Monthly update: another brick in the wall

  • Sectors : Banks
  • Companies : AIB Group | permanent tsb Group | Bank of Ireland


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


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%.

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May 17 2019, 08:00 IST/BST