in underlying valuation techniques or prices
used.The choice of contributors, the quality of market data used for
pricing and the valuation techniques used are all subject to internal
review and approval procedures.
(n) Sale and repurchase agreements (including securities
borrowing and lending) – Notes 19 and 41
Financial assets may be lent or sold subject to a commitment to
repurchase them (‘repos’). Such securities are retained on the
statement of financial position when substantially all the risks and
rewards of ownership remain with the Group. The liability to the
counterparty is included separately on the statement of financial
position. Similarly, when securities are purchased subject to a
commitment to resell (‘reverse repos’), or where the Group borrows
securities, but does not acquire the risks and rewards of ownership,
the transactions are treated as collateralised loans, and the securities
are not usually included in the statement of financial position. The
exception to this is where these are sold to third parties, at which point
the obligation to repurchase the securities is recorded as a trading
liability at fair value and any subsequent gain or loss included in trading
income. The difference between the sale and repurchase price is
accrued over the life of the agreements using the effective interest rate
method. Securities lent to counterparties are also retained in the
financial statements.
(o) Derivatives and hedge accounting – Note 16
Derivatives, such as interest rate swaps, options and forward rate
agreements, futures, currency swaps and options, credit and equity
derivatives are used for trading purposes whereas interest rate swaps,
currency swaps, cross currency interest rate swaps and credit
derivatives are used for hedge accounting purposes.
The Group maintains trading positions in a variety of financial
instruments including derivatives. Trading transactions arise both as a
result of activity generated by customers and from proprietary trading
with a view to generating incremental income.
Non-trading derivative transactions comprise transactions held for
hedging purposes as part of the Group’s risk management strategy
against assets, liabilities, positions and cash flows.
Derivatives are measured initially at fair value on the date on which the
derivative contract is entered into and subsequently remeasured at fair
value. Fair values are obtained from quoted market prices in active
markets, including recent market transactions, and from valuation
techniques using discounted cash flow models and option pricing
models as appropriate. Derivatives are included in assets when their
fair value is positive, and in liabilities when their fair value is negative,
unless there is the legal ability and intention to settle an asset and
liability on a net basis.
The best evidence of the fair value of a derivative at initial recognition is
the transaction price (i.e. the fair value of the consideration given or
received) unless the fair value of that instrument is evidenced by
comparison with other observable current market transactions in the
same instrument (i.e. without modification or repackaging) or based on
a valuation technique whose variables include only data from
observable markets.
Profits or losses are only recognised on initial recognition of derivatives
when there are observable current market transactions or valuation
techniques that are based on observable market inputs.
Hedging
The Group avails of the hedge accounting requirements of IAS 39
Financial Instruments: Recognition and Measurement ('IAS 39') as
adopted by the EU, until portfolio hedge accounting is addressed by the
IASB, as permitted as an accounting policy choice under IFRS 9.
All derivatives are carried at fair value and the accounting treatment of
the resulting fair value gain or loss depends on whether the derivative
is designated as a hedging instrument, and if so, the nature of the item
being hedged. Where derivatives are held for risk management
purposes, and where transactions meet the criteria specified in IAS 39,
the Group designates certain derivatives as either:
• Hedges of the fair value of recognised assets or liabilities or firm
commitments (‘fair value hedge’); or
• Hedges of the exposure to variability of cash flows attributable to a
recognised asset or liability, or a highly probable forecasted
Transaction (‘cash flow hedge’); or
• Hedges of a net investment in a foreign operation.
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1 Accounting policies continued
(o) Derivatives and hedge accounting continued
When a financial instrument is designated as a hedge, the Group
formally documents the relationship between the hedging instrument
and hedged item as well as its risk management objectives and its
strategy for undertaking the various hedging transactions. The Group
also documents its assessment, both at hedge inception and on an
ongoing basis, of whether the derivatives that are used in hedging
transactions are highly effective in offsetting changes in fair values or
cash flows of the hedged items.
The Group discontinues hedge accounting when:
(a) it is determined that a derivative is not, or has ceased to be, highly
effective as a hedge;
(b) the derivative expires, or is sold, terminated, or exercised;
(c) the hedged item matures or is sold or repaid; or
(d) a forecast transaction is no longer deemed highly probable.
To the extent that the changes in the fair value of the hedging derivative
differ from changes in the fair value of the hedged risk in the hedged
item, or the cumulative change in the fair value of the hedging derivative
differs from the cumulative change in the fair value of expected future
cash flows of the hedged item, ineffectiveness arises. The amount of
ineffectiveness, taking into account the timing of the expected cash flows
where relevant, provided that it is not so great as to disqualify the entire
hedge for hedge accounting, is recorded in the income statement.
In certain circumstances, the Group may decide to cease hedge
accounting even though the hedge relationship continues to be highly
effective by no longer designating the financial instrument as a hedge.
Fair value hedge accounting
Changes in fair value of derivatives that qualify and are designated as
fair value hedges are recorded in the income statement, together with
changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk.
For micro fair value hedges, the hedge adjustment is presented as an
adjustment to the carrying amount of the hedged item. For portfolio fair
value hedges, the aggregated fair value changes in the portfolio of
hedged items are recognised in a single separate line item within
liabilities when the hedged portfolio consists of liabilities, or within
assets when the hedged portfolio consists of assets.
If the hedge no longer meets the criteria for hedge accounting, the fair
value hedging adjustment, for items carried at amortised cost, is
amortised to profit or loss using the effective interest rate method over
the remaining maturity of the hedged item for micro hedges, and on a
straight-line basis over the relevant repricing period for macro hedges.
For debt securities measured at FVOCI, the fair value adjustment for
hedged items is recognised in the income statement using the effective
interest rate method.
When a hedged item held at amortised cost that is designated in a
micro fair value hedge or included in the repricing time-period of a
portfolio hedge is derecognised, the unamortised fair value adjustment
is recognised immediately in the income statement.
Cash flow hedge accounting
The Group enters into portfolio cash flow hedges. The effective portion
of changes in the fair value of derivatives that are designated and
qualify as cash flow hedges is initially recognised directly in other
comprehensive income and included in the cash flow hedging reserve
in the statement of changes in equity. The amount recognised in other
comprehensive income is reclassed to profit or loss as a reclassification
adjustment in the same period as the hedged cash flows affect profit or
loss, and in the same line item in the statement of comprehensive
income. Any ineffective portion of the gain or loss on the hedging
instrument is recognised in the income statement immediately.
When a hedging instrument expires or is sold, or when a hedge no
longer meets the criteria for hedge accounting, any cumulative gain or
loss recognised in other comprehensive income from the time when the
hedge was effective remains in equity and is reclassified to the income
statement as a reclassification adjustment as the forecast transaction
affects profit or loss. When a forecast transaction is no longer expected
to occur, the cumulative gain or loss that was recognised in other
comprehensive income from the period when the hedge was effective is
reclassified to the income statement.
Net investment hedge
Hedges of net investments in foreign operations, including monetary
items that are accounted for as part of the net investment, are
accounted for similarly to cash flow hedges. The effective portion of the
gain or loss on the hedging instrument is recognised in other
comprehensive income and the ineffective portion is recognised
immediately in the income statement. The cumulative gain or loss
previously recognised in other comprehensive income is recognised in
the income statement on the disposal or partial disposal of the foreign
operation. Hedges of net investments may include non-derivative
liabilities as well as derivative financial instruments.
Derivatives that do not qualify for hedge accounting
Certain derivative contracts entered into as economic hedges do not
qualify for hedge accounting and are classified as trading derivatives.
Changes in the fair value of these derivative instruments are recognised
immediately in the income statement.
(p) Derecognition
Financial assets
The Group derecognises a financial asset when the contractual rights
to the cash flows from the financial asset expire or it transfers the rights
to receive the contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership of the financial
asset are transferred or in which the Group neither transfers nor retains
substantially all of the risks and rewards of ownership and it does not
retain control of the financial asset.
On derecognition of a financial asset, the difference between the
carrying amount of the asset and the sum of (i) the consideration
received (including any new asset obtained less any new liability
assumed) and (ii) any cumulative gain or loss that had been recognised
in OCI is recognised in profit or loss. Relevant costs incurred with the
disposal of a financial asset are deducted in computing the gain or loss
on disposal.
Any interest in transferred financial assets that qualify for derecognition,
that is created or retained by the Group, is recognised as a separate asset
or liability.
The Group enters into transactions whereby it transfers assets
recognised on its statement of financial position, but retains either all or
substantially all of the risks and rewards of the transferred assets or a
portion of them. In such cases, the transferred assets are not
derecognised. Examples of such transactions are securities sold under
agreements to repurchase.
In transactions in which the Group neither retains nor transfers
substantially all of the risks and rewards of ownership of a financial
asset and it retains control over the asset, the Group continues to
recognise the asset to the extent of its continuing involvement,
determined by the extent to which it is exposed to changes in the value
of the transferred asset.
In certain transactions, the Group retains the obligation to service the
transferred financial asset for a fee. The transferred asset is
derecognised if it meets the derecognition criteria. An asset or liability is
recognised for the servicing contract if the servicing fee is more than
adequate or is less than adequate for performing the servicing.
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Notes to the Consolidated Financial Statements continued
1 Accounting policies continued
(p) Derecognition continued
The write-off of a financial asset constitutes a derecognition event.
Where a financial asset is partially written-off, and the portion written-off
comprises specifically identified cash flows, this will constitute a
derecognition event for that part written-off.
Financial liabilities
The Group derecognises a financial liability when its contractual
obligations are discharged, cancelled or expired. Any gain or loss on
the extinguishment or remeasurement of a financial liability is
recognised in profit or loss.
(q) Impairment of financial assets – Notes 11, 20 and 34
The Group recognises loss allowances for expected credit losses at
each balance sheet date for the following financial instruments that are
not measured at FVTPL:
• Financial assets at amortised cost;
• Financial assets at FVOCI (except for equity instruments);
• Lease receivables;
• Financial guarantee contracts issued; and
• Loan commitments issued.
Investments in equity instruments are recognised at fair value and
accordingly, expected credit losses (‘ECLs’) are not recognised
separately for equity instruments.
ECLs are the weighted average of credit losses. When measuring
ECLs, the Group takes into account:
• Probability-weighted outcomes;
• The time value of money so that ECLs are discounted to the
reporting date; and
• Reasonable and supportable information that is available without
undue cost or effort at the reporting date about past events, current
conditions and forecasts of future economic conditions.
The amount of ECLs recognised as a loss allowance depends on the
extent of credit deterioration since initial recognition. There are two
measurement bases:
• 12-month ECLs (Stage 1), which applies to all items as long as there
is no significant deterioration in credit quality since initial recognition;
and
• Lifetime ECLs (Stages 2 and 3), which applies when a significant
increase in credit risk has occurred on an individual or collective basis.
The 12 month ECL is the portion of lifetime expected credit losses that
represent the expected credit losses that result from default events on
a financial instrument that are possible within the 12 months after the
reporting date. Lifetime ECL is the expected credit losses that result from
all possible default events over the expected life of a financial instrument.
In the case of Stage 2, credit risk on the financial instrument has
increased significantly since initial recognition but the instrument is not
considered credit impaired. For a financial instrument in Stage 3, credit
risk has increased significantly since initial recognition and the
instrument is considered credit impaired.
Financial assets are allocated to stages dependent on credit quality
relative to when the asset was originated.
A financial asset can only originate in either Stage 1 or as purchased or
originated credit impaired (‘POCI’). The ECL held against an asset
depends on a number of factors, one of which is its stage allocation. Assets
allocated to Stage 2 and Stage 3 have lifetime ECLs. Collateral and other
credit enhancements are not considered as part of stage allocation.
Collateral is reflected in the Group’s loss given default models (‘LGD’).
Purchased or originated credit impaired
POCI financial assets are those that are credit-impaired on initial
recognition. The Group may originate a credit-impaired financial asset
following a substantial modification of a distressed financial asset that
resulted in derecognition of the original financial asset.
POCIs are financial assets originated credit impaired that have a
discount to the contractual value when measured at fair value. The
Group uses an appropriate discount rate for measuring ECL in the case
of POCIs which is the credit-adjusted EIR. This rate is used to discount
the expected cash flows of such assets to fair value on initial recognition.
POCIs remain outside of the normal stage allocation process for the
lifetime of the obligation. The ECL for POCIs is always measured at
an amount equal to lifetime expected credit losses. The amount
recognised as a loss allowance for these assets is the cumulative
changes in lifetime expected credit losses since the initial recognition
of the assets rather than the total amount of lifetime expected
credit losses.
At each reporting date, the Group recognises the amount of the change
in lifetime expected credit losses as a credit impairment gain or loss in
the income statement. Favourable changes in lifetime expected credit
losses are recognised as a credit impairment gain, even if the
favourable changes exceed the amount previously recognised in profit
or loss as a credit impairment loss.
Modification
From time to time, the Group will modify the original terms of a
customer’s loan either as part of the ongoing relationship or arising
from changes in the customer’s circumstances such as when that
customer is unable to make the agreed original contractual
repayments.
A modification refers to either:
• A change to the previous terms and conditions of a debt contract; or
• A total or partial refinancing of a debt contract.
Modifications may occur for both customers in distress and for those not
in distress. Any financial asset that undergoes a change or renegotiation
of cash flows and is not derecognised is a modified financial asset.
When modification does not result in derecognition, the modified assets
are treated as the same continuous lending agreement and a
modification gain or loss is taken to profit or loss immediately. The
gross carrying amount of the financial asset is recalculated as the
present value of the renegotiated or modified contractual cash flows
discounted at the financial asset’s original effective interest rate. Any
costs or fees incurred adjust the carrying amount of the modified
financial asset and are amortised over the remaining term of the
modified financial asset.
The stage allocation for modified assets which are not derecognised is by
reference to the credit risk at initial recognition of the original, unmodified
contractual terms i.e. the date of initial recognition is not reset.
Where renegotiation of the terms of a financial asset leads to
a customer granting equity to the Group in exchange for any loan
balance outstanding, the new instrument is recognised at fair value
with any difference to the loan carrying amount recognised in the
income statement.
Derecognition occurs if a modification or restructure is substantial on
a qualitative or quantitative basis. Accordingly, certain forborne assets
are derecognised. The modified/restructured asset (derecognised
forborne asset (‘DFA’)) is considered a ‘new financial instrument’
and the date that the new asset is recognised is the date of initial
recognition from this point forward. DFAs are allocated to Stage 1
on origination and follow the normal staging process thereafter.
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1 Accounting policies continued
(q) Impairment of financial assets continued
If there is evidence of credit impairment at the time of initial recognition
of a DFA, the asset is deemed to be a POCI. POCIs are not allocated
to stages but are assigned a lifetime PD and ECL for the duration of the
obligation’s life. Where the modification/restructure of a non-forborne
credit obligation results in derecognition, the new loan is originated in
Stage 1 and follows the normal staging process thereafter.
Collateralised financial assets – Repossessions
The ECL calculation for a collateralised financial asset reflects the cash
flows that may result from foreclosure, costs for obtaining and settling
the collateral, and whether or not foreclosure is probable.
For loans that are credit impaired, the Group may repossess collateral
previously pledged as security in order to achieve an orderly realisation
of the loan. The Group will then offer this repossessed collateral for sale.
However, if the Group believes the proceeds of the sale will comprise
only part of the recoverable amount of the loan with the customer
remaining liable for any outstanding balance, the loan continues to be
recognised and the repossessed asset is not recognised. However, if
the Group believes that the sale proceeds of the asset will comprise all
or substantially all of the recoverable amount of the loan, the loan is
derecognised and the acquired asset is accounted for in accordance
with the applicable accounting standard. Any further impairment of the
repossessed asset is treated as an impairment of that asset and not as
a credit impairment of the original loan.
Financial assets at FVOCI
The ECL allowance for financial assets measured at FVOCI does not
reduce the carrying amount in the statement of financial position
because the carrying amount of these assets is fair value. However, an
amount equal to the ECL allowance that would arise if the assets were
measured at amortised cost is recognised in other comprehensive
income (‘OCI’) as an accumulated credit impairment amount, with a
corresponding charge to profit or loss. The accumulated loss
recognised in OCI is recycled to the profit or loss upon derecognition of
the assets (together with other accumulated gains and losses in OCI).
Write-offs and debt forgiveness
The Group reduces the gross carrying amount of a financial asset
either partially or fully when there is no reasonable expectation
of recovery.
Where there is no formal debt forgiveness agreed with the customer,
the Group may write off a loan either partially or fully when there is no
reasonable expectation of recovery. This is considered a non-
contracted write-off. In this case, the borrower remains fully liable for
the credit obligation and is not advised of the write-off.
Once a financial asset is written-off either partially or fully, the amount
written-off cannot subsequently be recognised on the balance sheet. It
is only when cash is received in relation to the amount written-off that
income is recognised in the income statement as a ‘recovery of bad
debt previously written-off.
Debt forgiveness arises where there is a formal contract agreed with
the customer for the write-off of a loan.
(r) Collateral and netting
The Group enters into master netting agreements with counterparties,
to ensure that if an event of default occurs, all amounts outstanding
with those counterparties will be settled on a net basis.
Collateral
The Group obtains collateral in respect of customer advances where
this is considered appropriate. The collateral normally takes the form of
a lien over the customer’s assets and gives the Group a claim on these
assets for both existing and future customer liabilities. The collateral is,
in general, not recorded on the statement of financial position.
The Group also receives collateral in the form of cash or securities in
respect of other credit instruments, such as securities borrowing contracts
and derivative contracts in order to reduce credit risk. Collateral received in
the form of securities is not recorded on the statement of financial position.
Collateral received in the form of cash is recorded on the statement of
financial position with a corresponding liability. Therefore, in the case of
cash collateral, these amounts are assigned to deposits received from
banks or other counterparties. Any interest payable or receivable arising is
recorded as interest expense or interest income respectively.
In certain circumstances, the Group will pledge collateral in respect of
its own liabilities or borrowings. Collateral pledged in the form of
securities or loans and advances continues to be recorded on the
statement of financial position. Collateral paid away in the form of cash
is recorded in loans and advances to banks or customers. Any interest
payable or receivable arising is recorded as interest expense or interest
income respectively.
Netting
Financial assets and financial liabilities are offset and the net amount
reported on the statement of financial position if, and only if, there is a
currently enforceable legal right to set off the recognised amounts and
there is an intention to settle on a net basis, or to realise the asset and
settle the liability simultaneously. This is not generally the case with
master netting agreements, therefore, the related assets and liabilities
are presented gross on the statement of financial position.
(s) Financial guarantees and loan commitment contracts – Note 39
Financial guarantees provided by the Group
Financial guarantees are given to banks, financial institutions and other
bodies on behalf of customers to secure loans, overdrafts and other
banking facilities (‘facility guarantees’) and to other parties in
connection with the performance of customers under obligations
relating to contracts, advance payments made by other parties,
tenders, retentions and the payment of import duties. In its normal
course of business, Allied Irish Banks, p.l.c. (the principal operating
company) may issue financial guarantees to other Group entities.
A loan commitment is a contract with a borrower to provide a loan or
credit on specified terms at a future date. The contract may or may not
be cancelled unconditionally at any time without notice depending on
the terms of the contract.
The origination date for financial guarantees and loan commitment
contracts is the date when the contracts become irrevocable. The credit
risk at this date is used to determine if a significant increase in credit
risk has subsequently occurred.
Financial guarantees and loan commitments are initially recognised
in the financial statements at fair value on the date that the guarantee
is given. Subsequent to initial recognition, the Group applies the
impairment provisions of IFRS 9 and calculates an ECL allowance for
financial guarantees and loan commitment contracts (i.e. those that are
not measured at FVTPL).
The ECL allowance calculated on financial guarantees and loan
commitment contracts is reported within Provisions for liabilities
and commitments.
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Notes to the Consolidated Financial Statements continued
1 Accounting policies continued
(s) Financial guarantees and loan commitment contracts
continued
Financial guarantees purchased by the Group
The Group enters into financial guarantee contracts which require the
counter-party to the contract to reimburse the Group for a loss it incurs
when the credit risk of the borrower significantly deteriorates. The
Group enters into financial guarantee contracts which require the
counter-party to the contract to reimburse the Group for a loss it incurs
when the credit risk of the borrower significantly deteriorates. This is
settled periodically by reducing the liability associated with the credit
linked notes.The reimbursement asset is settled periodically by
reducing the liability associated with the credit linked notes.
(t) Property, plant and equipment – Note 24
Property, plant and equipment are stated at cost, or deemed cost,
less accumulated depreciation and provisions for impairment, if any.
Additions and subsequent expenditures are capitalised only to the
extent that they enhance the future economic benefits expected to be
derived from the asset. No depreciation is provided on freehold land.
Property, plant and equipment are depreciated on a straight line basis
over their estimated useful economic lives. Depreciation is calculated
based on the gross carrying amount, less the estimated residual value
at the end of the assets’ economic lives.
The Group uses the following useful lives when calculating depreciation:
Asset type
Useful life
Freehold buildings and long-leasehold
property
50 years
Short leasehold property
life of lease, up to 50 years
Costs of adaptation of freehold and
leasehold property
Branch properties
up to 10 years1
Office properties
up to 15 years1
Computers and similar equipment
3 – 7 years
Fixtures and fittings and other equipment 5 – 10 years
1. Subject to the maximum remaining life of the lease.
The Group depreciates right-of-use assets arising under lease
obligations from the commencement date of a lease to the earlier of the
end of the useful life of the right-of-use asset and the end of the lease
term on a straight line basis.
The Group reviews its depreciation rates, at least annually, to take
account of any change in circumstances. When deciding on useful lives
and methods, the principal factors that the Group takes into account
are the expected rate of technological developments and expected
market requirements for, and the expected pattern of usage of, the
assets. When reviewing residual values, the Group estimates the
amount that it would currently obtain for the disposal of the asset, after
deducting the estimated cost of disposal if the asset was already of the
age and condition expected at the end of its useful life.
Gains and losses on disposal of property, plant and equipment are
included in the income statement. It is Group policy not to revalue its
property, plant and equipment.
(u) Intangible assets – Note 23
Computer software and other intangible assets
Computer software and other intangible assets are stated at cost,
less amortisation on a straight line basis and provisions for impairment,
if any. The identifiable and directly associated external and internal
costs of acquiring and developing software are capitalised where the
software is controlled by the Group, and where it is probable that future
economic benefits that exceed its cost will flow from its use over more
than one year. Costs associated with maintaining software are
recognised as an expense when incurred. Capitalised computer
software is amortised over 3 to 9 years. Other intangible assets are
amortised over the life of the asset. Computer software and other
intangible assets are reviewed for impairment when there is an
indication that the asset may be impaired. Intangible assets not yet
available for use are reviewed for impairment on an annual basis.
Acquired intangible assets
Customer related intangible assets and brands acquired in a business
combination are recognised at fair value at acquisition date.
Customer related intangible assets and brands have a finite useful life
and are carried at cost less accumulated amortisation and provision for
impairment, if any. Amortisation is calculated using the straight line
basis to allocate the cost over their estimated useful life (6 years).
(v) Non-credit risk provisions – Note 34
Provisions are recognised for present legal or constructive obligations
arising as consequences of past events where it is probable that a
transfer of economic benefit will be necessary to settle the obligation,
and it can be reliably estimated.
When the effect is material, provisions are determined by discounting
expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the
risks specific to the liability. Payments are deducted from the present
value of the provision, and interest at the relevant discount rate is
charged annually to interest expense using the effective interest rate
method. These are reported within ‘provisions for liabilities and
commitments’ in the statement of financial position.
(w) Share capital and reserves – Notes 35, 36, 37 and 50
Share capital
Share capital represents funds raised by issuing shares in return for
cash or other consideration. Share capital comprises ordinary shares of
the entity.
Dividends and distributions
Final dividends on ordinary shares are recognised as a liability in the
Group’s financial statements in the period in which they are approved
by the shareholders of the Company. Proposed dividends that are
declared after the end of the reporting date are not recognised as a
liability, they are disclosed in note 50.
Other equity interests
Other equity interests include:
• Additional Tier 1 Perpetual Contingent Temporary Write-down
Securities (AT1s) (note 36); and
• Warrants to acquire a fixed number of the company shares for
a fixed amount of currency are classified as equity instruments
and are recognised on initial recognition at the fair value of
consideration received.
Distributions on the AT1s are recognised in equity when approved for
payment by the Board of Directors.
Capital contributions
Capital contributions represent the receipt of non-refundable
considerations arising from transactions with the Irish Government
(note 46). These contributions comprise both financial and non-financial
net assets. The contributions are classified as equity and may be either
distributable or non-distributable. Capital contributions are distributable
if the assets received are in the form of cash or another asset that is
readily convertible to cash, otherwise, they are treated as non-
distributable. Capital contributions in the statement of financial position
arose during 2011 from (a) an EBS transaction and (b) non-refundable
receipts from the Irish Government and the National Pension Reserve
Fund Commission (‘NPRFC’).
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1 Accounting policies continued
(w) Share capital and reserves continued
The capital contribution from the EBS transaction is treated as
non-distributable as the related net assets received were largely
non-cash in nature.
Non-refundable receipts of € 6,054 million from the Irish Government
and the NPRFC are distributable. These are included in revenue
reserves.
Investment securities reserves
Investment securities reserves represent the net unrealised gain or
loss, net of tax, arising from the recognition in the statement of financial
position of investment securities at FVOCI.
On disposal of equity securities which had been designated at FVOCI
on initial recognition, any amounts held in the investment securities
reserves account is transferred directly to revenue reserves without
recycling through profit or loss.
Cash flow hedging reserves
Cash flow hedging reserves represent the net gains or losses, net of
tax, on effective cash flow hedging instruments that will be reclassified
to the income statement when the hedged transaction affects profit
or loss.
Revenue reserves
Revenue reserves include the following:
• Retained earnings of the parent company and its subsidiaries;
• The Group’s share of its joint venture and associated undertakings
post-acquisition profits or losses;
• Amounts transferred from issued share capital, share premium,
revaluation reserves and capital redemption reserves following Irish
High Court approval;
• Amounts arising from the capital reduction which followed the
‘Scheme of Arrangement’ undertaken by the Group in December 2017;
• Remeasurements of defined benefit pension schemes; and
• Transactions with owners including distributions and buybacks.
Merger reserve
The merger reserve arose following the Scheme of Arrangement
approved by the Irish High Court in December 2017 where a new
company, AIB Group plc (‘the Company’), was introduced as the
holding company of AIB Group (note 37).
In the consolidated financial statements of AIB Group plc, the carrying
value of the investment in Allied Irish Banks, p.l.c. by AIB Group plc
was eliminated against the share capital and share premium account
in Allied Irish Banks, p.l.c. and the merger reserve in AIB Group plc
resulting in a negative merger reserve.
(x) Cash and cash equivalents – Notes 44 and 45
For the purposes of the cash flow statement, cash comprises cash
on hand and demand deposits, and cash equivalents comprise highly
liquid investments that are convertible into cash with an insignificant
risk of changes in value and with a maturity of less than three months
from the date of acquisition.
(y) Adoption of new accounting standards and amendments to standards
The table below outlines the new standards and amendments to standards that have been adopted by the Group for the year ended
31 December 2024. The Group has not early adopted any standard or amendment that has been issued but is not yet effective.
Accounting standard update
Effective date
IFRS 16 Leases: Lease Liability in a Sale and Leaseback
Annual periods beginning on or after 1 January 2024.
Nature of change
Impact
Specifies the requirements that a seller-lessee uses in measuring the lease
liability arising in a sale and leaseback transaction, to ensure the seller-lessee
does not recognise any amount of the gain or loss that relates to the right of use
it retains.
The amendments had no impact on the Group’s financial statements.
Accounting standard update
Effective date
IAS 1 Presentation of Financial Statements: Classification of Liabilities as
Current or Non-current and Non-current Liabilities with Covenants
Annual periods beginning on or after 1 January 2024.
Impact
Nature of change
The amendments had no impact on the Group’s financial statements.
Clarifies the requirements on determining whether a liability is current or non-
current and requires additional disclosures when a liability arising from a loan
agreement is classified as non-current and the entity’s right to defer settlement
is contingent on compliance with future covenants within twelve months.
Accounting standard update
Effective date
IFRS 7 Financial Instruments: Disclosures (‘IFRS 7’) and IAS 7 Statement of
Cash Flows (‘IAS 7’): Disclosures: Supplier Finance Arrangements
Annual periods beginning on or after 1 January 2024.
Impact
Nature of change
The amendments had no impact on the Group’s financial statements.
Clarifies the characteristics of supplier finance arrangements with additional
disclosure requirements intended to assist users of financial statements in
understanding the effects of supplier finance arrangements on an entity’s
liabilities, cash flows and exposure to liquidity risk as they apply to entities that
enter into supplier finance arrangements with third parties.
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Notes to the Consolidated Financial Statements continued
1 Accounting policies continued
(z) Prospective accounting changes
The table below outlines the amendments to existing standards which have been approved by the IASB, but not early adopted by the Group,
that will impact the Group’s financial reporting in future periods. The Group will consider the impact of these amendments as the situation requires.
The amendments which are most relevant to the Group are as follows:
Accounting standard update
Effective date
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates:
Lack of Exchangeability
Annual reporting periods beginning on or after 1 January 2025.
Impact
Nature of change
These amendments are not expected to have a material impact on the Group.
Clarifies whether a currency is exchangeable into another currency, and which
spot exchange rate to use when it is not.
Accounting standard update
•
Add new disclosures for certain instruments with contractual terms that can
change cash flows (such as some financial instruments with features linked to
the achievement of environment, social and governance targets); and
•
Update the disclosures for equity instruments designated at FVOCI.
Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments:
Disclosures
Nature of change
The amendments:
•
Clarify the date of recognition and derecognition of some financial assets and
liabilities,with a new exception for some financial liabilities settled through an
electronic cash transfer system;
•
Clarify and add further guidance for assessing whether a financial asset meets
the SPPI criterion;
Effective date
Annual reporting periods beginning on or after 1 January 2026 and will apply
retrospectively. Not yet endorsed by the EU.
Impact
The Group is currently evaluating the impact that the amendments will have on its
financial statements.
Accounting standard update
Effective date
Annual Improvements to IFRS – Volume 11
Annual reporting periods beginning on or after 1 January 2026. Not yet endorsed
by the EU.
Nature of change
Limited amendments to IFRS 1 First-time Adoption of International Financial
Reporting Standards, IFRS 7, IFRS 9, IFRS 10 Consolidated Financial
Statements (‘IFRS 10’) and IAS 7 that either clarify the wording of an IFRS
standard or correct relatively minor unintended consequences, oversights or
conflicts between requirements in the standards.
Impact
These amendments are not expected to have a material impact on the Group.
Accounting standard update
Effective date
IFRS 18 Presentation and Disclosure in Financial Statements
Annual reporting periods beginning on or after 1 January 2027 and will apply
retrospectively. Not yet endorsed by the EU.
Nature of change
Introduces new requirements to present specified categories and defined
subtotals in the statement of profit or loss, provide disclosures on management-
defined performance measures (‘MPMs’) in the notes to the financial statements
and improve aggregation and disaggregation.
Impact
The Group is currently evaluating the impact that IFRS 18 will have on its financial
statements.
Accounting standard update
Effective date
IFRS 19 Subsidiaries without Public Accountability: Disclosures
Annual reporting periods beginning on or after 1 January 2027. Not yet endorsed
by the EU.
Nature of change
Optional for certain eligible subsidiaries of parent entities that report under IFRS
Accounting Standards to apply reduced disclosure requirements.
Impact
The Company is not eligible to apply IFRS 19 in its consolidated or company
financial statements.
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2 Critical accounting judgements and
estimates
The accounting judgements that have the most significant effect on the
amounts recognised in the financial statements, and the estimates that
have a significant risk of material adjustment in the next year are set
out below.
Significant judgements
The significant judgements made by the Group in applying its
accounting policies are as follows:
• Deferred taxation;
• Impairment of financial assets; and
• Provisions for liabilities and commitments.
The application of certain of these judgements also involves
estimations which are discussed separately.
Deferred taxation
The Group’s accounting policy for deferred tax is set out in accounting
policy (i) in note 1. Details of the Group’s deferred tax assets and
liabilities are set out in note 26.
The Group’s key judgement in relation to the recoverability of deferred
tax assets for unused tax losses is that it is probable that there will be
sufficient future taxable profits against which those losses can be used:
• The disclosed estimated utilisation period for those losses in
Ireland is within the timeframe that taxable profits are considered
probable; and
• Taxable profits are considered more likely than not in the UK for
a period of 15 years.
Deferred tax assets are recognised for unused tax losses to the extent
that it is probable that there will be sufficient future taxable profits
against which the losses can be used. For a company with a history
of recent losses, there must be other convincing evidence to underpin
this assessment.
The recognition of these deferred tax assets relies on the assessment
of future profitability and the sufficiency of those profits to absorb losses
carried forward. It requires significant judgements to be made about the
projection of long-term future profitability because of the period over
which recovery extends.
In assessing the future profitability of the Group, the Board has
considered a range of positive and negative evidence for this purpose.
Among this evidence, the principal positive factors include:
• AIB as a pillar bank with a strong Irish franchise;
• The absence of any expiry dates for Irish and UK tax losses;
• The changing banking landscape in Ireland;
• External economic forecasts for Ireland, with growth forecasted for
2025;
• The Irish economy remained robust in 2024, outperforming European
peers, driven by domestic and FDI sectors;
• The recent inorganic activity of the Group;
• The turnaround evident in the Group's financial performance over the
years 2021-2024;
• The introduction of the bank resolution framework under the BRRD
and the establishment in 2017 of AIB Group plc as the new holding
company of the Group. This provides greater confidence in relation
to the future viability of Allied Irish Banks, p.l.c. (as the principal
operating bank subsidiary) as there are now effective tools in place
that should facilitate its recapitalisation in a future crisis; and
• The non-enduring nature of the loan impairments at levels which
resulted in the losses between 2009 and 2013.
The Board also considered negative evidence and the inherent
uncertainties in any long-term financial assumptions and projections,
including:
• The absolute level of deferred tax assets compared to the Group’s
equity;
• The quantum of profits required to be earned and the extended
period over which it is projected that the tax losses will be utilised;
• The challenge of forecasting over a long period, taking account of the
changing level of competition, and the evolving interest rate environment;
• The globalised nature of the Irish economy and its exposure to
macroeconomic headwinds and geopolitical issues; and
• Taxation changes (including Organisation for Economic Co-operation
and Development ('OECD') tax reform) and the likelihood of future
developments and their impact on profitability.
Taking account of all relevant factors, and in the absence of any expiry
date for tax losses in Ireland, it is more likely than not that there will be
future profits in the medium term, and beyond, in the relevant Irish
Group companies against which to use the tax losses. In this regard,
the Group has carried out an exercise to determine the likely number
of years required to utilise the deferred tax asset under the following
scenario. Using the Group’s financial plan 2025 to 2027 as a base and a
profit growth rate of 2% from 2027, it was assessed that it will take less
than 10 years for the Irish deferred tax asset (€ 2.0 billion) to be utilised.
If the growth rate assumption was decreased by 1%, then the utilisation
period would increase by c.1 year. The Group’s analysis of this and
other scenarios examined would not alter the basis of recognition or the
current carrying value. In 2023, the Group reported that it expected that
it would take less than 13 years for the deferred tax asset to be utilised
with 80% being utilised within 10 years.
Given the relative size of the Group’s operations in the UK compared
to the role that the Irish operations play in supporting a functioning
banking environment, a different judgement has been applied to the
period that taxable profits are considered more likely than not in the
UK. Despite the absence of any expiry date for tax losses in the UK,
the Group has concluded that the recognition of deferred tax assets in
its UK subsidiary be limited to the amount projected to be realised
within a time period of 15 years. This is the timescale within which the
Group believes that it can assess the likelihood of its UK profits arising
as being more likely than not.
Impairment of financial assets
The Group’s accounting policy for impairment of financial assets is set
out in accounting policy (q) in note 1. Details of the Group’s net credit
impairment charge are set out in note 11 and ECL allowance on
financial assets are set out in note 20.
The calculation of the ECL allowance is complex and requires the use
of a number of accounting judgements.
The most significant judgements applied by the Group in determining
the ECL allowance are as follows:
• Determining the criteria for a significant increase in credit risk and
for being classified as credit impaired; and
• Determining the need for and an appropriate methodology for
post-model adjustments.
The significant management judgement and the governance process,
relating to ECL, are set out on pages 187 to 201 in the Risk
Management section.
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Notes to the Consolidated Financial Statements continued
2 Critical accounting judgements and
estimates continued
Provisions for liabilities and commitments
The Group’s accounting policy for provisions for liabilities and
commitments is set out in accounting policy (v) in note 1. Details of the
Group’s provisions for liabilities and commitments are shown in note
34.
Significant management judgement is required to determine whether
the Group has a present obligation as a result of a past event and
whether it is probable that an outflow of resources will be required to
settle the obligation.
The Group recognises liabilities where it has present legal or
constructive obligations as a result of past events and it is more likely
than not that these obligations will result in an outflow of resources
to settle the obligations and the amount can be reliably estimated.
Judgement is required in determining whether the Group has a present
obligation and whether it is probable that an outflow of economic benefits
will be required to settle this obligation. This judgement is applied to
information available at the time of determining the provision including,
but not limited to, judgements around interpretations of legislation,
regulations and case law depending on the nature of the provision.
Critical accounting estimates
The accounting estimates with a significant risk of material adjustment
to the carrying amounts of assets and liabilities within the next financial
year were in relation to:
• Impairment of financial assets; and
• Retirement benefit obligations.
Impairment of financial assets
The Group’s accounting policy for impairment of financial assets is set
out in accounting policy (q) in note 1. Details of the Group’s expected
credit loss ('ECL') allowance are set out in note 20.
The key estimates and assumptions that the Group have used in
determining the ECL allowance are as follows:
• Establishing the number and relative weightings for forward looking
scenarios;
• Inputs into discounted cash-flows (‘DCFs’) for certain stage 3 credit
impaired obligors;
• The assumptions for measuring ECL (e.g. PD, LGD and EAD and
the parameters to be included within the models for modelled ECL);
and
• The estimation of post model adjustments where required.
The calculation of the ECL allowance is complex and therefore the
Group must consider large amounts of information in its determination.
This process requires significant use of estimates and assumptions,
some of which by their nature, are highly subjective and very sensitive
to risk factors such as changes to economic conditions. Changes in the
ECL allowance can materially affect net income.
On an ongoing basis, the various estimates and assumptions are
reviewed in light of differences between actual and previously
calculated expected losses. These are then recalibrated and refined to
reflect current and evolving economic conditions. The ECL allowance
is, in turn, reviewed and approved by the Group Credit Committee on a
quarterly basis with final Group levels being approved by the Board
Audit Committee. Further detail on the ECL governance process is set
out on page 187.
The macroeconomic variables used in models to calculate ECL
allowance are based on assumptions, forecasts and estimates
against a backdrop of an evolving economic landscape. Accordingly,
developments in local and international factors could have a material
bearing on the ECL allowance within the next financial year. The
Group’s sensitivity to a range of macroeconomic factors under the (i)
base forecast; (ii) upside; and (iii) downside scenarios is set out on
pages 194 to 199 of the Risk Management section of this report.
DCFs are the most significant input to the ECL calculation for Stage 3
credit impaired borrowers where the gross credit exposure is greater
than or equal to € 1 million for Ireland or greater than or equal to
£ 500,000 for the UK. Collateral valuations and the estimated time to
realisation of collateral is a key component of the DCF model. The DCF
assessment produces a base case ECL which is then adjusted,
considering all relevant and supportable information, including but not
limited to, historical data analysis, predictive modelling and
management judgement, to incorporate the impact of multiple
scenarios on the base ECL.
