Monthly update: a credible reason

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


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 352c
Bank of Ireland OUTPERFORM 11/03/13 Neutral 14/08/12 495c
permanent tsb Group OUTPERFORM 01/08/18 Neutral 03/08/17 158c


Irish politicians are correct to highlight the significant differential in pricing between Irish mortgages and the rest of Europe. Yet their ire is misdirected – focussing on pricing alone is overly simplistic and an inaccurate portrayal of the Irish market due to the disregard for Irish banks’ significantly more elevated capital requirements compared with peers. To this end, the 2018 EBA transparency exercise is well timed – showing capital requirements of 1.9x times versus peers at H1 2018; this does not include the full impact of TRIM, which lifts the capital required to 2.4x the average.

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Dec 18 2018, 07:50 GMT