Banks

Monthly update: stress test outcome much improved

  • Sectors : Banks
  • Companies : AIB Group | permanent tsb Group | Bank of Ireland

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
AIB Group NEUTRAL 14/08/18 Outperform 28/03/18 403c
Bank of Ireland OUTPERFORM 11/03/13 Neutral 14/08/12 624c
permanent tsb Group OUTPERFORM 01/08/18 Neutral 03/08/17 194c

DAVY VIEW

The positive outcome for AIB and BOI in the EBA stress test exercise is welcome and should help the banks to retrace some of their recent underperformance. The outcome is testament to the significant non-performing loan (NPL) deleveraging activity and improved capital strength since the last exercise. This progress will continue and the stress test result does not suggest to us any easing of the regulatory scrutiny on NPLs, which remain a priority.

Download full report with analyst certification and important disclosures

Nov 5 2018, 08:50 GMT

Download