The Group has developed a standard approach for the measurement of
ECL for the majority of the Group’s exposures where each ECL input
parameter (e.g. PD, LGD and EAD) is developed in line with standard
modelling methodology. These are discussed further on pages 192 to
193 of the Risk Management section. When considering changes in
these assumptions collectively, there is a significant risk of a material
adjustment to the Group’s ECL allowance within the next financial year.
Where the estimate of ECL does not adequately capture all available
forward looking information about the range of possible outcomes, or
where there is a significant degree of uncertainty, management may
consider it appropriate for an adjustment to ECL. These are referred
to as post model adjustments and are set out in detail on pages 200
and 201.
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2 Critical accounting judgements and
estimates continued
Impairment of financial assets continued
The sensitivity of the carrying amounts of the ECL to changes in
assumptions and estimates relating to inputs into DCFs for certain
Stage 3 credit impaired obligors; the assumptions for measuring ECL;
and the estimation of post model adjustments where required have not
been provided given their diverse nature, their interrelationship and the
number of estimates and assumptions involved.
Retirement benefit obligations
The Group’s accounting policy for retirement benefit obligations is set
out in accounting policy (h) in note 1. Details of the Group’s retirement
benefit obligations are set out in note 27.
The key estimates and assumptions that the Group have used in
determining the retirement benefit obligation are as follows:
• In a situation where the Group believes the Trustee has the ability to
grant discretionary increases without any funding being provided by
the Group, the Group has assumed that the Trustee will grant
increases and as a result the scheme’s liabilities include an estimate
for this matter; and
• The significant demographic and financial actuarial assumptions used
to determine the present value of the retirement benefit obligation.
The Trustee of the Irish Scheme has awarded an increase, in certain
years, in respect of pensions eligible for discretionary pension in
payment increases notwithstanding a decision by the Group not to fund
such increases. This reflected the ability of the Trustee to grant an
increase when the financial position of the scheme would enable such
an increase at that point in time. Taking these decisions by the Trustee
into consideration, the long term assumption for future increases in
pension in payment reflects an assessment of the Trustee’s ability to
grant further increases without any funding from the Group, capped at a
long-term inflation assumption.
Having taken actuarial advice, the Group has adopted a rate of 1.90%
(31 December 2023: 2.05%) for the long-term assumption for future
discretionary increases in pensions in payment (which is the lower of
either the surplus available to the Trustee to distribute or the long-term
inflation assumption). This increased the scheme liabilities by
€ 808 million at 31 December 2024 (31 December 2023: € 822 million).
A sensitivity analysis for the rate of increase in pensions in payment is
not provided, as this rate is dependent on the surplus available to the
Trustee to distribute and the advice of the actuary.
The actuarial valuation of the schemes’ liabilities is dependent upon a
number of financial and demographic assumptions which are inherently
uncertain. Changes to those assumptions could materially impact the
reported amount for schemes’ liabilities and the actuarial gains/losses
reported in equity. Details of the assumptions adopted by the Group
in calculating the schemes’ liabilities and a sensitivity analysis for the
principal assumptions used to measure the schemes’ liabilities are
set out in note 27 to the financial statements.
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Notes to the Consolidated Financial Statements continued
3 Segmental information
Segment overview
The Group has identified reportable segments on the basis of internal
reports about components of the Group that are regularly reviewed by
the Chief Operating Decision Maker (‘CODM’) in order to allocate
resources to the segment and assess its performance.
Transactions between operating segments are on normal commercial
terms and conditions, with internal charges and transfer pricing
adjustments reflected in the performance of each operating segment.
Revenue sharing agreements are used to allocate external
customer revenues to an operating segment on a reasonable basis.
The geographical distribution of total revenue is based primarily on
the location of the office recording the transaction.
In 2024 the Group introduced a new customer facing segment,
‘Climate Capital’, increasing the Group’s reportable segments from four
to five. The Group’s performance is now therefore managed and
reported across Retail Banking, AIB Capital Markets (‘Capital Markets’),
Climate Capital, AIB UK and Group segments. Comparative segment
information for the prior period has been re-presented. Segment
performance excludes exceptional items.
Retail Banking
Our leading Irish retail franchise provides a comprehensive range of
products and services to more than 3 million customers delivered
through our branch, digital and phone banking channels; with an
expanded reach into the retail customer base via EBS, Haven,
AIB Merchant Services, Payzone, Nifti and AIB life.
• Homes and Consumer are responsible for meeting the everyday
banking needs of customers in Ireland by delivering innovative
products, propositions and services and for growing our market
leading positions. Our aim is to achieve a seamless and transparent
customer experience across all our products and services including
mortgages, current accounts, personal lending, payments and credit
cards, deposits, insurance and wealth.
• SME serves our micro and small SME customers through our
sector-led strategy and local expertise with an extensive product and
services offering. Our aim is to help our customers create and build
sustainable businesses in their communities.
Capital Markets
Capital Markets provides institutional, corporate and business banking
services to the Group’s larger customers and customers requiring
specific sector or product expertise. Capital Markets’ relationship-driven
model serves customers through sector specialist teams including:
corporate banking, real estate finance and business banking.
In addition to traditional credit products, Capital Markets offers
customers foreign exchange and interest rate risk management
products, cash management products, trade finance, mezzanine
finance, structured and specialist finance and equity investments,
as well as Private Banking services and advice. Capital Markets also
has syndicated and international finance teams based in Dublin and in
New York. Goodbody offers further capabilities in wealth management,
corporate finance, asset management and wider capital markets
propositions.
Climate Capital
Climate Capital is a new segment comprised of assets and resources
previously residing in Capital Markets and AIB UK segments.
Climate Capital specialises in lending to large scale renewable energy
and infrastructure projects, which are key drivers for sustainable
economic growth. The business serves the Irish, UK, European
and North American markets through offices in Dublin, London and
New York.
AIB UK
AIB UK offers corporate, retail and business banking services in two
distinct markets:
• A sector-led corporate bank supporting mid to large corporates
focused on housing, commercial real estate, health, hotels and
manufacturing businesses across both Great Britain and Northern
Ireland. Services include lending, treasury, trade facilities, asset
finance and invoice discounting.
• A full-service retail bank in Northern Ireland (‘AIB (NI)’) to personal
and business customers with a focus on mortgage and
business lending.
Group
Group comprises wholesale treasury activities and Group control and
support functions. Treasury manages the Group’s liquidity and funding
positions and provides customer treasury services and economic
research. The Group control and support functions in the period
included Technology and Data, Operations and Business Services,
Finance, Risk, Legal and Corporate Governance, Chief Customer
Office, Human Resources, Strategy and Sustainability, Corporate
Affairs and Group Internal Audit.
Segment allocations
Under the Group's cost allocation methodology, substantially all of the
costs of the Group's control, support and Treasury functions are
allocated to Retail Banking, Capital Markets, Climate Capital and AIB
UK. In addition, certain Bank levies and regulatory fees, such as the
Irish bank levy, are allocated to the Retail Banking, Capital Markets and
Climate Capital segments.
Funding and liquidity income/charges are based on each segment’s
funding requirements and the Group’s funding cost profile, which
is informed by wholesale and retail funding costs. Income attributable
to capital is allocated to segments based on each segment’s
capital requirement.
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3 Segmental information continued
2024
Retail
Banking
Capital
Markets
Climate
Capital
AIB UK
Group
Total
Exceptional
items
1
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Operations by business segment
Net interest income
2,633
906
110
379
101
4,129
—
4,129
Other income
509
223
21
26
—
779
20
799
Of which: Net fee and commission income*
455
158
13
37
3
666
15 2
681
Other
54
65
8
(11)
(3)
113
5 3
118
Total operating income
3,142
1,129
131
405
101
4,908
20
4,928
Other operating expenses
(1,353)
(375)
(47)
(182)
(14) (1,971)
(86)
(2,057)
Of which: Personnel expenses
(611)
(239)
(29)
(95)
(6)
(980)
(4) 4
(984)
General and administrative expenses
(510)
(97)
(12)
(66)
(5)
(690)
(82) 5-7
(772)
Depreciation, impairment and amortisation
(232)
(39)
(6)
(21)
(3)
(301)
—
(301)
Bank levies and regulatory fees
(104)
(19)
(2)
(2)
(11)
(138)
—
(138)
Total operating expenses
(1,457)
(394)
(49)
(184)
(25) (2,109)
(86)
(2,195)
Operating profit/(loss) before impairment losses
1,685
735
82
221
76
2,799
(66)
2,733
Net credit impairment charge
(28)
83
(22)
(90)
2
(55)
—
(55)
Operating profit/(loss)
1,657
818
60
131
78
2,744
(66)
2,678
Income/(loss) from equity accounted investments
21
—
—
6
(1)
26
—
26
Loss on disposal of business
—
—
—
—
(2)
(2)
—
(2)
Profit/(loss) before taxation
1,678
818
60
137
75
2,768
(66)
2,702
1. Exceptional items are shown separately above. These are items that Management view as distorting comparability of performance year-on-year. Exceptional items
are set out in 2 to 7 below.
2. Run-off fee receivable on exit of a servicing arrangement.
3. Gain on disposal of loan portfolios and other operating income.
4. Restructuring costs.
5. Customer redress costs.
6. Inorganic transaction costs.
7. Other costs.
2024
Retail
Banking
Capital
Markets
Climate
Capital
AIB UK
Group
Total
Exceptional
items
1
Total
*Net fee and commission income
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Customer accounts
210
26
1
12
1
250
—
250
Card income
169
8
—
12
—
189
—
189
Customer related foreign exchange2
47
36
1
6
1
91
—
91
Lending related fees2
8
28
9
11
—
56
—
56
Specialised payment services fees (Payzone)2,3
128
—
—
—
—
128
—
128
Stockbroking client fees and commissions
—
57
—
—
—
57
—
57
Asset management and advisory fees
—
—
—
—
—
—
—
—
Other fees and commissions
43
9
2
—
5
59
15 4
74
Fee and commission income
605
164
13
41
7
830
15
845
Customer account expenses
(1)
(1)
—
—
—
(2)
—
(2)
Specialised payment services expenses (Payzone)2,3
(108)
—
—
—
—
(108)
—
(108)
Card expenses
(36)
(1)
—
(4)
—
(41)
—
(41)
Other fee and commission expenses
(5)
(4)
—
—
(4)
(13)
—
(13)
Fee and commission expense
(150)
(6)
—
(4)
(4)
(164)
—
(164)
Total net fee and commission income
455
158
13
37
3
666
15
681
1. Exceptional items are shown separately above. These are items that Management view as distorting comparability of performance year-on-year.
2. Refer to note 1(c) for further information about the change in presentation for certain notes to the financial statements.
3. Specialised payment services (Payzone): fee income and fee expenses in respect of services and prepaid credits for cellular phone and utilities sold to third parties.
4. Run-off fee receivable on exit of a servicing arrangement.
Fees and commissions which are an integral part of the effective interest rate are recognised as part of interest and similar income (note 4) or
interest and similar expense (note 5).
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Notes to the Consolidated Financial Statements continued
3 Segmental information continued
2023
Retail
Banking
Capital
Markets
Climate
Capital
AIB UK
Group
Total
Exceptional
items
1
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Operations by business segment
Net interest income
2,409
841
89
391
111
3,841
—
3,841
Other income
662
185
13
39
1
900
(19)
881
Of which: Net fee and commission income*
438
143
11
36
5
633
—
633
Other
224
42
2
3
(4)
267
(19) 2,5
248
Total operating income
3,071
1,026
102
430
112
4,741
(19)
4,722
Other operating expenses
(1,253)
(353)
(35)
(170)
(15) (1,826)
(131)
(1,957)
Of which: Personnel expenses
(564)
(221)
(22)
(89)
(6)
(902)
(10)
3
(912)
General and administrative expenses
(465)
(92)
(9)
(58)
(5)
(629)
(121)
4-6
(750)
Depreciation, impairment and amortisation
(224)
(40)
(4)
(23)
(4)
(295)
—
(295)
Bank levies and regulatory fees
(51)
(12)
—
(1)
(121)
(185)
—
(185)
Total operating expenses
(1,304)
(365)
(35)
(171)
(136) (2,011)
(131)
(2,142)
Operating profit/(loss) before impairment losses
1,767
661
67
259
(24)
2,730
(150)
2,580
Net credit impairment writeback/(charge)
(57)
(85)
9
(38)
(1)
(172)
—
(172)
Operating profit/(loss)
1,710
576
76
221
(25)
2,558
(150)
2,408
Income/(loss) from equity accounted investments
7
—
—
6
(1)
12
—
12
Profit/(loss) on disposal of business
—
2
—
—
(28)
(26)
—
(26)
Profit/(loss) before taxation
1,717
578
76
227
(54)
2,544
(150)
2,394
1. Exceptional items are shown separately above. These are items that Management view as distorting comparability of performance year-on-year. Exceptional items
are set out in 2 to 6 below.
2. Loss on disposal of loan portfolios.
3. Termination benefits.
4. Customer redress costs.
5. Restructuring costs.
6. Inorganic transaction costs.
2023
Retail
Banking
Capital
Markets
Climate
Capital
AIB UK
Group
Total
Exceptional
items
Total
*Net fee and commission income
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Customer accounts
202
26
—
12
—
240
—
240
Card income
166
9
—
12
—
187
—
187
Customer related foreign exchange1
47
32
1
6
2
88
—
88
Lending related fees1
8
27
9
10
—
54
—
54
Specialised payment services fees (Payzone)1,2
138
—
—
—
—
138
—
138
Stockbroking client fees and commissions
—
46
—
—
—
46
—
46
Asset management and advisory fees
—
4
—
—
—
4
—
4
Other fees and commissions
36
5
1
—
7
49
—
49
Fee and commission income
597
149
11
40
9
806
—
806
Specialised payment services expenses (Payzone)1,2
(119)
—
—
—
—
(119)
—
(119)
Card expenses
(34)
(1)
—
(4)
—
(39)
—
(39)
Other fee and commission expenses
(6)
(5)
—
—
(4)
(15)
—
(15)
Fee and commission expense
(159)
(6)
—
(4)
(4)
(173)
—
(173)
Total net fee and commission income
438
143
11
36
5
633
—
633
1. Refer to note 1(c) for further information about the change in presentation for certain notes to the financial statements.
2. Specialised payment services (Payzone): fee income and fee expenses in respect of services and prepaid credits for cellular phone and utilities sold to third parties.
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3 Segmental information continued
31 December 2024
Retail
Banking
Capital
Markets
Climate
Capital
AIB UK
Group
Total
Other amounts – statement of financial position
€ m
€ m
€ m
€ m
€ m
€ m
Loans and advances to customers:
– measured at amortised cost
41,570
16,885
5,483
5,837
50
69,825
– measured at FVTPL
—
64
—
—
—
64
Total loans and advances to customers
41,570
16,949
5,483
5,837
50
69,889
Customer accounts
84,206
15,555
365
8,575
1,182
109,883
31 December 2023
Retail
Banking
Capital
Markets
Climate
Capital
AIB UK
Group
Total
Other amounts – statement of financial position
€ m
€ m
€ m
€ m
€ m
€ m
Loans and advances to customers:
– measured at amortised cost
39,227
16,666
4,091
5,437
28
65,449
– measured at FVTPL
—
42
—
—
—
42
Total loans and advances to customers
39,227
16,708
4,091
5,437
28
65,491
Customer accounts
80,454
14,856
342
7,977
1,153
104,782
Year to 31 December
2024
Ireland
United
Kingdom
Rest of
the World
Total
Geographic information1
€ m
€ m
€ m
€ m
Gross external revenue
4,410
483
35
4,928
Inter-geographical segment revenue
21
31
(52)
—
Total revenue
4,431
514
(17)
4,928
Year to 31 December
2023
Ireland
United
Kingdom
Rest of the
World
Total
Geographic information1
€ m
€ m
€ m
€ m
Gross external revenue
4,042
642
38
4,722
Inter-geographical segment revenue
158
(115)
(43)
—
Total revenue
4,200
527
(5)
4,722
Revenue from external customers comprises net fee and commission income (note 3), interest and similar income (note 4) and interest and similar
expense (note 5) and all other items of income (notes 6 to 9).
31 December 2024
Ireland
United
Kingdom
Rest of
the World
Total
Geographic Information
€ m
€ m
€ m
€ m
Non-current assets2
1,387
55
8
1,450
31 December 2023
Ireland
United
Kingdom
Rest of the
World
Total
Geographic Information
€ m
€ m
€ m
€ m
Non-current assets2
1,429
53
1
1,483
1. For details of significant geographic concentrations, see the ‘Risk management’ section.
2. Non-current assets comprise intangible assets, goodwill and property, plant and equipment.
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Notes to the Consolidated Financial Statements continued
4 Interest and similar income
2024
2023
€ m
€ m
Interest on loans and advances to customers at amortised cost1
2,715
2,295
Interest on loans and advances to banks at amortised cost
1,445
1,267
Interest on securities financing at amortised cost
271
273
Interest on investment securities
842
714
Interest income calculated using the effective interest rate method
5,273
4,549
Interest income on finance leases and hire purchase contracts
94
80
Interest income on financial assets at FVTPL
9
16
Other interest income and similar income
103
96
Total interest and similar income
5,376
4,645
1. Includes a debit of € 618 million (2023: a debit of € 607 million) transferred from other comprehensive income in respect of cash flow hedges.
5 Interest and similar expense
2024
2023
€ m
€ m
Interest on customer accounts1
468
175
Interest on deposits by central banks and banks
35
19
Interest on securities financing
25
23
Interest on debt securities in issue
540
436
Interest on lease liabilities
9
9
Interest on subordinated liabilities and other capital instruments
111
97
Interest expense on financial liabilities
1,188
759
Negative interest on financial assets2
2
2
Interest expense calculated using the effective interest rate method
1,190
761
Non-trading derivatives (not in hedge accounting relationships - economic hedges)
57
43
Other interest and similar expense
57
43
Total interest and similar expense
1,247
804
1. Includes a credit of € 49 million (2023: a credit of € 42 million) transferred from other comprehensive income in respect of cash flow hedges.
2. The Group presents interest resulting from negative effective interest rates on financial assets as interest expense rather than as offset against interest income.
6 Net trading income
2024
2023
€ m
€ m
Foreign exchange contracts
23
(3)
Interest rate contracts and debt securities1
12
6
Credit derivative contracts
(1)
(3)
Equity investments, index contracts and warrants
(8)
(13)
Forward contract to acquire loans2
27
223
Virtual corporate power purchase agreement
(3)
—
Total net trading income
50
210
1. The total hedging ineffectiveness on cash flow hedges reflected in the consolidated income statement amounted to a loss of € 6 million (2023: Nil).
2. Comprises a gain of € 27 million (2023: gain of € 203 million) relating to the forward contract to acquire Ulster Bank tracker (and linked) mortgages. 2023 also
includes a gain of € 20 million relating to the forward contract to acquire Ulster Bank corporate and commercial loans. See note 43 for further information.
7 Net gain on other financial assets measured at FVTPL
2024
2023
€ m
€ m
Loans and advances to customers1
12
3
Investment securities – equity
70
27
Total net gain on other financial assets measured at FVTPL
82
30
1. Excludes interest income (note 4).
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8 Net gain/(loss) on derecognition of financial assets measured at amortised cost
2024
2023
Carrying value
of derecognised
financial assets
measured at
amortised cost
Gain from
derecognition
Carrying value of
derecognised
financial assets
measured at
amortised cost
Loss from
derecognition
€ m
€ m
€ m
€ m
Loans and advances to customers
284
2
204
(9)
Derecognition relates to the sale of portfolios of performing and non-performing loans and the sale of individual loans (for credit management
purposes) where credit deterioration had occurred.
9 Other (expense)/income
2024
2023
€ m
€ m
Loss on disposal of investment securities at FVOCI – debt
(77)
(22)
Gain on termination of hedging swaps1
41
14
Dividend income
1
2
Miscellaneous operating income
19
23
Total other (expense)/income
(16)
17
1. The majority of the gain on termination of hedging swaps relates to the disposal of debt securities at FVOCI. In addition, it includes Nil (2023: a debit of € 8 million)
transferred from other comprehensive income in respect of cash flow hedges.
10 Operating expenses
2024
2023
€ m
€ m
Personnel expenses:
Wages and salaries
777
711
Termination benefits1
19
7
Retirement benefits2
110
105
Social security costs
83
79
Other personnel expenses
29
36
1,018
938
Less: staff costs capitalised to intangible assets
(34)
(26)
Total personnel expenses
984
912
General and administrative expenses
720
688
Customer redress3
52
62
772
750
Bank levies and regulatory fees
138
185
Total operating expenses
1,894
1,847
1. Represents charges for voluntary severance programmes.
2. Comprises a defined contribution charge of € 96 million (2023: a charge of € 89 million), a charge of € 3 million in relation to defined benefit expenses (2023: a
charge of € 5 million), and a long term disability payments/death in service benefit charge of € 11 million (2023: a charge of € 11 million). For details of retirement
benefits, see note 27.
3. The Group recognised a net charge of € 52 million (2023: € 62 million) for customer redress and associated costs in respect of legacy matters. Refer to note 1 for
further information about the change in presentation for certain notes to the financial statements and note 34 for further information on customer redress.
The average number of employees for 2024 and 2023 is set out in note 47.
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Notes to the Consolidated Financial Statements continued
11 Net credit impairment charge
The following table analyses the income statement net credit impairment charge on financial instruments for the years to 31 December 2024
and 2023.
2024
2023
Credit impairment charge
on financial instruments
Measured
at amortised
cost
Measured
at FVOCI
Total
Measured
at amortised
cost
Measured
at FVOCI
Total
€ m
€ m
€ m
€ m
€ m
€ m
Net remeasurement of ECL allowance
Loans and advances to banks
—
—
—
—
—
—
Loans and advances to customers
(92)
—
(92)
(216)
—
(216)
Securities financing
—
—
—
—
—
—
Loan commitments
1
—
1
15
—
15
Financial guarantee contracts
2
—
2
2
—
2
Investment securities – debt
2
—
2
—
—
—
Credit impairment charge
(87)
—
(87)
(199)
—
(199)
Recoveries of amounts previously written-off
32
—
32
27
—
27
Total net credit impairment charge
(55)
—
(55)
(172)
—
(172)
12 Auditor's remuneration
The disclosure of auditor’s remuneration is in accordance with Section 322 of the Companies Act 2014. This mandates disclosure of remuneration
paid/payable to the Group Auditor only (PricewaterhouseCoopers), for services relating to the audit of the Group and relevant subsidiary financial
statements in the categories set out below.
2024
2023
Ireland
Overseas
Total
Ireland
Overseas
Total
€ m
€ m
€ m
€ m
€ m
€ m
Auditor’s remuneration (excluding VAT):
Audit of Group financial statements
3.9
0.9
4.8
2.9
0.9
3.8
Other assurance services1
1.5
0.1
1.6
0.7
0.1
0.8
Other non-audit services
—
—
—
—
—
—
Total auditor’s remuneration
5.4
1.0
6.4
3.6
1.0
4.6
1. Represents other assurance services provided by the Group’s auditor for CSRD (2024 only), letters of comfort, other ESG reporting and other regulatory reporting.
The amounts in the table above relate to fees payable to PricewaterhouseCoopers, split between those payable to the statutory auditors,
PricewaterhouseCoopers in Ireland and fees paid to overseas auditors, PricewaterhouseCoopers LLP in the UK.
Other assurance services include remuneration for additional assurance issued by the firms outside of the audit of the statutory financial statements
of the Group and its subsidiaries. This remuneration includes assignments where the Auditor, in Ireland, provides assurance to third parties.
The Group policy on the provision of non-audit services to the parent and its subsidiary companies includes the prohibition on the provision of
certain services and the pre-approval by the Board Audit Committee of the engagement of the Auditor in other instances.
The Board Audit Committee has reviewed the level of non-audit services remuneration and is satisfied that it has not affected the independence of
the Auditor. It is Group policy to subject all large consultancy assignments to competitive tender, where appropriate.
13 Loss on disposal of business
2024
2023
€ m
€ m
Loss on disposal of business
(2)
(26)
Total loss on disposal of business
(2)
(26)
The loss on disposal of business in 2024 relates to a foreign subsidiary of the Group that was dissolved and the reclassification of the related
cumulative exchange differences from the foreign currency translation reserve to the income statement.
The loss in 2023 primarily related to the repatriation of part of the capital of certain foreign subsidiaries in the Group which have ceased trading.
A pro-rata amount of the related foreign currency cumulative translation reserve was transferred to the income statement.
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14 Taxation
2024
2023
€ m
€ m
Current tax
Corporation tax in Ireland
Current tax on income for the year
(8)
(6)
Adjustments in respect of prior years
1
—
(7)
(6)
Foreign tax
Current tax on income for the year
(52)
(71)
Adjustments in respect of prior years
(1)
—
(53)
(71)
Current tax charge for the year
(60)
(77)
Deferred tax
Origination and reversal of temporary differences
4
1
Adjustments in respect of prior years
(1)
2
Recognition of deferred tax assets in respect of current and prior period losses1
25
—
Reduction in carrying value of deferred tax assets in respect of carried forward losses
(319)
(262)
Deferred tax charge for the year
(291)
(259)
Total tax charge for the year
(351)
(336)
Effective tax rate
13.0 %
14.0 %
1. During the year the Group recognised € 25 million (2023: Nil) in respect of tax losses within UK and US overseas branches.
Factors affecting the effective tax rate
The following table sets out the difference between the tax charge that would result from applying the standard corporation tax rate in Ireland of
12.5% and the actual tax charge for the year:
2024
2023
€ m
%
€ m
%
Profit before tax
2,702
2,394
Tax charge at standard corporation tax rate in Ireland of 12.5%
(338)
12.5
(299)
12.5
Effects of:
Foreign profits taxed at other rates
(34)
1.3
(40)
1.7
Expenses not deductible for tax purposes
(20)
0.6
(11)
0.4
Exempted income, income at reduced rates and tax credits
1
—
(1)
0.1
Share of results of investments accounted for using the equity method shown post tax in the
income statement
5
(0.2)
3
(0.2)
Income taxed at higher tax rates
(7)
0.3
(12)
0.5
Tax legislation on equity distributions
11
(0.4)
8
(0.3)
Deferred tax assets not recognised/reversal of amounts previously not recognised
30
(1.1)
13
(0.5)
Other tax adjustments
1
—
1
(0.1)
Adjustments to tax charge in respect of prior years
—
—
2
(0.1)
Tax charge
(351)
13.0
(336)
14.0
The Group is within the scope of the global minimum top-up tax under Pillar Two tax legislation from 1 January 2024, however, the Group is not
liable to any additional top-up tax expense for the period in Ireland or any of the other jurisdictions in which it operates. This is because the Pillar
Two effective tax rate in each of those jurisdictions is above 15% or transitional exemptions apply.
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Notes to the Consolidated Financial Statements continued
14 Taxation continued
Recognised within other comprehensive income in the Consolidated Statement of Comprehensive Income
2024
2023
Gross
Tax
Net
Gross
Tax
Net
€ m
€ m
€ m
€ m
€ m
€ m
Retirement benefit schemes
Remeasurement of defined benefit assets/(liabilities)
(18)
5
(13)
(2)
—
(2)
Total
(18)
5
(13)
(2)
—
(2)
Foreign currency translation reserves
Amounts reclassified from the foreign currency translation reserves to the income
statement as a reclassification adjustment:
– amounts for which hedge accounting had previously been used, but for which
the hedged future cash flows are no longer expected to occur
—
—
—
—
—
—
– amounts that have been transferred because the hedged item has affected the
income statement
—
—
—
—
—
—
Recognised in other comprehensive income:
– Net losses on net investment hedges
(66)
8
(58)
(28)
3
(25)
– Net exchange differences on translation of foreign operations
127
—
127
82
—
82
Total
61
8
69
54
3
57
Cash flow hedging reserves
Amounts reclassified from the cash flow hedging reserves to the income
statement as a reclassification adjustment:
– amounts for which hedge accounting had previously been used, but for which
the hedged future cash flows are no longer expected to occur
—
—
—
—
—
—
– amounts that have been transferred because the hedged item has affected the
income statement
569
(71)
498
573
(72)
501
Hedging (losses)/gains recognised in other comprehensive income
(382)
51
(331)
791
(110)
681
Total
187
(20)
167
1,364
(182) 1,182
Investment debt securities at FVOCI reserves
Fair value losses transferred to income statement
77
(4)
73
22
(3)
19
Fair value losses recognised in other comprehensive income
(148)
18
(130)
(68)
8
(60)
Total
(71)
14
(57)
(46)
5
(41)
2024
2023
15 Trading portfolio
Trading
portfolio
assets
Trading
portfolio
liabilities
Trading
portfolio
assets
Trading
portfolio
liabilities
€ m
€ m
€ m
€ m
Equity securities
15
(5)
9
(5)
Debt securities
121
(257)
84
(134)
Total
136
(262)
93
(139)
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16 Derivative financial instruments
Derivatives are entered into to service customer requirements, to manage the Group’s interest rate, exchange rate, equity and credit exposures
and for trading purposes. Derivative instruments are contractual agreements whose value is derived from price movements in underlying assets,
interest rates, foreign exchange rates or indices.
Market risk is the exposure to potential loss through holding interest rate, exchange rate and equity positions in the face of absolute and relative
price movements, interest rate volatility, movements in exchange rates and shifts in liquidity. Credit risk is the exposure to loss should the
counterparty to a financial instrument fail to perform in accordance with the terms of the contract.
Credit risk in derivative contracts is the risk that the Group’s counterparty in the contract defaults prior to maturity at a time when the Group has
a claim on the counterparty under the contract (i.e. contracts with a positive fair value). The Group would then have to replace the contract at the
current market rate, which may result in a loss. For risk management purposes, consideration is taken of the fact that not all counterparties to
derivative positions are expected to default at the point where the Group is most exposed to them. While notional principal amounts are used to
express the volume of derivative transactions, the amounts subject to credit risk are much lower because derivative contracts typically involve
payments based on the net differences between specified prices or rates.
The following table presents the notional principal amount of interest rate, exchange rate, equity, credit and commodity derivative contracts
together with the positive and negative fair values attaching to those contracts at 31 December 2024 and 2023:
2024
2023
Notional
principal
amount
Fair values
Notional
principal
amount
Fair values
Assets
Liabilities
Assets
Liabilities
Derivative financial instruments
€ m
€ m
€ m
€ m
€ m
€ m
Interest rate contracts
86,671
2,109
(1,689)
86,899
2,351
(1,869)
Exchange rate contracts
8,685
35
(112)
6,287
14
(29)
Equity contracts
41
—
—
92
—
(1)
Credit derivatives
83
—
(3)
83
—
(3)
Forward contracts to acquire loans1
—
—
—
1,047
12
—
Virtual corporate power purchase agreement
2
—
(3)
—
—
—
Total
95,482
2,144
(1,807)
94,408
2,377
(1,902)
1. Relates to a forward contract to acquire tracker (and linked) mortgages from Ulster Bank. See note 43 for further information.
The Group uses the same credit control and risk management policies in undertaking all off-balance sheet commitments as it does for on-balance
sheet lending including counterparty credit approval, limit setting and monitoring procedures. In addition, derivative instruments are subject to the
market risk policy and control framework as described in the ‘Risk management’ section of this report.
The Group has the following concentration of exposures in respect of notional principal amount and positive fair value of derivative financial
instruments. The concentrations are based primarily on the location of the office recording the transaction.
Notional principal
amount
Positive fair value
2024
2023
2024
2023
€ m
€ m
€ m
€ m
Ireland
91,221
90,975
2,064
2,261
United Kingdom
4,174
3,341
78
113
United States of America
87
92
2
3
Total
95,482
94,408
2,144
2,377
Trading book activities
The Group maintains trading positions in a variety of financial instruments including derivatives. These derivative financial instruments include
interest rate, foreign exchange, equity and credit derivatives. Most of these positions arise as a result of activity generated by corporate customers
while the remainder represent trading decisions of the Group’s derivative and foreign exchange traders with a view to generating incremental income.
All trading activity is conducted within risk limits approved by the Board. Systems are in place which measure risks and profitability associated with
derivative trading positions as market movements occur. Independent risk control units monitor these risks.
Banking book activities
In addition to meeting customer needs, the Group’s principal objective in holding or transacting derivatives is the management of interest rate and
foreign exchange risks which arise within the banking book through the operations of the Group as outlined below. Market risk within the banking
book is also controlled through limits approved by the Board and monitored by an independent second line risk function.
The operations of the Group are exposed to interest rate risk arising from the fact that assets and liabilities mature or reprice at different times or
in differing amounts. Derivatives are used to modify the repricing or maturity characteristics of assets and liabilities in a cost-efficient manner. This
flexibility helps the Group to achieve interest rate risk management objectives. Similarly, foreign exchange derivatives can be used to hedge the
Group’s exposure to foreign exchange risk.
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Notes to the Consolidated Financial Statements continued
16 Derivative financial instruments continued
Banking book activities continued
The fair values of derivatives fluctuate as the underlying market interest rates or foreign exchange rates change. If the derivatives are purchased
or sold as hedges of statement of financial position items, the change in fair value of the derivatives will generally be offset by the change in fair
value of the hedged items.
To achieve its risk management objectives, the Group uses a combination of derivative financial instruments, particularly interest rate swaps, cross
currency interest rate swaps, futures, options and currency swaps, as well as other contracts. The risk that counterparties to derivative contracts
(both trading and banking book) might default on their obligations is monitored on an ongoing basis. The level of credit risk is minimised by dealing
with counterparties of good credit standing, by the use of Credit Support Annexes and ISDA Netting Agreements and increased clearing of
derivatives through Central Clearing Counterparties (‘CCP’s’). As the traded instruments are recognised at fair value, any changes in fair value
directly affect reported income for a given period.
The following table shows the notional principal amount and the fair value of derivative financial instruments analysed by product and purpose at
31 December 2024 and 2023. A description of how the fair values of derivatives are determined is set out in note 43.
2024
2023
Notional
principal
amount
Fair values
Notional
principal
amount
Fair values
Assets
Liabilities
Assets
Liabilities
Derivatives held for trading
€ m
€ m
€ m
€ m
€ m
€ m
Interest rate derivatives
Interest rate swaps – over-the-counter (‘OTC’)
5,700
107
(321)
5,199
138
(351)
Interest rate swaps – OTC central clearing
5,111
274
(36)
4,650
278
(49)
Cross-currency interest rate swaps – OTC
—
—
—
645
3
—
Interest rate options bought and sold – OTC
3,701
9
(10)
3,493
14
(18)
Interest rate futures bought and sold – exchange traded
221
—
—
85
—
—
Total interest rate derivatives
14,733
390
(367)
14,072
433
(418)
Foreign exchange derivatives
Foreign exchange contracts – OTC
7,246
35
(88)
4,783
12
(26)
Total foreign exchange derivatives
7,246
35
(88)
4,783
12
(26)
Equity, credit and other derivatives
Equity total return swaps – OTC
41
—
—
92
—
(1)
Credit derivatives – OTC central clearing
83
—
(3)
83
—
(3)
Forward contracts to acquire loans1
—
—
—
1,047
12
—
Virtual corporate power purchase agreement
2
—
(3)
—
—
—
Total equity, credit and other derivatives
126
—
(6)
1,222
12
(4)
Total derivatives held for trading
22,105
425
(461)
20,077
457
(448)
Derivatives held for hedging
Derivatives designated as fair value hedges
Interest rate swaps – OTC
183
5
—
422
9
(1)
Interest rate swaps – OTC central clearing
29,783
1,050
(363)
24,015
1,228
(341)
Total derivatives designated as fair value hedges
29,966
1,055
(363)
24,437
1,237
(342)
Derivatives designated as cash flow hedges
Interest rate swaps – OTC
222
—
(5)
255
—
(12)
Interest rate swaps – OTC central clearing
41,110
664
(915)
48,135
681
(1,097)
Cross currency interest rate swaps - OTC
640
—
(39)
—
—
—
Total derivatives designated as cash flow hedges
41,972
664
(959)
48,390
681
(1,109)
Derivatives designated as net investment hedges
Forward exchange contracts – OTC
1,439
—
(24)
1,504
2
(3)
Total derivatives designated as net investment hedges
1,439
—
(24)
1,504
2
(3)
Total derivatives held for hedging
73,377
1,719
(1,346)
74,331
1,920
(1,454)
Total derivative financial instruments
95,482
2,144
(1,807)
94,408
2,377
(1,902)
1. Relates to a forward contract to acquire tracker (and linked) mortgages from Ulster Bank. See note 43 for further information.
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16 Derivative financial instruments continued
Fair value hedges
Fair value hedges are entered into to hedge the exposure to changes in the fair value of recognised assets or liabilities arising from changes in
interest rates, primarily, debt securities and fixed rate liabilities. The fair values of financial instruments are set out in note 43.
The net mark to market on fair value hedging derivatives, excluding accrual and risk adjustments at 31 December 2024 is positive € 594 million
(2023: positive € 764 million) and the net mark to market on the related hedged items at 31 December 2024 is negative € 576 million (2023:
negative € 748 million).
Offsetting of derivative financial assets and financial liabilities
Derivative financial instruments are shown on the statement of financial position at their fair value. Those with a positive fair value are reported
as assets and those with a negative fair value are reported as liabilities. Details on offsetting financial assets and financial liabilities are set out in
note 38.
Nominal values and average interest rates by residual maturity
At 31 December 2024 and 2023, the Group held the following hedging instruments of interest rate risk and foreign exchange rate risk in fair value,
cash flow and net investment hedges respectively. In 2024 the Group revised the maturity analysis disclosure to better align it with the current
maturity profile of the Group’s hedging instruments. The related comparatives for 2023 have been re-presented.
2024
Up to 1 year
1 to 2 years
2 to 5 years
5 years +
Total
Fair value hedges – Interest rate swaps
Assets
Hedges of investment securities
Nominal principal amount (€ m)
785
1,617
5,949
7,803
16,154
Average interest rate (%)1
0.94
0.77
1.02
1.85
1.39
Hedges of customer loans
Nominal principal amount (€ m)
—
—
—
15
15
Average interest rate (%)1
—
—
—
2.59
2.59
Liabilities
Hedges of debt securities in issue
Nominal principal amount (€ m)
1,972
750
3,468
1,732
7,922
Average interest rate (%)1
4.73
0.50
4.74
5.59
4.52
Hedges of subordinated debt
Nominal principal amount (€ m)
—
1,000
—
650
1,650
Average interest rate (%)1
—
2.88
—
4.63
3.56
Hedges of customer deposits
Nominal principal amount (€ m)
—
—
2,615
1,610
4,225
Average interest rate (%)1
—
—
2.59
2.47
2.55
Total nominal amount of fair value hedges – Interest rate swaps
2,757
3,367
12,032
11,810
29,966
Cash flow hedges – Interest rate swaps2
Hedges of financial assets
Nominal principal amount (€ m)
4,430
10,627
7,182
17,526
39,765
Average interest rate (%)3
3.06
3.27
1.78
2.34
2.57
Hedges of financial liabilities
Nominal principal amount (€ m)
213
459
962
573
2,207
Average interest rate (%)3
2.29
2.39
2.61
2.76
2.57
Total nominal amount of cash flow hedges – Interest rate swaps
4,643
11,086
8,144
18,099
41,972
Net investment hedges – Forward exchange contracts
Nominal principal amount (€ m)
1,231
208
—
—
1,439
Forward FX rate (%)4
0.85
0.87
—
—
0.85
1. Represents the fixed rate on the hedged item which is being swapped for a variable rate.
2. Includes interest rate swaps and cross currency swaps used to hedge interest rate risk on variable rate EUR/USD assets and liabilities.
