AIB Group

Surprise additional €300m tracker mortgage charge

  • Sectors : Banks
  • Companies : AIB Group

Ratings and price correct at time of issue.

  • AIB Group

    Closing Price: 264c

  • RATING 23/01/19

  • PREVIOUS RATING 14/08/18

    NEUTRAL

DAVY VIEW

The provision comes as a surprise given our understanding that the industry-wide Tracker Mortgage Examination (TME) had moved on to the enforcement stage. The magnitude of the provision represents a further unwelcome regulatory hit to AIB’s surplus capital and returns potential. Furthermore, the timing of the announcement in the last week of the general election campaign and ahead of a three-way leadership debate this evening also heightens political concerns for the sector.

Download full report with analyst certification and important disclosures

Feb 4 2020, 08:05 GMT

Download