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Mar 19 2020, 08:45 GMT
Ratings and price correct at time of issue
|Company||Rating||Date||Previous Rating||Date||Closing Price|
|Bank of Ireland||OUTPERFORM||11/03/13||Neutral||14/08/12||184c|
|permanent tsb Group||NEUTRAL||06/03/19||Outperform||01/08/18||45.0c|
Bank share prices continue to move lower as concern regarding COVID-19 mounts. Unlike the financial crisis, banks aren’t the architects of the current crisis. As such, solvency is much stronger and liquidity levels are high following prolonged multi-year deleveraging. That said, banks are highly sensitive to macro-economic shocks – further exacerbated by IFRS 9 credit-loss modelling and the regulatory priority to reduce non-performing exposures (NPEs). Our analysis highlights that the market has priced in an abrupt shift to assume stress-test levels of credit losses rather than a V-shaped recovery.