Allied Irish Banks (AIBG.L) 2024年年度報告「LSE」.pdf

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1、For the life youre afterAIB Group plcAnnual Financial Report For the year ended 31 December 2024Welcome to our 2024 Annual Financial ReportThis report describes AIB Groups business,strategy and performance during 2024.It also provides an overview of our governance,approach to risk and capital manage

2、ment.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 go

3、vernance(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

4、 Disclosures Table,available on our website at https:/aib.ie/sustainability Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 2024This copy of the statutory annual report of AIB Group plc fo

5、r 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-resu

6、ltsAnnual ReviewBusiness Performance02AIB Group at a Glance04Chairs Statement06Chief Executives Review08Economic Overview12Our Strategic Progress14Risk Summary16Principal Risks17Evolving and Emerging Risks21Business ReviewOperating and Financial Review24Capital40Sustainability Reporting Sustainabili

7、ty Statement44Our Approach to Sustainability44Climate&Environment Action63Societal&Workforce Progress83Governance&Responsible Business99Task force on Climate-related Financial Disclosures(TCFD)120Governance and Oversight ReportChairs Introduction124Governance at a Glance124UK Corporate Governance Co

8、de125Governance in Action126Board of Directors128Our Executive Committee132Board Leadership,Company Purpose,Culture and Values;and Division of Responsibilities134Board Focus138Section 172 Statement and Stakeholder Management139Report of the Board Audit Committee144Report of the Board Risk Committee1

9、49Report of the Nomination and Corporate Governance Committee152Board Composition and Succession154Report of the Remuneration Committee157Corporate Governance Remuneration Statement159Report of the Technology and Data Advisory Committee167Report of the Sustainable Business Advisory Committee168Inter

10、nal Controls169Viability Statement171Directors Report172Schedule to the Directors Report175Other Governance Information177Supervision and Regulation178Risk ManagementRisk Management Approach180Individual Risk Types185Financial StatementsStatement of Directors Responsibilities248Independent Auditors

11、Report249Consolidated Financial Statements259Notes to the Consolidated Financial Statements265AIB Group plc Company Financial Statements347Notes to AIB Group plc Company Financial Statements349General InformationEU Taxonomy Disclosure Tables356Shareholder Information387Forward Looking Statement388Gl

12、ossary of Terms389Principal Addresses395Index396Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202401Whats inside this reportSustainability Reporting43Risk Management182Governance and Ove

13、rsight Report1232024 ResultsFinancial PerformanceProfit After TaxNet Interest IncomeNet Credit Impairment Charge2,351m4,129m55mProfit before tax up 13%to 2.7bnOperating profit1 up 3%to 2.8bn,an impairment charge of 55m and exceptional items of 66mNet interest income up 7%Benefiting from a growing ba

14、lance 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 resilientMaintaining cautious,forward-looking approach with an expected credit loss balance sheet cover o

15、f 1.9%NPE ratio 2.8%Non-performing exposures2(NPEs)2.0bnNew LendingGross LoansCustomer Accounts14.5bn71.2bn109.9bnNew lending up 17%Strong growth in Climate Capital,Irish mortgage lending(market share 36%)as well as corporate lending partially offset by lower property lendingGross loans increased 6%

16、Gross loans up 4.2 billion driven by strong new lending exceeding redemptions and the acquisition of loans from Ulster BankCustomer accounts up 5%Customer accounts increased by 5.1 billion driven by growth in personal and SME1.Operating profit before impairment losses and exceptional items.2.NPEs re

17、fers to non-performing loans(NPLs)and excludes 103 million of off-balance sheet commitments.Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202402Business Performance2,351m2,058m2024202314

18、.5bn12.3bn202420234,129m3,841m2024202371.2bn67.0bn2024202355m172m20242023109.9bn104.8bn2024202344Medium-term Financial Targets(2026)Return on Tangible Equity1CET1 Ratio(fully loaded)Absolute Cost Base2A measure of how well capital is deployed to generate sustainable earningsA measure of our ability

