AIB hikes shareholder returns, 'well on track' to hit growth targets

DUBLIN (Reuters) - AIB on Wednesday followed main rival Bank of Ireland in hiking its returns to shareholders and said a good start to 2023 with positive income momentum left it well on track to deliver its medium-term targets.

The country's largest mortgage lender will return 381 million euros ($401.54 million) to shareholders this year mostly through share buybacks, up from 213 million euros in 2021 after its return on tangible equity (ROTE) rose to 9.6% from a 8.2% in 2021.

The majority state-owned bank said in December that it expects to reach a more than 13% ROTE by 2024, allowing it to supplement increased dividend payments with share buybacks over that time.

($1 = 0.9489 euros)

(Reporting by Padraic Halpin, Editing by Louise Heavens)