3. This is the average interest rate on the fixed leg of swap agreements where the variable rate on the assets and liabilities in cash flow hedges is being swapped for
a fixed rate. Pay fixed cash flow hedges are used to hedge the cash flows on variable rate liabilities and receive fixed cash flow hedges are used to hedge the cash
flows on variable rate assets.
4. Being the forward FX rates on the hedging derivatives which are being used to hedge the Group’s net investment in foreign operations.
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Notes to the Consolidated Financial Statements continued
16 Derivative financial instruments continued
Nominal values and average interest rates by residual maturity continued
2023
Up to 1 year
1 to 2 years
2 to 5 years
5 years +
Total
Fair value hedges – Interest rate swaps
Assets
Hedges of investment securities
Nominal principal amount (€ m)
931
913
7,430
5,134
14,408
Average interest rate (%)1
0.74
0.88
0.83
1.40
1.03
Hedges of customer loans
Nominal principal amount (€ m)
—
—
—
15
15
Average interest rate (%)1
—
—
—
2.59
2.59
Liabilities
Hedges of debt securities in issue
Nominal principal amount (€ m)
1,655
1,929
4,160
770
8,514
Average interest rate (%)1
2.90
4.66
3.95
5.25
4.02
Hedges of subordinated debt
Nominal principal amount (€ m)
500
—
1,000
—
1,500
Average interest rate (%)1
1.88
—
2.88
—
2.54
Hedges of customer deposits
Nominal principal amount (€ m)
—
—
—
—
—
Average interest rate (%)1
—
—
—
—
—
Total nominal amount of fair value hedges – Interest rate swaps
3,086
2,842
12,590
5,919
24,437
Cash flow hedges – Interest rate swaps2
Hedges of financial assets
Nominal principal amount (€ m)
8,511
3,805
18,892
15,279
46,487
Average interest rate (%)3
2.19
2.44
2.61
2.26
2.40
Hedges of financial liabilities
Nominal principal amount (€ m)
82
355
1,251
215
1,903
Average interest rate (%)3
0.81
2.32
2.07
3.36
2.21
Total nominal amount of cash flow hedges – Interest rate swaps
8,593
4,160
20,143
15,494
48,390
Net investment hedges – Forward exchange contracts
Nominal principal amount (€ m)
1,504
—
—
—
1,504
Forward FX rate (%)4
0.87
—
—
—
0.87
1. Represents the fixed rate on the hedged item which is being swapped for a variable rate.
2. Includes interest rate swaps used to hedge interest rate risk.
3. This is the average interest rate on the fixed leg of swap agreements where the variable rate on the assets and liabilities in cash flow hedges is being swapped for
a fixed rate. Pay fixed cash flow hedges are used to hedge the cash flows on variable rate liabilities and receive fixed cash flow hedges are used to hedge the cash
flows on variable rate assets.
4. Being the forward FX rates on the hedging derivatives which are being used to hedge the Group’s net investment in foreign operations.
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16 Derivative financial instruments continued
Fair value hedges of interest rate risk
The tables below set out the amounts relating to items designated as (a) hedging instruments and (b) hedged items in fair value hedges of interest
rate risk together with the related hedge ineffectiveness at 31 December 2024 and 2023:
2024
Nominal
amount of
hedging
instrument
Carrying amount of
hedging instrument2
Change in fair
value used for
calculating
hedge
ineffectiveness
for the year
Hedge
ineffectiveness
recognised in
the income
statement1
Assets
Liabilities
Hedging instrument1
€ m
€ m
€ m
€ m
€ m
Interest rate swaps hedging:
Investment securities
16,154
827
(270)
(372)
1
Debt securities in issue
7,922
132
(69)
67
(2)
Subordinated debt
1,650
30
(21)
64
1
Customer accounts
4,225
66
(2)
64
—
Customer loans
15
—
(1)
—
—
29,966
1,055
(363)
(177)
—
2024
Line item in Statement of
Financial Position where hedged
item is included
Carrying amount
of hedged item
recognised in
Statement of
Financial Position
Accumulated amount of fair
value hedge adjustments on
the hedged item included in
the carrying amount of the
hedged item
Change in fair
value of hedged
item used for
calculating
hedge
ineffectiveness
for the year
Remaining
adjustments
for
discontinued
hedges
Assets
Liabilities
Assets
Liabilities
Hedged item
€ m
€ m
€ m
€ m
€ m
€ m
Investment securities
Investment securities
15,172
—
—
(555)
373
—
Debt securities in issue
Debt securities in issue
—
(7,900)
18
—
(69)
—
Subordinated debt
Subordinated liabilities and other
capital instruments
—
(1,625)
25
—
(63)
—
Customer accounts
Customer accounts
—
(4,225)
—
(64)
(64)
—
Customer loans
Loans and advances to customers
15
—
1
—
—
—
15,187
(13,750)
44
(619)
177
—
2023
Nominal
amount of
hedging
instrument
Carrying amount of
hedging instrument2
Change in fair
value used for
calculating
hedge
ineffectiveness
for the year
Hedge
ineffectiveness
recognised in
the income
statement1
Assets
Liabilities
Hedging instrument1
€ m
€ m
€ m
€ m
€ m
Interest rate swaps hedging:
Investment securities
14,408
1,102
(136)
(724)
(1)
Debt securities in issue
8,514
136
(133)
256
4
Subordinated debt
1,500
—
(73)
66
1
Customer accounts
—
—
—
—
—
Customer loans
15
—
(1)
(1)
—
24,437
1,238
(343)
(403)
4
2023
Line item in Statement of Financial
Position where hedged item
is included
Carrying amount
of hedged item
recognised in
Statement of
Financial Position
Accumulated amount of fair
value hedge adjustments on
the hedged item included in
the carrying amount of the
hedged item
Change in fair
value of hedged
item used for
calculating
hedge
ineffectiveness
for the year
Remaining
adjustments for
discontinued
hedges
Assets
Liabilities
Assets
Liabilities
Hedged item
€ m
€ m
€ m
€ m
€ m
€ m
Investment securities
Investment securities
13,540
—
—
(925)
723
—
Debt securities in issue
Debt securities in issue
—
(8,423)
89
—
(252)
—
Subordinated debt
Subordinated liabilities and other
capital instruments
—
(1,412)
88
—
(65)
—
Customer accounts
Customer accounts
—
—
—
—
—
—
Customer loans
Loans and advances to customers
15
—
1
—
1
—
13,555
(9,835)
178
(925)
407
—
1. All hedging instruments are included within derivative financial instruments on the statement of financial position and ineffectiveness is included within net trading
income in the income statement.
2. The net mark to market on fair value hedging derivatives, excluding accruals of € 97 million, is positive € 595 million (2023: € 130 million and positive € 765 million).
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Notes to the Consolidated Financial Statements continued
16 Derivative financial instruments continued
Cash flow hedges of interest rate risk
The tables below set out the amounts relating to (a) items designated as hedging instruments and (b) the hedged items in cash flow hedges of
interest rate risk together with the related hedge ineffectiveness at 31 December 2024 and 2023:
2024
Carrying amount of the
hedging instrument
Nominal
amount of
the hedging
instrument
Assets
Liabilities
Change in fair
value of
hedging
instrument used
for calculating
hedge
ineffectiveness
in the year
Change in fair
value of
hedging
instrument
recognised in
OCI in the year
Hedge
Ineffectiveness
recognised in
the income
statement1
Amounts
reclassified
from the
cash flow
hedge
reserve to
the income
statement
Hedging instrument1
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Interest rate swaps hedging2:
Assets (interest rate risk)
39,765
598
(954)
167
173
(6)
(618) 3
Liabilities (interest rate risk)
2,207
66
(5)
—
—
—
49 4
41,972
664
(959)
167
173
(6)
(569)
1. All hedging instruments are included within derivative financial instruments on the statement of financial position and all ineffectiveness is included within net trading
income in the income statement.
2. These can include both interest rate swaps and cross currency swaps, both of which are hedging interest rate risk.
3. Included in interest and similar income in the income statement.
4. Included in interest and similar expense in the income statement.
2024
Line item in
Statement of Financial Position in
which hedged item is included
Change in fair
value of hedged
item used for
calculating
hedge
ineffectiveness
for the year
Amounts in the
cash flow
hedging
reserves for
continuing
hedges1
pre tax
Amounts in the
cash flow
hedging
reserves for
continuing
hedges1
post tax
Amounts
remaining
in the cash flow
hedging reserves
from any hedging
relationship for
which hedge
accounting is no
longer applied
pre tax
Amounts
remaining
in the cash flow
hedging reserves
from any hedging
relationship for
which hedge
accounting is no
longer applied
post tax
Hedged item
€ m
€ m
€ m
€ m
€ m
Assets (interest rate
risk)
Loans and advances to customers
(173)
(264)
(189)
25
22
Liabilities (interest
rate risk)
Customer accounts
—
52
46
—
—
1. The cash flow hedging reserves are adjusted to the lower of either the cumulative gain or loss or the cumulative change in fair value (present value) of the hedged
item from inception of the hedge. The portion that is offset by the change in the cash flow hedging reserves is recognised in other comprehensive income with any
hedge ineffectiveness recognised in the income statement.
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16 Derivative financial instruments continued
Cash flow hedges of interest rate continued
2023
Carrying amount of the
hedging instrument
Hedging instrument1
Nominal
amount of the
hedging
instrument
Assets
Liabilities
Change in fair
value of hedging
instrument used
for calculating
hedge
ineffectiveness
in the year
Change in fair
value of the
hedging
instrument
recognised in
OCI
in the year
Hedge
Ineffectiveness
recognised in
the income
statement1
Amounts
reclassified
from the cash
flow hedge
reserve to the
income
statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Interest rate swaps hedging2
Assets (interest rate risk)
46,487
604
(1,095)
1,480
1,480
—
(615) 3
Liabilities (interest rate risk)
1,903
77
(14)
(75)
(75)
—
42 4
48,390
681
(1,109)
1,405
1,405
—
(573)
1. All hedging instruments are included within derivative financial instruments on the statement of financial position and all ineffectiveness is included within net trading
income in the income statement.
2. These can include both interest rate swaps and cross currency swaps, both of which are hedging interest rate risk.
3. Included in interest and similar income and other (expense)/income in the income statement.
4. Included in interest and similar expense in the income statement.
2023
Line item in
Statement of Financial Position in
which hedged item is included
Change in fair
value of hedged
item used for
calculating hedge
ineffectiveness
for the year
Amounts
in the cash
flow hedging
reserves for
continuing
hedges1
pre tax
Amounts
in the cash
flow hedging
reserves for
continuing
hedges1
post tax
Amounts
remaining
in the cash flow
hedging reserves
from any
hedging
relationship for
which hedge
accounting
is no longer
applied
pre tax
Amounts remaining
in the cash flow
hedging reserves
from any
hedging relationship
for
which hedge
accounting is no
longer applied
post tax
Hedged item
€ m
€ m
€ m
€ m
€ m
Assets (interest rate
risk)
Loans and advances to customers
(1,480)
(432)
(344)
13
11
Liabilities (interest rate
risk)
Customer accounts
75
52
45
—
—
1. The cash flow hedging reserves are adjusted to the lower of either the cumulative gain or loss or the cumulative change in fair value (present value) of the hedged
item from inception of the hedge. The portion that is offset by the change in the cash flow hedging reserves is recognised in other comprehensive income with any
hedge ineffectiveness recognised in the income statement.
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Notes to the Consolidated Financial Statements continued
16 Derivative financial instruments continued
Cash flow hedges
The table below sets out the hedged cash flows which are expected to occur in the following periods:
2024
Within 1 year
Between 1 and
2 years
Between 2 and
5 years
More than
5 years
Total
€ m
€ m
€ m
€ m
€ m
Forecast receivable cash flows
991
696
1,545
1,016
4,248
Forecast payable cash flows
77
53
93
29
252
2023
Within 1 year
Between 1 and
2 years
Between 2 and
5 years
More than
5 years
Total
€ m
€ m
€ m
€ m
€ m
Forecast receivable cash flows
1,400
692
1,381
1,113
4,586
Forecast payable cash flows
73
44
59
21
197
The table below sets out the hedged cash flows, including amortisation of terminated cash flow hedges, which are expected to impact the income
statement in the following periods:
2024
Within 1 year
Between 1 and
2 years
Between 2 and
5 years
More than
5 years
Total
€ m
€ m
€ m
€ m
€ m
Forecast receivable cash flows
991
696
1,545
1,016
4,248
Forecast payable cash flows
87
60
91
35
273
2023
Within 1 year
Between 1 and
2 years
Between 2 and
5 years
More than
5 years
Total
€ m
€ m
€ m
€ m
€ m
Forecast receivable cash flows
1,400
692
1,381
1,113
4,586
Forecast payable cash flows
88
47
48
29
212
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16 Derivative financial instruments continued
Hedges of net investment in foreign operations
The tables below set out the amounts relating to (a) items designated as hedging instruments and (b) the hedged items in hedges of the net
investment in foreign operations together with the related hedge ineffectiveness at 31 December 2024 and 2023.
2024
Carrying amount of the
hedging instrument
Hedging Instrument1
Nominal
amount of
hedging
instrument
Assets
Liabilities
Change in fair
value of
hedging
instrument used
for calculating
hedge
ineffectiveness
in the year
Change in fair
value of
hedging
instrument
recognised in
OCI in the year
Hedge
Ineffectiveness
recognised in
the income
statement1
Amounts that
have been
transferred
because the
hedged item has
affected the
income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Foreign exchange contracts
Derivatives hedging assets
1,439
—
(24)
(66)
(66)
—
— 2
Derivatives hedging liabilities
—
—
—
—
—
—
— 2
1. All hedging instruments are included within derivative financial instruments on the statement of financial position and ineffectiveness is included within net trading
income in the income statement.
2. Included in other (expense)/income in the income statement.
2024
Line item in
Statement of
Financial
Position in
which hedged
item is included
Change in fair
value of hedged
item used for
calculating
hedge
ineffectiveness
for the year
Amount in the
foreign currency
translation
reserves for
continuing
hedges
pre tax
Amounts in the
foreign currency
translation
reserves for
continuing
hedges
post tax
Amounts
remaining
in the foreign
currency
translation
reserves from any
hedging
relationship for
which hedge
accounting is no
longer applied
pre tax
Amounts
remaining
in the foreign
currency
translation
reserves from any
hedging
relationship for
which hedge
accounting is no
longer applied
post tax
Hedged item
€ m
€ m
€ m
€ m
€ m
Net investment in UK subsidiary
Reserves
66
(108)
(94)
(8)
(7)
2023
Carrying amount of the
hedging instrument
Hedging Instrument1
Nominal
amount of
hedging
instrument
Assets
Liabilities
Change in fair
value of hedging
instrument used
for calculating
hedge
ineffectiveness
in the year
Change in fair
value of
hedging
instruments
recognised in
OCI in the year
Hedge
Ineffectiveness
recognised in
the income
statement1
Amounts that
have been
transferred
because the
hedged item has
affected the
income statement
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Foreign exchange contracts
Derivatives hedging assets
1,504
2
(3)
(28)
(28)
—
— 2
Derivatives hedging liabilities
—
—
—
—
—
—
— 2
1. All hedging instruments are included within derivative financial instruments on the statement of financial position and ineffectiveness is included within net trading
income in the income statement.
2. Included in other (expense)/income in the income statement.
2023
Hedged item
Line item in
Statement of
Financial
Position in which
hedged item is
included
Change in fair
value of hedged
item used for
calculating
hedge
ineffectiveness
for the year
Amount in the
foreign currency
translation
reserves for
continuing
hedges
pre tax
Amounts in the
foreign currency
translation
reserves for
continuing
hedges
post tax
Amounts
remaining
in the foreign
currency
translation
reserves from any
hedging
relationship for
which hedge
accounting is no
longer applied
pre tax
Amounts
remaining
in the foreign
currency
translation
reserves from any
hedging
relationship for
which hedge
accounting is no
longer applied
post tax
€ m
€ m
€ m
€ m
€ m
Net investment in UK subsidiary
Reserves
28
(50)
(43)
—
—
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Notes to the Consolidated Financial Statements continued
17 Loans and advances to banks
2024
2023
€ m
€ m
At amortised cost
Funds placed with central banks
241
259
Funds placed with other banks
1,080
1,070
1,321
1,329
ECL allowance
—
—
Total loans and advances to banks
1,321
1,329
Loans and advances to banks by geographical area1
2024
2023
€ m
€ m
Ireland
989
937
United Kingdom
317
388
United States of America
15
4
Total loans and advances to banks by geographical area
1,321
1,329
1. The classification of loans and advances to banks by geographical area is based primarily on the location of the office recording the transaction.
Loans and advances to banks include cash collateral of € 680 million (2023: € 741 million) placed with derivative counterparties in relation to net
derivative positions and placed with repurchase agreement counterparties. In addition, these include € 6 million (2023: € 5 million) relating to
restricted balances held in trust in respect of certain payables which are included in ‘other liabilities’ (note 32).
The group is required by law to maintain reserve balances with the Bank of England. At 31 December 2024, these amounted to € 241 million
(2023: € 259 million).
18 Loans and advances to customers
2024
2023
€ m
€ m
At amortised cost
Loans and advances to customers1
69,453
65,320
Amounts receivable under finance leases and hire purchase contracts
1,716
1,649
71,169
66,969
ECL allowance
(1,344)
(1,520)
69,825
65,449
Mandatorily at fair value through profit or loss
Loans and advances to customers
64
42
Total loans and advances to customers
69,889
65,491
Additional information:
Amounts which are repayable on demand
2,319
2,145
Amounts due from equity accounted investments
66
45
Undrawn commitments from equity accounted investments (less than one year)
208
225
Cash collateral placed with derivative counterparties
50
21
1. During the period, the Group acquired Ulster Bank tracker (and linked) mortgages of € 840 million (2023: € 3,842 million). In 2023 the Group acquired Ulster Bank
corporate and commercial loans of € 884 million.
For details of credit quality of loans and advances to customers, including forbearance, refer to the sections denoted as ‘audited’ in the
‘Risk management’ section 2.1.2 to 2.1.6 of this report.
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18 Loans and advances to customers continued
Amounts receivable under finance leases and hire purchase contracts
The following balances principally comprise of leasing arrangements and hire purchase agreements of vehicles, plant, machinery and equipment:
2024
2023
€ m
€ m
Gross receivables
Not later than 1 year
647
640
Later than 1 year and not later than 2 years
493
466
Later than 2 years and not later than 3 years
361
344
Later than 3 years and not later than 4 years
222
208
Later than 4 years and not later than 5 years
109
104
Later than 5 years
24
19
Total
1,856
1,781
Unearned future finance income
(151)
(142)
Deferred costs incurred on origination
11
10
Present value of minimum payments
1,716
1,649
ECL allowance for uncollectible minimum payments receivable1
39
43
1. Included in 'ECL allowance on financial assets' (note 20).
19 Securities financing
Securities financing transactions are generally entered into on a collateralised basis, with debt securities and equities, usually advanced or
received as collateral. Reverse repurchase agreements involve purchase of debt securities with an agreement to resell substantially identical
investments at a fixed price on a certain future date. Securities borrowing agreements involve purchase of debt securities and equities with an
agreement to resell substantially identical investments at a fixed price on a certain future date. Securities sold under agreements to repurchase
involves sales of securities with agreements to repurchase substantially identical investments at a fixed price on a certain future date.
2024
2023
Banks
Customers
Total
Banks
Customers
Total
€ m
€ m
€ m
€ m
€ m
€ m
Assets
Reverse repurchase agreements
3,380
175
3,555
3,628
171
3,799
Securities borrowing transactions
1,848
1,240
3,088
1,541
1,126
2,667
Total1
5,228
1,415
6,643
5,169
1,297
6,466
Liabilities
Securities sold under agreements to repurchase
191
5
196
575
—
575
Total
191
5
196
575
—
575
1. Classified as ECL Stage 1 and have an ECL of € 1 million at 31 December 2024 (31 December 2023: € 1 million).
In accordance with the terms of the reverse repurchase agreements and securities borrowing agreements, the Group accepts collateral that it is
permitted to sell or repledge in the absence of default by the owner of the collateral. At 31 December 2024, the total fair value of the collateral
received was € 6,643 million (2023: € 6,466 million), none of which had been resold or repledged. These transactions were conducted under terms
that are usual and customary to standard reverse repurchase agreements and securities borrowing agreements.
Securities sold under agreements to repurchase mature within six months and are secured by debt securities and eligible assets. At 31 December 2024,
in relation to securities sold under agreements to repurchase, the Group had pledged collateral with a fair value of € 196 million (2023: € 575 million).
These transactions were conducted under terms that are usual and customary to standard securities sold under repurchase transactions.
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Notes to the Consolidated Financial Statements continued
20 ECL allowance on financial assets
The following table shows the movements on the ECL allowance on financial assets. Further information is disclosed in the Gross Loans and ECL
movement tables in the ‘Risk management’ section of this report. See pages 210 to 216.
2024
2023
€ m
€ m
At 1 January
1,525
1,623
Net re-measurement of ECL allowance – investment securities-debt
(2)
—
Net re-measurement of ECL allowance – banks
—
—
Net re-measurement of ECL allowance – customers
92
216
Net re-measurement of ECL allowance – securities financing
—
—
Changes in ECL allowance due to write-offs
(126)
(125)
Changes in ECL allowance due to disposals
(173)
(200)
Exchange translation adjustments
16
4
Other
15
7
At 31 December
1,347
1,525
Amount included in financial assets measured at amortised cost:
Investment securities – debt
1
3
Loans and advances to banks
—
—
Loans and advances to customers
1,344
1,520
Securities financing
1
1
Other assets – stockbroking client debtors
1
1
At 31 December
1,347
1,525
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21 Investment securities
The following table analyses the carrying value of investment securities by major classification at 31 December 2024 and 2023.
2024
2023
€ m
€ m
Debt securities at FVOCI
Government securities
3,013
2,986
Supranational banks and government agencies securities
3,132
2,228
Asset backed securities
153
454
Bank securities
6,532
6,198
Corporate securities
738
622
Total debt securities at FVOCI1
13,568
12,488
of which provided as collateral
1,963
3,558
Debt securities at amortised cost
Government securities
2,226
2,177
Supranational banks and government agencies securities
237
179
Asset backed securities
2,113
1,917
Bank securities
79
77
Corporate securities
148
160
Total debt securities at amortised cost
4,803
4,510
of which provided as collateral
859
1,397
Total debt securities
18,371
16,998
Total of which provided as collateral
2,822
4,955
Equity securities
Equity investments at FVTPL
297
355
Total equity securities
297
355
Total investment securities
18,668
17,353
The following table analyses the carrying amount of debt securities by ECL stage:
Gross amount
Stage 1
18,372
16,991
Stage 2
—
10
Total debt securities
18,372
17,001
ECL2
(1)
(3)
Carrying value
18,371
16,998
1. The ECL of € 2 million (2023: € 2 million) on debt securities at FVOCI does not reduce the carrying amount, but an amount equal to the allowance is recognised in
OCI as an accumulated impairment amount, with corresponding impairment gains or losses recognised in the income statement.
2. Relates to debt securities at amortised cost.
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Notes to the Consolidated Financial Statements continued
22 Investments accounted for using the equity method
2024
2023
Associates
Joint
venture
Total
Associates
Joint
venture
Total
€ m
€ m
€ m
€ m
€ m
€ m
Share of net assets including goodwill
At 1 January
208
102
310
159
14
173
Investment during the year
27
10
37
18
107
125
Dividends received
(25)
—
(25)
—
—
—
Share of results of equity accounted investments (after tax)
33 1
(7)
26
31 1
(19)
12
At 31 December
243
105
348
208
102
310
1. Share of results of equity accounted investments includes € 34 million (2023: € 35 million) relating to AIB Merchant Services.
Details of the Group’s associates and joint venture
Investments in associates comprises the Group’s investment in AIB Merchant Services, Clearpay DAC, First Homes Scheme DAC and Autolease
Fleet Management Ltd. The investment in joint venture comprises the Group’s investment in AIB life, being the Group’s joint venture with Great-
West Lifeco Inc. None of the investments are considered individually material to the Group.
The following is the principal associate company of the Group at 31 December 2024 and 2023:
Name of associate
Principal activity
Place of incorporation
and operation
Proportion of ownership interest
and voting power held by
the Group
2024
%
2023
%
Zolter Services DAC (holds 100% of First
Merchant Processing (Ireland) DAC and
First Merchant Processing UK Ltd, together
trading as AIB Merchant Services)
Provider of merchant
payment solutions
Registered Office: Unit 6,
Belfield Business Park,
Clonskeagh, Dublin 4
Ireland
49.9
49.9
In accordance with Sections 316 and 348 of the Companies Act 2014 and the European Communities (Credit Institutions: Financial Statements)
Regulations 2015, AIB Group plc will annex a full listing of associated undertakings to its annual return to the Companies Registration Office.
Transactions with the Group’s associates and joint venture
Banking transactions between the Group and its associates and joint venture are entered into in the normal course of business. For further
information see notes 18 and 29. There was no unrecognised share of losses of associates or joint ventures at 31 December 2024 or 2023.
Change in the Group’s ownership interest in associates
There were no material disposals and/or change in the Group’s ownership interest in the current year.
Significant restrictions
There is no significant restriction on the ability of associates or joint ventures to transfer funds to the Group in the form of cash or dividends, or to
repay loans or advances made by the Group.
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23 Intangible assets and goodwill
Software
externally
purchased
Software
internally
generated
Software
under
construction
Goodwill1
Other
Total
€ m
€ m
€ m
€ m
€ m
€ m
Cost
At 1 January
237
1,805
158
128
42
2,370
Additions
13
106
113
—
—
232
Transfers in/(out)
—
105
(105)
—
—
—
Amounts written-off2
(34)
(120)
(2)
—
—
(156)
Exchange translation adjustments
—
3
—
—
—
3
At 31 December
216
1,899
164
128
42
2,449
Amortisation/impairment
At 1 January
214
1,201
—
—
30
1,445
Amortisation for the year3
11
205
—
—
6
222
Impairment for the year3
—
—
2
—
—
2
Amounts written-off2
(34)
(120)
(2)
—
—
(156)
Exchange translation adjustments
—
2
—
—
—
2
At 31 December
191
1,288
—
—
36
1,515
Carrying value at 31 December
25
611
164
128
6
934
2024
2023
Software
externally
purchased
Software
internally
generated
Software
under
construction
Goodwill1
Other
Total
€ m
€ m
€ m
€ m
€ m
€ m
Cost
At 1 January
243
1,638
149
120
40
2,190
Additions
10
91
95
8
2
206
Transfers in/(out)
—
86
(86)
—
—
—
Amounts written-off2
(16)
(11)
—
—
—
(27)
Exchange translation adjustments
—
1
—
—
—
1
At 31 December
237
1,805
158
128
42
2,370
Amortisation/impairment
At 1 January
221
1,005
—
—
24
1,250
Amortisation for the year3
9
205
—
—
6
220
Impairment for the year3
—
1
—
—
—
1
Amounts written-off2
(16)
(11)
—
—
—
(27)
Exchange translation adjustments
—
1
—
—
—
1
At 31 December
214
1,201
—
—
30
1,445
Carrying value at 31 December
23
604
158
128
12
925
1. In 2023 the Group acquired two subsidiaries, Gaiastream Ltd (trading as Clearstream Solutions) and ParkMagic Mobile Solutions Ltd, which were not material either
individually or collectively. The Group recognised goodwill of € 8 million as a result of these transactions.
2. Relates to assets which are no longer in use with a Nil carrying value.
3. Included in ‘Impairment and amortisation of intangible assets’ in the consolidated income statement.
Future capital expenditure in relation to both intangible assets and property, plant and equipment is set out in note 24.
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Notes to the Consolidated Financial Statements continued
24 Property, plant and equipment
2024
Owned assets
Leased assets
Property
Equipment
Assets under
construction
Right-of-use assets
Total
Freehold
Long
leasehold
Leasehold
under
50 years
Property
Other
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Cost
At 1 January
173
39
109
370
17
443
5
1,156
Transfers in/(out)
1
—
13
2
(16)
—
—
—
Additions
1
—
2
13
9
8
1
34
Transfers (to)/from held for sale
—
(2)
—
—
—
—
—
(2)
Amounts written off1
—
—
(4)
(33)
—
(32)
(1)
(70)
Exchange translation adjustments
1
—
—
1
—
2
—
4
At 31 December
176
37
120
353
10
421
5
1,122
Depreciation/impairment
At 1 January
54
14
61
298
—
171
—
598
Depreciation charge for the year2
5
1
9
22
—
34
2
73
Impairment charge for the year2
1
1
1
1
—
—
—
4
Amounts written off1
—
—
(4)
(33)
—
(32)
(1)
(70)
Transfers (to)/from held for sale
—
(1)
—
—
—
—
—
(1)
Exchange translation adjustments
—
—
—
—
—
1
1
2
At 31 December
60
15
67
288
—
174
2
606
Carrying value at 31 December
116
22
53
65
10
247
3
516
2023
Owned assets
Leased assets
Property
Equipment
Assets under
construction
Right-of-use assets
Total
Freehold
Long
leasehold
Leasehold
under
50 years
Property
Other
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Cost
At 1 January
168
38
107
378
9
377
4
1,081
Transfers in/(out)
2
—
1
1
(4)
—
—
—
Additions
4
1
2
15
12
57
5
96
Amounts written off1
(1)
—
(1)
(24)
—
(4)
(4)
(34)
Other
—
—
—
—
—
13
—
13
Exchange translation adjustments
—
—
—
—
—
—
—
—
At 31 December
173
39
109
370
17
443
5
1,156
Depreciation/impairment
At 1 January
50
13
53
298
—
128
3
545
Depreciation charge for the year2
5
1
9
24
—
34
1
74
Impairment charge for the year2
—
—
—
—
—
—
—
—
Amounts written off1
(1)
—
(1)
(24)
—
(4)
(4)
(34)
Transfers (to)/from held for sale
—
—
—
—
—
—
—
—
Other
—
—
—
—
—
13
—
13
Exchange translation adjustments
—
—
—
—
—
—
—
—
At 31 December
54
14
61
298
—
171
—
598
Carrying value at 31 December
119
25
48
72
17
272
5
558
1. Relates to assets which are no longer in use with a Nil carrying value.
2. Included in ‘Impairment and depreciation of property, plant and equipment’ in the consolidated income statement.
The net carrying value of property occupied by the Group for its own activities was € 182 million (2023: € 183 million) in relation to owned assets
and € 247 million in relation to right-of-use assets (2023: € 272 million), excluding those held as disposal groups and non-current assets held for
sale. Property leased to others by the Group had a carrying value of € 9 million (2023: € 9 million).
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24 Property, plant and equipment continued
Future capital expenditure
The table below shows future capital expenditure in relation to both property, plant and equipment and intangible assets (excluding right-of-use assets).
2024
2023
€ m
€ m
Estimated outstanding commitments for capital expenditure not provided for in the financial statements
2
7
Capital expenditure authorised but not yet contracted for
14
7
Leased assets
Property
The Group leases property for its offices and retail branch outlets. Lease terms are negotiated on an individual basis and contain a wide range of
different terms and conditions. Most of these leases carry statutory renewal rights, or include an option to renew the lease for an additional period
after the end of the contract term. Where the Group is likely to exercise these options, this has been taken into account in determining the lease
liability and the right-of-use asset.
Other
The Group leases motor vehicles, ATM offsite locations and IT equipment.
Lease liabilities
A maturity analysis of lease liabilities is shown in note 31.
Amounts recognised in income statement
2024
2023
€ m
€ m
Depreciation expense on right-of-use assets
36
35
Interest on lease liabilities (note 5)
9
9
Amounts recognised in statement of cash flows
2024
2023
€ m
€ m
Total cash outflow for leases during the year1
43
43
1. Includes amounts reported as interest expense on lease liabilities of € 9 million (2023: € 9 million) and amounts reported as principal repayments on lease liabilities
of € 34 million (2023: € 34 million). Refer to note 31.
25 Other assets
2024
2023
€ m
€ m
Proceeds due from disposal of loan portfolio1
133
43
Proceeds due from the issuance of debt securities1
105
—
Stockbroking client debtors2
11
21
Items in transit
114
83
Items in course of collection
35
42
Other3
77
71
Total other assets
475
260
Other assets are analysed as follows:
Less than 1 year
475
260
Greater than 1 year
—
—
475
260
1. ECL: Nil (2023: Nil).
2. ECL: € 1 million (2023: € 1 million).
3. Includes sundry debtors € 32 million (2023: € 37 million).
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Notes to the Consolidated Financial Statements continued
26 Deferred taxation
2024
2023
€ m
€ m
Deferred tax assets:
Unutilised tax losses
2,203
2,474
Cash flow hedges
73
97
Transition to IFRS 9
3
4
Assets used in the business
47
17
Retirement benefits
3
4
Assets leased to customers
15
16
Investment securities
15
—
Other
3
3
Total gross deferred tax assets
2,362
2,615
Deferred tax liabilities:
Cash flow hedges
(7)
(11)
Retirement benefits
(6)
(6)
Assets used in the business
(51)
(22)
Acquisition of subsidiary
(1)
(2)
Other
(8)
(16)
Total gross deferred tax liabilities
(73)
(57)
Net deferred tax assets
2,289
2,558
Represented on the statement of financial position:
Deferred tax assets
2,303
2,581
Deferred tax liabilities
(14)
(23)
2,289
2,558
For each of the years ended 31 December 2024 and 2023, full provision has been made for capital allowances and other temporary differences.
Analysis of movements in deferred taxation
2024
2023
€ m
€ m
At 1 January
2,558
3,002
Exchange translation and other adjustments
15
(11)
Deferred tax through other comprehensive income (note 14)
7
(174)
Income statement (note 14)
(291)
(259)
At 31 December
2,289
2,558
With regard to the Group’s deferred tax asset for unutilised losses, during 2024 the Group recognised a net charge to the income statement of
€ 294 million (2023: € 262 million) and an increase in the carrying value of € 23 million (2023: € 8 million) in relation to exchange translations and
other adjustments. As a result, the amount of recognised deferred tax assets arising from unutilised tax losses amounted to € 2,203 million
(2023: € 2,474 million) of which € 1,995 million (2023: € 2,289 million) relates to Irish tax losses, € 191 million (2023: € 185 million) relates to UK
tax losses and € 17 million (2023: Nil) relates to US tax losses. Additional commentary on the basis of recognition of deferred tax assets on unused
tax losses is included in note 2.
Temporary differences recognised in other comprehensive income consist of deferred tax on financial assets at FVOCI, cash flow hedges and
actuarial gains/losses on retirement benefit schemes. Temporary differences recognised in the income statement consist of provisions for expected
credit losses on financial instruments, amortised income, assets leased to customers, and assets used in the course of the business.
Net deferred tax assets at 31 December 2024 of € 2,076 million (2023: € 2,361 million) are expected to be recovered after more than 12 months.
For the Group’s principal UK subsidiary, the Group has concluded that the recognition of deferred tax assets be limited to the amount projected to
be realised within a time period of 15 years. This is the timescale within which the Group believes that it can assess the likelihood of its profits
arising as being more likely than not. The deferred tax asset for unutilised tax losses in the principal UK subsidiary amounts to £ 152 million at
31 December 2024 (2023: £ 160 million).
For certain other subsidiaries and branches, the Group has concluded that it is more likely than not that there will be insufficient profits to support
full recognition of deferred tax assets. The Group has not recognised deferred tax assets in respect of: Irish tax on unused tax losses at
31 December 2024 of € 155 million (2023: € 161 million); overseas tax (UK and USA) on unused tax losses of € 3,078 million (2023: € 3,058
million); and foreign tax credits for Irish tax purposes of € 19 million (2023: € 12 million). Of these tax losses totalling € 3,233 million for which no
deferred tax is recognised: € 14 million expires in 2034; and € 6 million in 2035.
The aggregate amount of temporary differences associated with investments in subsidiaries, branches and associates for which deferred tax
liabilities have not been recognised amounted to Nil (2023: Nil). Deferred tax recognised directly in equity amounted to Nil (2023: Nil).
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27 Retirement benefits
The Group operates a number of defined contribution and defined benefit schemes for employees. All defined benefit schemes are closed to future accrual.
Defined contribution
From 1 January 2014, all Group staff accrue future pension benefits on a defined contribution (‘DC’) basis with a standard employer contribution
of 10%. An additional matched employer contribution, subject to limits based on age bands of 2%, 5% or 8% is also paid into the schemes.
The amount included in operating expenses in respect of DC schemes is € 96 million (2023: € 89 million) (note 10).
Defined benefit schemes
All defined benefit schemes operated by the Group closed to future accrual no later than 31 December 2013 and staff transferred to defined
contribution schemes for future pension benefits. The most significant defined benefit schemes operated by the Group are the AIB Group Irish
Pension Scheme (‘the Irish scheme’) and the AIB Group UK Pension Scheme (‘the UK scheme’).
Retirement benefits for the defined benefit schemes are calculated by reference to service and final pensionable salary at 31 December 2013. The
final pensionable salary used in the calculation of this benefit for staff is based on their average pensionable salary in the period between 30 June
2009 and 31 December 2013. This calculation of benefit for each staff member will revalue between 1 January 2014 and retirement date in line
with the statutory requirement to revalue deferred benefits. There is no link to any future changes in salaries.
In the main Irish scheme, there are 15,560 members comprising 4,688 pensioners and 10,872 deferred members at 31 December 2024. 7,480
members have benefits accrued from 2007 to 2013 under a hybrid arrangement. In addition, there are 937 members comprising 162 pensioners
and 775 deferred members at 31 December 2024 in EBS Defined Benefit Schemes.
During 2024, the UK Court of Appeal upheld a ruling in respect of Virgin Media v NTL Pension Trustees II Limited, which considered the validity of
certain defined benefit scheme rule amendments made between 1997 and 2016. The Trustee with its advisers and the UK scheme actuary is
considering the possible implications of the ruling on the UK scheme. As it is too early at present to estimate the potential impact, if any, on the UK
scheme, no adjustment has been made in the financial statement for this matter.
(i) Responsibilities for governance
The Trustees of each Group pension scheme are ultimately responsible for the governance of the schemes. In respect of the Irish schemes, the
scheme actuary reviews the statutory minimum funding requirement annually. In the event of a deficit on the statutory funding basis either the
Group can meet the deficit over an agreed period through agreeing a funding proposal with the Trustees and pensions regulator or making a
contribution to meet the deficit. There are currently no funding proposals or contribution requirements in respect of the Irish schemes and the
scheme actuary's most recent review confirmed that the schemes met their statutory funding obligations. Funding arrangements for the UK
scheme are described in the Asset-liability matching strategies within this note.
(ii) Risks
Details of the pension risk to which the Group is exposed are set out in the Risk Management section on pages 233 and 234 of this report.
(iii) Valuations
Independent actuarial valuations for the Irish scheme and the UK scheme are carried out on a triennial basis by the schemes’ actuary, Mercer.
The most recent valuation of the Irish scheme was carried out at 30 June 2021 and reported the scheme to be in surplus. The next actuarial
valuation of the Irish scheme is being prepared with an effective date of 30 June 2024 with the results expected by 31 March 2025. No deficit
funding is required at this time as the Irish scheme continues to meet the minimum funding standard. The most recent valuation of the UK scheme
was carried out at 31 December 2020. The next actuarial valuation of the UK scheme is being carried out for 31 December 2023 with the results
expected by 31 March 2025.