19、to withstand financial stress and remain solventCost of running the businessOutcomeOutcomeOutcome26.7%15.1%1,971mReturn on tangible equity benefiting from increased profitability and substantially ahead of medium-term targetStrong capital position,well in excess of regulatory requirements and medium

20、-term target.Distributions of 2.6bn-completed share buyback of 0.5bn,proposed dividend of 861m and share buyback of 1.2bnCost income ratio 40%.Costs up 8%,reflectingthe enlarged group,inflationary impacts,staff benefits and additional spend for customer and operational efficiency initiativesTargetTa

21、rgetTarget15%14%2.0bnwith a CIR 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 exce

22、ptional 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).AIBs SLF outlines the key parameters on which a trans

23、action 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 AIBs career structure management is defined as those in Level 4-6 positions including the Executive Committee.Payzone,Goodbody,contractors,AIB sta

24、ff 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.Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsG

25、eneral InformationAIB Group plcAnnual Financial Report 20240316.6bn11.6bn202420232.79bn1.20bn31 Dec 202430 Jun 202443%42%2024202326.7%25.7%2024202315.1%15.8%202420231,971m1,826m20242023Well positioned in the markets we serveAIB Group operates predominantly in Ireland and the United Kingdom.Our share

26、s 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 its adapting to a greener way of living,planning for the future,growing a business or simply navigati

27、ng 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 futureAnnual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnu

28、al Financial Report 202404AIB Group at a GlanceOur brandsAIB 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

29、 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,as

30、set 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 lif

31、e 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 theyre after.AIB Merchant Services is an associate of the Group.It is one of Irelands largest payment solution providers and one of Europes lar

32、gest 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 SegmentRetail Banking1.7bnCapital Marke

33、ts0.8bnClimate Capital0.1bnAIB UK0.1bnOperating 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 BankingCapital Markets3.

34、08m Active customers1Relationship-driven model42.1bn 17.6bnGross loansGross loansRetail 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

35、 life,AIB Merchant Services and Nifti.Capital Markets,which includes Goodbody,serves the Groups 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.Climat

36、e CapitalAIB UKRelationship and transaction-driven model254.4k Active customers15.5bn5.0bnGross loansGross loansClimate 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 Ame

37、rica.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

38、or more of three categories:activity,balance and holds a policy.Investment ThesisEarnings resilience and strong growth outlookRevenue diversification and wealth opportunityFocused on operational efficiency and resilienceStrong capital generation and shareholder returnsUnderpinned bySupportive domest

39、ic macro backdropConservative credit managementRobust balance sheetLeading ESG credentialsAnnual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 2024052.8bnFY2024 TotalWithout doubt 2024 was an e

40、xcellent 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 PettigrewChairAnnual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk

41、ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202406Chairs StatementI 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

42、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

43、the heart of the Groups agenda as we support our customers in the transition to a greener future.Colins Chief Executives 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 ge

44、nerate 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

45、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 announ

46、ce 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

47、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

48、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 States holding reduced substantially during 2024 through a combination of the Minister for Finances on-market share trading plan,an accelerated book build of c.5%in Ju

49、ne 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 r

50、eferenced above.Since the year end,further sales under the Ministers share trading programme combined with an accelerated book build transaction in January 2025 have resulted in the States shareholding falling to 12.39%.On behalf of the Board,I welcome the new shareholders and acknowledge again our

51、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 States holding in the Group has reduced significantly since the commencement of the disposals by the Min

52、ister in 2022,the first such activity following the relisting of the Groups 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 dur

53、ing the global financial crisis.Delivering on our promisesI was reflecting recently on the progress achieved since the refloat of the Groups 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,

54、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

55、.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 highes

56、t 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 engag

57、ementElsewhere 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 th

58、is 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 com

59、petitors 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 co

60、ntinued 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 conclusionWithout doub

61、t 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 wa

62、nt 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 peopl

63、e to build a sustainable future.I want to thank the Executive Committee,under Colins 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 sup

64、port 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 PettigrewChair4 March 2025Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial Statemen

