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Apr 17 2019, 06:30 IST/BST
Banks
Monthly update: April showers
- Sectors : Banks
- Companies : permanent tsb Group | AIB 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.
