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Jan 13 2020, 07:00 GMT
Banks
Irish banks’ 2020 outlook: buffers, Brexit and politics
- 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 | 312c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 481c |
| permanent tsb Group | NEUTRAL | 06/03/19 | Outperform | 01/08/18 | 104c |
DAVY VIEW
Irish banks’ performance in 2019 was particularly impacted by their heightened sensitivity to the lower-for-longer rate environment alongside Brexit-related volatility. For 2020, we expect the backdrop to be dominated by scrutiny over capital requirements and a possible uplift in credit demand on reduced Brexit concerns and politics. Strategic updates are due from all three banks in Q1, which should prove supportive. At Davy’s annual New York conference, each of the banks pointed strongly towards cost efficiency as a focus.