65、tsGeneral InformationAIB Group plcAnnual Financial Report 202407A key development during the year was the continued normalisation of the Groups share register,with the States shareholding more than halving in 2024 and momentum maintained into 2025.Colin HuntChief Executive OfficerAnnual ReviewBusine

66、ss ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202408Chief Executives ReviewIntroduction2024 was another very strong year for AIB as we commenced our current three-year strategic cycle focusing on Customer

67、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 a

68、m 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 Groups share register,with the States shareh

69、olding 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 bee

70、n 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 Groups IPO.Generating and returning capital t

71、o 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 divide

72、nd 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 compar

73、e 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

74、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 efficienc

75、y through digitalisation and simplification,and expanded our product offering to service our enlarged customer base.The Groups 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

76、 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 th

77、e 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 operati

78、on,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 comin

79、g years.AIB remains Irelands 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

80、 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

81、 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

82、 our business,maximising productivity and improving our customers experience while harnessing new technologies.We significantly progressed this strategy in 2024.Customer firstAt the beginning of 2024,we set out to develop deeper,more enduring relationships with our customers,aiming for an enhanced c

83、ustomer 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.Annual ReviewBusiness ReviewSustainability Rep

84、ortingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202409Supporting home ownershipIn October 2024,AIB announced two new shorter-term green fixed mortgage rates as part of our commitment to sustainability and supporting customers in their

85、 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 a

86、re 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 Irelands largest bra

87、nch 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

88、decisions and support.Thats 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,were investing 40m by the end of 2025 in a range of upgrades to branches and ATMs,ensuring environments wher

89、e 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 Iris

90、h 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,Irelands only end-to-end digital Home Energy Upgrade proposition through our App.We are a

91、lready 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 En

92、gagement 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 b

93、usinessSustainability 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-car

94、bon 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

95、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 Groups sustainability perfo

96、rmance 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 o

97、pportunities,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

98、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 ma

99、intaining a stable and liveable climate,securing biodiversity and the ecosystem services provided by nature,adapting to climate change,and reversing water degradation.Operational efficiency&resilienceAIB has continued to pursue a strategy of progressive modernisation across our technology and data s

100、ystems.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,enhanc

101、ing 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

102、 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 Plan

103、ning,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 a

104、nd support longer-term planning and more sustainable,strategic decisions on the workforce.Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202410Chief Executives Review continuedFocus on Cl

105、imate CapitalIn 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

106、 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 includ

107、ing telecoms,transport and PublicPrivate 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 ar

108、e 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

109、%.The increase was due to higher average staff numbers,salary inflation,an increase in allowance for variable pay and the introduction of health insurance.OutlookTurning to the year ahead,while the outlook is somewhat clouded by geopolitical uncertainties,growth is anticipated for the global economy

110、,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 Instit

111、ute(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

112、 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 popula

113、tion growth and a robust industrial base.Irelands growing population is a key driver of prosperity and resilience in a competitive global landscape.From the Groups perspective,not only does continued growth provide AIB with potential new customers both personal and business it also increases the nec

114、essity 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 r

115、esilient and diversifying income streams.The IDA reports that Irelands 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

116、,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 Iri

117、sh 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 tangi

118、ble 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 coll

119、eagues 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 gener

120、ating sustainable returns.Colin HuntChief Executive Officer4 March 2025Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202411Optimising operations with AIIn 2024,AIB took significant steps

121、 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 banks strategy.The capability will evolve over 2025,with a concentration on k

122、ey 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

123、eight key customer needs but we plan to increase this number in 2025.Global and domestic growth continues Moderate but uneven global growthDespite a sharp synchronised tightening of monetary policy around the world,the global economy has remained remarkably resilient over the past two years.Moreover

124、,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

125、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

126、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 advance

127、d 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 y

128、ear,compared to just 0.9%in the UK,and 0.7%in the Eurozone.Inflation(%)Source:CSO,EuroStat,ONSIrish domestic economy remains in good shapeFollowing 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 c

