Banks

Monthly update: April showers

  • 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 425c
Bank of Ireland OUTPERFORM 11/03/13 Neutral 14/08/12 592c
permanent tsb Group NEUTRAL 06/03/19 Outperform 01/08/18 128c

DAVY VIEW

The agreed six-month Brexit extension, while removing the near-term risk of a catastrophic hard-Brexit scenario for Irish SMEs, does little to facilitate medium-term financial planning and investment. Bank lending to the SME sector is therefore likely to remain weak. By contrast, clarity through a favourable Brexit agreement could herald the long-awaited turn towards growth. Although the crisis experience still weighs on a cautious sector, forecast domestic growth would suggest increased borrowing demand following several years of under-investment.

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Apr 17 2019, 06:30 IST/BST

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