(iv) Contributions
Total contributions to all defined benefit pension schemes operated by the Group in 2024 amounted to € 24 million (2023: € 24 million). There were
no contributions made to the Irish scheme in 2024 (2023: Nil). Contributions of £ 18.5 million were made to the UK scheme (2023: £ 18.5 million)
as part of the revised funding arrangement which was implemented in December 2019.
Total contributions to all defined benefit pension schemes operated by the Group for the year to 31 December 2025 are estimated to be € 11 million.
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Notes to the Consolidated Financial Statements continued
27 Retirement benefits continued
(v) Financial assumptions
The following table summarises the financial assumptions adopted in the preparation of these financial statements in respect of the main schemes
at 31 December 2024 and 2023. The assumptions have been set based upon the advice of the Group’s actuary.
2024
2023
Financial assumptions
%
%
Irish scheme
Rate of increase of pensions in payment
1.90
2.05
Discount rate
3.52
3.55
Inflation assumptions1
1.90
2.15
UK scheme
Rate of increase of pensions in payment2
3.20
3.00
Discount rate
5.50
4.80
Inflation assumptions (RPI)
3.10
3.00
1. The inflation assumption applies to the revaluation of deferred members’ benefits up to their retirement date.
2. The assumption for pension in payment increases in line with RPI but with a floor of 0% and so is higher than the RPI assumption.
– Funding of increases in pensions in payment for the Irish scheme
The Board previously determined that the funding of discretionary increases to pensions in payment is a decision to be made by the Board each
year. A process, taking account of all relevant interests and factors was implemented by the Board. These interests and factors include: the advice
of the Actuary; the interests of the members of the scheme; the interests of the employees; the Group’s financial circumstances and ability to pay;
the views of the Trustees; the Group’s commercial interests and any competing obligations to the State. As a result of this process, the Group’s
judgement is that a constructive obligation to fund future discretionary pension in payment increases does not exist.
The Group decided in February 2024 and 2025 that the funding of discretionary increases was not appropriate in either year in relation to the
Irish scheme.
– Rate of increase of pensions in payment – Irish scheme
Notwithstanding the decisions by the Board not to fund discretionary increases, the Trustee of the Irish scheme awarded an increase of 3.40%
in 2024 (2023: increase of 6.75%). Taking this decision by the Trustee into consideration and the financial position of the scheme, the long-term
assumption for future discretionary increases in pensions in payment continues to reflect an assessment of the Trustee’s ability to grant further
discretionary increases without funding from the Group. Having taken actuarial advice, this amount was estimated to increase scheme liabilities
by € 808 million at 31 December 2024 (31 December 2023: € 822 million). This is equivalent to a rate of 1.90% (31 December 2023: 2.05%)
for the long-term assumption for future discretionary increases in pensions in payment (which is the lower of the surplus available to the Trustee
to distribute or the long-term inflation assumption).
(vi) Demographic assumptions
Demographic assumptions include assumptions for mortality, proportions married, commutation and retirement age. The mortality assumption has
the most material impact on changes in demographic assumptions and further details on this assumption are set out below. The life expectancies
underlying the value of the scheme liabilities for the Irish and UK schemes at 31 December 2024 and 2023 are shown in the following table.
Life expectancy – years
Irish scheme
UK scheme
2024
2023
2024
2023
Retiring today age 63
Males
25.1
25.1
24.2
24.3
Females
27.0
27.0
26.2
26.2
Retiring in 10 years at age 63
Males
25.8
25.7
24.5
24.6
Females
27.8
27.7
27.2
27.2
The mortality assumptions for the Irish and UK schemes were updated in 2021 to reflect emerging market experience. The table shows that a
member of the Irish scheme retiring at age 63 on 31 December 2024 is assumed to live on average for 25.1 years for a male (24.2 years for the
UK scheme) and 27.0 years for a female (26.2 years for the UK scheme). There will be variation between members but these assumptions are
expected to be appropriate for all members. The table also shows the life expectancy for members aged 53 on 31 December 2024 who will retire
in ten years. Younger members are expected to live longer in retirement than those retiring now, reflecting a decrease in mortality rates in future
years due to advances in medical science and improvements in standards of living.
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27 Retirement benefits continued
(vii) Movement in defined benefit obligation and scheme assets
The following table sets out the movement in the defined benefit obligation and scheme assets during 2024 and 2023.
2024
2023
Defined
benefit
obligation
Fair
value of
scheme
assets
Asset
ceiling/
minimum
funding1
Net
defined
benefit
(liabilities)
assets
Defined
benefit
obligation
Fair
value of
scheme
assets
Asset
ceiling/
minimum
funding1
Net
defined
benefit
(liabilities)
assets
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January
(5,023)
5,690
(650)
17
(4,850)
5,454
(607)
(3)
Included in profit or loss
Past service cost
(1)
—
—
(1)
(2)
—
—
(2)
Interest (cost)/income
(183)
209
(23)
3
(205)
232
(26)
1
Administration costs
—
(5)
—
(5)
—
(4)
—
(4)
(184)
204
(23)
(3)
(207)
228
(26)
(5)
Included in other comprehensive income
Remeasurement loss:
– Actuarial gain/(loss) arising from:
– Experience adjustments2
(45)
—
—
(45)
(96)
—
—
(96)
– Changes in demographic assumptions
1
—
—
1
17
—
—
17
– Changes in financial assumptions
84
—
—
84
(95)
—
—
(95)
– Return on scheme assets excluding
interest income
—
(117)
—
(117)
—
189
—
189
– Asset ceiling/minimum funding adjustments
—
—
59
59
—
—
(17)
(17)
Total remeasurement loss
(18) 3
(2) 3
Translation adjustment on
non-Euro schemes
(36)
38
—
2
(12)
15
—
3
4
(79)
59
(16)
(186)
204
(17)
1
Other
Contributions by employer
—
24
—
24
—
24
—
24
Benefits paid
253
(253)
—
—
220
(220)
—
—
253
(229)
—
24
220
(196)
—
24
At 31 December
(4,950)
5,586
(614)
22
(5,023)
5,690
(650)
17
31 December
31 December
2024
2023
€ m
€ m
Recognised on the statement of financial position as:
Retirement benefit assets
UK scheme
20
21
Other schemes
11
10
Total retirement benefit assets
31
31
Retirement benefit liabilities
Irish scheme
—
—
EBS scheme
—
—
Other schemes
(9)
(14)
Total retirement benefit liabilities
(9)
(14)
Net pension surplus
22
17
1. In recognising the net surplus or deficit on a pension scheme, the funded status of each scheme is adjusted to reflect any minimum funding requirement and any
ceiling on the amount that the sponsor has a right to recover from a scheme.
2. The effects of differences between the previous actuarial assumptions and what has actually occurred.
3. After tax € 13 million (2023: € 2 million).
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Notes to the Consolidated Financial Statements continued
27 Retirement benefits continued
Scheme assets
The following table sets out an analysis of the scheme assets:
2024
2023
€ m
€ m
Cash and cash equivalents
148
196
Quoted equity instruments
Basic materials
28
56
Consumer goods
51
92
Consumer services
146
121
Energy
38
93
Financials
150
212
Healthcare
102
152
Industrials
140
134
Technology
267
239
Telecoms
23
88
Utilities
28
40
Real estate
22
—
Total quoted equity instruments
995
1,227
Quoted debt instruments
Corporate bonds
744
721
Government bonds
1,057
1,032
Total quoted debt instruments
1,801
1,753
Real estate1,2
278
300
Derivatives
(14)
9
Quoted investment funds
Alternatives
38
26
Cash
2
11
Equity
210
187
Fixed interest
110
109
Forestry
49
48
Liability Driven Investment
1,170
978
Multi-asset
6
10
Total quoted investment funds
1,585
1,369
Mortgage backed securities2
115
139
Insurance contracts3
678
697
Fair value of scheme assets at 31 December
5,586
5,690
1. Located in Europe.
2. A quoted market price in an active market is not available.
3. Further details on these contracts are set out in the section ‘Asset-liability matching strategies’ within this note.
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27 Retirement benefits continued
Sensitivity analysis for principal assumptions used to measure scheme liabilities
There are inherent uncertainties surrounding the assumptions adopted in calculating the liabilities of the pension schemes. Set out in the table
below is a sensitivity analysis of the key assumptions for the Irish scheme and the UK scheme at 31 December 2024. A sensitivity analysis for the
rate of increase of pensions in payment is not provided for the Irish scheme, as this rate is dependent on the surplus available to the Trustee to
distribute and the advice of the actuary (see page 311). The inflation sensitivities for the UK Scheme are a combination of those relating to
deferred members and pensioners.
In the table below, changes in assumptions are independent of each other (i.e. the effect of the reflected change in the discount rate assumes that
there has been no change in the rate of mortality assumption and vice versa).
2024
2023
Irish scheme
defined benefit
obligation
UK scheme
defined benefit
obligation
Irish scheme
defined benefit
obligation
UK scheme
defined benefit
obligation
Increase
Decrease
Increase
Decrease
Increase
Decrease
Increase
Decrease
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Discount rate (0.25% movement)
(101)
106
(19)
18
(105)
113
(20)
21
Inflation (0.25% movement)
39
(37)
17
(19)
42
(40)
20
(19)
Future mortality (1 year change in life expectancy)
106
(106)
16
(18)
107
(107)
18
(18)
Maturity of the defined benefit obligation
The weighted average duration of the Irish scheme at 31 December 2024 is 13 years (2023: 14 years) and of the UK scheme at 31 December
2024 is 11 years (2023: 12 years).
Asset-liability matching strategies
UK scheme
The Group and the Trustee began a substantial de-risking process of the UK scheme in 2019. An initial transaction entered into involved the
acquisition of two insurance contracts from Legal and General Assurance Society ('LGAS') using the majority of the assets of the UK scheme.
These insurance contracts are: a pensioner buy-in contract in respect of the pensioner members and an assured payment policy ('APP') in respect
of deferred members. The ultimate obligation to pay the members benefits still remains with the scheme.
The pensioner buy-in contract removes financial and demographic risk attaching to the current UK pensioners. This pensioner buy-in contract is
effectively a qualifying insurance contract, and exactly matches the amount and timing of the benefits covered. Accordingly, the fair value of the
pensioner buy-in contract is set equal to the corresponding value of the liabilities, using the same assumptions.
The APP significantly reduces the inflation and interest rate risk attaching to UK deferred members although demographic risks remain. The APP
can (at the UK Trustee’s election) be partially surrendered on an annual basis for the purpose of wholly or partially funding buy-in of further
tranches of deferred members over a defined period of time. There have been three APP conversions resulting in the purchase of additional
tranches of deferred and pensioner buy-ins. This has removed exposure to the risks not covered by the APP over time. The fair value of the APP is
measured as the estimated cost of purchasing the contract on the open market. Since the initial de-risking transaction in 2019, additional members
(including deferred and subsequent retirees) have been added to the buy-in policy, with a partial surrender of a portion of the APP to fund the cost.
The Group agreed with the scheme Trustee a revised funding arrangement for the UK scheme to support the purchase of the pensioner buy-in
contract and the APP. Under this funding arrangement, the Group made payments of £18.5 million in 2024 and expects to make a payment of
£ 9.5 million in 2025. This amount is what is expected to be required in combination with surrendering the final portion of the APP to fully secure all
liabilities under the buy-in policy of the scheme based on latest estimates from LGAS, plus an amount for estimated Trustee expenses. This
payment and any other related costs are subject to change prior to finalisation.
Irish scheme
The Irish scheme continued to de-risk in 2024, with further sales of equities and additional investments in its Liability Driven Investment (‘LDI’)
portfolio, which is in place to hedge its interest rate and inflation risk. The LDI portfolio comprises a mixture of nominal bonds, inflation linked bonds
and interest rate and inflation derivatives.
Other long term employee benefits
Other long term employee benefits include additional benefits which the Group provides to employees who suffer prolonged periods of sickness,
subject to the qualifying terms of the insurer. It provides for the partial replacement of income in the event of illness or injury resulting in the
employee’s long term absence from work.
Furthermore, on the death of an employee before their normal retirement date, the Group has in place insurance policies to cover the additional
financial costs to the Group under the terms of the schemes.
In 2024, the Group contributed € 11 million (2023: € 11 million) towards insuring these benefits which are included in 'Operating expenses' (note 10).
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Notes to the Consolidated Financial Statements continued
28 Deposits by central banks and banks
2024
2023
€ m
€ m
Central Bank Borrowings – secured
6
288
Central Bank Borrowings – unsecured
—
452
6
740
Other Bank Borrowings – unsecured
830
1,040
Total deposits by central banks and banks
836
1,780
Deposits by central banks and banks include cash collateral at 31 December 2024 of € 803 million (2023: € 1,018 million) received from derivative
counterparties in relation to net derivative positions and from repurchase agreement counterparties.
Financial assets pledged
Financial assets pledged for secured borrowings and providing access to future funding facilities with central banks and banks are detailed in the
following table:
2024
2023
Central
banks
Banks
Total
Central
banks
Banks
Total
€ m
€ m
€ m
€ m
€ m
€ m
Total carrying value of financial assets pledged
87
—
87
436
18
454
Of which:
Government securities
9
—
9
—
18
18
Other securities1
78
—
78
436
—
436
1. Securities pledged as collateral comprise third party securities held by the Group and covered bonds secured on pools of residential mortgages that have been
issued by and are held by the Group.
29 Customer accounts
2024
2023
€ m
€ m
Current accounts
62,657
62,928
Demand deposits
31,126
32,083
Time deposits
16,100
9,771
109,883
104,782
Of which:
Non-interest bearing current accounts
58,454
58,643
Interest bearing deposits, current accounts and short term borrowings
51,429
46,139
Total customer accounts
109,883
104,782
Amounts include:
Due to equity accounted investments
320
303
Cash collateral received from derivative counterparties in relation to net derivative positions
67
94
At 31 December 2024, the Group’s five largest customer deposits amounted to 1% (2023: 1%) of total customer accounts.
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30 Debt securities in issue
2024
2023
€ m
€ m
Issued by AIB Group plc
Euro Medium Term Note Programme
5,245
5,901
Global Medium Term Note Programme
(a)
2,628
2,495
7,873
8,396
Issued by subsidiaries
Credit linked notes
(b)
95
—
Bonds and other medium term notes
27
27
Commercial paper
(c)
837
—
959
27
Total debt securities in issue
8,832
8,423
2024
2023
Analysis of movements in debt securities in issue
€ m
€ m
At 1 January
8,423
7,203
Issued during the year
4,011
2,431
Matured
(3,886)
(1,382)
Amortisation
22
—
Other1
262
171
At 31 December
8,832
8,423
1. Includes a positive fair value hedge adjustment of € 70 million (2023: positive € 254 million), positive foreign exchange of € 192 million (2023: negative € 83 million)
(a) Global Medium Term Note Programme
On 28 March 2024, AIB Group plc issued $ 1 billion Senior Unsecured 5.871% Notes maturing on 28 March 2035. The notes bear interest on the
outstanding nominal amount, payable semi-annually in arrears on 28 March and 28 September each year, commencing on 30 September 2024
up to and including the maturity date.
(b) Credit linked notes
On 19 November 2024, the Group executed a synthetic credit risk transfer transaction (Significant Risk Transfer (‘SRT’)) on a reference portfolio of
€1 billion corporate loans. The transaction involves the issuance of two classes of credit linked notes totalling € 97.5 million (including transaction
costs of € 2.5 million), with the scheduled termination of the protection provided by the notes expected in 2032. Each class of notes bears interest
on the outstanding nominal amount of such class, payable quarterly in arrears on 28 January, April, July and October each year, commencing on
28 April 2025.
(c) Commercial paper
Allied Irish Banks, p.l.c. introduced a short-term commercial paper programme in 2024. This programme is used as an additional liquidity mechanism
whereby short-term debt, with maturities of typically less than six months, is issued in EUR, GBP and USD.
All the issuances by AIB Group plc are initially eligible to meet the Group’s MREL requirements. These instruments are redeemable for tax or for
regulatory reasons, subject to the permission of the relevant regulation authority.
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Notes to the Consolidated Financial Statements continued
31 Lease liabilities
Analysis of movements in lease liabilities
2024
2023
€ m
€ m
At 1 January
282
257
Lease payments1
(43)
(43)
Interest expense1
9
9
Additions
9
59
Early terminations
—
(1)
Net remeasurements
—
—
Foreign exchange translation adjustments
1
1
At 31 December
258
282
1. Repayment of principal portion of the lease liabilities amounted to € 34 million (2023: € 34 million) ( i.e. lease payments net of interest expense).
2024
2023
Maturity analysis – contractual undiscounted cash flows:
€ m
€ m
Not later than one year
41
43
Later than one year and not later than five years
127
136
Later than five years
160
181
Total undiscounted lease liabilities at end of year
328
360
32 Other liabilities
2024
2023
€ m
€ m
Notes in circulation
33
34
Items in transit
65
108
Creditors
40
36
Stockbroking client creditors
11
18
Bank drafts
252
271
Items in course of collection
321
284
Other1
389
331
Total other liabilities
1,111
1,082
Other liabilities are analysed as follows:
Less than 1 year
1,047
1,020
Greater than 1 year
64
62
1,111
1,082
1. Includes invoice discounting credit balances on customer accounts € 120 million (2023: € 73 million) and debt securities awaiting settlement € 32 million (2023: Nil).
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33 Subordinated liabilities and other capital instruments
2024
2023
€ m
€ m
Dated loan capital – European Medium Term Note Programme:
Issued by AIB Group plc
€ 500 million Subordinated Tier 2 Notes due 2029, Callable 2024
(a)
—
484
€ 1 billion Subordinated Tier 2 Notes due 2031, Callable 2026
(b)
963
928
€ 650 million Subordinated Tier 2 Notes due 2035, Callable 2030
(c)
662
—
1,625
1,412
Issued by subsidiaries
€ 500m Callable Step-up Floating Rate Notes due October 2017
– nominal value € 0.3 million (maturity extended to 2035 as a result of the Subordinated Liabilities Order)
(d)
—
13
£ 368m 12.5% Subordinated Notes due June 2019
– nominal value £ 2.715 million (maturity extended to 2035 as a result of the Subordinated Liabilities Order)
(d)
2
47
£ 500m Callable Fixed/Floating Rate Notes due March 2025
– nominal value £ 0.136 million (maturity extended to 2035 as a result of the Subordinated Liabilities Order)
(d)
—
1
2
61
Total subordinated liabilities and other capital instruments
1,627
1,473
Maturity of dated loan capital
2024
2023
€ m
€ m
Dated loan capital outstanding is repayable as follows:
5 years or more
1,627
1,473
Dated loan capital
The dated loan capital in this section is subordinated in right of payment to senior creditors, including depositors, of the respective issuing entities.
Following the implementation in Ireland of the EU (Bank Recovery and Resolution) Regulations 2015, these notes are loss absorbing at the point
of non-viability.
(a) € 500 million Subordinated Tier 2 Notes due 2029, Callable 2024
On 19 November 2019, AIB Group plc issued € 500 million Subordinated Tier 2 Notes due 2029, Callable 2024. Following a tender offer in May 2024,
€ 406 million of these notes were repurchased. The remaining € 94 million was redeemed in November 2024 on the optional redemption date.
(b) € 1 billion Subordinated Tier 2 Notes due 2031, Callable 2026
On 30 September 2020, AIB Group plc issued € 1 billion Subordinated Tier 2 Notes due 2031, Callable 2026. These notes mature on 30 May 2031
but may be redeemed in whole, but not in part, at the option of the Group on the optional redemption date on 30 May 2026, subject to the approval
of the regulatory authorities, with approval being conditional on meeting the requirements of the EU Capital Requirements Regulation. The notes
bear interest on the outstanding nominal amount at a fixed rate of 2.875%, payable annually in arrears on 30 May each year. The interest rate will
be reset on 30 May 2026 to Euro 5 year Mid Swap rate plus the initial margin of 330 basis points.
(c) € 650 million Subordinated Tier 2 Notes due 2035, Callable 2030
On 20 May 2024, AIB Group plc issued € 650 million Subordinated Tier 2 Notes due 2035, Callable 2030. These notes mature on 20 May 2035 but
may be redeemed in whole, but not in part, at the option of the Group on the optional redemption date on 20 May 2030, subject to the approval of
the regulatory authorities, with approval being conditional on meeting the requirements of the EU Capital Requirements Regulation. The notes
bear interest on the outstanding nominal amount at a fixed rate of 4.625%, payable annually in arrears on 20 May each year. The interest rate will
be reset on 20 May 2030 to Euro 5 year Mid Swap rate plus the initial margin of 190 basis points.
(d) Other dated subordinated loan capital
Following liability management exercises and the Subordinated Liabilities Order (‘SLO’) in 2011, residual balances remained on the dated loan
capital instruments above. The SLO, which was effective from 22 April 2011, changed the terms of all of those outstanding dated loan capital
instruments. The original liabilities were derecognised and new liabilities were recognised, with their initial measurement based on the fair value
at the SLO effective date. The contractual maturity date changed to 2035 as a result of the SLO, and payment of coupons became optional at the
discretion of the Group. The Board of Allied Irish Banks, p.l.c. has considered the matter and as at the date of this report, the Group’s position is
that coupons are not paid on these instruments. These instruments will amortise to their nominal value in the period to their maturity in 2035. In
December 2024, Allied Irish Banks, p.l.c. repurchased an aggregate nominal amount of the following Notes at a discount to par: € 25 million of the
€ 500 million Callable Subordinated Step-Up Floating Rate Notes due 2035, £ 76 million of the £ 368 million 12.5 % Subordinated Notes due 2035
and £ 1 million of the £ 500 million Subordinated Callable Fixed/Floating Rate Notes due 2035.
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318
Notes to the Consolidated Financial Statements continued
34 Provisions for liabilities and commitments
2024
Legal
claims
Customer
redress
Other
provisions
Total
€ m
€ m
€ m
€ m
At 1 January 2024
23
82
33
138
Charged to income statement
3
68
7
78 1
Released to income statement
(1)
(16)
(5)
(22) 1
Provisions utilised
(2)
(40)
(6)
(48)
Exchange translation adjustments
—
—
—
—
At 31 December 2024
23
94
29
146 2
ECLs on loan commitments and financial guarantees contracts
At 1 January 2024
59
Net charge to income statement
(3) 3
Disposals
—
Exchange translation adjustments
1
At 31 December 2024
57
Total provisions for liabilities and commitments
203 4
2023
Legal
claims
Customer
redress
Other
provisions
Total
€ m
€ m
€ m
€ m
At 1 January 2023
29
167
66
262
Charged to income statement
11
92
6
109 1
Released to income statement
(4)
(32)
(5)
(41) 1
Provisions utilised
(13)
(145)
(35)
(193)
Exchange translation adjustments
—
—
1
1
At 31 December 2023
23
82
33
138 2
ECLs on loan commitments and financial guarantees contracts
At 1 January 2023
78
Net charge to income statement
(17) 3
Disposals
(1)
Exchange translation adjustments
(1)
At 31 December 2023
59
Total provisions for liabilities and commitments
197 4
1. Included in note 10.
2. Amounts expected to be settled within one year are € 99 million (31 December 2023: € 92 million). Amounts expected to be settled outside of one year amount to
€ 47 million (31 December 2023: € 46 million).
3. Included in note 11.
4. Refer to note 1(c) for further information about the change in presentation for certain notes to the financial statements.
The ECL allowance on loan commitments and financial guarantee contracts are presented as a provision in the balance sheet (i.e. as a liability
under IFRS 9) and separate from the ECL allowance on financial assets. For details of the geographic concentration of contingent liabilities and
commitments and internal credit ratings, see pages 204 and 215 in the ‘Risk management’ section of this report.
Legal claims
In the ordinary course of business, legal claims (claims which have resulted in legal cases commencing in the Courts) are frequently served on the
Group. There is always a level of uncertainty with legal claims given the range of potential outcomes. The Group considers many factors, including
the background facts of the legal claim, legal advice and the stage of the legal claim to determine the appropriate provision. The Group has recorded
a provision of € 23 million at 31 December 2024 (31 December 2023: € 23 million) in relation to ongoing legal claims against the Group.
Customer redress
Customer redress relates to remediation payments to customers and associated costs for certain legacy matters such as investment property funds; the
2020 Financial Services and Pensions Ombudsman decision; and other customer redress provisions. The provision represents the Group’s best estimate
of the costs of remediation of any remaining impacted customers, addressing customer appeals and closing out other related matters. Due to the complex
nature of these legacy matters, they can take some time to resolve and the final outcome may be higher or lower depending on the finalisation of all
associated matters. In 2024 the provision was further reassessed, primarily as a result of additional information that was obtained during the year, and as a
result the Group recognised a net income statement charge of € 52 million.
Other provisions
Other provisions, none of which are individually material, include provisions for right-of-use commitments, onerous contracts and other
miscellaneous provisions.
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35 Share capital
The following table shows the authorised and fully paid issued share capital:
31 December 2024
31 December 2023
Number of
shares
Number of
shares
m
€ m
m
€ m
Authorised
Ordinary share capital
Ordinary shares of € 0.625 each
4,000.0
2,500
4,000.0
2,500
Issued and fully paid
Ordinary share capital
Ordinary shares of € 0.625 each
2,328.4
1,455
2,618.7
1,637
All AIB Group plc ordinary shares in issue confer identical rights, including in respect of capital, dividends and voting.
Movement in ordinary shares
The following table shows the movement in the number of ordinary shares:
2024
2023
Number of
shares
Number of
shares
m
m
At 1 January
2,618.7
2,673.4
Repurchase and cancellation of shares1,2
(290.3)
(54.7)
At 31 December
2,328.4
2,618.7
1. In May and September 2024, AIB Group plc completed directed share buybacks from the Minister for Finance. These buybacks resulted in the repurchase of
290,061,315 ordinary shares with a nominal value of € 0.625 each for a total consideration of € 1,499 million. The Group incurred costs of € 2 million in relation to the
directed share buybacks. Following repurchase, these shares were cancelled and € 182 million, representing the aggregate nominal value of the acquired shares,
was transferred from share capital to capital redemption reserves.
2. In October 2024, following the implementation of an Odd-lot Offer, AIB Group plc purchased a total of 253,765 ordinary shares with a nominal value of € 0.625 each
for a total consideration of € 1.4 million. Following repurchase, these shares were cancelled and € 0.2 million, representing the aggregate nominal value of the
acquired shares, was transferred from share capital to capital redemption reserves.
Warrants
In 2017, warrants were issued to the Minister for Finance to subscribe for 271,166,685 ordinary shares of AIB Group plc representing 9.99% of the
issued share capital at the time (31 December 2024: 11.65%). The exercise price for the warrants was originally set at 200% of the Offer Price of
€ 4.40 per ordinary share, the Offer Price being the price in Euro per ordinary share which was payable by investors under the terms of the initial
public offering. In accordance with the terms of the warrants, the exercise price has been adjusted following various share buybacks undertaken
by AIB Group plc in recent years (including the directed share buybacks and the Odd-lot Offer completed in 2024) and is now € 7.455 per share.
In accordance with the terms of the Warrant Agreement, no cash consideration was payable by the Minister to AIB Group plc in respect of the
issue of the warrants.
Structure of the Company’s share capital
The following table shows the structure of the Company’s share capital:
31 December 2024
31 December 2023
Authorised
share capital
%
Issued share
capital
%
Authorised
share capital
%
Issued share
capital
%
Class of share
Ordinary share capital
100
100
100
100
Capital resources
The following table shows the Group’s capital resources:
31 December
2024
2023
€ m
€ m
Equity1
15,427
15,069
Dated capital notes (note 33)
1,627
1,473
Total capital resources
17,054
16,542
1. Includes other equity interests of € 1,239 million (2023: €1,115 million), for further details see note 36.
The objectives of the Group’s capital management policy are to at all times comply with regulatory capital requirements and to ensure that the
Group has sufficient capital to cover the current and future risk inherent in its business and to support its future development.
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Notes to the Consolidated Financial Statements continued
35 Share capital continued
Earnings per share
The calculation of basic earnings per unit of ordinary shares is based on the profit attributable to ordinary shareholders divided by the weighted
average number of ordinary shares in issue, excluding own shares held. The ordinary shares are included in the weighted average number of
shares on a time apportioned basis.
The diluted earnings per share is based on the profit attributable to ordinary shareholders divided by the weighted average number of ordinary
shares in issue, excluding own shares held, adjusted for the effect of dilutive potential ordinary shares.
There was no difference in the weighted average number of shares used for basic and diluted earnings per share for 2024 and 2023. Warrants
issued to the Minister of Finance were not included in calculating the diluted earnings per share as they were antidilutive.
The following table shows the profit attributable to ordinary shareholders of the parent:
2024
2023
Profit attributable to ordinary shareholders of the parent
€ m
€ m
Profit attributable to equity holders of the parent
2,354
2,061
Distributions on other equity interests (note 36)
(80)
(65)
Profit attributable to ordinary shareholders of the parent
2,274
1,996
The following table shows the basic and diluted earnings per share:
31 December 2024
31 December 2023
Profit
Number of shares1
Earnings per share
Profit
Number of shares1
Earnings per share
€ m
m
€ cent
€ m
m
€ cent
Basic and diluted
2,274
2,459.4
92.5
1,996
2,635.9
75.7
1. Weighted average number of ordinary shares in issue during the year.
36 Other equity interests
2024
2023
€ m
€ m
Issued by AIB Group plc
€ 500 million Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities issued 20191
(a)
—
496
€ 625 million Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities issued 20202
(b)
619
619
€ 625 million Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities issued 20242
(c)
620
—
Total other equity interests
1,239
1,115
1. Included in the Group’s capital base in 2023, subsequently redeemed in 2024.
2. Included in the Group’s capital base.
Distributions amounting to € 80 million (2023: € 65 million) were paid in 2024 on the Additional Tier 1 Securities issued by AIB Group plc. Other
equity interests are included in the Group’s capital base.
The securities, which do not carry voting rights, rank pari passu with holders of other Tier 1 instruments (excluding the Company’s ordinary
shares). They rank ahead of the holders of ordinary share capital of the Company but junior to the claims of senior creditors and to Tier 2 capital
of the Company.
Under the EU (Bank Recovery and Resolution) Regulations 2015, these securities are loss absorbing at the point of non-viability.
Furthermore, if the CET1 ratio of the Group at any time falls below 7%, subject to certain conditions, the Company shall write down the AT1s by
the write-down amount and irrevocably cancel any accrued and unpaid interest up to (but excluding) the write-down date. To the extent permitted,
in order to comply with regulatory capital and other requirements, the Company may reinstate any previously written down amount.
(a) In 2019, the Company issued € 500 million nominal value of Additional Tier 1 Perpetual Contingent Temporary Write-Down
Securities (‘AT1s’).
Interest on the securities, at a fixed rate of 5.250% per annum, is payable semi-annually in arrears on 9 April and 9 October, commencing on
9 April 2020. On the first reset date on 9 April 2025, in the event that the securities are not redeemed, interest will be reset to the relevant 5 year
fixed rate plus a margin of 570.2 bps per annum. The interest payment is fully discretionary and non-cumulative and conditional upon the
Company being solvent at the time of payment, having sufficient distributable reserves and not being required by the regulatory authorities to
cancel an interest payment.
The securities are perpetual securities with no fixed redemption date. The Company may, in its sole and full discretion, subject to regulatory
approval, redeem all (but not some only) of the securities on any day falling in the period commencing on (and including) 9 October 2024 and
ending on (and including) the first reset date or on any interest payment date thereafter at the prevailing principal amount together with accrued
but unpaid interest. In addition, the securities are redeemable at the option of the Company for certain regulatory or tax reasons, subject to
regulatory approval. Following a tender offer to the holders, securities with a nominal value of € 337 million were repurchased in April 2024 and
the remaining € 163 million were redeemed in October 2024.
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36 Other equity interests continued
(b) In 2020, the Company issued € 625 million nominal value of Additional Tier 1 Perpetual Contingent Temporary Write-Down
Securities (‘AT1s’).
Interest on the securities, at a fixed rate of 6.250% per annum, is payable semi-annually in arrears on 23 June and 23 December, commencing on
23 December 2020. On the first reset date on 23 December 2025, in the event that the securities are not redeemed, interest will be reset to the
relevant 5 year fixed rate plus a margin of 662.9 bps per annum. The interest payment is fully discretionary and non-cumulative and conditional
upon the Company being solvent at the time of payment, having sufficient distributable reserves and not being required by the regulatory
authorities to cancel an interest payment.
The securities are perpetual securities with no fixed redemption date. The Company may, in its sole and full discretion, subject to regulatory
approval, redeem all (but not some only) of the securities on any day falling in the period commencing on (and including) 23 June 2025 and ending
on (and including) the first reset date or on any interest payment date thereafter at the prevailing principal amount together with accrued but unpaid
interest. In addition, the securities are redeemable at the option of the Company for certain regulatory or tax reasons, subject to regulatory approval.
(c) In 2024, AIB Group plc issued € 625 million nominal value of Additional Tier 1 Perpetual Contingent Temporary Write-Down
Securities (‘AT1s’).
Interest on these securities, at a fixed rate of 7.125% per annum, is payable semi-annually in arrears on 30 April and 30 October, commencing on
30 October 2024. On the first reset date on 30 April 2030, in the event that the securities are not redeemed, interest will be reset to the relevant
five year fixed rate plus a margin of 438.7 bps per annum. The interest payment is fully discretionary and non-cumulative, and conditional upon
AIB Group plc being solvent at the time of payment, having sufficient distributable reserves and not being required by the regulatory authorities
to cancel an interest payment.
These securities are perpetual securities with no fixed redemption date. AIB Group plc may, at its sole and full discretion, subject to regulatory
approval, redeem all (but not some only) of the securities on any day falling in the period commencing on (and including) 30 October 2029
and ending on (and including) the first reset date or on any interest payment date thereafter at the prevailing principal amount together with
accrued but unpaid interest. In addition, the securities are redeemable at the option of AIB Group plc for certain regulatory or tax reasons,
subject to regulatory approval.
37 Capital reserves, merger reserve and capital redemption reserves
2024
2023
Capital reserves
Capital
contribution
reserves
Other
capital
reserves
Total
Capital
contribution
reserves
Other
capital
reserves
Total
€ m
€ m
€ m
€ m
€ m
€ m
At beginning and end of year
955 1
178 2
1,133
955 1
178 2
1,133
1. Relates to the acquisition of EBS d.a.c.
2. Other capital reserves represent transfers from retained earnings in accordance with relevant legislation.
For details regarding the capital contribution reserves, refer to accounting policy (w) in note 1.
Merger reserve
2024
2023
€ m
€ m
At beginning and end of year
(3,622)
(3,622)
The following table shows the movement on capital redemption reserves:
Capital redemption reserves
2024
2023
€ m
€ m
At 1 January
73
39
Transfer from ordinary share capital (note 35)
182
34
At 31 December
255
73
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Notes to the Consolidated Financial Statements continued
38 Offsetting financial assets and financial liabilities
The disclosures set out in the tables below include financial assets and financial liabilities that:
• Are offset in the Group’s statement of financial position; or
• Are subject to enforceable master netting arrangements or similar agreements that cover similar financial instruments, irrespective of whether
they are offset in the statement of financial position.
The similar agreements include derivative clearing agreements, global master repurchase agreements and global master securities lending
agreements. Similar financial instruments include derivatives, sales and repurchase agreements, reverse sale and repurchase agreements,
and securities borrowing and lending agreements. Financial instruments such as loans and advances and customer accounts are not included
in the tables below unless they are offset in the statement of financial position.
The Group has a number of ISDA Master Agreements (netting agreements) in place which allow it to net the termination values of derivative
contracts upon the occurrence of an event of default with respect to its counterparties. The enforcement of netting agreements would
potentially reduce the statement of financial position carrying amount of derivative assets and liabilities by € 1,385 million at 31 December 2024
(2023: € 1,556 million). Additionally, the Group has agreements in place which may allow it to net the termination values of cross currency swaps
upon the occurrence of an event of default.
The Group’s sale and repurchase and reverse sale-and-repurchase transactions and securities borrowing and lending are covered by netting
agreements with terms similar to those of ISDA Master Agreements. The ISDA Master Agreements and similar master netting arrangements do not
meet the criteria for offsetting in the statement of financial position where a right of set-off of recognised amounts becomes enforceable only
following an event of default, insolvency or bankruptcy of the Group or the counterparties. Offsetting in the statement of financial position is
applied where the Group has a legally enforceable right to set-off the recognised amounts and intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.
The Group provides and accepts collateral in the form of cash and marketable securities in respect of the following transactions:
• Derivatives;
• Sale and repurchase agreements;
• Reverse sale and repurchase agreements; and
• Securities lending and borrowing.
Collateral is subject to the standard industry terms of Credit Support Annexes (‘CSAs’), which enable the Group to pledge or sell securities
received during the term of the transaction. The collateral must be returned on the maturity of the transaction. The terms also give each
counterparty the right to terminate the related transactions where the counterparty fails to post collateral. The CSAs in place provide collateral
for derivative contracts. At 31 December 2024, € 698 million (2023: € 713 million) of CSAs are included within financial assets and € 814 million
(2023: € 839 million) of CSAs are included within financial liabilities.
The following table shows financial assets and financial liabilities subject to offsetting, enforceable master netting arrangements and similar
agreements and those amounts not subject to offsetting at 31 December 2024 and 2023. The effects of over-collateralisation have not been taken
into account in the table below.