129、ommunications 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

130、 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 p

131、erform 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.Mea

132、ntime,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:CSOAnn

133、ual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202412Economic overviewJan 2021Jul 2021Jan 2022Jul 2022Jan 2023Jul 2023Jan 2024July 2024Jan 20253.544.555.566.577.58IrelandEUUKJan 2021Jul 2021

134、Jan 2022July 2022Jan 2023Jul 2023Jan 2024-2-10123456789101112House price inflation accelerates markedlyHouse 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

135、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

136、 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

137、 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

138、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:CSOOutlook for 2025All the main international forec

139、asters 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 tensi

140、ons 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.Gro

141、wth 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 forecas

142、t 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 su

143、pportive 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 ratiobnSource:CSO,CBIAnnual ReviewBus

144、iness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202413Q4 2017Q4 2018Q4 2019Q4 2020Q4 2021Q4 2022Q4 2023Q4 202490001200015000180002100024000270003000033000Household savingsPrivate sector depositsDec19Jun20

145、Dec20Jun21Dec21Jun22Dec22Jun23Dec23Jun24Dec241601802002202402602803003209.0012.0015.0018.0021.0024.0027.0030.0033.0036.00A strategy forthe futureThe 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 strat

146、egic cycle complete,we are progressing our three areas of focus at pace.Three areas of strategic focusCustomer firstGreening our businessWhat this meansWe will develop deeper,more enduring relationships with our customers by better serving their financial needs through integrated propositions.We wil

147、l 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

148、.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 Irelands largest branch network with significan

149、t 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.3

150、5%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

151、 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 Milli

152、on 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 aheadLeveraging customer feedback,research and the power of artificial intelligence(AI),critical focus ahead is on developi

153、ng 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 Cli

154、mate 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

155、our understanding of the transition profile of our business,and in sustainability-related innovation including academic research.Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202414Our s

156、trategic progressThree areas of strategic focusOperational efficiency&resilienceWhat this meansWe will ensure the appropriate capability,capacity and resilient platforms are in place to support the Groups strategic ambition.2024 outcomes Our Simple&Sustainable Servicing programme is delivering effic

157、iency 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 mortga

158、ge 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 p

159、art of our ongoing commitment to enhance customer service,helping our customers to resolve simple queries with a digitally available solution.Looking aheadContinued investment in AI capability in our Customer Engagement Centre.Investment in credit data and customer credit systems to modernise,reduce

160、 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.Annual ReviewBusiness ReviewSustainability ReportingGovernance Repo

161、rtRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202415Our approach to riskOur 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,arrange

162、ments,roles and responsibilities in place for the Group to manage our risks.The Groups risk management principles are as set out below:Risk Governance and Oversight1The Group Board has ultimate responsibility for the governance of all risk-taking activity in the Group and risks assumed through our i

163、nvestments in joint ventures and associated companies.Identification and Assessment2The Group identifies,assesses and reports all material risks through the Material Risk Assessment review process.3Risk management is embedded in the strategic planning,performance management and strategic decision-ma

164、king processes of the Group.4The Group develops and uses models across a range of risks and activities to inform key strategic business and financial decisions.Monitoring,Escalating and Reporting5The Group accepts that certain risks(within the bounds of risk appetite)may be taken in the short-to-med

165、ium term to support environmental,social and governance(ESG)initiatives for the benefit of all our stakeholders over the long term.6The Group operates and manages risks in line with the Groups Risk Appetite Statement(RAS)and understands,manages,measures,monitors and reports all risk it takes or orig

166、inates.7The Group aims to provide clarity in all communications,which will help to better inform business decisions.Risk Culture8The Group supports the delivery of a strong risk culture.9Risk management capabilities are valued,encouraged and developed.Control Environment10The Group has a system of i

167、nternal controls designed to mitigate rather than eliminate risk.11A comprehensive,fit-for-purpose framework and policy architecture is in place to support risk management and is reviewed regularly.12The Group has adopted a Three Lines of Defence(3LOD)model and risks are managed in line with the mod

