Monthly update: the price you pay

  • 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 OUTPERFORM 23/01/19 Neutral 14/08/18 396c
Bank of Ireland OUTPERFORM 11/03/13 Neutral 14/08/12 555c
permanent tsb Group OUTPERFORM 01/08/18 Neutral 03/08/17 160c


The wider move in bank credit spreads in recent months prompts us to revise our issuance assumptions, with c.2% downgrades to forecast profits. Solid progress in 2018 towards end-2020 targets by AIB (40% complete) and BOI (25/30%) limits the impact of market-wide repricing. We modestly lower our price targets: BOI 890c; AIB 500c; and PTSB 235c, but move our recommendation for AIB to ‘Outperform’. Irish banks have started 2019 in positive territory, outperforming the wider sector as hard-Brexit risks recede.

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Jan 23 2019, 07:50 GMT