Amounts subject to enforceable netting arrangements
2024
Gross
amounts of
recognised
financial
assets
Gross
amounts of
recognised
financial
liabilities
offset in the
statement
of financial
position
Net
amounts of
financial
assets
presented
in the
statement
of financial
position
Related amounts not
offset in the statement
of financial position
Amounts not
subject to
enforceable
netting
arrangements
Total
amount of
financial
assets
presented
in the
statement
of financial
position
Financial
instruments
Cash
collateral
Net
amount
Financial assets
Note
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Derivative financial instruments
16
2,134
—
2,134
(1,385)
(251)
498
10
2,144
Securities financing
Reverse repurchase agreements
19
5,215
(1,660)
3,555
(3,538)
(17)
—
—
3,555
Securities borrowings
19
3,088
—
3,088
(3,088)
—
—
—
3,088
Total
10,437
(1,660)
8,777
(8,011)
(268)
498
10
8,787
Amounts subject to enforceable netting arrangements
2024
Gross
amounts of
recognised
financial
liabilities
Gross
amounts of
recognised
financial
assets
offset in the
statement
of financial
position
Net
amounts of
financial
liabilities
presented
in the
statement
of financial
position
Related amounts not
offset in the statement
of financial position
Amounts not
subject to
enforceable
netting
arrangements
Total
amount of
financial
liabilities
presented
in the
statement
of financial
position
Financial
instruments
Cash
collateral
Net
amount
Financial liabilities
Note
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Derivative financial instruments
16
1,779
—
1,779
(1,385)
(135)
259
28
1,807
Securities financing
Securities sold under
agreements to repurchase
19
1,856
(1,660)
196
(187)
(9)
—
—
196
Total
3,635
(1,660)
1,975
(1,572)
(144)
259
28
2,003
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38 Offsetting financial assets and financial liabilities continued
Amounts subject to enforceable netting arrangements
2023
Gross
amounts of
recognised
financial
assets
Gross
amounts of
recognised
financial
liabilities
offset in the
statement
of financial
position
Net
amounts of
financial
assets
presented
in the
statement of
financial
position
Related amounts not
offset in the statement of
financial position
Amounts not
subject to
enforceable
netting
arrangements
Total
amount of
financial
assets
presented
in the
statement
of financial
position
Financial
instruments
Cash
collateral
Net
amount
Financial assets
Note
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Derivative financial instruments
16
2,356
—
2,356
(1,556)
(218)
582
21
2,377
Securities financing
Reverse repurchase
agreements
19
7,530
(3,731)
3,799
(3,734)
(65)
—
—
3,799
Securities borrowings
19
2,667
—
2,667
(2,667)
—
—
—
2,667
Total
12,553
(3,731)
8,822
(7,957)
(283)
582
21
8,843
Amounts subject to enforceable netting arrangements
2023
Gross
amounts of
recognised
financial
liabilities
Gross
amounts of
recognised
financial
assets
offset in the
statement
of financial
position
Net
amounts of
financial
liabilities
presented
in the
statement of
financial
position
Related amounts not
offset in the statement of
financial position
Amounts not
subject to
enforceable
netting
arrangements
Total
amount of
financial
liabilities
presented
in the
statement
of financial
position
Financial
instruments
Cash
collateral
Net
amount
Financial liabilities
Note
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Derivative financial instruments
16
1,881
—
1,881
(1,556)
(92)
233
21
1,902
Securities financing
Securities sold under
agreements to repurchase
19
4,306
(3,731)
575
(534)
(41)
—
—
575
Total
6,187
(3,731)
2,456
(2,090)
(133)
233
21
2,477
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Notes to the Consolidated Financial Statements continued
39 Contingent liabilities and commitments
In the normal course of business, the Group is a party to financial instruments with off-balance sheet risk to meet the financing needs of customers. These
instruments involve, to varying degrees, elements of credit risk which are not reflected in the consolidated statement of financial position. Credit risk is
defined as the possibility of sustaining a loss because the other party to a financial instrument fails to perform in accordance with the terms of the contract.
The Group’s maximum exposure to credit loss under contingent liabilities and commitments to extend credit, in the event of non-performance by the
other party where all counterclaims, collateral or security prove valueless, is represented by the contractual amounts of those instruments. The Group
uses the same credit control and risk management policies in undertaking off-balance sheet commitments as it does for ‘on-balance sheet lending’.
The following table gives the nominal or contract amounts of contingent liabilities and commitments:
Contract amount
2024
2023
€ m
€ m
Contingent liabilities1 – credit related
Guarantees and assets pledged as collateral security:
Guarantees and irrevocable letters of credit
952
829
Other contingent liabilities
24
28
976
857
Commitments2
Documentary credits and short term trade-related transactions
276
208
Undrawn formal standby facilities, credit lines and other commitments to lend:
Less than 1 year
10,443
9,827
1 year and over
6,104
6,101
16,823
16,136
Total contingent liabilities and commitments
17,799
16,993
1. Contingent liabilities are off-balance sheet products and include guarantees, irrevocable letters of credit and other contingent liability products.
2. A commitment is an off-balance sheet product where there is an agreement to provide an undrawn credit facility.
For details of the geographic concentration of contingent liabilities and commitments and internal credit ratings, see pages 204 and 215 in the Risk
management section of this report. Provisions for ECLs on loan commitments and financial guarantee contracts are set out in note 34.
Legal proceedings
The Group, in the course of its business, is frequently involved in litigation cases. However, it is not, nor has been involved in, nor are there, so far
as the Group is aware, (other than as set out in the following paragraphs), pending or threatened by or against the Group any legal or arbitration
proceedings, including governmental proceedings, which may have, or have had during the previous twelve months, a material effect on the
financial position, profitability or cash flows of the Group.
Specifically, litigation has been served on the Group by customers that are pursuing claims in relation to tracker mortgages. Customers have also
lodged complaints to the Financial Services and Pensions Ombudsman (‘FSPO’) in relation to tracker mortgages issues.
Further claims may also be served in the future in relation to tracker mortgages. The Group will also receive further rulings by the FSPO in relation
to complaints concerning tracker mortgages.
Based on the facts currently known and the current stages that the litigation and the FSPO’s complaints process is at, it is not practicable at this
time to predict the final outcome of this litigation/FSPO complaints, nor the timing and possible impact on the Group.
TARGET-Ireland – Gross Settlement System
TARGET Services have been developed to ensure the free flow of cash, securities and collateral across Europe. The TARGET-Ireland system is a
real time gross settlement system for large volume interbank payments in Euro. On 16 March 2023, as part of its participation in TARGET-Ireland,
Allied Irish Banks, p.l.c. (‘AIB’) entered a deed of charge in favour of the Central Bank of Ireland (‘CBI’). This charge gives the CBI a first floating
charge security over all present and future credit balances in AIB’s TARGET-Ireland Accounts to secure all liabilities of AIB to the CBI in connection
with AIB’s participation in TARGET-Ireland.
In addition, the CBI has provided AIB with a credit line facility for intra-day credit in TARGET2-Ireland (now TARGET-Ireland) in relation to
Eurosystem Operations. In connection with this, AIB on 7 April 2014, provided the CBI with a fixed charge security over AIB’s eligible assets (as
identified by the CBI) which are held in a designated collateral account and also a floating charge security over other eligible assets of AIB.
AIB cannot, without the prior written consent of the CBI:
• Create or attempt to create or permit to arise or subsist any encumbrance on or over this charged property or any part of it; or
• Otherwise than in the ordinary course of business, sell, transfer, lend or otherwise dispose of or deal in the property or assets subject to the
charges or any part of it.
The financial assets pledged as collateral, in relation to the first fixed charge, are included in the disclosure in note 28 for financial assets pledged.
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40 Subsidiaries and structured entities
The material Group subsidiary companies at 31 December 2024 and 2023 are:
Name of company
Principal activity
Place of
incorporation
Registered
Office
Allied Irish Banks, p.l.c.
A direct subsidiary of AIB Group plc and
the principal operating company of the Group
and holds the majority of the subsidiaries
within the Group. Its activities include banking
and financial services – a licensed bank
Ireland
10 Molesworth Street,
Dublin 2,
Ireland.
AIB Mortgage Bank Unlimited Company
Issue of Irish residential mortgages and
mortgage covered securities
– a licensed bank
Ireland
10 Molesworth Street,
Dublin 2,
Ireland.
EBS d.a.c.
Mortgages and savings
– a licensed bank
Ireland
10 Molesworth Street,
Dublin 2,
Ireland.
AIB Group (UK) p.l.c. trading as Allied Irish Bank (GB)
in Great Britain and AIB (NI) in Northern Ireland
Banking and financial services
– a licensed bank
Northern Ireland
92 Ann Street,
Belfast BT1 3HH.
The proportion of ownership interest and voting power held by AIB Group plc in Allied Irish Banks, p.l.c. is 100% of the ordinary share capital.
All subsidiaries of Allied Irish Banks, p.l.c., being the immediate subsidiary of AIB Group plc, are wholly owned apart from Augmentum Limited
(‘Augmentum’), in which there are non-controlling interests. Practically all subsidiaries in the Group are involved in the provision of financial
services or ancillary services.
Significant restrictions
Each of the subsidiaries listed above which is a licensed bank is required by its respective financial regulator to maintain capital ratios above
a certain minimum level. These minimum ratios restrict the payment of dividend by the subsidiary and, where the ratios fall below the minimum
requirement, will require the parent company to inject capital to make up the shortfall.
Consolidated structured entities
The Group considers itself a sponsor of a structured entity when it facilitates the establishment of the structured entity.
(i) Consolidated structured entities used for funding activities
The Group is a sponsor for a number of structured entities which were established in order to generate funding for the Group’s lending activities.
The following structured entities, which are used for this activity, are consolidated by the Group:
Burlington Mortgages No. 1 DAC
In 2020, the Group securitised € 4 billion of its residential mortgage portfolio held in two of its subsidiaries, EBS d.a.c. and Haven Mortgages
Limited. These mortgages were transferred to a securitisation vehicle, Burlington Mortgages No. 1 DAC (‘Burlington 1’). In order to fund the
acquired mortgages, Burlington issued eleven classes of notes to EBS d.a.c. and Haven in the same proportion as the mortgages securitised.
The transferred mortgages have not been derecognised as the Group retains substantially all the risks and rewards of ownership and continue
to be reported in the Group’s financial statements. Burlington 1 is consolidated into the Group’s financial statements with all the notes being
eliminated on consolidation. At 31 December 2024, the carrying amount of the transferred financial assets which the Group continues to recognise
is € 2.2 billion (2023: € 2.4 billion) (fair value € 2.2 billion (2023: € 2.4 billion)) and the carrying amount of the associated liabilities is Nil (2023: Nil).
Burlington Mortgages No. 2 DAC
In 2023, the Group securitised c. € 5 billion of its residential mortgage portfolio held in two of its subsidiaries, EBS d.a.c. and Haven Mortgages
Limited. These mortgages were transferred to a securitisation vehicle, Burlington Mortgages No. 2 DAC (‘Burlington 2’). In order to fund the
acquired mortgages, Burlington 2 issued seven classes of notes to EBS d.a.c. and Haven in the same proportion as the securitised mortgages.
The transferred mortgages have not been derecognised as the Group retains substantially all the risks and rewards of ownership and continue
to be reported in the Group’s financial statements. Burlington 2 is consolidated into the Group’s financial statements with all the notes being
eliminated on consolidation. At 31 December 2024, the carrying amount of the transferred financial assets which the Group continues to recognise
is € 5 billion (fair value € 4.9 billion) (2023: € 5 billion (fair value € 4.9 billion)) and the carrying amount of the associated liabilities is Nil (2023: Nil).
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Notes to the Consolidated Financial Statements continued
40 Subsidiaries and structured entities continued
(ii) Consolidated structured entity used for funding of the deficit in the UK pension scheme
The Group is a sponsor for AIB PFP Scottish Limited Partnership ('SLP') which was established to fund future deficit payments of the UK scheme.
In December 2013, the Group agreed with the Trustee of the AIB UK Defined Benefit Pension Scheme ('the UK scheme') a restructure of the
funding of the deficit in the UK scheme. The Group established a pension funding partnership, AIB PFP Scottish Limited Partnership ('SLP') under
which a portfolio of loans were transferred to the SLP from another Group entity, AIB UK Loan Management Limited ('UKLM') for the purpose of
ring-fencing the repayments on these loans to fund future deficit payments of the UK scheme.
Assets ring–fenced for this purpose entitled the UK Scheme to expected annual payments in the range of £ 15 million to £ 35 million per annum
from 2016 until 2032, with a potential termination payment in 2032 of up to £ 60 million. This funding plan was replaced in December 2019, as part
of the de-risking of the UK scheme (note 27). Under the 2019 funding arrangement, the Group expects to make payments of £ 9.5 million in 2025,
subject to change prior to finalisation. The 2019 funding arrangement also limited the potential liability of the SLP to the UK scheme and, when
the cash held by the SLP exceeded the maximum potential liability limit in 2023, the ring-fenced loans were removed from the arrangement on
30 June 2023. UKLM has the right to cash flows on the loans from that date.
The general partner in the partnership, AIB PFP (General Partner) Limited which is an indirect subsidiary of Allied Irish Banks, p.l.c. has controlling
power over the partnership. In addition, the pension scheme has a priority right to cash flows from the partnership, up to the SLP’s maximum
potential liability limit, and any risks and rewards thereafter are expected to be borne by the Group through UKLM’s junior partnership interest.
(iii) Consolidated structured entity used for a credit risk transfer transaction
The Group has entered into a transaction to transfer a portion of credit risk on a reference portfolio of financial assets. The funded protection in
respect of this transactions is held with Setanta Finance 2024 Designated Activity Company (‘Setanta’). No assets or liabilities were transferred to
Setanta under the terms of the transaction. The transaction has cash collateralised on the exposure through the issue of credit linked notes to third
party investors. Further details on this transaction are set out in note 30. The protection provided by Setanta matures in 2032 and there are no
contractual arrangements that require the Group to provide financial support.
There are no contractual arrangements that could require AIB Group plc or its subsidiaries to provide financial support to the consolidated
structured entities listed above. During the year, neither AIB Group plc nor any of its subsidiaries provided financial support to a consolidated
structured entity and there is no current intention to provide financial support.
Unconsolidated structured entities
The Group acts as a fund or investment manager for a number of unconsolidated structured entities for which it receives investment or fund
management fees. The Group acts as sponsor of these entities. The Group has no units within these funds. Therefore the carrying amount of
assets and liabilities in relation to these entities in the Group’s statement of financial position is Nil (2023: Nil).
The Group’s maximum exposure to loss is equal to the value of outstanding fees owed from these entities of Nil at 31 December 2024
(31 December 2023: Nil). These entities are financed by investors in the entities. During the year the Group has not provided any non-contractual
financial or other support to these entities and has no current intention of providing any financial or other support.
Non-controlling interests in subsidiary undertaking
On 31 October 2019, Augmentum Limited of which 75% is owned by the Group and 25% by a non-controlling interest, First Data Global Services
Limited (part of First Data Corporation which is owned by Fiserv Inc.), acquired 97.93% of the equity share capital and voting rights of Semeral
Limited (‘Semeral’), the holding company for Payzone Ireland Limited (‘Payzone’). Semeral/Payzone place of business: 4 Heather Road,
Sandyford Industrial Estate, Dublin 18.
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41 Off-balance sheet arrangements and transferred financial assets
Under IFRS, transactions and events are accounted for and presented in accordance with their substance and economic reality and not merely
their legal form. As a result, the substance of transactions with structured entities forms the basis for their treatment in the Group’s financial
statements. A structured entity is consolidated in the financial statements when the substance of the relationship between the Group and the
structured entity indicates that the structured entity is controlled by the entity and meets the criteria set out in IFRS 10. The principal forms of
structured entity utilised by the Group are securitisations.
Securitisations
The Group utilises securitisations primarily to support the following business objectives:
• As an investor, the Group has primarily been an investor in securitisations issued by other credit institutions as part of the management of its
interest rate and liquidity risks through the Treasury function;
• As an investor, securitisations have been utilised by the Group to invest in transactions that offered an appropriate risk-adjusted return opportunity;
and
• As an originator of securitisations to support the funding activities of the Group.
The Group controls certain structured entities which were set up to support its funding activities and two structured entities set up in relation to the
funding of the Group Pension Schemes. Details of these structured entities are set out in note 40 ‘Subsidiaries and Structured Entities’.
Securities borrowing and reverse repurchase agreements
Securities borrowed are not recognised in the financial statements, unless these are sold to third parties, at which point the obligation to repurchase
the securities is recorded as a trading liability at fair value and any subsequent gain or loss is included in trading income.
Transfer of financial assets
The Group enters into transactions in the normal course of business in which it transfers previously recognised financial assets. Transferred
financial assets may, in accordance with IFRS 9:
(i) Continue to be recognised in their entirety; or
(ii) Be derecognised in their entirety but the Group retains some continuing involvement.
The most common transactions where the transferred assets are not derecognised in their entirety are securities sold under an agreement to
repurchase and the issuance of covered bonds.
(i) Transferred financial assets not derecognised in their entirety
Securities sold under agreements to repurchase and securities lending
Sale and repurchase agreements are transactions in which the Group sells a financial asset to another party, with an obligation to repurchase it at
a fixed price on a certain later date. The Group continues to recognise the financial assets in full in the statement of financial position as it retains
substantially all the risks and rewards of ownership. The Group’s sale and repurchase agreements are with banks and customers. The obligation
to pay the repurchase price is recognised within ‘Securities financing’ (note 19). As the Group sells the contractual rights to the cash flows of the
financial assets, it does not have the ability to use or pledge the transferred assets during the term of the sale and repurchase agreement. The
Group remains exposed to credit risk and interest rate risk on the financial assets sold. The obligation arising as a result of sale and repurchase
agreements together with the carrying value of the financial assets pledged are set out in the table below.
The Group enters into securities lending in the form of collateral swap agreements with other parties. The Group continues to recognise the
financial assets in full in the statement of financial position as it retains substantially all the risks and rewards of ownership. As a result of these
transactions, the Group is unable to use, sell or pledge the transferred assets for the duration of the transaction. A fee is generated for the Group
under this transaction.
Issuance of covered bonds
Covered bonds, which the Group issues, are debt securities backed by cash flows from mortgages for the purpose of financing loans secured on
residential property through its wholly owned subsidiary, AIB Mortgage Bank Unlimited Company. The Group retains all the risks and rewards of
these mortgage loans, including credit risk and interest rate risk, and therefore, the loans continue to be recognised on the Group’s statement
of financial position with the related covered bonds held by external investors included within ‘Debt securities in issue’ (note 30). As the Group
segregates the assets which back these debt securities into 'cover asset pools' it does not have the ability to otherwise use such segregated
financial assets during the term of these debt securities. However, of the total debt securities of this type issued amounting to € 10.6 billion
(2023: € 9.9 billion), AIB Group companies hold € 10.58 billion (2023: € 9.87 billion) which are eliminated on consolidation.
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Notes to the Consolidated Financial Statements continued
41 Off-balance sheet arrangements and transferred financial assets continued
The following table summarises as at 31 December 2024 and 2023, the carrying value and fair value of financial assets which did not qualify for
derecognition together with their associated financial liabilities.
2024
Carrying
amount of
transferred
assets
Carrying
amount of
associated
liabilities
Fair
value of
transferred
assets
Fair
value of
associated
liabilities
Net fair
value
position
€ m
€ m
€ m
€ m
€ m
Securities sold under agreements to repurchase/similar products
2,822
1,2
196
1
2,821
196
2,625
Covered bond programmes
Residential mortgage backed
36
3
27
4
35
28
7
2023
Carrying
amount of
transferred
assets
Carrying
amount of
associated
liabilities
Fair
value of
transferred
assets
Fair
value of
associated
liabilities
Net fair
value
position
€ m
€ m
€ m
€ m
€ m
Securities sold under agreements to repurchase/similar products
4,955
1,2
575
1
4,973
575
4,398
Covered bond programmes
Residential mortgage backed
38
3
27
4
37
28
9
1. See note 19.
2. Includes € 2,630 million of assets pledged in relation to securities lending arrangements (2023: € 4,360 million).
3. The asset pools of € 15 billion (2023: € 15 billion) in the covered bond programme have been apportioned on a pro-rata basis in relation to the value of bonds held
by external investors and those held by the Group companies. The € 36 million (2023: € 38 million) above refers to those assets apportioned to external investors.
4. Included in ‘Bonds and other medium term notes’ issued by subsidiaries (note 30).
(ii) Transferred financial assets derecognised in their entirety but the Group retains some continuing involvement
The Group has a continuing involvement in transferred financial assets where it retains any of the risks and rewards of ownership of the
transferred financial assets. Set out below are transactions in which the Group has a continuing involvement in assets transferred.
Pension scheme
On 31 July 2012, the Group entered into a Contribution Deed with the Trustee of the AIB Group Irish Pension Scheme (‘the Irish Scheme’),
whereby it agreed to make contributions to the scheme to enable the Trustee ensure that the regulatory Minimum Funding Standard position
of non-pensioner members of the pension scheme was not affected by the agreed early retirement scheme. These contributions amounting to
€ 594 million were settled through the transfer to the Irish Scheme of interests in a structured entity owning loans and advances previously
transferred at fair value from the Group. The loans and advances were derecognised in the Group’s financial statements as all of the risks and
rewards of ownership had transferred.
A subsidiary company of the Group was appointed as a service provider for the loans and advances transferred. Under the servicing agreement,
the Group subsidiary company collects the cash flows on the transferred loans and advances on behalf of the pension scheme in return for a fee.
The fee is based on an annual rate of 0.125% of the principal balance outstanding of all transferred loans and advances on the last day of each
calendar month. The Group has not recognised a servicing asset/liability in relation to this servicing arrangement as the fee is considered to be at
market rate. Under the servicing agreement, the Irish Scheme has the right to replace the Group subsidiary company as the service provider with
an external third party. In 2024, the Group recognised € 0.3 million (cumulative € 9.9 million) (2023: € 0.4 million (cumulative € 9.6 million)) in the
income statement for the servicing of the loans and advances transferred.
NAMA
During 2010 and 2011, the Group transferred financial assets with a net carrying value of € 15,428 million to NAMA. All assets transferred
were derecognised in their entirety. As part of this transaction, the Group has provided NAMA with a series of indemnities relating to the
transferred assets.
The Group was appointed by NAMA as a service provider for the loans and advances transferred, for which it receives a fee. The fee is based on
the lower of actual costs incurred or 0.1% of the value of the financial assets transferred. The Group has not recognised a servicing asset/liability
in relation to this servicing arrangement as the fee is considered to be at market rate. In 2024, the Group recognised € 1 million (cumulative € 102
million) (2023: € 1 million (cumulative € 101 million)) in the income statement for the servicing of financial assets transferred to NAMA.
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42 Classification and measurement of financial assets and financial liabilities
Financial assets and financial liabilities are measured on an ongoing basis either at fair value or at amortised cost. The accounting policy for
financial assets in note 1 (j) and financial liabilities in note 1 (k), describes how the classes of financial instruments are measured, and how income
and expenses, including fair value gains and losses, are recognised.
The following table analyses the carrying amounts of the financial assets and financial liabilities by measurement category and by statement of
financial position heading at 31 December 2024 and 2023.
2024
At fair value through
profit or loss
At fair value through other
comprehensive income
At
amortised
cost
Total
Mandatorily
Debt
investments
Hedging
derivatives
€ m
€ m
€ m
€ m
€ m
Financial assets
Cash and balances at central banks
—
—
—
37,315 1
37,315
Trading portfolio financial assets
136
—
—
—
136
Derivative financial instruments
1,480 2
—
664
—
2,144
Loans and advances to banks
—
—
—
1,321
1,321
Loans and advances to customers
64
—
—
69,825
69,889
Securities financing
—
—
—
6,643
6,643
Investment securities
297
13,568
—
4,803
18,668
Other financial assets
—
—
—
894
894
Total
1,977
13,568
664
120,801
137,010
Financial liabilities
Deposits by central banks and banks
—
—
—
836
836
Customer accounts
—
—
—
109,883
109,883
Securities financing
—
—
—
196
196
Trading portfolio financial liabilities
262
—
—
—
262
Derivative financial instruments
824 3
—
983
—
1,807
Debt securities in issue
—
—
—
8,832
8,832
Subordinated liabilities and other capital instruments
—
—
—
1,627
1,627
Other financial liabilities
—
—
—
1,792
1,792
Total
1,086
—
983
123,166
125,235
1. Includes cash on hand € 664 million.
2. Held for trading € 425 million and fair value hedges € 1,055 million.
3. Held for trading € 461 million and fair value hedges € 363 million.
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Notes to the Consolidated Financial Statements continued
42 Classification and measurement of financial assets and financial liabilities continued
2023
At fair value through
profit or loss
At fair value through other
comprehensive income
At
amortised
cost
Total
Mandatorily
Debt
investments
Hedging
derivatives
€ m
€ m
€ m
€ m
€ m
Financial assets
Cash and balances at central banks
—
—
—
38,018 1
38,018
Trading portfolio financial assets
93
—
—
—
93
Derivative financial instruments
1,694 2
—
683
—
2,377
Loans and advances to banks
—
—
—
1,329
1,329
Loans and advances to customers
42
—
—
65,449
65,491
Securities financing
—
—
—
6,466
6,466
Investment securities
355
12,488
—
4,510
17,353
Other financial assets
—
—
—
688
688
Total
2,184
12,488
683
116,460
131,815
Financial liabilities
Deposits by central banks and banks
—
—
—
1,780
1,780
Customer accounts
—
—
—
104,782
104,782
Securities financing
—
—
—
575
575
Trading portfolio financial liabilities
139
—
—
—
139
Derivative financial instruments
790 3
—
1,112
—
1,902
Debt securities in issue
—
—
—
8,423
8,423
Subordinated liabilities and other capital instruments
—
—
—
1,473
1,473
Other financial liabilities
—
—
—
1,571
1,571
Total
929
—
1,112
118,604
120,645
1. Includes cash on hand € 598 million.
2. Held for trading € 457 million and fair value hedges € 1,237 million.
3. Held for trading € 448 million and fair value hedges € 342 million.
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43 Fair value of financial instruments
The term ‘financial instruments’ includes both financial assets and financial liabilities. The fair value of a financial instrument is the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the
principal market, or in its absence, the most advantageous market to which the Group has access at that date. The Group’s accounting policy for
the ‘determination of fair value of financial instruments’ is set out in note 1 accounting policy (m).
The valuation of financial instruments, including loans and advances, involves the application of judgement and estimation. Market and credit risks
are key assumptions in the estimation of the fair value of loans and advances. The Group has estimated the fair value of its loans to customers
taking into account market risk and the changes in credit quality of its borrowers.
Fair values are based on observable market prices where available, and on valuation models or techniques where the lack of market liquidity
means that observable prices are unavailable. The fair values of financial instruments are classified according to the following fair value hierarchy
that reflects the observability of significant market inputs:
Level 1 – financial assets and liabilities measured using quoted market prices from an active market (unadjusted);
Level 2 – financial assets and liabilities measured using valuation techniques which use quoted market prices from an active market or measured
using quoted market prices unadjusted from an inactive market; and
Level 3 – financial assets and liabilities measured using valuation techniques which use unobservable market inputs.
All valuations are carried out within the Finance function and valuation methodologies are validated by the independent Risk function within the
Group. Readers of these financial statements are advised to use caution when using the data in the following tables to evaluate the Group’s
financial position or to make comparisons with other institutions. Fair value information is not provided for items that do not meet the definition
of a financial instrument.
Methodologies used for the calculation of fair value
The methods used for calculation of fair value in 2024 are as follows:
Financial instruments measured at fair value in the financial statements
(i) Trading portfolio financial instruments
The fair value of trading debt securities, together with quoted equity shares is based on quoted prices or bid/offer quotations sourced from external
securities dealers, where these are available on an active market. Where securities and equities are traded on an exchange, the fair value is based
on prices from the exchange.
(ii) Derivative financial instruments
Where derivatives are traded on an exchange, the fair value is based on prices from the exchange. The fair value of over-the-counter derivative
financial instruments is estimated based on standard market discounting and valuation methodologies which use reliable observable inputs
including yield curves and market rates. These methodologies are implemented by the Finance function and validated by the Risk function. Where
there is uncertainty around the inputs to a derivative’s valuation model, the fair value is estimated using inputs which provide the Group’s view of
the most likely outcome in a disposal transaction between willing counterparties in a functioning market. Where an unobservable input is material
to the outcome of the valuation, a range of potential outcomes from favourable to unfavourable is estimated.
Counterparty valuation adjustment ('CVA') and Funding valuation adjustment ('FVA') are applied to all uncollateralised over-the-counter derivatives.
The combination of CVA and FVA is referred to as XVA.
CVA is calculated as: Expected positive exposure ('EPE') multiplied by probability of default ('PD') multiplied by loss given default ('LGD').
EPE profiles are generated at a counterparty netting set through simulation. PDs are derived from market based credit default swaps ('CDS')
information. As most counterparties do not have a quoted CDS, PDs are derived by mapping each counterparty to an index CDS credit grade.
LGDs are based on the specific circumstances of the counterparty and take into account valuation of offsetting security, where applicable. For
smaller exposures where security valuations are not individually assessed, an LGD of 60% is applied (2023: 60%).
FVA is calculated as: Expected exposure ('EE') multiplied by funding spread ('FS') multiplied by counterpart survival probability (1-PD). EE profiles
(net of expected positive and negative exposures) are generated at a counterparty netting set through simulation. Funding spreads used are an
average implied by CDSs for the Group’s most active external derivative counterparties. The rationale in applying these spreads is to best estimate
the FVA which a counterparty would apply in a transaction to close out the Group’s existing positions.
Where XVA valuation adjustments have been applied to a derivative instrument, the entire instrument is classified as Level 3 in the fair value
hierarchy where a not insignificant component of the XVA valuation is derived from unobservable inputs.
Within the range of estimates and fair value sensitivity measurements, a favourable and an adverse scenario have been selected for PDs and
LGDs for CVA. The favourable/adverse scenario for customer PDs are (i) a single rating upgrade and (ii) a single rating downgrade, respectively.
Customer LGDs are shifted according to estimates of improvement in value of security compared with potential derivatives market values. Within
the combination of LGD and PD, both are shifted together yielding positive and negative valuations which are disclosed as potential alternative
valuations. See 'Significant unobservable inputs' within this note. For FVA, an adverse scenario is the use of the bond yields of the Group’s most
active derivative counterparties while a favourable scenario is an upgrade in the CDS of the reference entities used to derive funding spreads.
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Notes to the Consolidated Financial Statements continued
43 Fair value of financial instruments continued
(iii) Investment securities
The fair value of investment securities has been estimated based on expected sale proceeds. The expected sale proceeds are based on bid prices
which have been analysed and compared across multiple sources for reliability. Where bid prices are unavailable, fair values are estimated by
valuation techniques using observable market data for similar instruments. Where there is no market data for a directly comparable instrument,
management judgement on an appropriate credit spread to similar or related instruments with market data available is used within the valuation
technique. This is supported by cross referencing other similar or related instruments.
(iv) Loans and advances to customers
The Group provides lending facilities of varying rates and maturities to corporate and personal customers. Valuation techniques are used in
estimating the fair value of loans, primarily using discounted cash flows and applying market rates where practicable and taking credit risk into account.
The majority of loans and advances to customers are held at amortised cost, however, the Group has a small number of loans and advances which are
required to be measured at FVTPL having failed the SPPI test. The valuation techniques used apply equally to those held at FVTPL and those
held at amortised cost.
A key assumption for determining the fair value of loans and advances is that the carrying amount of variable rate loans (excluding mortgage
products) approximates to market value. For fixed rate loans, the fair value is calculated by discounting expected cash flows using discount rates
that reflect the interest rate risk in that portfolio.
The fair value of mortgage products, including tracker mortgages, is calculated by discounting expected cash flows using discount rates that reflect
the interest rate/credit risk in the portfolio.
(v) Virtual corporate power purchase agreement
The fair value of the virtual corporate power purchase agreement is estimated using discounted cash flows applying market rates when available
and rates offered by other data providers, in particular for forward Irish electricity solar pricing curves.
Financial instruments not measured at fair value but with fair value information presented separately in the notes to the
financial statements
(i)
Loans and advances to banks
The fair value of loans and advances to banks is estimated using discounted cash flows applying either market rates, where practicable, or rates
currently offered by other financial institutions for placings with similar characteristics.
(ii) Loans and advances to customers at amortised cost
See methodology above under the heading ‘Loans and advances to customers’.
(iii) Securities financing
The fair value of securities financing assets and liabilities approximate their carrying amount as these balances are generally short-dated and
fully collateralised.
(iv) Deposits by central banks and banks and customer accounts
The fair value of current accounts and deposit liabilities which are repayable on demand, or which re-price frequently, approximates to their
book value. The fair value of all other deposits and other borrowings is estimated using discounted cash flows and applying applicable market
rates as appropriate.
(v) Subordinated liabilities and debt securities in issue
The estimated fair value of subordinated liabilities and other capital instruments and debt securities in issue, is based on quoted prices where
available, or where these are unavailable, are estimated using valuation techniques using observable market data for similar instruments.
Where there is no market data for a directly comparable instrument, management judgement, on an appropriate credit spread to similar or
related instruments with market data available, is used within the valuation technique. This is supported by cross-referencing other similar or
related instruments.
(vi) Other financial assets and other financial liabilities
This caption includes accrued interest receivable and payable and other receivables (including amounts awaiting settlement and accounts
payable). The carrying amount is considered representative of fair value.
(vii) Commitments pertaining to credit-related instruments
Details of the various credit-related commitments and other off-balance sheet financial guarantees entered into by the Group are included in
note 39. The ECL is considered a reasonable approximation of fair value of these credit-related financial instruments.
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43 Fair value of financial instruments continued
The table below sets out the carrying amount and fair value of financial instruments across the three levels of the fair value hierarchy at
31 December 2024 and 2023:
2024
2023
Carrying
amount
Fair Value
Carrying
amount
Fair Value
Fair value hierarchy
Fair value hierarchy
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
€ m
Financial assets measured at fair value
Trading portfolio financial assets
136
136
—
—
136
93
93
—
—
93
Derivative financial instruments:
Interest rate derivatives1
2,109
—
2,020
89
2,109
2,351
—
2,234
117
2,351
Exchange rate derivatives
35
—
35
—
35
14
—
14
—
14
Forward contract to acquire loans2
—
—
—
—
—
12
—
—
12
12
Loans and advances to customers at FVTPL
64
—
—
64
64
42
—
—
42
42
Investment debt securities at FVOCI
13,568
13,468
100
—
13,568
12,488
12,411
77
—
12,488
Equity investments at FVTPL
297
1
—
296
297
355
15
—
340
355
16,209
13,605
2,155
449
16,209
15,355
12,519
2,325
511
15,355
Financial assets not measured at fair value
Cash and balances at central banks
37,315
664 3 36,651
—
37,315
38,018
598 3 37,420
—
38,018
Loans and advances to banks
1,321
—
241
1,080
1,321
1,329
—
259
1,070
1,329
Loans and advances to customers:
Mortgages4
36,722
—
—
35,832
35,832
34,472
—
—
33,459
33,459
Non-mortgages
33,103
—
—
33,043
33,043
30,977
—
—
30,909
30,909
Securities financing
6,643
—
—
6,643
6,643
6,466
—
—
6,466
6,466
Investment debt securities measured at
amortised cost
4,803
2,633
—
2,168
4,801
4,510 —
2,566
—
1,971
4,537
Other financial assets
894
—
—
894
894
688
—
—
688
688
120,801
3,297
36,892
79,660
119,849
116,460
3,164
37,679
74,563
115,406
Financial liabilities measured at fair value
Trading portfolio financial liabilities
262
262
—
—
262
139
139
—
—
139
Derivative financial instruments:
Interest rate derivatives1
1,689
—
1,391
298
1,689
1,869
—
1,563
306
1,869
Exchange rate derivatives
112
—
112
—
112
29
—
28
1
29
Equity derivatives
—
—
—
—
—
1
—
1
—
1
Credit derivatives
3
—
3
—
3
3
—
3
—
3
Virtual corporate power purchase agreement
3
—
—
3
3
—
—
—
—
—
2,069
262
1,506
301
2,069
2,041
139
1,595
307
2,041
Financial liabilities not measured at fair value
Deposits by central banks and banks
836
—
6
830
836
1,780
—
740
1,040
1,780
Customer accounts:
Current accounts
62,657
—
—
62,657
62,657
62,928
—
—
62,928
62,928
Demand deposits
31,126
—
—
31,126
31,126
32,083
—
—
32,083
32,083
Time deposits
16,100
—
—
16,150
16,150
9,771
—
—
9,755
9,755
Securities financing
196
—
—
196
196
575
—
—
575
575
Debt securities in issue
8,832
8,074
—
957
9,031
8,423
8,573
—
28
8,601
Subordinated liabilities and other capital
instruments
1,627
1,662
—
—
1,662
1,473
1,497
—
13
1,510
Other financial liabilities5
1,792
—
—
1,792
1,792
1,571
—
—
1,571
1,571
Loan commitments and other credit related
commitments
44
—
—
44
44
43
—
—
43
43
Financial guarantees
13
—
—
13
13
16
—
—
16
16
123,223
9,736
6
113,765
123,507
118,663
10,070
740
108,052
118,862
1. Includes € 43 million (2023: € 84 million) derivative assets and € 257 million (2023: € 262 million) derivative liabilities categorised as level 3 where a not insignificant
component of the XVA valuation is derived from unobservable inputs.
2. Relates to the forward contract to acquire Ulster Bank tracker (and linked) mortgages. See ‘Ulster Bank forward contract – tracker (and linked) mortgages’ below for
further information.
3. Comprises cash on hand.
4. Includes residential and commercial mortgages.
5. Includes € 64 million of fair value changes of hedged items in portfolio hedges of interest rate risk.
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Notes to the Consolidated Financial Statements continued
43 Fair value of financial instruments continued
Significant transfers between Level 1 and Level 2 of the fair value hierarchy
There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy for the years ended 31 December 2024 and 2023.
Reconciliation of balances in Level 3 of the fair value hierarchy
The following table shows (i) a reconciliation from the opening balances to the closing balances for fair value measurements in Level 3 of the
fair value hierarchy and (ii) total unrealised gains or losses included in profit or loss that is attributable to the assets and liabilities categorised
as Level 3 in the fair value hierarchy at the end of the year.
2024
Financial assets
Financial liabilities
Derivatives
Loans
and
advances
at FVTPL
Equities
at FVTPL
Total
Derivatives
Total
€ m
€ m
€ m
€ m
€ m
€ m
Movement in level 3 assets and liabilities
At 1 January 2024
129
42
340
511
307
307
Transfers into/out of level 31
—
—
—
—
—
—
Total gains or (losses) in:
Profit or loss:
Net trading income – losses
(40)
—
—
(40)
(6)
(6)
Net change in FVTPL
—
11
76
87
—
—
(40)
11
76
47
(6)
(6)
Other comprehensive income:
Net change in fair value of investment securities
—
—
—
—
—
—
Net change in fair value of cash flow hedges
—
—
—
—
—
—
Purchases/additions
—
26
46
72
—
—
Sales/disposals/redemptions
—
—
(166)
(166)
—
—
Cash received:
Principal
—
(15)
—
(15)
—
—
At 31 December 2024
89
64
296
449
301
301
Total unrealised gains or (losses) included in profit or loss for
assets and liabilities classified as level 3 at the end of the year
Net trading income – losses
(15)
—
—
(15)
(35)
(35)
Gains on equity investments at FVTPL
—
—
35
35
—
—
Losses on loans and advances at FVTPL
—
(3)
—
(3)
—
—
(15)
(3)
35
17
(35)
(35)
1. Transfers between levels of the fair value hierarchy are recognised at the end of the reporting period during which the change occurred.
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43 Fair value of financial instruments continued
Reconciliation of balances in Level 3 of the fair value hierarchy
2023
Financial assets
Financial liabilities
Derivative
Loans and
advances
at FVTPL
Equities at
FVTPL
Total
Derivative
Total
€ m
€ m
€ m
€ m
€ m
€ m
Movement in level 3 assets and liabilities
At 1 January 2023
88
249
284
621
432
432
Transfers into/out of level 31
—
—
—
—
—
—
Total gains or (losses) in:
Profit or loss:
Net trading income – gains/(losses)
41
—
—
41
(125)
(125)
Net change in FVTPL
—
3
30
33
—
—
41
3
30
74
(125)
(125)
Other comprehensive income:
Net change in fair value of investment securities
—
—
—
—
—
—
Net change in fair value of cash flow hedges
—
—
—
—
—
—
Purchases/additions
—
20
35
55
—
—
Sales/disposals
—
(135)
(9)
(144)
—
—
Cash received:
Principal
—
(95)
—
(95)
—
—
At 31 December 2023
129
42
340
511
307
307
Total unrealised gains or losses included in profit or loss for
assets and liabilities classified as level 3 at the end of the year
Net trading income – gains
71
—
—
71
76
76
Gains on equity investments at FVTPL
—
—
27
27
—
—
Losses on loans and advances at FVTPL
—
(15)
—
(15)
—
—
71
(15)
27
83
76
76
1. Transfers between levels of the fair value hierarchy are recognised at the end of the reporting period during which the change occurred.