168、el.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 embe

169、dding 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 Groups overall strategic

170、objectives.The RMF is designed and maintained by the Groups 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 t

171、o 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 report

172、ed 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 Adeq

173、uacy Assessment Process(ICAAP),the Internal Liquidity Adequacy Assessment Process(ILAAP)and the three-year financial plan.Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202416Risk Summary

174、Principal RisksPrincipal 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 Groups risks are reviewed as part of the Material Risk Assessment(MRA),reflecting the Groups risk profile in li

175、ght of internal and external factors such as the Groups 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

176、 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

177、.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 RiskWhat is the Risk?The risk that the Group will incur losses as a resul

178、t 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 2024The credit quality of the lending portfolio has remained robust during the year and new lending is in l

179、ine with targeted quality levels.The Groups risk appetite for corporate renewable energy and related infrastructure lending was expanded,reflecting the Groups strategy for sustainable lending.Expected Credit Losses(ECLs)continue to reflect the Groups vigilant stance on emerging risks while maintaini

180、ng 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 m

181、etrics Non-Performing Exposures(NPE)as a%of customer loans and ECL cover rates Read more:page 186 to 230B.Market and Equity RiskWhat 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

182、,it represents a risk to the income and capital position of the Group.Key Developments in 2024Cooling 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

183、 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 investmentRead more:page 231 to 234Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial

184、 StatementsGeneral InformationAIB Group plcAnnual Financial Report 202417C.Capital Adequacy RiskWhat 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 plausi

185、ble stress.Key Developments in 2024The 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 includin

186、g 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 R

187、isk(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 businessRead more:page 235D.Liquidity and Funding RiskWhat is

188、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

189、risk that liquidity cannot be obtained at an acceptable cost.Key Developments in 2024Customer 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 offeri

190、ngs,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

191、 stable funding ratio(NSFR)Read more:page 235 to 240E.Business Model RiskWhat 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 resu

192、lt 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 2024The BMR assessment was reviewed,with the profile and outlook now driv

193、en 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

194、-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 Opera

195、ting profit%variance to plan Return on tangible Equity Net interest margin(NIM)Read more:page 241Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202418Principal Risks continuedF.Operationa

196、l RiskWhat 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 2024Established closer and more effective cooperation with the Techno

197、logy&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

198、 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 e

199、nrich 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 exp

200、osure 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 metricsRead m

201、ore:page 241 to 242G.Climate and Environmental RiskWhat 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 direct

202、ly through our operations or indirectly through our relationships with customers and third party suppliers.Key Developments in 2024Following 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 ma

203、teriality assessment was completed,including transmission channel assessment,to measure the impact that C&E Risk drivers have on the Groups Principal Risks.Results were subsequently incorporated in the RAS through additional Key Risk Indicators,as well as enhancements to C&E stress testing processes

204、.Key Risk Indicators%of new lending to energy efficient homes(residential mortgages)%of new lending to energy efficient buildingsRead more:page 242 to 243H.Model RiskWhat is the Risk?The loss the Group may incur,as a consequence of decisions that could be principally based on the output of models,du

205、e to errors in the development,implementation or use of such models.Key Developments in 2024In 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 Flo

206、od 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 s

207、core of approved models in useRead more:page 244Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202419I.Culture Risk and Conduct RiskWhat is the Risk?Culture Risk and Conduct Risk are two

208、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 resulti

209、ng in outcomes that are not aligned to the Groups 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 2024The Central Bank of Irelands(CBI)focus on

210、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.Principl

211、es 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 con

212、ducted 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

213、.Key Risk Indicators The identification of critical customer impacting conduct issues Number of product portfolio reviews outstanding 3 months Completion of mandatory training coursesRead more:page 244 to 245J.Regulatory Compliance RiskWhat is the Risk?The risk of legal or regulatory sanctions,mater

214、ial 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 Groups regulated banking and financial service activities,i.e.those activi

215、ties in which the Group is licensed to conduct business.Key Developments in 2024The 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 chan

