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Bank of Ireland Group (BKRIY)
OTHER OTC:BKRIY
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Bank of Ireland Group
(OTC:BKRIY)
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Rating:72Outperform
Price Target:
$18.50
â–²(5.23% Upside)
Bank of Ireland Group's strong financial performance, characterized by robust revenue growth and a solid balance sheet with zero debt, is the most significant factor driving the stock score. The technical analysis indicates strong momentum, although overbought conditions suggest caution. The valuation is fair, with an attractive dividend yield. These factors collectively contribute to a solid overall stock score.
Bank of Ireland Group (BKRIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.96B
Dividend Yield3.41%
Average Volume (3M)16.57K
Price to Earnings (P/E)13.0
Beta (1Y)0.55
Revenue Growth-16.04%
EPS Growth-18.55%
CountryUS
Employees11,188
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.63
Shares Outstanding952,667,050
10 Day Avg. Volume1,411
30 Day Avg. Volume16,572
Financial Highlights & Ratios
PEG Ratio4.39
Price to Book (P/B)0.74
Price to Sales (P/S)2.15
P/FCF Ratio4.53
Enterprise Value/Market Cap-0.18
Enterprise Value/Revenue-0.69
Enterprise Value/Gross Profit-0.69
Enterprise Value/Ebitda-20.11
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Bank of Ireland Group Business Overview & Revenue Model
Company DescriptionBank of Ireland Group plc provides various banking and financial products and services. The company operates through Retail Ireland, Wealth and Insurance, Retail UK, and Corporate and Treasury segments. It provides current and savings accounts, and business deposits and accounts; personal, car, home improvement, graduate, and student loans, as well as overdrafts; and business and farming loans, BREXIT loans, invoice finance, hire purchase, and leasing services. The company also offers international payments and credit cards; protection overview, mortgage protection, life cover, specified illness cover, income protection, protection for individuals, and protection for families; pensions and investments, foreign exchange, and treasury deposits and services; personal products; private banking services; and leveraged acquisition and property finance. In addition, it provides home, car, travel, and life insurance products. Bank of Ireland Group plc was founded in 1783 and is headquartered in Dublin, Ireland.
How the Company Makes MoneyBank of Ireland Group generates revenue primarily through interest income from loans and mortgages provided to customers. The bank charges interest on these products and earns a spread between the interest received and the interest paid on deposits. Additionally, the bank generates non-interest income through fees and commissions associated with account services, transaction processing, and investment management. Significant partnerships with financial technology firms and collaborations in the corporate sector further enhance its service offerings and revenue streams. The bank also benefits from its diversified portfolio, which includes asset management and insurance services, contributing to a stable earnings base.
Bank of Ireland Group Earnings Call Summary
Earnings Call Date:Feb 24, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
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 exhibits strong financial health with impressive revenue growth and a solid balance sheet with zero debt in 2024. The cash flow statement shows a positive trend, highlighting improved cash management. Despite some historical volatility in EBIT and operating cash flow, the overall financial position is robust, indicating stability and growth potential.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 | 4.17B | 4.46B | 7.11B | 2.96B | 3.19B | 1.52B |
| Gross Profit | 4.17B | 4.46B | 4.09B | 2.96B | 3.19B | 1.52B |
| EBITDA | 143.00M | 2.17B | 2.21B | 1.25B | 1.47B | 0.00 |
| Net Income | 1.26B | 1.53B | 1.59B | 850.00M | 1.05B | -742.00M |
Balance Sheet | ||||||
| Total Assets | 162.38B | 161.81B | 155.71B | 151.32B | 155.27B | 133.75B |
| Cash, Cash Equivalents and Short-Term Investments | 27.44B | 33.55B | 31.49B | 38.10B | 32.82B | 12.43B |
| Total Debt | 10.71B | 10.22B | 13.15B | 12.45B | 23.54B | 6.55B |
| Total Liabilities | 149.31B | 148.80B | 143.15B | 139.39B | 143.93B | 124.13B |
| Stockholders Equity | 13.06B | 13.01B | 12.56B | 11.46B | 11.27B | 9.55B |
Cash Flow | ||||||
| Free Cash Flow | -330.00M | 2.12B | -4.80B | 3.63B | 19.44B | 3.87B |
| Operating Cash Flow | 213.00M | 2.64B | -4.39B | 3.73B | 19.76B | 4.15B |
| Investing Cash Flow | -6.52B | -557.00M | -960.00M | 4.69B | 842.00M | -2.11B |
| Financing Cash Flow | 1.79B | -1.48B | -811.00M | -2.67B | 293.00M | -212.00M |
Bank of Ireland Group Technical Analysis
Positive
17.58
Price Trends
16.47
Positive
15.50
Positive
13.86
Positive
Market Momentum
0.41
Positive
59.31
Neutral
18.61
Positive
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 17.58 is above the 20-day moving average (MA) of 17.14, above the 50-day MA of 16.47, and above the 200-day MA of 13.86, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 18.61 is Positive, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $15.58B | 15.51 | 17.06% | 10.80% | -6.79% | 16.13% | |
72 Outperform | $15.96B | 12.98 | 10.01% | 3.41% | -16.04% | -18.55% | |
71 Outperform | $18.40B | 14.37 | 21.29% | 5.78% | -11.64% | -8.75% | |
69 Neutral | $13.55B | 12.10 | 24.13% | 4.54% | 12.43% | 56.30% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $22.78B | 21.60 | 9.34% | 5.47% | 1.13% | -11.93% | |
63 Neutral | $12.87B | 5.99 | 9.61% | 3.42% | -2.90% | 16.10% |
* Financial Sector Average
BKRIY
Bank of Ireland Group
17.58
8.98
104.42%
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WF
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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.