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Notes to the Consolidated Financial Statements continued
43 Fair value of financial instruments continued
Significant unobservable inputs
The table below sets out information about significant unobservable inputs used in measuring financial instruments categorised as Level 3 in the
fair value hierarchy:
Fair value
Range of estimates
Financial instrument
2024
€ m
2023
€ m
Valuation
technique
Significant
unobservable input
31 December
2024
31 December
2023
Uncollateralised customer
derivatives
Asset
89
117 CVA
LGD
38% - 56%
41% - 59%
Liability
298
307
(Base 46%)
(Base 49%)
PD
0.4% - 1.8%
0.4% - 1.9%
(Base 0.8% 1-year PD)
(Base 0.9% 1-year PD)
FVA
Funding spreads
(0.2%) - 0.3%
(0.1%) - 0.3%
Forward contract to acquire
loans
Asset
—
12
Discounted
Expected Future
Cash flows
PD
n/a
(0.25%) - 0.25%
Discount Yield
n/a
(0.1%) - 0.1%
Virtual corporate power
purchase agreement
Liability
3
— Discounted
Expected Future
Cash flows
Irish electricity prices
(10%) - 20%
n/a
Visa Inc. Series B Preferred
Stock1
Asset
16
41
Quoted market
price (to which a
discount has been
applied)
Final conversion rate
0% - 90%
0% - 90%
1. Sensitivity information has not been provided for other equity investments as the portfolio comprises several investments, none of which is individually material.
Uncollateralised customer derivatives
Derivatives (assets and liabilities) include negative XVA valuation adjustments amounting to net € 8 million (2023: € 12 million). The sensitivity to
unobservable inputs for this XVA valuation adjustment at 31 December 2024 ranges from (i) negative € 5 million to positive € 3 million for CVA
(2023: negative € 9 million to positive € 4 million) and (ii) negative € 1 million to positive € 1 million for FVA (2023: negative € 2 million to positive
€ 1 million).
A number of derivatives are subject to valuation methodologies which use unobservable inputs. As the variability of the valuation is not greater
than € 1 million in any individual case or collectively, the detail is not disclosed here.
Forward contract to acquire loans
In 2023, the Group recognised a forward contract to acquire Ulster Bank tracker (and linked) mortgages. The transfer of the loans completed in
September 2024. At 31 December 2023 the fair value sensitivity to unobservable inputs ranged from negative € 4.8 million to positive € 5.4 million
for PDs and negative € 3.2 million to positive € 3.2 million for discount yield.
Virtual corporate power purchase agreement
During 2024 the Group entered into a virtual corporate power purchase agreement with NTR to construct two solar farms in Co. Wexford to supply
electricity to the Group. This agreement meets the definition of a derivative and had a negative fair value of € 3 million at 31 December 2024 (31
December 2023: Nil). Its valuation is subject to valuation methodologies which use unobservable inputs. The most significant unobservable input is
forward Irish electricity solar capture prices. The fair value sensitivity to this input ranges from negative € 4 million to positive € 2 million
(31 December 2023: Nil).
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43 Fair value of financial instruments continued
Visa Inc. Series B Preferred Stock
In June 2016, the Group received Series B Preferred Stock in Visa Inc. with a fair value of € 65 million as part consideration for its holding of
shares in Visa Europe. The preferred stock will be convertible into Class A Common Stock of Visa Inc. over time, with partial conversions having
occurred in 2020, 2022 and 2024. The remaining conversion is subject to certain Visa Europe litigation risks that may affect the ultimate
conversion rate. In addition, the stock, being denominated in US Dollars, is subject to foreign exchange risk.
– Valuation technique: Quoted market price of Visa Inc. Class A Common Stock to which a discount has been applied for the illiquidity and the
conversion rate variability of the preferred stock of Visa Inc. 62% haircut (2023: 56%). This was converted at the year end exchange rate.
– Unobservable input: Final conversion rate of Visa Inc. Series B Preferred Stock into Visa Inc. Class A Common Stock.
– Range of estimates: Estimates range from (a) no discount for conversion rate variability with a discount for illiquidity only; to (b) 90% discount
for conversion rate variability.
The fair value measurement sensitivity to unobservable discount rates ranges from negative € 16 million to positive € 21 million at 31 December
2024 (2023: negative € 31 million to positive of € 23 million).
Loans and advances to customers measured at FVTPL
For loans and advances to customers measured at FVTPL of € 64 million (2023: € 42 million), categorised within Level 3 of the fair value hierarchy
in 2024 and 2023, the Group does not believe that a reasonably possible change to alternative assumptions would change fair value significantly
and therefore has not disclosed those amounts in the table above or provided the related disclosures.
Fair value is applied in respect of secondary facilities arising on restructured loans subject to forbearance measures, on the likelihood that additional
cash flows, in excess of their primary facilitates, will be received from customers. Given the significant uncertainty with regard to such cash flows,
the Group does not attribute a fair value unless it is reasonably certain that this value will be realised.
Day 1 gain or loss
No difference existed between the fair value at initial recognition of financial instruments and the amount that was determined at that date using a
valuation technique incorporating significant unobservable data.
44 Cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents comprise the following balances with less than three months maturity
from the date of acquisition:
2024
2023
€ m
€ m
Cash and balances at central banks
37,315
38,018
Loans and advances to banks1
1,012
1,023
Total cash and cash equivalents
38,327
39,041
Additional information:
Restricted cash held to meet certain requirements under the Asset Covered Securities Act 2001
121
80
Restricted cash held in trust in respect of certain payables (note 32)
6
5
Restricted cash held to meet certain requirements arising from the Group’s issuance of credit linked notes
98
—
1. Included in ‘Loans and advances to banks’ total of € 1,321 million (2023: € 1,329 million) set out in note 17.
Cash and balances at central banks (net of ECL allowance of Nil) comprises:
2024
2023
€ m
€ m
Central Bank of Ireland
31,526
33,282
Bank of England
4,931
3,869
Federal Reserve Bank of New York
194
269
Other (cash on hand)
664
598
Total cash and balances at central banks
37,315
38,018
There are certain regulatory restrictions on the ability of subsidiaries to transfer funds to the parent company in the form of cash dividends, loans or
advances. The impact of such restrictions is not expected to have a material effect on the Group’s ability to meet its cash obligations.
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Notes to the Consolidated Financial Statements continued
45 Statement of cash flows
Non-cash and other items included in profit before taxation
Non-cash items
2024
2023
€ m
€ m
Profit on disposal of property
—
(2)
Loss on disposal of business
2
26
Net (gain)/loss on derecognition of financial assets measured at amortised cost
(2)
9
Dividends received from equity investments
(1)
(2)
Investments accounted for using the equity method
(26)
(12)
Net credit impairment charge
87
199
Change in other provisions
56
68
Retirement benefits – defined benefit expense
3
5
Depreciation, amortisation and impairment
301
295
Interest on subordinated liabilities and other capital instruments
55
42
Interest on debt securities1
352
274
Interest on commercial paper
22
—
Loss on disposal of investment securities
77
22
Gain on termination of hedging swaps
(41)
(14)
Amortisation of premiums and discounts
22
35
Net gain on equity investments at FVTPL
(70)
(27)
Net loss on loans and advances to customers at FVTPL
3
14
Change in prepayments and accrued income
23
(115)
Change in accruals and deferred income
101
162
Effect of exchange translation and other adjustments2
82
27
Total non-cash items
1,046
1,006
Contributions to defined benefit pension schemes
(24)
(24)
Dividends received on equity investments
1
2
Total other items
(23)
(22)
Non-cash and other items for the year ended 31 December
1,023
984
Change in operating assets2
2024
2023
€ m
€ m
Change in trading portfolio financial assets
(43)
(85)
Change in net derivative financial instruments
49
(32)
Change in loans and advances to banks
12
26
Change in loans and advances to customers
(4,034)
(6,023)
Change in securities financing
(137)
(213)
Change in other assets
(23)
36
(4,176)
(6,291)
Change in operating liabilities2
2024
2023
€ m
€ m
Change in deposits by central banks and banks
(988)
1,260
Change in customer accounts
4,558
2,276
Change in securities financing
(406)
(306)
Change in trading portfolio liabilities
123
135
Change in debt securities in issue
777
(1,000)
Change in notes in circulation
(1)
(6)
Change in other liabilities
(125)
(213)
3,938
2,146
1. Relates to debt securities classified at origination as MREL.
2. The impact of foreign exchange translation for each line of the statement of financial position is removed in order to show the underlying cash impact.
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46 Related party transactions
Related parties in the Group include the parent company, AIB Group plc, subsidiary undertakings, associated undertakings, joint arrangements,
post-employment benefits, Key Management Personnel and connected parties. The Irish Government is also considered a related party by
virtue of its significant influence over the Group. The immediate holding company and controlling party is AIB Group plc with its registered office
at 10 Molesworth Street, Dublin 2.
(a) Transactions with subsidiary undertakings
AIB Group plc is the ultimate parent company of the Group. Banking transactions between the parent company and its subsidiaries and between
subsidiaries are entered into in the normal course of business. These include loans, deposits, provision of derivative contracts, foreign currency
contracts and the provision of guarantees on an ‘arm’s length basis’. Furthermore, pricing arrangements between Allied Irish Banks, p.l.c. and
certain Irish subsidiaries, and between certain Irish subsidiaries reflect revised OECD guidelines on transfer pricing, which are the internationally
accepted principles in this area, and take account of the functions, risks and assets involved. In accordance with IFRS 10 transactions between the
parent company and its subsidiaries and between subsidiaries have been eliminated on consolidation.
(b) Associated undertakings and joint ventures
From time to time, the Group provides certain banking and financial services for associated undertakings. These transactions are made in the
ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable
transactions with other persons and do not involve more than the normal risk of collectability or present other unfavourable features. Details of
loans to associates and joint venture are set out in notes 18 and 29 to the consolidated financial statements.
(c) Provision of banking and related services and funding to Group Pension schemes
The Group provides certain banking and financial services including money transmission services for the AIB Group Pension schemes. Such
services are provided in the ordinary course of business, on substantially the same terms, including interest rates, as those prevailing at the time
for comparable transactions with other persons.
During 2013, the Group established a pension funding partnership, AIB PFP Scottish Limited Partnership ('SLP') in the UK. Following this,
a subsidiary of Allied Irish Banks, p.l.c. transferred loans to the SLP for the purpose of ring-fencing the repayments of these loans to fund future
deficit payments of the AIB UK Defined Benefit Pension Scheme. The ring-fenced loans were removed from the arrangement in 2023 (note 41).
During 2012, the Group agreed to make certain contributions to the pension scheme which were settled through the transfer to the AIB Group
Irish Pension Scheme of interests in a special purpose entity owning loans and advances previously transferred at fair value from the Group.
A subsidiary of the Group was appointed as a service provider for the loans and advances transferred in return for a servicing fee at a market rate
(note 41).
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Notes to the Consolidated Financial Statements continued
46 Related party transactions continued
(d) Companies Act 2014 disclosures
(i) Loans to Directors
The following information is presented in accordance with the Companies Act 2014. For the purposes of the Companies Act disclosures,
any Director means a current Member of the Board of Directors and individual who was a Director during the relevant period.
Where no amount is shown in the tables below, this indicates either a credit balance, a balance of Nil, or a balance of less than € 500. 'Balances'
and ‘repayments’ include principal and interest.
Details of transactions with Directors for the year ended 31 December 2024 and 31 December 2023 are as follows:
2024
2023
Balance at
1 January
2024
Amounts
advanced
during
2024
Amounts
repaid
during
2024
Balance at
31 December
2024
Balance at
1 January
2023
Amounts
advanced
during
2023
Amounts
repaid
during
2023
Balance at
31 December
2023
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
€ 000
Tanya Horgan
Loans
43
—
(2)
41
47
—
(4)
43
Overdraft/credit card1
—
—
—
—
—
—
—
—
Total
43
—
(2)
41
47
—
(4)
43
Interest charged during the year
3
3
Maximum debit balance during the year2
43
47
Colin Hunt
Loans
597
—
(47)
550
642
—
(45)
597
Overdraft/credit card1
15
—
—
16
16
—
—
15
Total
612
—
(47)
566
658
—
(45)
612
Interest charged during the year
15
17
Maximum debit balance during the year2
620
666
Ann O’ Brien
Loans
—
—
—
—
—
—
—
—
Overdraft/Credit Card1
—
—
—
1
—
—
—
—
Total
—
—
—
1
—
—
—
—
Interest charged during the year
—
—
Maximum debit balance during the year2
2
—
Helen Normoyle
Loans
—
264
(264)
—
—
—
—
—
Overdraft/Credit Card1
—
—
—
—
—
—
—
—
Total
—
264
(264)
— 0
—
—
—
—
Interest charged during the year
2
—
Maximum debit balance during the year2
267
—
Basil Geoghegan
Loans
—
663
(37)
627
—
—
—
—
Overdraft/credit card1
—
—
—
—
—
—
—
—
Total
—
663
(37)
627
—
—
—
—
Interest charged during the year
13
—
Maximum debit balance during the year2
669
—
1. Amounts advanced and repaid are not shown for overdraft/credit card facilities as these are revolving in nature (i.e. they may be drawn, repaid and redrawn up to
their limit over the course of the year).
2. The maximum debit balance is calculated by aggregating the maximum debit balance drawn on each facility during the year.
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46 Related party transactions continued
(d) Companies Act 2014 disclosures continued
(i) Loans to Directors continued
Helen Normoyle held an overdraft facility which was not used during the year. Ann O’Brien held a credit card facility with the Group which had an
opening and closing balance of less than €1,000 at the beginning and end of the reporting period. However, the maximum debit balance exceeded
€ 1,000 in the period, and has been reported in the preceding table. Anik Chaumartin, Donal Galvin, Sandy Kinney Pritchard, Andy Maguire, Elaine
MacLean, Brendan McDonagh, Jim Pettigrew, Jan Sijbrand, Fergal O’Dwyer and Raj Singh had no credit facilities with the Group in 2024.
All facilities are performing to their terms and conditions. All loans to Directors and their connected persons are made in the ordinary course of
business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for similar transactions with other
persons unconnected with the Group and of similar financial standing and do not involve more than normal risk of collectability.
An expected credit loss allowance is held for all loans and advances. Accordingly, a total expected credit loss allowance of under € 500 was held
on the above facilities at 31 December 2024 (2023: under € 500).
(ii) Connected persons
The aggregate of loans to connected persons of Directors in office during the year ended 31 December 2024 and 2023 are set out in the table below.
Loans to connected persons of Directors in office during the year have not been disclosed if their balance did not exceed € 7,500 in the year.
2024
2023
Balance at
31 December
2024
Maximum
amount
outstanding
during the
year
Number of
persons at
31 December
2024
Maximum
number of
persons
during the
year
Balance at
31 December
2023
Maximum
amount
outstanding
during the
year
Number of
persons at
31 December
2023
Maximum
number of
persons
during the
year
€ 000
€ 000
€ 000
€ 000
Tanya Horgan
407
428
2
4
426
445
3
4
Brendan McDonagh
9
11
1
1
9
9
1
1
Helen Normoyle
48
53
2
3
52
57
3
3
Ann O’Brien
68
73
1
1
73
161
1
1
Fergal O’Dwyer1
1
27
1
3
25
245
3
3
Basil Geoghegan
1
9
2
2
—
—
—
—
Andy Maguire
23
25
1
1
—
—
—
—
Donal Galvin
140
165
1
1
—
—
—
—
1. As at 31 December 2024, a guarantee entered into by a connected person of Fergal O’Dwyer in favour of the Group amounted to €20,000. No amounts were paid or
liability incurred in fulfilling the guarantee.
An expected credit loss allowance is held for all loans and advances. Accordingly, a total expected credit loss allowance of less than € 20,000 was
held on the above facilities at 31 December 2024 (2023: less than € 1,000).
The value of arrangements at the beginning and end of the financial year as stated above in accordance with Section 307 of the Companies Act
2014, expressed as a percentage of the net assets of the Group at the beginning and end of the financial year, is less than 1%.
(e) IAS 24 Related Party Disclosures
The following disclosures are made in accordance with the provisions of IAS 24 Related Party Disclosures (‘IAS 24’). Under IAS 24,
Key Management Personnel (‘KMP’) are defined as comprising Executive and Non-Executive Directors together with Senior Executive Officers,
namely, the members of the Executive Committee. As at 31 December 2024, the Group had 27 KMP (2023: 25 KMP).
(i) Transactions with Key Management Personnel
Loans to KMP and their close family members (‘CFM’) are made in the ordinary course of business on substantially the same terms, including
interest rates and collateral, as those prevailing at the time for comparable transactions with other persons of similar standing not connected with
the Group, and do not involve more than the normal risk of collectability or present other unfavourable features. Loans to Directors and Senior
Executive Officers are made on terms available to other employees in the Group generally, in accordance with established policy, within limits
set on a case-by-case basis.
2024
2023
Balance at
1 January
2024
Balance at
31 December
2024
Total
number of
relevant
KMP/CFM at
1 January
2024
Total number
of relevant
KMP/CFM at
31 December
2024
Balance at
1 January
2023
Balance at
31 December
2023
Total
number of
relevant
KMP/CFM at
1 January
2023
Total number
of relevant
KMP/CFM at
31 December
2023
€ 000
€ 000
€ 000
€ 000
Loans
1,975
2,281
13
15
1,563
1,975
13
13
Deposits
2,084
2,211
29
33
2,048
2,084
32
29
Total commitments outstanding refers to the total of any undrawn amounts on credit cards and/or overdraft facilities provided to KMP and their
CFM. Total commitments outstanding as at 31 December 2024 were € 0.09 million (2023: € 0.12 million). An expected credit loss allowance is held
for all loans and advances. Accordingly, a total expected credit loss allowance of less than € 1,000 was held on the above facilities at 31 December
2024 (2023: € 1,000).
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Notes to the Consolidated Financial Statements continued
46 Related party transactions continued
(e) IAS 24 Related Party Disclosures continued
(ii) Compensation of Key Management Personnel
Details of compensation paid to KMP are provided below. The figures shown include the figures separately reported in respect of Directors’
remuneration on pages 163 and 165.
2024
2023
€ m
€ m
Short term benefits (salaries, fees and other short-term benefits)
8.4
7.5
Post-employment benefits1
1.1
1.0
Termination benefits
—
0.4
Total compensation of key management personnel
9.5
8.9
1. Comprises payments to defined benefit or defined contribution pension schemes, in accordance with actuarial advice, to provide post-retirement pensions. The Group’s
defined benefit pension schemes closed to future accrual with effect from 31 December 2013 and all employee pension benefits have accrued on the basis of defined
contributions since that date.
(f) Summary of relationship with the Irish Government
The Irish Government is recognised as a related party under IAS 24 as it is in a position to exercise significant influence over the Group.
Relationship Framework
In order to comply with contractual commitments imposed on the Group in connection with its recapitalisation by the Irish State and with the
requirements of EU state aid applicable in respect of that recapitalisation, a Relationship Framework was entered into between the Minister and the
Group in March 2012. This provides the framework under which the relationship between the Minister and the Group is governed. The Relationship
Framework was amended and restated on 12 June 2017. Furthermore, the AIB Group plc Relationship Framework was put in place on 8 December
2017 in substitution for the Relationship Framework dated 12 June 2017. Under the relationship framework, the authority and responsibility for strategy
and commercial policies (including business plans and budgets) and conducting the Group’s day-to-day operations rest with the Board and the Group’s
management team, however the Group remains subject to certain obligations which require advance consultation with or approval by the State.
These obligations relate to, inter alia:
– The composition of the board;
– Declaration and payment of dividends;
– Restrictions on various types of remuneration;
– Buy-backs or redemptions by the Group of its shares; and
– Material acquisitions/disposals.
The relationship of the Irish Government with the Group is outlined under the following headings:
– Ordinary shares
At 31 December 2024, the State’s shareholding in the Company has reduced to 442,373,123 ordinary shares (18.99%) following a directed
share buyback, the sell down of shares, the placing of shares, and disposals as part of a pre-arranged trading plan. At 31 December 2023,
the State held 1,067,638,190 ordinary shares (40.77%).
– Issue of warrants to the Minister for Finance
In 2017, the Group issued warrants to the Minister to subscribe for 271,166,685 ordinary shares. Following the reduction in issued share capital
during the year, these warrants equate to 11.65% of the issued share capital at 31 December 2024. For further details see note 35.
– Guarantee schemes
European Communities (Deposit Guarantee Scheme) Regulations 2015
Eligible deposits (including credit balances in current accounts, demand deposit accounts and term deposit accounts) of up to € 100,000 per
depositor per credit institution are covered under this scheme. The scheme is administered by the CBI and is funded by the credit institutions
covered by the scheme.
Strategic Banking Corporation of Ireland Scheme
The Group through its participation in the Strategic Banking Corporation of Ireland (‘SBCI’) Support loan Schemes (the ‘Schemes’) benefits from
a Government guarantee against losses on qualifying finance agreements on amounts advanced under the Schemes. At 31 December 2024,
€ 481 million (2023: € 548 million) is outstanding across individual schemes of which the Future Growth Loan Scheme; Brexit/COVID-19 Working
Capital Loan Schemes, Growth & Sustainability Loan Schemes, Covid-19 and Ukraine Credit Guarantee Scheme benefit from up to 80%
Government guarantee.
Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009
The Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 was one of various stabilisation measures implemented by the State to support the
Irish banking system including the Group. The Group no longer has any guaranteed liabilities under the scheme however, certain of the covenants in the
scheme continue to apply to the Group including reporting covenants, until the scheme is terminated by the Minister for Finance.
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46 Related party transactions continued
(f) Summary of relationship with the Irish Government continued
– NAMA
The Group has provided NAMA with a series of indemnities relating to transferred assets. Any indemnity payment would result in an outflow of
economic benefit for the Group.
The General Scheme of the Conclusion of IBRC Special Liquidation and Dissolution of NAMA Bill 2024 (the Bill) was approved by Government
on 2 July 2024 and has not been enacted to date. Its purpose is to effect the conclusion of the IBRC Special Liquidation and the dissolution of
NAMA. It also makes provision for the implementation of appropriate arrangements to manage any remaining residual activity of IBRC and
NAMA following the conclusion of their work mandates, including through the creation of a new Resolution Unit within the National Treasury
Management Agency (NTMA) to manage any remaining residual activity.
– Irish bank levy
The bank levy was calculated based on each financial institution’s deposits at December 2022 which were either covered under the Deposit
Guarantee Scheme or were not so covered but had preferential status under Article 108 of the BRRD. The annual levy paid by the Group for
2024 and reflected in operating expenses (note 10) in the income statement amounted to € 94 million (2023: € 37 million). In 2023 the bank levy
was calculated based on each financial institution’s Deposit Interest Retention Tax (‘DIRT’) payment in a base year with 2019 being the base
year for 2023.
– Other transactions with the Irish Government and entities under its control
In addition to the above matters, the Group also enters into other normal banking transactions with the Irish Government, its agencies and
entities under its control. This includes transactions with (i) Government related entities, (ii) local government and commercial semi-state bodies
and (iii) financial institutions under Irish Government control/significant influence. Other transactions include the payment of taxes, pay related
social insurance, local authority rates, and the payment of regulatory fees, as appropriate.
(i) Irish Government and related entities
The following table outlines the amounts outstanding at 31 December 2024 and 2023 with Irish Government and related entities which are
considered individually significant (excluding accrued interest). Related entities includes departments of the Irish Government located in the State
and embassies, consulates and other institutions of the Irish Government located outside the State. The Post Office Savings Bank (‘POSB’) and
the National Treasury Management Agency (‘NTMA’) are also included.
2024
2023
Balance
Balance
€ m
€ m
Assets
Cash and balances at central banks1
31,525
33,282
Trading portfolio financial assets
71
54
Investment securities2
4,088
4,356
Liabilities
Trading portfolio financial liabilities
257
134
Customer accounts
402
466
1. Cash and balances at central banks represent the placements which the Group holds with the Central Bank.
2. Investment securities at 31 December 2024 comprise € 4,088 million (2023: € 4,356 million) in Irish Government securities held in the normal course of business.
The Group has disclosed details of the share buyback and the Irish bank levy separately in these financial statements. All other banking transactions
are entered into in the ordinary course of business under normal business terms.
(ii) Local government1 and Commercial semi-state bodies2
During 2024 and 2023, the Group entered into banking transactions in the normal course of business with local government bodies and semi-state
bodies. These transactions include the granting of loans and the acceptance of deposits, as well as derivative and clearing transactions.
1. This category includes local authorities, borough corporations, county borough councils, county councils, boards of town commissioners, urban district councils,
non-commercial public sector entities, public voluntary hospitals and schools.
2. Semi-state bodies is the name given to organisations within the public sector operating with some autonomy. They include commercial organisations or companies
in which the State is the sole or main shareholder.
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Notes to the Consolidated Financial Statements continued
46 Related party transactions continued
(f) Summary of relationship with the Irish Government continued
(iii) Financial institutions under Irish Government control/significant influence
The Irish Government has a controlling interest in Permanent tsb plc and controls the Irish Bank Resolution Corporation Limited (In Special
Liquidation). Due to the Group’s related party relationship with the Irish Government, balances between these financial institutions and the Group
are considered related party transactions in accordance with IAS 24. Transactions with these institutions are normal banking transactions entered
into in the ordinary course of cash management business under normal business terms. The transactions constitute the short-term placing and
acceptance of deposits, derivative transactions, investment debt securities and repurchase agreements.
The following balances were outstanding in total to these financial institutions at 31 December 2024 and 2023:
2024
2023
€ m
€ m
Assets
Trading portfolio financial assets
5
—
(g) Indemnities
The Group has indemnified the Directors of Allied Irish Banks Pensions Limited and AIB DC Pensions (Ireland) Limited, the trustees of the Group’s
Ireland defined benefit pension scheme and defined contribution pension scheme, respectively, against any actions, claims or demands arising out
of their actions as Directors of the trustee companies, other than by reason of wilful default.
47 Employees
The following table shows the geographical analysis of the average number of employees for 2024 and 2023:
Average number of staff (Full time equivalents)
2024
2023
Ireland
9,902
9,485
United Kingdom
718
681
United States of America
35
34
Total
10,655
10,200
The following table shows the segmental analysis of the average number of employees for 2024 and 2023:
2024
2023
Retail Banking
4,084
4,484
Capital Markets
1,676
1,139
Climate Capital1
76
46
AIB UK
625
604
Group2
4,194
3,927
Total
10,655
10,200
1. Refer to note 1(c) for further information about the change in presentation for certain notes to the financial statements.
2. Group comprises wholesale treasury activities and Group control and support functions. Treasury manages the Group’s liquidity and funding positions and provides
customer treasury services and economic research. The Group control and support functions in the period included Technology, Operations, Finance, Risk, Legal,
Corporate Governance and Customer Care, Human Resources, Sustainability and Corporate Affairs, Enterprise Development and Group Internal Audit.
The average number of employees for 2024 and 2023 set out above excludes employees on career breaks and other unpaid long-term leaves.
Actual full time equivalent numbers at 31 December 2024 were 10,469 (2023: 10,551).
48 Regulatory compliance
The Group’s policy is that the Group and its regulated subsidiaries must comply at all times with their externally imposed capital ratios.
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49 Financial and other information
2024
2023
%
%
Operating ratios
Operating expenses/operating income
44.5
45.4
Other income/operating income
16.2
18.7
Rates of exchange
2024
2023
€/$*
Closing
1.0389
1.1050
Average
1.0823
1.0811
€/£*
Closing
0.8292
0.8691
Average
0.8466
0.8698
*Throughout this report, US Dollar is denoted by $ and Pound Sterling is denoted by £.
Assets
Liabilities and equity
Currency Information
2024
2023
2024
2023
€ m
€ m
€ m
€ m
Euro
117,994
116,450
120,574
116,560
Other
23,272
19,899
20,692
19,789
Total
141,266
136,349
141,266
136,349
50 Dividends
A final dividend for the year ended 31 December 2023 of 26.568 cent per ordinary share, amounting to € 696 million (for the year ended 31 December 2022:
€ 166 million), was approved at the Annual General Meeting on 2 May 2024 and subsequently paid on 10 May 2024. Final dividends are not accounted
for until they have been approved at the Annual General Meeting of shareholders.
51 Non-adjusting events after the reporting period
No significant non-adjusting events have taken place since 31 December 2024.
52 Approval of the Financial Statements
The financial statements were approved by the Board of Directors on 4 March 2025.
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Notes to the Consolidated Financial Statements continued
2024
2023
Note
€ m
€ m
Assets
Loans and advances to banks – subsidiary
d
9,554
9,993
Investment in subsidiary undertaking
e
13,883
13,758
Prepayments and accrued income
186
164
Total assets
23,623
23,915
Liabilities
Debt securities in issue
f
7,894
8,486
Subordinated liabilities and other capital instruments
g
1,650
1,500
Accruals and deferred income
178
158
Total liabilities
9,722
10,144
Equity
Share capital
h
1,455
1,637
Merger reserve
i
6,234
6,234
Reserves
4,962
4,775
Total shareholders’ equity
12,651
12,646
Other equity interests
j
1,250
1,125
Total equity
13,901
13,771
Total liabilities and equity
23,623
23,915
The Company recorded a profit after taxation of € 2,283 million for the year ended 31 December 2024 (2023: profit € 822 million).
Jim Pettigrew
Chair
Colin Hunt
Chief Executive Officer
Donal Galvin
Chief Financial Officer
Conor Gouldson
Group Company Secretary
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AIB Group plc Company
Statement of Financial Position
as at 31 December 2024
2024
Attributable to equity holders of the parent
Note
Share
capital
Other
equity
interests
Merger
reserve
Revenue
reserves
Capital
redemption
reserves
Total
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January 2024
1,637
1,125
6,234
4,716
59
13,771
Total comprehensive income for the year
Profit after tax
—
—
—
2,283
—
2,283
Other comprehensive income
—
—
—
—
—
—
Total comprehensive income for the year
—
—
—
2,283
—
2,283
Transactions with owners, recorded directly in equity
Issuance of Additional Tier 1 securities
j
—
625
—
—
—
625
Buyback of Additional Tier 1 securities
j
—
(500)
—
—
—
(500)
Dividends paid on ordinary shares
k
—
—
—
(696)
—
(696)
Distributions paid to other equity interests
j
—
—
—
(80)
—
(80)
Buyback of ordinary shares
h
(182)
—
—
(1,502)
182
(1,502)
Transfer between merger and revenue reserves
i
—
—
—
—
—
—
Total contributions by and distribution to owners
(182)
125
—
(2,278)
182
(2,153)
At 31 December 2024
1,455
1,250
6,234
4,721
241
13,901
2023
Attributable to equity holders of the parent
Note
Share
capital
Other
equity
interests
Merger
reserve
Revenue
reserves
Capital
redemption
reserves
Total
€ m
€ m
€ m
€ m
€ m
€ m
At 1 January 2023
1,671
1,125
5,646
4,928
25
13,395
Total comprehensive income for the year
Profit after tax
—
—
—
822
—
822
Other comprehensive income
—
—
—
—
—
—
Total comprehensive income for the year
—
—
—
822
—
822
Transactions with owners, recorded directly in equity
Issuance of Additional Tier 1 securities
—
—
—
—
—
—
Buyback of Additional Tier 1 securities
—
—
—
—
—
—
Dividends paid on ordinary shares
k
—
—
—
(166)
—
(166)
Distributions paid to other equity interests
j
—
—
—
(65)
—
(65)
Buyback of ordinary shares
h
(34)
—
—
(215)
34
(215)
Transfer between merger and revenue reserves
i
—
—
588
(588)
—
—
Total contributions by and distributions to owners
(34)
—
588
(1,034)
34
(446)
At 31 December 2023
1,637
1,125
6,234
4,716
59
13,771
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AIB Group plc Company
Statement of Changes in Equity
for the financial year ended 31 December 2024
Background
AIB Group plc (‘the parent company’ or ‘the Company’) is a company
domiciled in Ireland with its registered office address at 10 Molesworth
Street, Dublin 2, Ireland. AIB Group plc is registered under the
Companies Act 2014 as a public limited company under the company
number 594283 and is the holding company of the Group.
a Accounting policies
Transition to FRS 101
For periods up to and including the year ended 31 December 2023, the
Company prepared its financial statements in accordance with
International financial Reporting Standards (collectively ‘IFRSs’) as
adopted by the European Union ('EU'). These financial statements, for
the year ended 31 December 2024, are the first the Company has
prepared in accordance with Financial Reporting Standard 101
Reduced Disclosure Framework ('FRS 101'). In preparing these
financial statements the Company has started from an opening
statement of financial position at 1 January 2023, the Company’s date
of transition to FRS 101. There were no differences between the
recognition and measurement basis applied under previous IFRS as
adopted by the EU at 1 January 2023 and FRS 101.
Statement of Compliance
The parent company financial statements and related notes have been
prepared in accordance with FRS 101 and comply with those parts of
the Companies Act 2014 and with the European Union (Credit
Institutions: Financial Statements) Regulations 2015 applicable to
companies reporting under FRS 101.
In preparing these financial statements, the Company applies the
recognition, measurement and disclosure requirements of IFRS as
adopted by the EU, but makes amendments where necessary in order
to comply with the Companies Act 2014 and has set out below where
advantage of the FRS 101 disclosure exemptions has been taken.
In these financial statements, the Company has applied the exemptions
available under FRS 101 in respect of the following disclosures:
• A statement of cash flows and related notes;
• The effects of new but not yet effective IFRS;
• Disclosures in respect of transactions with wholly owned subsidiaries
of the Group; and
• An additional statement of financial position for the beginning of the
earliest comparative period following the transition to FRS 101.
Material accounting policies
Where applicable, the accounting policies adopted by the Company are
the same as those of the Group as set out in note 1 to the consolidated
financial statements.
Investment in subsidiary
The Company accounts for its investment in subsidiary at cost less
provisions for impairment. The Company reviews its investment for
impairment at the end of each reporting period if there are indications
that impairment may have occurred.
The testing for possible impairment involves comparing the estimated
recoverable amount of an investment with its carrying amount. Where
the recoverable amount is less than the carrying amount, the difference
is recognised as an impairment provision in the Company’s financial
statements. The recoverable amount is the higher of fair value less
costs to sell and value-in-use ('VIU').
Dividends from a subsidiary are recognised in the income statement
when the Company’s right to receive the dividend is established.
Merger reserve
Impairment losses which arise from the Company’s investment in Allied
Irish Banks, p.l.c. will be charged to the profit or loss account and
transferred to the merger reserve in so far as a credit balance remains in
the merger reserve. Reversal of impairments will be credited to the profit
or loss account and transferred to the merger reserve in so far as it does
not exceed the impairment charged.
Parent Company Income statement
In accordance with Section 304(2) of the Companies Act 2014,
the parent company is availing of the exemption to omit the income
statement, statement of comprehensive income and related notes from
its financial statements; from presenting them to the Annual General
Meeting and from filing them with the Registrar of Companies.
b Critical accounting judgements and
estimates
The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application of
policies and reported amounts of certain assets, liabilities, revenues
and expenses, and disclosures of contingent assets and liabilities. The
estimates and assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances. Since management’s judgement may involve making
estimates concerning the likelihood of future events, the actual results
could differ from those estimates. The estimates and assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any
future period affected. The estimate with a significant risk of material
adjustment in the next year relate to the investment in subsidiary.
Investment in subsidiary
The key estimates and assumptions that the Group have used in
assessing the value-in-use (‘VIU’) of its investment in subsidiary are
as follows:
• The estimation of expected cash flows based on the financial plan
for 2025-2027;
• The assumption of an appropriate growth rate; and
• The estimation of an appropriate discount rate.
The investment in subsidiary in the separate financial statements of the
Company is reviewed for impairment when there are indications that
impairment losses may have occurred. If any such indications exist, the
Company undertakes an impairment review by comparing the carrying
value of the investment in the subsidiary with its estimated recoverable
amount with any shortfall being reported as an impairment charge in
the Company’s financial statements. The estimated recoverable
amount is based on VIU calculations.
Given the uncertainties and the high level of subjectivity involved in the
estimation process, it is possible that the outcomes in the next financial
year could differ from the expectations on which the Company’s estimates
are based resulting in the recognition and measurement of materially
different amounts from those estimated in these financial statements.
Details of the Company’s investment in subsidiary, including the VIU
calculation and the sensitivity of the carrying amount of the investment
to possible changes in key variables are set out in note e.
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Notes to AIB Group plc Company
Financial Statements
c Auditor's remuneration
Section 322 of the Companies Act 2014 mandates disclosure of remuneration paid/payable to the Group Auditor only (PricewaterhouseCoopers)
for services relating to the audit of the Group and relevant subsidiary financial statements. € 5,000 was paid to the Group Auditor for services
relating to the audit of the financial statements of AIB Group plc during the year to 31 December 2024 (2023: € 5,000). No fees were paid/payable
to overseas auditors (2023: Nil).
d Loans and advances to banks
2024
2023
€ m
€ m
At amortised cost
Funds placed with subsidiary, Allied Irish Banks, p.l.c.
9,557
9,996
ECL allowance
(3)
(3)
Total loans and advances to banks
9,554
9,993
In March 2024, AIB Group plc, as the lender, entered into a loan agreement with Allied Irish Banks, p.l.c. (‘the subsidiary’), as the borrower,
whereby the obligation was unsecured and subordinated. The $ 1 billion loan is repayable on 28 March 2035 with an optional redemption date of
28 March 2034 at a fixed interest rate of 5.996% up to the maturity date.
e Investment in subsidiary undertaking
2024
2023
€ m
€ m
At 1 January
13,758
13,385
Additions – Additional Tier 1 Securities
625
—
Buyback – Additional Tier 1 Securities
(500)
—
Reversal of impairment of equity shares
—
588
Buyback of equity shares
—
(215)
At 31 December
13,883
13,758
AIB Group plc (‘the Company’) holds the entire ordinary share capital of Allied Irish Banks, p.l.c. (‘the subsidiary’) which it acquired in 2017
(2,714,381,237 ordinary shares of nominal value € 0.625 each) and which had a book value at acquisition of € 12,940 million and has a carrying
value at 31 December 2024 of € 12,633 million (2023: € 12,633 million). Separately, the Company invested € 1,250 million in Additional Tier 1
Securities (AT1) issued by the subsidiary. These investments follow the Company’s own issuance of AT1 securities as detailed in note j.
Allied Irish Banks, p.l.c. is a financial services company incorporated and registered in Ireland with a registered office at 10 Molesworth Street,
Dublin 2. It is the parent company of a number of subsidiaries, both credit institutions and others, all of which are 100% owned apart from
Augmentum Limited in which there are non-controlling interests. It operates predominantly in Ireland, providing a comprehensive range of services
to retail customers, as well as business and corporate customers. Allied Irish Banks, p.l.c. and its subsidiaries offer a full suite of products for retail
customers, including mortgages, personal loans, credit cards, current accounts, insurance, pensions, financial planning, investments, savings and
deposits. Its products for business and corporate customers include finance and loans, business current accounts, deposits, foreign exchange
and interest rate risk management products, trade finance products, invoice discounting, leasing, credit cards, merchant services, payments and
corporate finance.
Allied Irish Banks, p.l.c. together with its principal subsidiaries in Ireland, AIB Mortgage Bank Unlimited Company and EBS d.a.c. are regulated
by the Central Bank of Ireland/Single Supervisory Mechanism. Its principal subsidiary outside the Republic of Ireland, AIB Group (UK) p.l.c.,
is regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Impairment of investment in subsidiary
The Company reviews its investment in the subsidiary for impairment at the end of each reporting period if there are indications that impairment
may have occurred.