216、ge 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 intro

217、duced 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

218、 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 Ju

219、ly 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

220、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

221、 a significant personal data breach(Sustainability Reporting on page 43 provides additional information around management of data protection)Read more:page 245 to 246Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group p

222、lcAnnual Financial Report 202420Principal Risks continuedThe Group identifies evolving and emerging risks as part of the Groups 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

223、 Groups strategy,operations and on our customers in the short-term(1 year).The table below sets out the evolving and emerging risks identified.Evolving and emerging risksHow we responded during 2024Links to Principal RisksCyber RiskThe risk of diminished operational capability of the Groups IT syste

224、ms.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 Princ

225、ipal 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 no

226、table 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 Princ

227、ipal 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 capabi

228、lity to anticipate,mitigate,and respond to cyber threats.The comprehensive Double Materiality Assessment(DMR)process evaluated the Groups material sustainability matters from both an impact and financial materiality perspective with cyber security identified as one of seven material topics,(the Sust

229、ainability 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 soc

230、ial 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 Groups con

231、trol 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 repo

232、rting 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

233、ensuring the Groups operational resilience in an increasingly complex threat landscape.ADEFHIJGeopolitical RiskThe risk that geopolitical developments and tensions could escalate and could negatively impact the Groups operations or result in other financial or macroeconomic impacts.Geopolitical Risk

234、 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

235、 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(i

236、ncluding weightings)as well as in the setting of the Groups 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 direc

237、t 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 Groups Risk function compared the Groups downside scenarios with independent third party scenarios(

238、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 Groups scenarios were conservatively calibrated vis-a-vis these other scenarios.As evidenced in the results of the heavy elec

239、toral 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 applic

240、able.ABCDEFGHJ 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 techn

241、ologies 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 Groups Technology&Data function has defined the approach to the implementation of AI in the Group throug

242、h 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 assess

243、ed 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.ABCDEFHIJAnnual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk Management

244、Financial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202421Evolving and Emerging Risks Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202422Making a difference with

245、 GOALIn 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 invalu

246、able 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 GOALs global humanitarian efforts.These

247、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 AIBs commitment to supporting communities both locally and globally.Above:Man

248、gui Robert,GOAL Nutrition Supervisor,providing vital emergency food and nutrition services at Renk,on the Sudan-South Sudan border.Business ReviewIn this sectionOperating and Financial Review24Capital40Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial Stat

249、ementsGeneral InformationAIB Group plcAnnual Financial Report 202423Basis of presentationThe operating and financial review is prepared using IFRS and non-IFRS measures to analyse the Groups performance,providing comparability year-on-year.These performance measures are consistent with those present

250、ed 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 Groups APMs and their calculation is set out

251、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 finan

252、cial review may be subject to rounding and thereby differ to the risk management section and the consolidated financial statements.Basis of calculationPercentages are calculated on exact numbers and therefore may differ from the percentages based on rounded numbers.The impact of currency movements i

253、s 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.20242023%Management performance-summary income statement m mchangeNet interest income 4,129 3,841 7Other income1 779 90

254、0-13Total operating income1 4,908 4,741 4Personnel expenses1(980)(901)9General and administrative expenses1(690)(630)10Depreciation,impairment and amortisation1(301)(295)2Total operating expenses1(1,971)(1,826)8Bank levies and regulatory fees1(138)(185)-25Operating profit before impairment losses an

255、d exceptional items1 2,799 2,730 3 Net credit impairment charge(55)(172)-68Operating 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 c

256、osts(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 exc

257、eptional by management and which management view as distorting comparability of performance year-on-year.The adjusted performance measure is considered an APM.Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnua

258、l Financial Report 202424Business Review 1.Operating and Financial ReviewNet interest incomeNet interest income4,129m20242023%Net interest income m mchangeInterest income1 5,374 4,643 16Interest expense(1,245)(802)55 Net interest income 4,129 3,841 7Average interest earning assets 130,190 123,563 5%

259、changeNet interest margin(NIM)3.163.110.05Net interest income4,129mNet 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 earni

