Download full report with analyst certification and important disclosures
May 17 2019, 08:00 IST/BST
Banks
Monthly update: another brick in the wall
- 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 | 405c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 545c |
| permanent tsb Group | NEUTRAL | 06/03/19 | Outperform | 01/08/18 | 139c |
DAVY VIEW
There was little to surprise in Irish banks’ Q1 updates, where margin resilience proved to be the consistent theme. Instead, the greater surprise in the month was the announcement that the Central Bank of Ireland has requested the power to introduce a systemic risk buffer, if deemed appropriate, which places upward pressure on required capital ratios in our view. We therefore review the banks’ target CET1 ratios and increase the target CET1 to 13% for PTSB (from 12%) and to 13.5% for AIB (13%) but leave BOI unchanged at 13%.