The testing for possible impairment involves comparing the estimated recoverable amount of an investment with its carrying amount. Where the
recoverable amount is less than the carrying amount, the difference is recognised as an impairment provision in the Company’s financial statements.
The recoverable amount is the higher of fair value less costs to sell and VIU.
The subsidiary’s fair value is largely that of the Company since the net assets of the subsidiary are, in effect, the same as those of the Company.
Accordingly, AIB Group plc’s market capitalisation is a proxy for the fair value of Allied Irish Banks, p.l.c.
At 31 December 2024, the market capitalisation of AIB Group plc was € 12.4 billion (2023: € 10.2 billion). This was lower than the carrying amount
of its investment in the subsidiary of € 13,883 million. AIB Group plc tested its investment for impairment and reviewed the recoverable amount as
determined by a VIU calculation compared with the carrying amount.
The Company uses a discounted cash flow to equity model to derive a VIU, in line with industry practice. Under this approach, recoverable value is
determined by the present value of future distributable items which takes into consideration the requirement to retain earnings in line with relevant
target capital ratios and risk-weighted assets. Accordingly, the principal inputs to the model are (a) future profitability; (b) risk-weighted asset levels;
(c) the discount rate used; and (d) target capital ratios.
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Notes to AIB Group plc Company Financial Statements continued
e Investment in subsidiary undertaking continued
Impairment of investment in subsidiary continued
The VIU was determined at € 16,914 million which was higher than the carrying amount (i.e. € 13,883 million) due to the impact of the
improvement in the economic environment on the Group’s three year plan and accordingly, the VIU is higher than the market capitalisation noted
previously. In 2023 the Company recognised an impairment reversal amounting to € 588 million, as the VIU at 31 December 2023 amounted to
€ 14,385 million, which was higher than the carrying value, prior to the reversal of impairment, of € 13,170 million.
Basis used to calculate recoverable amount
In determining VIU, the Company used discounted cash flow projections attributable to equity and AT1 holders. These projections were the output
arising from the recent three year Strategic Plan (2025 to 2027) approved by the Board. This output from the Plan will be used by the Company
on an on-going basis during the three year planning cycle. The Strategic Plan involved significant judgements which were subject to review and
validation at a number of levels of governance and is the current best estimate of the expected cash flows over the planning period. For cash flows
beyond the planning period, the Company extrapolated into perpetuity the year 3 expected cash flows as a base, using a long term growth rate to
derive a terminal value. Risk weighted assets are assumed to grow at the same rate as that for long-term profit growth.
The Company used the following principal assumptions in the VIU calculation:
• Long term profit/risk-weighted asset growth rate after 2027 of 2% (2023: 2%);
• Discount rate of 11.5% (2023: 12.1%); and
• Common equity Tier 1 trending to 14% (Target >14.0%) (2023: 14.5% (Target > 14.0%)).
Future profitability and growth rates are dependent on several factors, including the economic environment both local and international, and the
impact of regulatory requirements on the banking industry and the continuing developments in the financial services sector. Profitability and growth
were reassessed in the annual planning exercise covering the period 2025 to 2027 undertaken by the Group in the second half of 2024. The
discount rate to be used in future periods may increase/decrease due to changes to the risk free rate or to the risk premium. Changes to these
inputs may increase or decrease an impairment loss allowance/reversal in future periods.
The following sensitivities of the carrying value of the investment in the subsidiary to key input variables reflect the impact of the variables
individually and not any interrelationships. It is possible that more than one favourable and/or unfavourable change will occur at the same time:
• If the long term profit/risk-weighted asset growth was assumed to be 100 bps higher (or lower), the carrying value at December 2024 would not
increase or decrease (2023: No increase or decrease).
• If the discount rate was assumed to be 100 bps higher (or lower) the carrying value at December 2024 would not increase or decrease (2023:
Decrease of € 636 million or no increase).
• If year 3 expected cash flows that are used as a base to derive the terminal value were increased/decreased by € 100 million, the carrying value
would not increase or decrease (2023: No increase or decrease).
f Debt securities in issue
2024
2023
€ m
€ m
Euro Medium Term Note Programme
5,250
6,000
Global Medium Term Note Programme
2,644
2,486
Total debt securities in issue
7,894
8,486
2024
2023
Analysis of movements in debt securities in issue
€ m
€ m
At 1 January
8,486
6,520
Issued during the year
923
2,431
Matured
(1,680)
(382)
Exchange translation adjustments
165
(83)
At 31 December
7,894
8,486
For details of debt securities issued by the Company during 2024, refer to note 30 to the consolidated financial statements. The instruments issued
by AIB Group plc were issued for the purpose of meeting Group MREL requirements.
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g Subordinated liabilities and other capital instruments
2024
2023
€ m
€ m
Dated loan capital – European Medium Term Note Programme:
€ 500 million Subordinated Tier 2 Notes due 2029, Callable 2024
—
500
€ 1 billion Subordinated Tier 2 Notes due 2031, Callable 2026
1,000
1,000
€ 650 billion Subordinated Tier 2 Notes due 2035, Callable 2030
650
—
Total subordinated liabilities and other capital instruments
1,650
1,500
The dated loan capital above issued under the European Medium Term Note Programme, is subordinated in right of payment to the ordinary
creditors, including depositors, of the Group.
For details on the movements of subordinated liabilities and other capital instruments issued by the Company during 2024, refer to note 33 to the
consolidated financial statements.
h Share capital
The ordinary share capital of AIB Group plc is detailed in note 35 to the consolidated financial statements.
i Merger reserve
2024
2023
€ m
€ m
At 1 January
6,234
5,646
Transfer from revenue reserves
—
588
At 31 December
6,234
6,234
Under the Scheme of Arrangement ('the Scheme') approved by the Irish High Court on 6 December 2017 which became effective on 8 December 2017,
a new company, AIB Group plc (‘the Company’), was introduced as the holding company of AIB Group. The share capital of Allied Irish Banks, p.l.c.,
other than a single share owned by AIB Group plc, was cancelled and an equal number of new shares were issued by the Company to the
shareholders of Allied Irish Banks, p.l.c. The difference between the carrying value of the net assets of Allied Irish Banks, p.l.c. entity on acquisition
by the Company and the nominal value of the shares issued on implementation of the Scheme was accounted for as a merger reserve.
In 2023 an impairment reversal was recognised of € 588 million which resulted in a transfer from revenue reserves leaving a balance of € 6,234
million in merger reserves.
j Other equity interests
2024
2023
€ m
€ m
Issued by AIB Group plc
€ 500 million Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities issued 2019
—
500
€ 625 million Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities issued 2020
625
625
€ 625 million Additional Tier 1 Perpetual Contingent Temporary Write-Down Securities issued 2024
625
—
Total other equity interests
1,250
1,125
Additional Tier 1 Perpetual Contingent Temporary Write-down Securities
For further details in relation to AT1s issued by the Company, see note 36 to the consolidated financial statements.
k Dividends
The dividends of AIB Group plc are detailed in note 50 to the consolidated financial statements.
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Notes to AIB Group plc Company Financial Statements continued
l Credit risk information
The following table sets out the maximum exposure to credit risk for financial assets all of which are carried at amortised cost1 at 31 December
2024 and 2023:
2024
2023
Maximum exposure to credit risk
Total
Total
€ m
€ m
Loans and advances to banks
9,554
9,993
Included elsewhere:
Accrued interest
186
164
Total
9,740
10,157
1. All amortised cost items are loans and advances which are in a ‘held to collect’ business model.
m Liquidity and funding risk
Financial assets and financial liabilities by contractual residual maturity
The following table analyses financial assets and financial liabilities by contractual residual maturity at 31 December 2024 and 2023:
2024
On demand
<3 months but
not on demand
3 months
to 1 year
1–5 years
Over
5 years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Financial assets
Loans and advances to banks1
10
—
500
5,684
3,363
9,557
Other financial assets
—
186
—
—
—
186
10
186
500
5,684
3,363
9,743
Financial liabilities
Debt securities in issue2
—
—
500
5,684
1,713
7,897
Subordinated liabilities and other capital instruments
—
—
—
—
1,650
1,650
Other financial liabilities
178
—
—
—
—
178
178
—
500
5,684
3,363
9,725
2023
On demand
<3 months but
not on demand
3 months
to 1 year
1–5 years
Over
5 years
Total
€ m
€ m
€ m
€ m
€ m
€ m
Financial assets
Loans and advances to banks1
7
—
750
4,584
4,655
9,996
Other financial assets
—
164
—
—
—
164
7
164
750
4,584
4,655
10,160
Financial liabilities
Debt securities in issue2
—
—
750
4,584
3,155
8,489
Subordinated liabilities and other capital instruments
—
—
—
—
1,500
1,500
Other financial liabilities
158
—
—
—
—
158
158
—
750
4,584
4,655
10,147
1. Shown gross of expected credit losses.
2. Shown gross of transaction costs.
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General
Information
In this section
EU Taxonomy Disclosure Tables1
356
Shareholder Information
387
Forward Looking Statement
388
Glossary of Terms
389
Principal Addresses
395
Index
396
1. The pages from 356 to 386 are subject to limited assurance, other than the
tables with a disclosure reference date of 31/12/23.
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Total environmentally
sustainable assets (€m)
KPI1
KPI2
% coverage
(over total assets)3
% of assets excluded from the
numerator of the GAR (Article
7(2) and (3) and Section 1.1.2.
of Annex V)
% of assets excluded from the
denominator of the GAR
(Article 7(1) and Section 1.2.4
of Annex V)
Main KPI
Green asset ratio (GAR) stock
4,150
4.27 %
4.27 %
68.16 %
23.83 %
31.84 %
Total environmentally
sustainable activities
KPI
KPI
% coverage (over total assets)
% of assets excluded from the
numerator of the GAR (Article
7(2) and (3) and Section 1.1.2.
of Annex V)
% of assets excluded from the
denominator of the GAR
(Article 7(1) and Section 1.2.4
of Annex V)
Additional KPIs
GAR (flow)
379
2.07 %
2.07 %
99.97 %
61.09 %
0.03 %
Trading book4
N/A
N/A
N/A
Financial guarantees
—
— %
— %
Assets under management
—
— %
— %
Fees and commissions income4
N/A
N/A
N/A
1. Based on the Turnover KPI that the underlying counterparty has disclosed for each environmental objective in accordance with this Regulation.
2. Based on the CapEx KPI that the underlying counterparty has disclosed for each environmental objective in accordance with this Regulation.
3. % of assets covered by the KPI over banks´ total asset.
4. Fees and Commissions and Trading Book KPIs shall only apply starting 2026.
5. Due to rounding, numbers presented in template 1 may not add up precisely to the totals provided.
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0. Summary of KPIs to be disclosed by credit institutions
under Article 8 Taxonomy Regulation
(Pages 355 – 386 are subject to limited assurance)
GAR – Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
63,206
39,280
4,150
4,132
—
18
6
—
—
—
—
—
—
—
0
—
—
—
35
—
—
—
6
—
—
—
39,328
4,150
4,132
—
18
2
Financial
undertakings
19,953
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3
Credit institutions
13,399
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4
Loans and
advances
5,928
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5
Debt securities,
including UoP
7,471
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
7
Other financial
corporations
6,554
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
8
of which
investment firms
370
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
9
Loans and
advances
370
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
10
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
11
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
12
of which
management
companies
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
13
Loans and
advances
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
14
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
15
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
16
of which
insurance
undertakings
25
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
17
Loans and
advances
25
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
18
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
19
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
20
Non-financial
undertakings
882
200
18
—
—
18
6
—
—
—
—
—
—
—
0
—
—
—
35
—
—
—
6
—
—
—
248
18
—
—
18
21
Loans and
advances
882
200
18
—
—
18
6
—
—
—
—
—
—
—
0
—
—
—
35
—
—
—
6
—
—
—
248
18
—
—
18
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
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1. Assets for the calculation of GAR (revenue)
Disclosure reference date 31/12/24
22
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
23
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
24
Households
42,342
39,080
4,132
4,132
—
—
—
—
—
—
—
—
—
—
39,080
4,132
4,132
—
—
25
of which loans
collateralised by
residential
immovable
property
36,369
36,331
4,132
4,132
—
—
—
—
—
—
—
—
—
—
36,331
4,132
4,132
—
—
26
of which building
renovation loans
4
4
—
—
—
—
—
—
—
—
—
—
—
—
4
—
—
—
—
27
of which motor
vehicle loans
827
827
—
—
—
827
—
—
—
—
28
Local
governments
financing
30
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
29
Housing
financing
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
30
Other local
government
financing
30
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
2
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
32
Assets
excluded from
the numerator
for GAR
calculation
(covered in the
denominator)
33,990
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
33
Financial and
Non-financial
undertakings
26,445
34
SMEs and NFCs
(other than
SMEs) not
subject to NFRD
disclosure
obligations
15,178
35
Loans and
advances
14,537
36
of which loans
collateralised by
commercial
immovable
property
5,078
37
of which building
renovation loans
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
358
1. Assets for the calculation of GAR (revenue)
Disclosure reference date 31/12/24 continued
38
Debt securities
640
39
Equity
instruments
1
40
Non-EU country
counterparties
not subject to
NFRD disclosure
obligations
11,267
41
Loans and
advances
11,034
42
Debt securities
232
43
Equity
instruments
—
44
Derivatives
1,719
45
On demand
interbank loans
401
46
Cash and cash-
related assets
664
47
Other
categories of
assets (e.g.
Goodwill,
commodities
etc.)
4,762
48
Total GAR
assets
97,199
39,280
4,150
4,132
—
18
6
—
—
—
—
—
—
—
0
—
—
—
35
—
—
—
6
—
—
—
39,328
4,150
4,132
—
18
49
Assets not
covered for
GAR
calculation
45,410
50
Central
governments
and
Supranational
issuers
7,945
51
Central banks
exposure
36,904
52
Trading book
561
53
Total assets
142,608
39,280
4,150
4,132
—
18
6
—
—
—
—
—
—
—
0
—
—
—
35
—
—
—
6
—
—
—
39,328
4,150
4,132
—
18
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial
guarantees
978
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
55
Assets under
management
8,395
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
56
Of which debt
securities
2,526
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
57
Of which equity
instruments
3,675
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
359
GAR – Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
58,943
36,822
4,026
4,026
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
36,822
4,026
4,026
0
—
2
Financial
undertakings
17,990
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3
Credit institutions
12,623
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4
Loans and
advances
5,937
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5
Debt securities,
including UoP
6,686
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
7
Other financial
corporations
5,367
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
8
of which
investment firms
215
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
9
Loans and
advances
189
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
10
Debt securities,
including UoP
26
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
11
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
12
of which
management
companies
15
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
13
Loans and
advances
15
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
14
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
15
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
16
of which
insurance
undertakings
30
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
17
Loans and
advances
30
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
18
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
19
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
20
Non-financial
undertakings
900
62
0
—
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
62
0
—
0
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
360
1. Assets for the calculation of GAR (revenue)
Disclosure reference date 31/12/23
(December 2023 has been restated)
21
Loans and
advances
900
62
0
—
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
62
0
—
0
—
22
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
23
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
24
Households
40,028
36,760
4,026
4,026
—
—
—
—
—
—
—
—
—
—
36,760
4,026
4,026
—
—
25
of which loans
collateralised by
residential
immovable
property
33,992
33,947
4,026
4,026
—
—
—
—
—
—
—
—
—
—
33,947
4,026
4,026
—
—
26
of which building
renovation loans
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
27
of which motor
vehicle loans
711
711
—
—
—
—
711
—
—
—
—
28
Local
governments
financing
22
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
29
Housing
financing
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
30
Other local
government
financing
22
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
2
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
32
Assets
excluded from
the numerator
for GAR
calculation
(covered in the
denominator)
33,466
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
33
Financial and
Non-financial
undertakings
25,811
34
SMEs and NFCs
(other than
SMEs) not
subject to NFRD
disclosure
obligations
16,540
35
Loans and
advances
15,956
36
of which loans
collateralised by
commercial
immovable
property
5,620
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
361
37
of which building
renovation loans
—
38
Debt securities
569
39
Equity
instruments
15
40
Non-EU country
counterparties
not subject to
NFRD disclosure
obligations
9,271
41
Loans and
advances
9,072
42
Debt securities
198
43
Equity
instruments
—
44
Derivatives
1,920
45
On demand
interbank loans
328
46
Cash and cash-
related assets
598
47
Other categories
of assets (e.g.
Goodwill,
commodities
etc.)
4,809
48
Total GAR
assets
92,409
36,822
4,026
4,026
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
36,822
4,026
4,026
0
—
49
Assets not
covered for
GAR
calculation
45,451
50
Central
governments
and
Supranational
issuers
7,199
51
Central banks
exposure
37,701
52
Trading book
550
53
Total assets
137,860 36,822 4,026 4,026
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
— 36,822 4,026 4,026
0
—
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial
guarantees
858
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
55
Assets under
management
6,969
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
56
Of which debt
securities
2,029
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
57
Of which equity
instruments
2,950
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
362
1. Assets for the calculation of GAR (revenue)
Disclosure reference date 31/12/23 continued
GAR – Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
63,206
39,279
4,146
4,132
—
14
27
—
—
—
—
—
—
—
0
—
—
—
20
—
—
—
4
—
—
—
39,329
4,146
4,132
—
14
2
Financial
undertakings
19,953
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3
Credit institutions
13,399
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4
Loans and
advances
5,928
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5
Debt securities,
including UoP
7,471
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
7
Other financial
corporations
6,554
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
8
of which
investment firms
370
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
9
Loans and
advances
370
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
10
Debt securities,
including UoP
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
11
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
12
of which
management
companies
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
13
Loans and
advances
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
14
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
15
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
16
of which
insurance
undertakings
25
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
17
Loans and
advances
25
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
18
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
19
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
20
Non-financial
undertakings
882
199
14
—
—
14
27
—
—
—
—
—
—
—
0
—
—
—
20
—
—
—
4
—
—
—
249
14
—
—
14
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
363
1. Assets for the calculation of GAR (capex)
Disclosure reference date 31/12/24
21
Loans and
advances
882
199
14
—
—
14
27
—
—
—
—
—
—
—
0
—
—
—
20
—
—
—
4
—
—
—
249
14
—
—
14
22
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
23
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
24
Households
42,342
39,080
4,132
4,132
—
—
—
—
—
—
39,080
4,132
4,132
—
—
25
of which loans
collateralised by
residential
immovable
property
36,369
36,331
4,132
4,132
—
—
—
—
—
—
36,331
4,132
4,132
—
—
26
of which building
renovation loans
4
4
—
—
—
—
—
—
—
—
4
—
—
—
—
27
of which motor
vehicle loans
827
827
—
—
—
827
—
—
—
—
28
Local
governments
financing
30
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
29
Housing
financing
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
30
Other local
government
financing
30
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
2
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
32
Assets
excluded from
the numerator
for GAR
calculation
(covered in the
denominator)
33,990
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
33
Financial and
Non-financial
undertakings
26,445
34
SMEs and NFCs
(other than
SMEs) not
subject to NFRD
disclosure
obligations
15,178
35
Loans and
advances
14,537
36
of which loans
collateralised by
commercial
immovable
property
5,078
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
364
1. Assets for the calculation of GAR (capex)
Disclosure reference date 31/12/24 continued
37
of which building
renovation loans
—
38
Debt securities
640
39
Equity
instruments
1
40
Non-EU country
counterparties
not subject to
NFRD disclosure
obligations
11,267
41
Loans and
advances
11,034
42
Debt securities
232
43
Equity
instruments
—
44
Derivatives
1,719
45
On demand
interbank loans
401
46
Cash and cash-
related assets
664
47
Other categories
of assets (e.g.
Goodwill,
commodities
etc.)
4,762
48
Total GAR
assets
97,199
39,279
4,146
4,132
—
14
27
—
—
—
—
—
—
—
0
—
—
—
20
—
—
—
4
—
—
—
39,329
4,146
4,132
—
14
49
Assets not
covered for
GAR
calculation
45,410
50
Central
governments
and
Supranational
issuers
7,945
51
Central banks
exposure
36,904
52
Trading book
561
53
Total assets
142,608
39,279
4,146
4,132
—
14
27
—
—
—
—
—
—
—
0
—
—
—
20
—
—
—
4
—
—
—
39,329
4,146
4,132
—
14
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial
guarantees
978
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
55
Assets under
management
8,395
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
56
Of which debt
securities
2,526
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
57
Of which equity
instruments
3,675
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
365
GAR – Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
58,943 36,926 4,026 4,026
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
— 36,926 4,026 4,026
0
—
2
Financial
undertakings
17,990
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3
Credit institutions
12,623
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4
Loans and
advances
5,937
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5
Debt securities,
including UoP
6,686
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
7
Other financial
corporations
5,367
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
8
of which
investment firms
215
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
9
Loans and
advances
189
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
10
Debt securities,
including UoP
26
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
11
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
12
of which
management
companies
15
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
13
Loans and
advances
15
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
14
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
15
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
16
of which
insurance
undertakings
30
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
17
Loans and
advances
30
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
18
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
19
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
20
Non-financial
undertakings
900
166
0
—
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
166
0
—
0
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
366
1. Assets for the calculation of GAR (capex)
Disclosure reference date 31/12/23
21
Loans and
advances
900
166
0
—
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
166
0
—
0
—
22
Debt securities,
including UoP
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
23
Equity
instruments
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
24
Households
40,028 36,760 4,026 4,026
—
—
—
—
—
—
—
—
—
—
36,760 4,026 4,026
—
—
25
of which loans
collateralised by
residential
immovable
property
33,992 33,947 4,026 4,026
—
—
—
—
—
—
—
—
—
—
33,947 4,026 4,026
—
—
26
of which building
renovation loans
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
27
of which motor
vehicle loans
711
711
—
—
—
—
711
—
—
—
—
28
Local
governments
financing
22
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
29
Housing
financing
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
30
Other local
government
financing
22
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
2
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
32
Assets
excluded from
the numerator
for GAR
calculation
(covered in the
denominator)
33,466
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
33
Financial and
Non-financial
undertakings
25,811
34
SMEs and NFCs
(other than
SMEs) not
subject to NFRD
disclosure
obligations
16,540
35
Loans and
advances
15,956
36
of which loans
collateralised by
commercial
immovable
property
5,620
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
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Information
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Annual Financial Report 2024
367
37
of which building
renovation loans
—
38
Debt securities
569
39
Equity
instruments
15
40
Non-EU country
counterparties
not subject to
NFRD disclosure
obligations
9,271
41
Loans and
advances
9,072
42
Debt securities
198
43
Equity
instruments
—
44
Derivatives
1,920
45
On demand
interbank loans
328
46
Cash and cash-
related assets
598
47
Other categories
of assets (e.g.
Goodwill,
commodities
etc.)
4,809
48
Total GAR
assets
92,409 36,926 4,026 4,026
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
— 36,926 4,026 4,026
0
—
49
Assets not
covered for
GAR
calculation
45,451
50
Central
governments
and
Supranational
issuers
7,199
51
Central banks
exposure
37,701
52
Trading book
550
53
Total assets
137,860 36,926 4,026 4,026
0
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
— 36,926 4,026 4,026
0
—
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial
guarantees
858
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
55
Assets under
management
6,969
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
56
Of which debt
securities
2,029
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
57
Of which equity
instruments
2,950
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Total
[gross]
carrying
amount
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution
(PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy relevant
sectors (Taxonomy-eligible)
Of which
towards taxonomy
relevant sectors (Taxonomy-eligible)
Million EUR
Of which environmentally
sustainable (Taxonomy-
aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which
environmentally
sustainable
(Taxonomy-aligned)
Of which environmentally
sustainable (Taxonomy-
aligned)
Annual
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Information
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Annual Financial Report 2024
368
1. Assets for the calculation of GAR (capex)
Disclosure reference date 31/12/23 continued
Breakdown by sector – NACE 4 digits level (code and label)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally
sustainable (CCM)
Mn EUR
Of which environmentally
sustainable (CCM)
Mn EUR
Of which environmentally
sustainable (CCA)
Mn EUR
Of which environmentally
sustainable (CCA)
1
A1.6.2 - Support activities for animal production
74.45
—
—
—
2
C17.1.2 - Manufacture of paper and paperboard
0.00
0.00
—
—
3
C21.1.0 - Manufacture of basic pharmaceutical products
129.53
—
—
—
4
C26.1.1 - Manufacture of electronic components
45.43
—
—
—
5
C28.2.9 - Manufacture of other general-purpose machinery
44.05
—
—
—
6
C32.9.9 - Other manufacturing
105.11
—
—
—
7
F41.1.0 - Development of building projects
11.28
—
—
—
8
F41.2.0 - Construction of residential and non-residential buildings
92.17
—
—
—
9
F42.9.9 - Construction of other civil engineering projects
0.22
—
—
—
10
G46.9.0 - Non-specialised wholesale trade
0.01
—
—
—
11
G47.7.3 - Dispensing chemist in specialised stores
0.03
—
—
—
12
H51.1.0 - Passenger air transport
37.81
—
—
—
13
H52.2.9 - Other transportation support activities
0.39
—
—
—
14
I55.1.0 - Hotels and similar accommodation
91.60
—
—
—
15
J61.9.0 - Other telecommunications activities
48.15
—
—
—
16
M72.1.9 - Other research and experimental development on natural sciences
d
i
i
7.52
—
—
—
17
Q86.1.0 - Hospital activities
0.02
—
—
—
18
R92.0.0 - Gambling and betting activities
167.28
—
—
—
19
S94.9.9 - Activities of other membership organisations
27.18
17.94
—
—
Breakdown by sector – NACE 4 digits level (code and label)
Water and marine resources (WTR)
Circular economy (CE)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally
sustainable (WTR)
Mn EUR
Of which environmentally
sustainable (WTR)
Mn EUR
Of which environmentally
sustainable (CE)
Mn EUR
Of which environmentally
sustainable (CE)
1
A1.6.2 - Support activities for animal production
—
—
—
—
2
C17.1.2 - Manufacture of paper and paperboard
—
—
—
—
3
C21.1.0 - Manufacture of basic pharmaceutical products
—
—
—
—
4
C26.1.1 - Manufacture of electronic components
—
—
—
—
5
C28.2.9 - Manufacture of other general-purpose machinery
—
—
—
—
6
C32.9.9 - Other manufacturing
—
—
—
—
7
F41.1.0 - Development of building projects
—
—
—
—
8
F41.2.0 - Construction of residential and non-residential buildings
—
—
—
—
9
F42.9.9 - Construction of other civil engineering projects
—
—
—
—
10
G46.9.0 - Non-specialised wholesale trade
—
—
—
—
11
G47.7.3 - Dispensing chemist in specialised stores
—
—
—
—
12
H51.1.0 - Passenger air transport
—
—
—
—
13
H52.2.9 - Other transportation support activities
—
—
—
—
14
I55.1.0 - Hotels and similar accommodation
—
—
—
—
15
J61.9.0 - Other telecommunications activities
—
—
—
—
16
M72.1.9 - Other research and experimental development on natural sciences
d
i
i
—
—
—
—
17
Q86.1.0 - Hospital activities
—
—
—
—
18
R92.0.0 - Gambling and betting activities
—
—
—
—
19
S94.9.9 - Activities of other membership organisations
—
—
—
—
Annual
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369
2. GAR sector information (revenue)
Breakdown by sector – NACE 4 digits level (code and label)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally
sustainable (PPC)
Mn EUR
Of which environmentally
sustainable (PPC)
Mn EUR
Of which environmentally
sustainable (BIO)
Mn EUR
Of which environmentally
sustainable (BIO)
1
A1.6.2 - Support activities for animal production
—
—
—
—
2
C17.1.2 - Manufacture of paper and paperboard
—
—
—
—
3
C21.1.0 - Manufacture of basic pharmaceutical products
—
—
—
—
4
C26.1.1 - Manufacture of electronic components
—
—
—
—
5
C28.2.9 - Manufacture of other general-purpose machinery
—
—
—
—
6
C32.9.9 - Other manufacturing
—
—
—
—
7
F41.1.0 - Development of building projects
—
—
—
—
8
F41.2.0 - Construction of residential and non-residential buildings
—
—
—
—
9
F42.9.9 - Construction of other civil engineering projects
—
—
—
—
10
G46.9.0 - Non-specialised wholesale trade
—
—
—
—
11
G47.7.3 - Dispensing chemist in specialised stores
—
—
—
—
12
H51.1.0 - Passenger air transport
—
—
—
—
13
H52.2.9 - Other transportation support activities
—
—
—
—
14
I55.1.0 - Hotels and similar accommodation
—
—
—
—
15
J61.9.0 - Other telecommunications activities
—
—
—
—
16
M72.1.9 - Other research and experimental development on natural sciences and engineering
—
—
—
—
17
Q86.1.0 - Hospital activities
—
—
—
—
18
R92.0.0 - Gambling and betting activities
—
—
—
—
19
S94.9.9 - Activities of other membership organisations
—
—
—
—
Breakdown by sector – NACE 4 digits level (code and label)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally sustainable
(CCM + CCA + WTR + CE + PPC + BIO)
Mn EUR
Of which environmentally sustainable
(CCM + CCA + WTR + CE + PPC + BIO)
1
A1.6.2 - Support activities for animal production
74.45
—
2
C17.1.2 - Manufacture of paper and paperboard
0.00
0.00
3
C21.1.0 - Manufacture of basic pharmaceutical products
129.53
—
4
C26.1.1 - Manufacture of electronic components
45.43
—
5
C28.2.9 - Manufacture of other general-purpose machinery
44.05
—
6
C32.9.9 - Other manufacturing
105.11
—
7
F41.1.0 - Development of building projects
11.28
—
8
F41.2.0 - Construction of residential and non-residential buildings
92.17
—
9
F42.9.9 - Construction of other civil engineering projects
0.22
—
10
G46.9.0 - Non-specialised wholesale trade
0.01
—
11
G47.7.3 - Dispensing chemist in specialised stores
0.03
—
12
H51.1.0 - Passenger air transport
37.81
—
13
H52.2.9 - Other transportation support activities
0.39
—
14
I55.1.0 - Hotels and similar accommodation
91.60
—
15
J61.9.0 - Other telecommunications activities
48.15
—
17
M72.1.9 - Other research and experimental development on natural sciences and engineering
7.52
—
18
Q86.1.0 - Hospital activities
0.02
—
19
R92.0.0 - Gambling and betting activities
167.28
—
S94.9.9 - Activities of other membership organisations
27.18
17.94
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370
2. GAR sector information (revenue) continued
Breakdown by sector – NACE 4 digits level (code and label)
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally
sustainable (CCM)
Mn EUR
Of which environmentally
sustainable (CCM)
Mn EUR
Of which environmentally
sustainable (CCA)
Mn EUR
Of which environmentally
sustainable (CCA)
1
A1.6.2 - Support activities for animal production
74.45
—
—
—
2
C17.1.2 - Manufacture of paper and paperboard
0.00
0.00
—
—
3
C21.1.0 - Manufacture of basic pharmaceutical products
129.53
—
—
—
4
C26.1.1 - Manufacture of electronic components
45.43
0.18
—
—
5
C28.2.9 - Manufacture of other general-purpose machinery
44.05
—
—
—
6
C32.9.9 - Other manufacturing
105.11
0.00
—
—
7
F41.1.0 - Development of building projects
11.28
—
—
—
8
F41.2.0 - Construction of residential and non-residential buildings
92.17
—
—
—
9
F42.9.9 - Construction of other civil engineering projects
0.22
—
—
—
10
G46.9.0 - Non-specialised wholesale trade
0.01
—
—
—
11
G47.7.3 - Dispensing chemist in specialised stores
0.03
—
—
—
12
H51.1.0 - Passenger air transport
37.81
—
—
—
13
H52.2.9 - Other transportation support activities
0.39
—
—
—
14
I55.1.0 - Hotels and similar accommodation
91.60
—
—
—
15
J61.9.0 - Other telecommunications activities
48.15
—
—
—
16
M72.1.9 - Other research and experimental development on natural sciences
d
i
i
7.52
—
—
—
17
Q86.1.0 - Hospital activities
0.02
—
—
—
18
R92.0.0 - Gambling and betting activities
167.28
—
—
—
19
S94.9.9 - Activities of other membership organisations
27.18
13.59
—
—
Breakdown by sector – NACE 4 digits level (code and label)
Water and marine resources (WTR)
Circular economy (CE)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally
sustainable (WTR)
Mn EUR
Of which environmentally
sustainable (WTR)
Mn EUR
Of which environmentally
sustainable (CE)
Mn EUR
Of which environmentally
sustainable (CE)
1
A1.6.2 - Support activities for animal production
—
—
—
—
2
C17.1.2 - Manufacture of paper and paperboard
—
—
—
—
3
C21.1.0 - Manufacture of basic pharmaceutical products
—
—
—
—
4
C26.1.1 - Manufacture of electronic components
—
—
—
—
5
C28.2.9 - Manufacture of other general-purpose machinery
—
—
—
—
6
C32.9.9 - Other manufacturing
—
—
—
—
7
F41.1.0 - Development of building projects
—
—
—
—
8
F41.2.0 - Construction of residential and non-residential buildings
—
—
—
—
9
F42.9.9 - Construction of other civil engineering projects
—
—
—
—
10
G46.9.0 - Non-specialised wholesale trade
—
—
—
—
11
G47.7.3 - Dispensing chemist in specialised stores
—
—
—
—
12
H51.1.0 - Passenger air transport
—
—
—
—
13
H52.2.9 - Other transportation support activities
—
—
—
—
14
I55.1.0 - Hotels and similar accommodation
—
—
—
—
15
J61.9.0 - Other telecommunications activities
—
—
—
—
16
M72.1.9 - Other research and experimental development on natural sciences
and engineering
—
—
—
—
17
Q86.1.0 - Hospital activities
—
—
—
—
18
R92.0.0 - Gambling and betting activities
—
—
—
—
19
S94.9.9 - Activities of other membership organisations
—
—
—
—
Annual
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2. GAR sector information (capex)
Breakdown by sector – NACE 4 digits level (code and label)
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally
sustainable (PPC)
Mn EUR
Of which environmentally
sustainable (PPC)
Mn EUR
Of which environmentally
sustainable (BIO)
Mn EUR
Of which environmentally
sustainable (BIO)
1
A1.6.2 - Support activities for animal production
—
—
—
—
2
C17.1.2 - Manufacture of paper and paperboard
—
—
—
—
3
C21.1.0 - Manufacture of basic pharmaceutical products
—
—
—
—
4
C26.1.1 - Manufacture of electronic components
—
—
—
—
5
C28.2.9 - Manufacture of other general-purpose machinery
—
—
—
—
6
C32.9.9 - Other manufacturing
—
—
—
—
7
F41.1.0 - Development of building projects
—
—
—
—
8
F41.2.0 - Construction of residential and non-residential buildings
—
—
—
—
9
F42.9.9 - Construction of other civil engineering projects
—
—
—
—
10
G46.9.0 - Non-specialised wholesale trade
—
—
—
—
11
G47.7.3 - Dispensing chemist in specialised stores
—
—
—
—
12
H51.1.0 - Passenger air transport
—
—
—
—
13
H52.2.9 - Other transportation support activities
—
—
—
—
14
I55.1.0 - Hotels and similar accommodation
—
—
—
—
15
J61.9.0 - Other telecommunications activities
—
—
—
—
16
M72.1.9 - Other research and experimental development on natural sciences and engineering
—
—
—
—
17
Q86.1.0 - Hospital activities
—
—
—
—
18
R92.0.0 - Gambling and betting activities
—
—
—
—
19
S94.9.9 - Activities of other membership organisations
—
—
—
—
Breakdown by sector – NACE 4 digits level (code and label)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject to NFRD
[Gross] carrying amount
[Gross] carrying amount
Mn EUR
Of which environmentally sustainable
(CCM + CCA + WTR + CE + PPC + BIO)
Mn EUR
Of which environmentally sustainable
(CCM + CCA + WTR + CE + PPC + BIO)
1
A1.6.2 - Support activities for animal production
74.45
—
2
C17.1.2 - Manufacture of paper and paperboard
0.00
0.00
3
C21.1.0 - Manufacture of basic pharmaceutical products
129.53
—
4
C26.1.1 - Manufacture of electronic components
45.43
0.18
5
C28.2.9 - Manufacture of other general-purpose machinery
44.05
—
6
C32.9.9 - Other manufacturing
105.11
0.00
7
F41.1.0 - Development of building projects
11.28
—
8
F41.2.0 - Construction of residential and non-residential buildings
92.17
—
9
F42.9.9 - Construction of other civil engineering projects
0.22
—
10
G46.9.0 - Non-specialised wholesale trade
0.01
—
11
G47.7.3 - Dispensing chemist in specialised stores
0.03
—
12
H51.1.0 - Passenger air transport
37.81
—
13
H52.2.9 - Other transportation support activities
0.39
—
14
I55.1.0 - Hotels and similar accommodation
91.60
—
15
J61.9.0 - Other telecommunications activities
48.15
—
16
M72.1.9 - Other research and experimental development on natural sciences and engineering
7.52
—
17
Q86.1.0 - Hospital activities
0.02
—
18
R92.0.0 - Gambling and betting activities
167.28
—
19
S94.9.9 - Activities of other membership organisations
27.18
13.59
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
372
2. GAR sector information (capex) continued
GAR - Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
62 %
7 %
7 %
— %
0 %
0 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
62 %
7 %
7 %
— %
0 %
44 %
2
Financial
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14 %
3
Credit institutions
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
9 %
4
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
4 %
5
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
6
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7
Other financial
corporations
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
8
of which
investment firms
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
9
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
10
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
11
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
12
of which
management
companies
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
16
of which
insurance
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
17
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
18
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
19
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
20
Non-financial
undertakings
23 %
2 %
— %
— %
2 %
1 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
4 %
— %
— %
— %
1 %
— %
— %
— %
28 %
2 %
— %
— %
2 %
1 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
373
3. GAR KPI stock (revenue)
Disclosure reference date 31/12/24
21
Loans and
advances
23 %
2 %
— %
— %
2 %
1 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
4 %
— %
— %
— %
1 %
— %
— %
— %
28 %
2 %
— %
— %
2 %
1 %
22
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
23
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
24
Households
92 %
10 %
10 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
92 %
10 %
10 %
— %
— %
30 %
25
of which loans
collateralised by
residential
immovable
property
100 %
11 %
11 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
11 %
11 %
— %
— %
26 %
26
of which building
renovation loans
100 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
— %
27
of which motor
vehicle loans
100 %
— %
— %
— %
— %
28
Local
governments
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
29
Housing
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
30
Other local
government
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
32
Total GAR
assets
40 %
4 %
4 %
— %
0 %
0 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
40 %
4 %
4 %
— %
0 %
68 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
374
3. GAR KPI stock (revenue)
Disclosure reference date 31/12/24 continued
GAR - Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity instruments
not HfT eligible for
GAR calculation
62 %
7 %
7 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
62 %
7 %
7 %
— %
— %
43 %
2
Financial
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13 %
3
Credit institutions
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
9 %
4
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
4 %
5
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
6
Equity instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7
Other financial
corporations
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
4 %
8
of which
investment firms
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
9
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
10
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
11
Equity instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
12
of which
management
companies
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15
Equity instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
16
of which insurance
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
17
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
18
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
19
Equity instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
20
Non-financial
undertakings
7 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7 %
— %
— %
— %
— %
1 %
21
Loans and
advances
7 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7 %
— %
— %
— %
— %
1 %
22
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
23
Equity instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
24
Households
92 %
10 %
10 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
92 %
10 %
10 %
— %
— %
29 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
375
3. GAR KPI stock (revenue)
Disclosure reference date 31/12/23
25
of which loans
collateralised by
residential
immovable
property
100 %
12 %
12 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
12 %
12 %
— %
— %
25 %
26
of which building
renovation loans
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
27
of which motor
vehicle loans
100 %
28
Local
governments
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
29
Housing financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
30
Other local
government
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
32
Total GAR assets
40 %
4 %
4 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
40 %
4 %
4 %
— %
— %
67 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
376
3. GAR KPI stock (revenue)
Disclosure reference date 31/12/23 continued
GAR - Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
62 %
7 %
7 %
— %
0 %
0 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
62 %
7 %
7 %
— %
0 %
44 %
2
Financial
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14 %
3
Credit institutions
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
9 %
4
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
4 %
5
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
6
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7
Other financial
corporations
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
8
of which
investment firms
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
9
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
10
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
11
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
12
of which
management
companies
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
16
of which
insurance
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
17
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
18
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
19
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
20
Non-financial
undertakings
23 %
2 %
— %
— %
2 %
3 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
2 %
— %
— %
— %
0 %
— %
— %
— %
28 %
2 %
— %
— %
2 %
1 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
377
3. GAR KPI stock (capex)
Disclosure reference date 31/12/24
21
Loans and
advances
23 %
2 %
— %
— %
2 %
3 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
2 %
— %
— %
— %
0 %
— %
— %
— %
28 %
2 %
— %
— %
2 %
1 %
22
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
23
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
24
Households
92 %
10 %
10 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
92 %
10 %
10 %
— %
— %
30 %
25
of which loans
collateralised by
residential
immovable
property
100 %
11 %
11 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
11 %
11 %
— %
— %
26 %
26
of which building
renovation loans
100 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
— %
27
of which motor
vehicle loans
100 %
28
Local
governments
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
29
Housing
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
30
Other local
government
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
32
Total GAR
assets
40 %
4 %
4 %
— %
0 %
0 %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
40 %
4 %
4 %
— %
0 %
68 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
378
3. GAR KPI stock (capex)
Disclosure reference date 31/12/24 continued
GAR - Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
63 %
7 %
7 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
63 %
7 %
7 %
— %
— %
43 %
2
Financial
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13 %
3
Credit institutions
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
9 %
4
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
4 %
5
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
5 %
6
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7
Other financial
corporations
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
4 %
8
of which
investment firms
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
9
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
10
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
11
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
12
of which
management
companies
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
16
of which
insurance
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
17
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
18
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
19
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
20
Non-financial
undertakings
18 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
18 %
— %
— %
— %
— %
1 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
379
3. GAR KPI stock (capex)
Disclosure reference date 31/12/23
21
Loans and
advances
18 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
18 %
— %
— %
— %
— %
1 %
22
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
23
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
24
Households
92 %
10 %
10 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
92 %
10 %
10 %
— %
— %
29 %
25
of which loans
collateralised by
residential
immovable
property
100 %
12 %
12 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
12 %
12 %
— %
— %
25 %
26
of which building
renovation loans
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
27
of which motor
vehicle loans
100 %
— %
— %
— %
— %
28
Local
governments
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
29
Housing
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
30
Other local
government
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
32
Total GAR
assets
40 %
4 %
4 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
40 %
4 %
4 %
— %
— %
67 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
380
3. GAR KPI stock (capex)
Disclosure reference date 31/12/24 continued
GAR - Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
72 %
5 %
5 %
— %
— %
0 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
72 %
5 %
5 %
— %
— %
39 %
2
Financial
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7 %
3
Credit institutions
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
4
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
5
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
6
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7
Other financial
corporations
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7 %
8
of which
investment firms
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
1 %
9
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
1 %
10
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
11
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
12
of which
management
companies
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
16
of which
insurance
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
17
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
18
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
19
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
20
Non-financial
undertakings
34 %
— %
— %
— %
— %
0 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
3 %
— %
— %
— %
2 %
— %
— %
— %
39 %
— %
— %
— %
— %
1 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
381
4. GAR KPI flow (revenue)
Disclosure reference date 31/12/24
21
Loans and
advances
34 %
— %
— %
— %
— %
0 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
3 %
— %
— %
— %
2 %
— %
— %
— %
39 %
— %
— %
— %
— %
1 %
22
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
23
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
24
Households
89 %
7 %
7 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
89 %
7 %
7 %
— %
— %
31 %
25
of which loans
collateralised by
residential
immovable
property
100 %
9 %
9 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
9 %
9 %
— %
— %
24 %
26
of which building
renovation loans
100 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
0 %
27
of which motor
vehicle loans
100 %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
2 %
28
Local
governments
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
29
Housing
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
30
Other local
government
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
32
Total GAR
assets
28 %
2 %
2 %
— %
— %
0 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
28 %
2 %
2 %
— %
— %
100 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
382
4. GAR KPI flow (revenue)
Disclosure reference date 31/12/24 continued
GAR - Covered
assets in both
numerator and
denominator
1
Loans and
advances, debt
securities and
equity
instruments not
HfT eligible for
GAR calculation
72 %
5 %
5 %
— %
— %
0 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
73 %
5 %
5 %
— %
— %
39 %
2
Financial
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7 %
3
Credit institutions
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
4
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
5
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
6
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7
Other financial
corporations
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
7 %
8
of which
investment firms
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
1 %
9
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
1 %
10
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
11
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
12
of which
management
companies
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
13
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
14
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
15
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
16
of which
insurance
undertakings
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
17
Loans and
advances
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
18
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
19
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
20
Non-financial
undertakings
35 %
— %
— %
— %
— %
8 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
1 %
— %
— %
— %
44 %
— %
— %
— %
— %
1 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
383
4. GAR KPI flow (capex)
Disclosure reference date 31/12/24
21
Loans and
advances
35 %
— %
— %
— %
— %
8 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
1 %
— %
— %
— %
44 %
— %
— %
— %
— %
1 %
22
Debt securities,
including UoP
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
23
Equity
instruments
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
24
Households
89 %
7 %
7 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
89 %
7 %
7 %
— %
— %
31 %
25
of which loans
collateralised by
residential
immovable
property
100 %
9 %
9 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
9 %
9 %
— %
— %
24 %
26
of which building
renovation loans
100 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
0 %
27
of which motor
vehicle loans
100 %
— %
— %
— %
— %
100 %
— %
— %
— %
— %
2 %
28
Local
governments
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
29
Housing
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
30
Other local
government
financing
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
31
Collateral
obtained by
taking
possession:
residential and
commercial
immovable
properties
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
32
Total GAR
assets
28 %
2 %
2 %
— %
— %
0 %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
0 %
— %
— %
— %
0 %
— %
— %
— %
28 %
2 %
2 %
— %
— %
100 %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total assets
covered
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
covered assets in the
denominator)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Annual
Review
Business
Review
Sustainability
Reporting
Governance
Report
Risk
Management
Financial
Statements
General
Information
AIB Group plc
Annual Financial Report 2024
384
4. GAR KPI flow (capex)
Disclosure reference date 31/12/24 continued
1
Financial
guarantees
(FinGuar KPI)
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
2
Assets under
management
(AuM KPI)
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
eligible
off-balance sheet
assets)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Notes:
•
As at 31 December 2024 no taxonomy eligible or aligned exposure has been identified within financial guarantees or assets under management.
