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Bank of Ireland Group (BKRIY)
OTHER OTC:BKRIY
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Bank of Ireland Group
(OTC:BKRIY)
Rating:80Outperform
Price Target:―
Bank of Ireland Group (BKRIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.68B
Dividend Yield4.42%
Average Volume (3M)461.00
Price to Earnings (P/E)9.1
Beta (1Y)0.41
Revenue Growth9.82%
EPS Growth1.26%
CountryUS
Employees11,188
SectorFinancial
Sector Strength79
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.66
Shares Outstanding968,526,370
10 Day Avg. Volume0
30 Day Avg. Volume461
Financial Highlights & Ratios
PEG Ratio2.59
Price to Book (P/B)0.90
Price to Sales (P/S)0.00
P/FCF Ratio3.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Bank of Ireland Group Business Overview & Revenue Model
Company DescriptionBank of Ireland Group (BKRIY) is one of the largest financial institutions in Ireland, operating through its retail and commercial banking, wealth management, and insurance services. The Group provides a comprehensive range of financial products to its customers, including personal and business banking, mortgages, loans, savings, investments, and insurance products. It serves a diverse clientele through its extensive network of branches and digital platforms, catering to both individual and corporate clients.
How the Company Makes MoneyBank of Ireland Group generates revenue through various streams, primarily from interest income on loans and mortgages, fees from financial products and services, and commissions from insurance and investment products. The bank earns interest income by lending money to customers and charging interest on these loans, while simultaneously paying interest on customer deposits at a lower rate. Additionally, it collects fees and commissions from services such as account maintenance, transaction processing, and advisory services in wealth management. The Group also benefits from strategic partnerships with financial technology firms and insurance providers, which enhance its product offerings and expand its customer base. Furthermore, Bank of Ireland engages in treasury and financial market activities, contributing to its earnings through trading and investment activities.
Bank of Ireland Group Earnings Call Summary
Earnings Call Date:Feb 24, 2025
(Q4-2024)
| % Change Since: 28.30%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant achievements in distribution, mortgage growth, and wealth management. However, challenges in non-core charges and international portfolios were highlighted, with some decrease in net interest income. The sentiment reflects confidence in future growth despite some current hurdles.Q4-2024 Updates
Positive Updates
Record-Breaking Distribution
The Bank of Ireland achieved a total distribution of EUR1.2 billion, marking a 6% increase year-on-year and the largest ever distribution by the group.
Strong Growth in Irish Mortgages
The Irish mortgage book grew by 7%, with a 40% share of new mortgage lending, showcasing a robust performance in the housing market.
Wealth and Insurance Growth
Total assets under management increased by 19% to EUR55 billion, driven by Davy and New Ireland, with expectations for AUM to grow by 30% over the next three years.
High Return on Tangible Equity
The Bank of Ireland reported a ROTE of 16.8% for 2024, with expectations to exceed 17% by 2027.
Capital Generation and Shareholder Returns
Cumulative distributions for 2023 and 2024 equaled EUR2.4 billion, translating to more than 27% of the market cap.
Negative Updates
Non-Core Charges and Motor Finance Provision
The bank recognized EUR172 million in provisions related to its motor finance book, contributing to higher non-core charges of EUR275 million.
Decreased Net Interest Income
The net interest income for the year was 2% lower on a like-for-like basis, reflecting increased funding costs and higher liquid asset income.
Challenges in International Corporate Portfolios
The international corporate books saw reductions, primarily due to strategic run-downs in the corporate GB and U.S. CRE portfolios.
