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May 31 2019, 08:30 IST/BST
Banks
PTSB concludes TME with €21m fine; investigations ongoing across the rest of the system
- 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 | 374c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 478c |
| permanent tsb Group | NEUTRAL | 06/03/19 | Outperform | 01/08/18 | 130c |
DAVY VIEW
The fine concludes the Central Bank of Ireland’s (CBI) investigation of permanent tsb Group (PTSB) under the Tracker Mortgage Examination (TME) and equates to 4.8% of 2018 total income. Investigations remain ongoing across the rest of the banking system and the quantum of fines to be levied remains uncertain. We would caution against a direct linear read-across for Bank of Ireland (BOI) and AIB given operations outside of Ireland, but it is nonetheless likely that significant fines will be levied.
