Banks

Monthly update: letters from Frankfurt

  • 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 OUTPERFORM 23/01/19 Neutral 14/08/18 415c
Bank of Ireland OUTPERFORM 11/03/13 Neutral 14/08/12 587c
permanent tsb Group NEUTRAL 06/03/19 Outperform 01/08/18 158c

DAVY VIEW

FY 2018 demonstrated strong progress in reducing non-performing exposure (NPE) balances but also highlighted that this will be an ongoing focus in the coming years. The Single Supervisory Mechanism (SSM) will look to incentivise, through whatever means possible, an expeditious reduction in NPEs to de minimis levels. The most obvious route is to increase coverage levels on existing NPEs, which implies significant top-up pressures; however, further actions to reduce NPEs, including through sales, and other capital offsets should significantly reduce the ultimate impact.

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Mar 6 2019, 08:40 GMT

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