Company Guidance
In the recent call, Bank of Ireland provided detailed guidance for its future financial outlook, highlighting several key metrics. The bank anticipates achieving a return on tangible equity (ROTE) of over 17% by 2027, supported by a stable Irish economy and a growing customer base. For 2024, the bank reported a ROTE of 16.8% and expects net interest income (NII) to exceed EUR 3.25 billion in 2025. The bank also aims for a 19% growth in assets under management (AUM) for the previous year and projects a 30% increase over the next three years. Cost discipline remains a priority, with operating expenses expected to grow by around 3% in 2025, before stabilizing post-2025. The bank also announced a total distribution of EUR 1.2 billion for the year, a 6% increase from the previous year, and plans to maintain a payout ratio of 80%. The structural hedge is expected to contribute positively to NII through 2026 and 2027, with an increased yield aiding income. Overall, the Bank of Ireland is focused on leveraging its market position and digital innovations to drive growth and shareholder returns amidst global economic uncertainties.Bank of Ireland Group Financial Statement Overview
Summary
Bank of Ireland Group shows strong financial health with robust revenue growth and a solid balance sheet with zero debt in 2024. The cash flow statement indicates improved cash management, despite some historical volatility in EBIT and operating cash flow.Income Statement
Bank of Ireland Group has shown robust revenue growth, with a significant increase in total revenue from 2023 to 2024. The net profit margin is healthy, reflecting good profitability. However, the EBIT margin is absent for 2024, which indicates a shift in financial reporting or operational changes. Historically, EBIT margins have been volatile, but recent trends indicate improvement.78
Positive
Balance Sheet
The balance sheet is strong, with no total debt reported in 2024, indicating excellent financial positioning. The equity ratio is stable, showcasing good asset coverage by equity. Return on equity is high, reflecting effective use of shareholders' funds. The absence of debt in 2024 is a notable strength, enhancing the company's financial stability.82
Very Positive
Cash Flow
The company has demonstrated a significant turnaround in cash flow, with substantial positive free cash flow in 2024 compared to negative in 2023. The operating cash flow to net income ratio is strong, indicating good cash generation from operations. However, the fluctuation in operating cash flow over the years suggests some operational volatility.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.93B | 4.46B | 4.09B | 3.26B | 3.01B | 2.67B | Gross Profit |
| 6.93B | 4.46B | 4.09B | 3.26B | 3.01B | 2.67B | EBIT |
| 1.83B | 0.00 | 2.34B | 1.05B | 1.21B | -795.00M | EBITDA |
| -246.00M | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 1.59B | 1.53B | 1.59B | 850.00M | 1.05B | -742.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 32.82B | 33.55B | 31.49B | 38.10B | 32.82B | 12.43B | Total Assets |
| 155.27B | 161.81B | 155.71B | 151.32B | 155.27B | 133.75B | Total Debt |
| 23.54B | 0.00 | 13.15B | 12.45B | 23.54B | 10.22B | Net Debt |
| -9.28B | -33.55B | -33.02B | -25.66B | -9.28B | -2.21B | Total Liabilities |
| 143.93B | 148.80B | 143.15B | 139.39B | 143.93B | 124.13B | Stockholders Equity |
| 11.27B | 13.01B | 12.56B | 11.87B | 11.27B | 9.55B |
| Cash Flow | Free Cash Flow | ||||
| 3.48B | 2.12B | -4.80B | 3.63B | 19.44B | 3.87B | Operating Cash Flow |
| 3.64B | 2.64B | -4.39B | 3.73B | 19.76B | 4.15B | Investing Cash Flow |
| -533.00M | -557.00M | -960.00M | 4.69B | 842.00M | -2.11B | Financing Cash Flow |
| -3.18B | -1.48B | -811.00M | -2.67B | 293.00M | -212.00M |
Bank of Ireland Group Technical Analysis
Positive
14.01
Price Trends
12.44
Positive
11.85
Positive
10.82
Positive
Market Momentum
0.47
Negative
62.70
Neutral
79.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKRIY, the sentiment is Positive. The current price of 14.01 is above the 20-day moving average (MA) of 13.56, above the 50-day MA of 12.44, and above the 200-day MA of 10.82, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 79.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKRIY.
Bank of Ireland Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $13.68B | 9.13 | 12.62% | 4.42% | 9.82% | 1.26% | |
77 Outperform | $15.28B | 11.60 | 23.88% | 7.01% | -16.96% | -10.73% | |
77 Outperform | $10.89B | 12.36 | 15.99% | 5.46% | -0.15% | 8.78% | |
74 Outperform | $17.25B | 11.16 | 16.35% | 5.00% | 5.84% | 12.67% | |
73 Outperform | $11.70B | 10.87 | 24.02% | 5.41% | -22.63% | 32.31% | |
70 Outperform | $19.53B | 16.14 | 10.89% | 5.23% | -3.94% | 31.52% | |
64 Neutral | $12.85B | 9.81 | 7.79% | 78.20% | 12.23% | -7.93% |
* Financial Sector Average
Performance Comparison
BKRIY
Bank of Ireland Group
14.09
3.79
36.80%
BCH
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31.13
9.06
41.05%
BSBR
Banco Santander Brasil
5.45
0.65
13.54%
BSAC
Banco Santander Chile
25.35
7.16
39.36%
CIB
Bancolombia
42.65
15.23
55.54%
BAP
Credicorp
218.23
70.09
47.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.