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Mar 6 2019, 08:40 GMT
Ratings and price correct at time of issue
|Company||Rating||Date||Previous Rating||Date||Closing Price|
|Bank of Ireland||OUTPERFORM||11/03/13||Neutral||14/08/12||587c|
|permanent tsb Group||NEUTRAL||06/03/19||Outperform||01/08/18||158c|
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.