260、ng assets partly offset by an increase in interest expense on customer accounts.Interest incomeInterest 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

261、 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 expenseInterest expense of 1,245 millio

262、n 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 impa

263、cts and higher average MREL volumes.Net interest margin3.16%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

264、 increase in customer accounts and other debt issued.Year endedYear ended Average balance sheet31 December 202431 December 2023AverageInterest1AverageAverageInterest1AveragebalanceratebalancerateAssets m m%m m%Loans and advances to customers2 68,300 2,817 4.11 63,411 2,391 3.77 Investment securities

265、 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&equityDeposits by banks3 1,328

266、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 der

267、ivatives(economic hedges)57 43Non-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 income4,1293.163,8413.111.Negative interest income on assets of 2 million in 2024(2023:2 million)is offset against interest income

268、.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.Annual ReviewBusiness ReviewSu

269、stainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202425Other incomeOther income1779m20242023%Other income1 m mchangeNet fee and commission income 666 633 5 Net gain on equity investments(FVTPL)70 27 Net trading income 5

270、0 210 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 income1779mOther income decreased by 121 million or 13%compared to 2023 as higher fee and commi

271、ssion 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.20242023%Net fee and commission income m m changeCustomer accounts 248 240 3 Card income 148 148 1 Customer relat

272、ed 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 pr

273、imarily 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 i

274、ncluded 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 acqu

275、ired 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

276、 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 los

277、s on the redemption of subordinated debt and on the disposal of investment securities.IFRS basisOn 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

278、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

279、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.Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk Man

280、agementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202426Business Review 1.Operating and Financial Review continuedOperating expensesTotal operating expenses11,971m 2024 2023%Operating expenses1 m mchangePersonnel expenses 980 901 9General and administrative expenses

281、690 630 10Depreciation,impairment and amortisation 301 295 2Total operating expenses 1,971 1,826 8Staff numbers at period end2 10,469 10,551-1Average staff numbers2 10,655 10,200 4Total operating expenses11,971mTotal operating expenses of 1,971 million increased by 145 million or 8%compared to 2023.

282、Personnel expensesPersonnel 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.Ge

283、neral and administrative expensesGeneral and administrative expenses increased by 60 million compared to 2023 and included 25m additional spend for customer and operational efficiency initiatives.Depreciation,impairment and amortisationDepreciation,impairment and amortisation increased by 6 million

284、compared to 2023.Cost income ratio140%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 fees138m20242023Bank levies and regulatory fees m mIrish bank levy 94 37 Deposit Guarantee Scheme 11 86 Single Reso

285、lution 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 part

286、ly 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 covere

287、d deposits.IFRS basisOn 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.Be

288、fore 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(2

289、023:121 million).Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202427Net credit impairment charge55mThere was a net credit impairment charge of 55 million in 2024(2023:172 million)compri

290、sing 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

291、 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

292、 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 business2mThe loss on disposal of business was 2 million in 2024.The loss of 26 million in 2023 primarily reflected the transfer to the income stat

293、ement 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 charge351mThe income tax charge was 351 million in 2024,representing an effective tax rate of 13%compared to a tax charge of 336

294、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 items66m20242023Total exceptional items m

295、mCustomer 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

296、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 th

297、e disposal of non-performing loan portfolios.Other includes a fee receivable on the exit of a servicing agreement for a non-core legacy business.Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Re

298、port 202428Business Review 1.Operating and Financial Review continuedAssets Gross loans to customersNew lending71.2bn14.5bn31 Dec31 Dec20242023%Assets bn bnchangeGross loans to customers 71.2 67.0 6ECL allowance(1.3)(1.5)-12Net loans to customers 69.9 65.5 7Investment securities 18.7 17.4 8Loans and

299、 advances to banks 38.6 39.3-2Securities financing 6.6 6.5 3Other assets 7.5 7.6-2Total assets 141.3 136.3 4Gross loans to customers71.2bnGross 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 billi

300、on,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 lending14.5bnNew lending of 14.5 billion in 2024 was 2.2 billion or 17%higher comp

