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Feb 19 2020, 10:30 GMT
Banks
Further downward moves in mortgage pricing announced
- 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 | 230c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 400c |
| permanent tsb Group | NEUTRAL | 06/03/19 | Outperform | 01/08/18 | 93.0c |
DAVY VIEW
Mortgage pricing reduction announcements in Ireland continue apace, with the targeted nature of reductions in keeping with 2019. The non-banks and smaller providers have been most prominent and now sit atop the best-buy tables for most fixed rate categories. This is likely to put pressure on others to follow suit. Our forecasts incorporate ongoing reductions in front-book pricing, partly offset by the ongoing paydown in the low-yielding tracker portfolios, and back-book rates remain lower than the front-book – one of the few countries in Europe where this dynamic exists.
