Download full report with analyst certification and important disclosures
Apr 17 2019, 08:50 IST/BST
Banks
CBI seeks authority to activate the SRB; increases scrutiny of non-bank sector
- 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 | 422c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 596c |
| permanent tsb Group | NEUTRAL | 06/03/19 | Outperform | 01/08/18 | 130c |
DAVY VIEW
Seeking authority from the Minister for Finance to activate the Systemic Risk Buffer (SRB) is the initial step towards its introduction. The potential introduction of the SRB reinforces the view that capital requirements will remain elevated in Ireland, with higher risk-weighted asset (RWA) intensities, elevated Pillar 2A buffers and a counter-cyclical buffer (while credit growth remains subdued). As a result, pricing in Ireland will remain structurally more elevated than other European countries.