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5. KPI off-balance sheet exposures (stock)
Disclosure reference date 31/12/24
1
Financial
guarantees
(FinGuar KPI)
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
2
Assets under
management
(AuM KPI)
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
— %
Key
Of which use
of proceeds
Of which
transitional
Of which enabling
Climate Change Mitigation (CCM)
Climate Change Adaptation
(CCA)
Water and marine resources
(WTR)
Circular economy (CE)
Pollution (PPC)
Biodiversity and Ecosystems
(BIO)
TOTAL (CCM + CCA + WTR + CE +
PPC + BIO)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
Proportion of total covered
assets funding taxonomy
relevant sectors (Taxonomy-
eligible)
% (compared to total
eligible
off-balance sheet
assets)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Proportion of total
covered assets funding
taxonomy relevant
sectors (Taxonomy-
aligned)
Notes:
•
As at 31 December 2024 no taxonomy eligible or aligned exposure has been identified within financial guarantees or assets under management.
Template 1 Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
NO
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well
as their safety upgrades, using best available technologies.
NO
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy,
as well as their safety upgrades.
NO
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.
NO
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.
NO
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.
NO
Notes:
•
AIB does not lend to nuclear energy related activities in accordance with the Group exclusion policy and as such there is no exposure to activities outlined under sections 4.26, 4.27 and 4.28 of Annexes I and II to Delegated Regulation 2021/2139.
•
As at 31 December 2024 no lending to activities outlined under sections 4.29, 4.30 and 4.31 of Annexes I and II to Delegated Regulation 2021/2139 has been identified.
•
Therefore Templates 2 to 5 of Annex III of the Complementary Climate Delegated Act (EU) 2022/1214 are not applicable and accordingly have not been included.
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5. KPI off-balance sheet exposures (flow)
Disclosure reference date 31/12/24
Stock Exchange Listings
AIB Group plc is an Irish registered company. Its ordinary shares are
traded on the main securities market of Euronext Dublin and the main
market of the London Stock Exchange.
Registrar & Shareholder Enquiries
The Company’s Registrar is:
Computershare Investor Services (Ireland) Limited,
3100 Lake Drive, Citywest Business Campus,
Dublin 24, D24 AK82
Telephone: +353-1-247 5414
Facsimile: +353-1-447 5571
Website: www.computershare.com
All enquiries concerning shareholdings should be addressed to the
Company’s Registrar.
Shareholder services
Shareholders may view their shareholding at any time by logging into
Computershare’s investor platform via www.investorcentre.com/ie.
Shareholders can access the above platform by registering their details
using their Shareholder Reference Number (SRN). Once registered,
shareholders can check their balance or download a Statement of
Holding (as required), and view and amend their account details,
including changing their address, adding their bank account details
for the electronic payment of dividends, and registering for electronic
communications.
Shareholders who are unable to access Investor Centre can contact
Computershare to obtain a confirmation of their up-to-date balance
of their shareholding, and update their details as required.
Amalgamating your shareholdings
If you receive more than one copy of a shareholder mailing with similar
details on your accounts, it may be because the Company has more
than one record of shareholdings in your name. To ensure that you
do not receive duplicate mailings in future, please have all your
shareholdings amalgamated into one account by contacting the
Company’s Registrar (joint accounts cannot be merged with sole
accounts or vice versa).
Communication
It is the policy of the Company to communicate with shareholders by
electronic means or through the Group's website www.aib.ie. In the
interest of protecting the environment, we encourage shareholders
receiving communications in paper form to register for electronic
communications on Computershare’s website, using the above link.
Major shareholdings
The issued share capital of the AIB Group plc is 2,328,438,575 ordinary
shares of € 0.625 each.
As of 27 February 2025, the Minister for Finance of Ireland holds
288,480,694 ordinary shares representing 12.39% of the total voting
rights attached to issued share capital.
Financial calendar
Annual General Meeting:
1 May 2025, at 10 Molesworth Street, Dublin 2.
Interim results
The unaudited Half-Yearly Financial Report 2025 will be announced on
1 August 2025 and will be available on the Company’s website –
www.aib.ie.
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Shareholder Information
This document contains certain forward looking statements with respect to the financial condition, results of operations and business of AIB Group
and certain of the plans and objectives of the Group. These forward looking statements can be identified by the fact that they do not relate only
to historical or current facts. Forward looking statements sometimes use words such as ‘aim’, ‘anticipate’, ‘target’, ‘expect’, ‘estimate’, ‘intend’,
‘plan’, ‘goal’, ‘believe’, ‘may’, ‘could’, ‘will’, ‘seek’, ‘continue’, ‘should’, ‘assume’, or other words of similar meaning. Examples of forward looking
statements include, among others, statements regarding the Group’s future financial position, capital structure, Government shareholding in the
Group, income growth, loan losses, business strategy, projected costs, capital ratios, estimates of capital expenditures, and plans and objectives
for future operations. Because such statements are inherently subject to risks and uncertainties, actual results may differ materially from those
expressed or implied by such forward looking information. By their nature, forward looking statements involve risk and uncertainty because they
relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and
developments to differ materially from those expressed or implied by these forward looking statements. These are set out in the Principal risks on
pages 17 to 20 in the 2024 Annual Financial Report. In addition to matters relating to the Group’s business, future performance will be impacted by
the Group’s ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively.
Future performance could also be impacted by geopolitical tensions and global conflict. Any forward looking statements made by or on behalf of
the Group speak only as of the date they are made. The Group cautions that the list of important factors on pages 17 to 20 of the 2024 Annual
Financial Report is not exhaustive. Investors and others should carefully consider the foregoing factors and other uncertainties and events when
making an investment decision based on any forward looking statement.
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Forward Looking Statement
Additional Tier 1
Capital
Additional Tier 1 Capital (‘AT1’) are securities issued by AIB and included in its capital base as fully CRD IV compliant
additional tier 1 capital on a fully loaded basis.
Arrears
Arrears relates to interest or principal on a loan which was due for payment, but where payment has not been received.
Customers are said to be in arrears when they are behind in fulfilling their obligations with the result that an
outstanding loan is unpaid or overdue.
Bank Recovery and
Resolution Directive
The Bank Recovery and Resolution Directive (‘BRRD’) is a European legislative package issued by the European
Commission and adopted by EU Member States. The BRRD introduces a common EU framework for how
authorities should intervene to address banks which are failing or are likely to fail. The framework includes early
intervention and measures designed to prevent failure and in the event of bank failure for authorities to ensure an
orderly resolution.
Banking book
A regulatory classification to support the regulatory capital treatment that applies to all exposures which are not in
the trading book. Banking book positions tend to be structural in nature and, typically, arise as a consequence of the
size and composition of a bank’s balance sheet. Examples include the need to manage the interest rate risk on fixed
rate mortgages or rate insensitive current account balances. The banking book portfolio will also include all
transactions/positions which are accounted for on an interest accruals basis or, in the case of financial instruments,
on a hold to collect and sell basis.
Basel III
Basel III is a global, voluntary regulatory framework on bank capital adequacy, stress testing and market liquidity risk.
Basel IV
Basel IV represents the next generation of risk-weighted assets regulations, addressing critical aspects of banking
stability and risk management in the post-crisis era.
Basis point
One hundredth of a per cent (0.01%), so 100 basis points is 1%. Used in quoting movements in interest rates or
yields on securities.
Basis risk
A type of market risk that refers to the possibility that the change in the price of an instrument (e.g. asset, liability,
derivative) may not match the change in price of the associated hedge, resulting in losses arising in the Group’s
portfolio of financial instruments.
Buy-to-let mortgage
A residential mortgage loan approved for the purpose of purchasing a residential investment property.
Capital Requirements
Directive
Capital Requirements Directive ('CRD’): Capital adequacy legislation implemented by the European Union and
adopted by Member States designed to ensure the financial soundness of credit institutions and certain investment
firms and give effect in the EU to the Basel II proposals which came into force on 20 July 2006.
Capital Requirements
Directive IV
Capital Requirements Directive IV (‘CRD IV’), which came into force on 1 January 2014, comprises a Capital
Requirements Directive and a Capital Requirements Regulation which implements the Basel III capital proposals
together with transitional arrangements for some of its requirements. The Regulation contains the detailed prudential
requirements for credit institutions and investment firms. Requirements Regulation (No. 575/2013) (‘CRR’) and the
Capital Requirements Directive (2013/36/EU).
Collateralised bond
obligation/
collateralised
debt obligation
A collateralised bond obligation (‘CBO’)/collateralised debt obligation (‘CDO’) is an investment vehicle (generally
an SPE) which allows third party investors to make debt and/or equity investments in a vehicle containing a portfolio
of loans and bonds with certain common features. In the case of synthetic CBOs/CDOs, the risk is backed by credit
derivatives instead of the sale of assets (cash CBOs/CDOs).
Commercial paper
Commercial paper is similar to a deposit and is a relatively low-risk, short term, unsecured promissory note traded
on money markets and issued by companies or other entities to finance their short-term expenses. In the USA,
commercial paper matures within 270 days maximum, while in Europe, it may have a maturity period of up to
365 days; although maturity is commonly 30 days in the USA and 90 days in Europe.
Commercial property
Commercial property lending focuses primarily on the following property segments:
a) Apartment complexes;
b) Office projects;
c) Retail projects;
d) Hotels; and
e) Selective mixed-use projects and special purpose properties.
Common equity tier 1
capital (‘CET 1’)
The highest quality form of regulatory capital under Basel III that comprises ordinary shares issued and related
share premium, retained earnings and other reserves excluding cash flow hedging reserves, and deducting
specified regulatory adjustments.
Common equity tier 1
ratio
Common equity tier 1 ratio – A measurement of a bank’s common equity tier 1 capital expressed as a percentage
of its total risk weighted assets.
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Glossary of Terms
Concentration risk
Concentration risk is the risk of loss from lack of diversification, investing too heavily in one industry, one geographic
area or one type of security.
Contractual maturity
The period when a scheduled payment is due and payable in accordance with the terms of a financial instrument.
Contractual residual
maturity
The time remaining until the expiration or repayment of a financial instrument in accordance with its
contractual terms.
Credit default swaps
An agreement between two parties whereby one party pays the other a fixed coupon over a specified term. The
other party makes no payment unless a specified credit event, such as a default, occurs, at which time a payment is
made and the swap terminates. Credit default swaps are typically used by the purchaser to provide credit protection
in the event of default by a counterparty.
Credit derivatives
Financial instruments where credit risk connected with loans, bonds or other risk weighted assets or market risk
positions is transferred to counterparties providing credit protection. The credit risk might be inherent in a financial
asset such as a loan or might be a generic credit risk such as the bankruptcy risk of an entity.
Credit impaired
Under IFRS 9, these include Stage 3 financial assets where there is objective evidence of impairment and,
therefore, considered to be in default. A lifetime ECL is recognised for such assets. Also credit impaired are POCI
financial assets which are credit-impaired on initial recognition.
Credit rating
An evaluation of the creditworthiness of an entity seeking to enter into a credit agreement.
Credit risk
The risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge
an obligation.
Credit risk mitigation
Techniques used by lenders to reduce the credit risk associated with an exposure by the application of credit risk
mitigants. Examples include: collateral; guarantee; and credit protection.
Credit spread
Credit spread can be defined as the difference in yield between a given security and a comparable benchmark
government security, or the difference in value of two securities with comparable maturity and yield but different
credit qualities. It gives an indication of the issuer’s or borrower’s credit quality.
Credit support annex
Credit support annex ('CSA’) provides credit protection by setting out the rules governing the mutual posting of
collateral. CSAs are used in documenting collateral arrangements between two parties that trade over-the-counter
derivative securities. The trade is documented under a standard contract called a master agreement, developed by
the International Swaps and Derivatives Association (‘ISDA’). The two parties must sign the ISDA master agreement
and execute a credit support annex before they trade derivatives with each other.
Credit valuation
adjustment
Credit valuation adjustment (‘CVA’) is an adjustment to the valuation of OTC derivative contracts to reflect the
creditworthiness of derivative counterparties.
Criticised
Accounts of lower quality and considered as less than satisfactory are referred to as criticised and include criticised
watch and criticised recovery below:
Customer accounts
A liability of the Group where the counterparty to the financial contract is typically a personal customer, a corporation
(other than a financial institution) or the government. This caption includes various types of deposits and credit
current accounts, all of which are unsecured.
Debt restructuring
This is the process whereby customers in arrears, facing cash flow or financial distress, renegotiate the terms of
their loan agreements in order to improve the likelihood of repayment. Restructuring may involve altering the terms
of a loan agreement including a partial write down of the balance. In certain circumstances, the loan balance may be
swapped for an equity stake in the counterparty.
Debt securities
Assets on the Group’s balance sheet representing certificates of indebtedness of credit institutions, public bodies
and other undertakings.
Debt securities in issue
Liabilities of the Group which are represented by transferable certificates of indebtedness of the Group to the bearer
of the certificates.
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Glossary of Terms continued
Default
When a customer breaches a term and/or condition of a loan agreement, a loan is deemed to be in default for case
management purposes. Depending on the materiality of the default, if left unmanaged it can lead to loan impairment.
Default is also used in a CRD IV context when a loan is greater than 90 days past due and/or the borrower is unlikely
to pay his credit obligations. This may require additional capital to be set aside.
Derecognition
The removal of a previously recognised financial asset or financial liability from the Group’s statement of
financial position.
ECB refinancing rate
The main refinancing rate or minimum bid rate is the interest rate which banks have to pay when they borrow from
the ECB under its main refinancing operations.
ECLs
Expected credit loss (‘ECLs’) – The weighted average of credit losses (of a loan, lease or other financial asset)
based on changes in the expected credit loss either over a 12-month period or its lifetime.
Eurozone
The eurozone consists of the following nineteen European Union countries that have adopted the euro as their
common currency: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia,
Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia and Spain.
Exposure at default
The expected or actual amount of exposure to the borrower at the time of default.
Exposure value
For on balance sheet exposures, it is the amount outstanding less provisions and collateral held taking into account
relevant netting agreements. For off-balance sheet exposures, including commitments and guarantees, it is the
amount outstanding less provisions and collateral held taking into account relevant netting agreements and credit
conversion factors.
Forbearance
Forbearance is the term used when repayment terms of a loan contract have been renegotiated in order to make
these terms more manageable for borrowers. Standard forbearance techniques have the common characteristic
of rescheduling principal or interest repayments, rather than reducing them. Standard forbearance techniques
employed by the Group include: – interest only; a reduction in the payment amount; a temporary deferral of
payment (a moratorium); extending the term of the mortgage; and capitalising arrears amounts and related interest.
Funding value
adjustment
Funding value adjustment (‘FVA’) is an adjustment to the valuation of OTC derivative contracts due to a bank’s
funding rate exceeding the risk-free rate.
GDP
Gross Domestic Product (’GDP’) is a monetary measure of the value of all final goods and services produced in
a period of time (quarterly or yearly). GDP estimates are commonly used to determine the economic performance
and standard of living of a whole country or region, and to make international comparisons.
Green lending/products
Any form of financial product or lending to fund activities defined in the SLF as Green activities, including for
example purchase and renovation of energy efficient properties, the development, construction, operation and
distribution of renewable energy, zero direct emission transport and the related technologies and infrastructure,
material re-use and recycling, and water collection, treatment and supply.
Guarantee
An undertaking by the Group/other party to pay a creditor should a debtor fail to do so.
Home loan
A loan secured by a mortgage on the primary residence or second home of a borrower.
Interest rate risk in the
banking book (IRRBB)
The current or prospective risk to both the earnings and capital of the Group as a result of adverse movements in
interest rates that affect the banking book positions.
Internal Capital
Adequacy Assessment
Process
Internal Capital Adequacy Assessment Process (‘ICAAP’): The Group’s own assessment, through an examination
of its risk profile from regulatory and economic capital perspectives, of the levels of capital that it needs to hold.
Internal liquidity
adequacy assessment
process
The Internal Liquidity Adequacy Assessment Processes (‘ILAAP’) is a key element of the risk management
framework for credit institutions. ILAAP is defined in the EBA’s SREP Guidelines as “the processes for the
identification, measurement, management and monitoring of liquidity implemented by the institution pursuant to
Article 86 of Directive 2013/36/EU”. It thus contains all the qualitative and quantitative information necessary to
underpin the risk appetite, including the description of the systems, processes and methodology to measure and
manage liquidity and funding risks.
Internal Ratings Based
Approach
The Internal Ratings Based Approach (‘IRBA’) allows banks, subject to regulatory approval, to use their own
estimates of certain risk components to derive regulatory capital requirements for credit risk across different asset
classes. The relevant risk components are: Probability of Default (‘PD’); Loss Given Default (‘LGD’); and Exposure
at Default (‘EAD’).
ISDA Master
Agreements
Standardised contracts, developed by the International Swaps and Derivatives Association (‘ISDA’), used as an
umbrella under which bilateral derivatives contracts are entered into.
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Leverage ratio
To prevent an excessive build-up of leverage on institutions’ balance sheets, Basel III introduces a non-risk-based
leverage ratio to supplement the risk-based capital framework of Basel II. It is defined as the ratio of tier 1 capital
to total exposures. Total exposures include on-balance sheet items, off-balance sheet items and derivatives,
and should generally follow the accounting measure of exposure.
Liquidity Coverage
Ratio
Liquidity Coverage Ratio (‘LCR’): The ratio of the stock of high quality liquid assets to expected net cash outflows
over the next 30 days under a stress scenario. CRD IV requires that this ratio exceeds 100% on 1 January 2018.
Liquidity risk
The risk that Group does not have sufficient financial resources to meet its obligations as they fall due, or will have
to do so at an excessive cost. This risk arises from mismatches in the timing of cash flows.
Loan to deposit ratio
This is the ratio of loans and advances expressed as a percentage of customer accounts, as presented in the
statement of financial position.
Loan to value
Loan to value (‘LTV’) is an arithmetic calculation that expresses the amount of the loan as a percentage of the value
of security/collateral. A high LTV indicates that there is less of a cushion to protect the lender against collateral price
decreases or increases in the loan carrying amount if repayments are not made and interest is capitalised onto the
outstanding loan balance.
Loans past due
When a borrower fails to make a contractually due payment, a loan is deemed to be past due. ‘Past due days’
is a term used to describe the cumulative number of days that a missed payment is overdue. Past due days
commence from the close of business on the day on which a payment is due but not received. In the case of
overdrafts, past due days are counted once a borrower:
• has breached an advised limit;
• has been advised of a limit lower than the then current amount outstanding; or
• has drawn credit without authorisation.
When a borrower is past due, the entire exposure is reported as past due, rather than the amount of any excess
or arrears.
Loss Given Default
Loss Given Default (‘LGD’) is the expected or actual loss in the event of default, expressed as a percentage of
‘exposure at default’.
Medium term notes
Medium term notes (‘MTNs’) are notes issued by the Group across a range of maturities under the European
Medium Term Notes (‘EMTN’) and the Global Medium Term Notes (‘GMTN’) programmes.
Minimum requirements
for own funds and
eligible liabilities (MREL)
A European Union wide requirement under the Bank Recovery and Resolution Directive for all European banks and
investment banks to hold a minimum level of equity and/or loss absorbing eligible liabilities to ensure the operation
of the bail-in tool to absorb losses and recapitalise an institution in resolution.
National Asset
Management Agency
National Asset Management Agency (‘NAMA’) was established in 2009 as one of a number of initiatives taken by the
Irish Government to address the serious problems which arose in Ireland’s banking sector as the result of excessive
property lending.
Net interest income
The amount of interest received or receivable on assets net of interest paid or payable on liabilities.
Net interest margin
Net interest margin (‘NIM’) is a measure of the difference between the interest income generated on average
interest earning financial assets (lendings) and the amount of interest paid on average interest bearing financial
liabilities (borrowings) relative to the amount of interest-earning assets.
Net Stable Funding
Ratio
Net Stable Funding Ratio (‘NSFR’): The ratio of available stable funding to required stable funding over a 1 year time
horizon.
New transaction
lendings
New transaction lending is defined as incremental increase in drawn balances against facilities granted for a specific
period of time whereby the borrower can draw down or repay amounts as required to manage cash flow. It includes
revolving credit facilities, overdrafts and invoice discounting facilities.
Non-performing
exposures
Non-performing exposures are defined by the European Banking Authority to include material exposures which are
more than 90 days past due (regardless of whether they are credit impaired) and/or exposures in respect of which
the debtor is assessed as unlikely to pay its credit obligations in full without realisation of collateral, regardless of the
existence of any past due amount or the number of days the exposure is past due.
Off-balance sheet items
Off-balance sheet items include undrawn commitments to lend, guarantees, letters of credit, acceptances and other
items as listed in Annex I of the CRR.
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Glossary of Terms continued
Offsetting
Offsetting, or ‘netting’, is the presentation of the net amounts of financial assets and financial liabilities in the
statement of financial position as a result of Group’s rights of set-off.
Operational risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or
from external events. It includes legal risk, but excludes strategic and business risk. In essence, operational risk
is a broad canvas of individual risk types which include product and change risk, outsourcing, information security,
cyber, business continuity, health and safety risks, people risk and legal risk.
Private equity
investments
Equity securities in operating companies not quoted on a public exchange, often involving the investment of capital
in private companies.
Probability of Default
Probability of Default (‘PD’) is the likelihood that a borrower will default on an obligation to repay.
Regulatory capital
Regulatory capital is determined in accordance with rules established by the SSM/ECB for the consolidated Group
and by local regulators for individual Group companies.
Re-pricing risk
Re-pricing risk is a form of interest rate risk (i.e. a type of market risk) that occurs when asset and liability positions
are mismatched in terms of re-pricing (as opposed to final contractual) maturity. Where these interest rate gaps are
left unhedged, it can result in losses arising in the Group’s portfolio of financial instruments.
Repurchase agreement
Repurchase agreement (‘Repo’) is a short-term funding agreement that allows a borrower to create a collateralised
loan by selling a financial asset to a lender. As part of the agreement, the borrower commits to repurchase the
security at a date in the future repaying the proceeds of the loan. For the counterparty to the transaction, it is termed
a reverse repurchase agreement or a reverse repo.
Residential mortgage-
backed securities
Residential mortgage-backed securities (‘RMBS’) are debt obligations that represent claims to the cash flows from
pools of mortgage loans, most commonly on residential property.
Risk weighted assets
Risk weighted assets (‘RWAs’) are a measure of assets (including off-balance sheet items converted into asset
equivalents e.g.credit lines) which are weighted in accordance with prescribed rules and formulas as defined in the
Basel Accord to reflect the risks inherent in those assets.
Securities financing
transactions
Securities financing transactions allow investors and firms to use assets, such as the shares or bonds they own,
to secure funding for their activities.
Securitisation
Securitisation is the process of aggregation and repackaging of non-tradable financial instruments such as loans and
advances, or company cash flows into securities that can be issued and traded in the capital markets.
Single Resolution Fund
The Single Resolution Fund (‘SRF’) is an emergency fund that can be called upon in times of crisis.
Single Supervisory
Mechanism
The Single Supervisory Mechanism (‘SSM’) is a system of financial supervision comprising the European Central
Bank (‘ECB’) and the national competent authorities of participating EU countries. The main aims of the SSM are to
ensure the safety and soundness of the European banking system and to increase financial integration and stability
in Europe.
Special purpose entity
Special purpose entity (‘SPE’) is a legal entity which can be a limited company or a limited partnership created to
fulfil narrow or specific objectives. A company will transfer assets to the SPE for management or use by the SPE
to finance a large project thereby achieving a narrow set of goals without putting the entire firm at risk. This term
is used interchangeably with SPV (‘special purpose vehicle’).
Stage allocation:
Under IFRS 9, loans and advances to customers, other than POCIs are classified into one of three stages:
Stage 1
Includes newly originated loans and loans that have not had a significant increase in credit risk since
initial recognition.
Stage 2
Includes loans that have had a significant increase in credit risk since initial recognition but do not have objective
evidence of being credit impaired.
Stage 3
Includes loans that are defaulted or are otherwise considered to be credit impaired.
POCI
POCIs are assets purchased or originated credit impaired and that have a discount to the contractual value when
measured at fair value.
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Stress testing
Stress testing is a technique used to evaluate the potential effects on an institution’s financial condition of an
exceptional but plausible event and/or movement in a set of financial variables.
Structured securities
This involves non-standard lending arrangements through the structuring of assets or debt issues in accordance
with customer and/or market requirements. The requirements may be concerned with funding, liquidity, risk transfer
or other needs that cannot be met by an existing off the shelf product or instrument. To meet this requirement,
existing products and techniques must be engineered into a tailor-made product or process.
Subordinated liabilities
Liabilities which, in the event of insolvency or liquidation of the issuer, are subordinated to the claims of depositors
and other creditors of the issuer.
Sustainable choices
Choices and behaviours that actively minimise environmental degradation (use of natural resources, CO2
emissions, waste and pollution) while supporting equitable socio-economic development and better quality of life for
all. This also includes references to green lifestyles.
Sustainable
development
The development that meets the needs of the present without compromising the ability of future generations to meet
their own needs.
Sustainable future
Creating and delivering long-term economic, social and environmental development through responsible banking
practices.
Syndicated and
international lending
Syndicated and international lending involves lending to entities by leveraging off their equity structures having
considered the cash generating capacity of the business and its capacity to repay any associated debt. Leveraging
structures are typically used in management and private equity buy-outs, mergers and acquisitions. Syndicated
and international lending is extended typically to non-investment grade borrowers and carries commensurate rates
of return.
Tier 1 capital
A measure of a bank’s financial strength defined by the Basel Accord. It captures common equity tier 1 capital and
other instruments in issue that meet the criteria for inclusion as additional tier 1 capital. These are subject to certain
regulatory deductions.
Tier 2 capital
Broadly includes qualifying subordinated debt and other tier 2 securities in issue. It is subject to adjustments relating
to the excess of expected loss on the IRBA portfolios over the accounting expected credit losses on the IRBA
portfolios, securitisation positions and material holdings in financial companies.
Tracker mortgage
A mortgage with a variable interest rate which tracks the European Central Bank (‘ECB’) rate, at an agreed margin
above the ECB rate and will increase or decrease within five days of an ECB rate movement.
Trade date and
settlement date
accounting
1. Trade date accounting records the transaction on the date on which an agreement has been entered (the trade
date), instead of on the date the transaction has been finalised (the settlement date).
2. Under the settlement date accounting approach, the asset is recognised on the date on which it is received by the
Group, on disposal, the asset is not derecognised until the asset is delivered to the buyer.
Transition lending
Any form of financial product or lending to fund activities defined in the SLF as Transition activities, including for
example pollution control, energy efficiency improvement measures for buildings and businesses and measures at
improving emissions and waste reductions.
Value at Risk
The Group’s core risk measurement methodology is based on an historical simulation application of the industry
standard Value at Risk (‘VaR’) technique. The methodology incorporates the portfolio diversification effect within
each standard risk factor (interest rate, credit spread, foreign exchange, equity, as applicable). The resulting VaR
figures, calculated at the close of business each day, are an estimate of the probable maximum loss in fair value
over a one day holding period that would arise from an adverse movement in market rates. This VaR metric is
derived from an observation of historical prices over a period of one year and assessed at a 95% statistical
confidence level (i.e. the VaR metric may be exceeded at least 5% of the time).
Wholesale funding
Wholesale funding refers to funds raised from wholesale market sources. Examples of wholesale funding include
senior unsecured bonds, covered bonds, securitisations, repurchase transactions, interbank deposits and deposits
raised from non-bank financial institutions.
Yield curve risk
A type of market risk that refers to the possibility that an interest rate yield curve changes its shape unexpectedly
(e.g. flattening, steepening, non-parallel shift), resulting in losses arising in the Group’s portfolio of interest
rate instruments.
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Glossary of Terms continued
AIB Group plc
10 Molesworth Street,
Dublin 2 D02 R126.
Telephone: + 353 1 660 0311
Allied Irish Banks, p.l.c.
10 Molesworth Street,
Dublin 2 D02 R126.
Telephone: + 353 1 660 0311
AIB Mortgage Bank Unlimited Company
10 Molesworth Street,
Dublin 2 D02 R126.
Telephone: +353 1 660 0311
EBS d.a.c.
10 Molesworth Street,
Dublin 2 D02 R126.
Telephone: + 353 1 665 9000
AIB Group (UK) p.l.c.
92 Ann Street,
Belfast BT1 3HH.
Telephone: + 44 345 600 5925
AIB (NI)
92 Ann Street,
Belfast BT1 3HH.
Telephone: + 44 345 600 5925
Allied Irish Bank (GB)
13th Floor, 70 St Mary Axe,
London EC3A 8BE.
Telephone: + 44 207 647 3300
All numbers are listed with international codes. To dial a location from within the same jurisdiction, drop the country code after the + sign and place
a 0 before the area code.
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Principal Addresses
A
Accounting policies
266
Annual General Meeting
387
Approval of financial statements
346
Associated undertakings
340
Auditor’s remuneration
289
Average balance sheets and interest rates
25
B
Board Audit Committee
144
Board Committees
135
Board and Executive Officers
134
Business model risk
241
C
Capital adequacy risk
235
Capital
40
Capital reserves
322
Capital redemption reserves
322
Chairman’s statement
6
Chief Executive’s review
8
Commitments
325
Company secretary
135
Conduct risk and culture risk
244
Contingent liabilities and commitments
325
Capital contributions
322
Corporate Governance report
123
Credit impairment – income statement
289
Credit ratings
187 and 228
Credit risk
186
Critical accounting judgements and estimates
280
Currency information
346
Customer accounts
315
D
Debt securities in issue
316
Deferred taxation
309
Deposits by central banks and banks
315
Derivative financial instruments
292
Directors
128
Directors’ interests
173
Directors’ remuneration
163
Dividends
346
Page
E
Earnings per share
321
ECL
190
ECL allowance on financial assets
303
Employees
345
Exchange rates
346
Equity risk
234
F
Fair value of financial instruments
332
Finance leases and hire purchase contracts
302
Financial and other information
346
Financial assets and financial liabilities by contractual
residual maturity
238
Financial calendar
387
Financial liabilities by undiscounted contractual maturity
239
Financial statements
259
Forbearance
229
G
Gain on financial assets
287
Glossary
389
Going concern
267
Governance and oversight
123
I
Income statement
259
Independent auditor’s report
249
Intangible assets
306
Interest and similar income
287
Interest and similar expense
287
Interest rate risk in the banking book
231
Interest rate sensitivity
233
Internal Audit
147
Investment securities
304
Investments in Group undertakings
326
Irish Government
343
Investments accounted for using the equity method
305
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Index
Page
L
Liquidity risk
235
Loans and advances to banks
301
Loans and advances to customers
301
Lease liabilities
317
Liquidity and funding risk
235
M
Market risk
231
Model risk
244
N
Net fee and commission income
284
Net trading income
287
Nomination and Corporate Governance Committee
152
Non-adjusting events after the reporting period
346
Notes to the financial statements
265
O
Off-balance sheet arrangements and transferred
financial assets
328
Offsetting financial assets and financial liabilities
323
Operating and financial review
24
Operational risk
241
Other equity interests
321
Other liabilities
317
Other operating income
288
P
Pension risk
233
Principal addresses
395
Property, plant and equipment
307
Prospective accounting changes
279
Provisions for liabilities and commitments
319
Page
R
Regulatory capital and capital ratios
40
Regulatory compliance
345
Regulatory compliance risk
245
Related party transactions
340
Report of the Directors
172
Retirement benefits
310
Risk appetite
16
Risk framework
16
Risk governance structure
180
Risk identification and assessment process
181
Risk management
180
Risk management and internal controls
169
S
Schedule to the Directors’ report
175
Segmental information
283
Securities financing
302
Share capital
320
Statement of cash flows
339
Statement of comprehensive income
260
Statement of changes in equity
262
Statement of Directors’ Responsibilities
248
Statement of financial position
261
Stock exchange listings
387
Subordinated liabilities and other capital instruments
318
Subsidiaries and structured entities
326
Supervision and regulation
178
Sustainable Business Advisory Committee
168
T
Taxation
290
Technology & Data Advisory Committee
167
Trading portfolio financial assets
291
Trading portfolio financial liabilities
291
Transferred financial assets
328
V
Viability statement
171
W
Website
387
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AIB Group plc
10 Molesworth Street, Dublin 2, D02 R126
+353 (1) 660 0311
aib.ie/investorrelations