301、ared 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 billio

302、n.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 loansNon-perfo

303、rming loans ratio2.0bn2.8%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 ratioNon-performing loans as a percentage of gross loans to customers was 2.8%

304、at 31 December 2024 compared to 3.0%at 31 December 2023.ECL allowanceNon-performing loans cover1.3bn32%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-performin

305、g loans coverThe ECL allowance cover rate on non-performing loans of 32%was in line with 31 December 2023.Summary of movement in loans to customersThe table below sets out the movement in loans to customers from 1 January 2024 to 31 December 2024.PerformingNon-performingLoans toloansloanscustomersLo

306、ans to customers bn bn bnGross 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 othe

307、r 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 Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group

308、 plcAnnual Financial Report 202429Assets continuedThe 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 Groups risk profile and non-performing loans is availab

309、le in the Risk Management section on pages 185 to 230.At amortised costResidentialOtherProperty andNon-propertyLoan portfolio profilemortgagespersonalconstructionbusinessTotal31 December 2024 bn bn bn bn bnGross loans to customers37.03.38.722.271.2Of which:Stage 21.90.62.72.88.0 Non-performing loans

310、10.90.10.50.52.0Total ECL allowance0.30.10.40.51.3Total 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 bnGross loans to customers34.82.99.220.167.0Of which:Stage 22.40.22

311、.82.37.7 Non-performing loans10.70.10.70.52.0Total ECL allowance0.30.10.50.61.5Total 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

312、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 securitiesInvestment securities of 18.7 billion,primarily

313、 held for liquidity purposes,increased by 1.3 billion from 31 December 2023.Loans and advances to banksLoans 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 financingSecurities financing of 6.6

314、 billion increased by 0.1 billion from 31 December 2023.Other assetsOther 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

315、 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.Annual ReviewBusiness ReviewSustainability ReportingGovernance ReportRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Repor

316、t 202430Business Review 1.Operating and Financial Review continuedLiabilities&equityCustomer accountsEquity 109.9bn15.4bn31 Dec31 Dec20242023%Liabilities&equity bn bnchangeCustomer accounts 109.9 104.8 5Deposits by banks 0.8 1.8-53Debt securities in issue 8.8 8.4 5Subordinated liabilities 1.6 1.5 11

317、Other liabilities 4.8 4.7 Total liabilities 125.9 121.2 4Equity 15.4 15.1 2Total liabilities&equity 141.3 136.3 4%changeLoan to deposit ratio64631Customer accounts109.9bnCustomer accounts increased by 5.1 billion or 5%compared to 31 December 2023 driven by an increase in personal and SME balances.In

318、terest 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 ratioThe loan

319、to deposit ratio was 64%at 31 December 2024 compared to 63%at 31 December 2023.Deposits by banksDeposits 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

320、 in issueDebt 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 liabilitiesSubordinated liabiliti

321、es 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 liabilitiesOther liabilities of 4.8 billion comprised:Derivative financial instruments of 1.8 billion,decrease of 0.1

322、 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 15.4bnEquity increased by 0.3 billion to 15.4 billion compared to 15.1 billion at 31 December 2023.The tab

323、le below sets out the movements to 31 December 2024.Equity bnOpening 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

324、 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.Annual ReviewBusiness ReviewSustainability ReportingGovernance Re

325、portRisk ManagementFinancial StatementsGeneral InformationAIB Group plcAnnual Financial Report 202431Segment overviewIn 2024 the Group introduced a new customer facing segment,Climate Capital,increasing the Groups reportable segments from four to five.The Groups performance is now therefore managed

326、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 BankingOur leading Irish retail franchise provides a comp

327、rehensive 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

328、 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,

329、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

330、communities.Capital MarketsCapital Markets provides institutional,corporate and business banking services to the Groups larger customers and customers requiring specific sector or product expertise.Capital Markets relationship-driven model serves customers through sector specialist teams including:c

331、orporate 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 inve

332、stments,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 Capit

333、alClimate 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