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Jun 17 2020, 07:00 IST/BST
Banks
Stable government and economic recovery positive for bank ratings
- 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 | 125c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 190c |
| permanent tsb Group | NEUTRAL | 06/03/19 | Outperform | 01/08/18 | 51.6c |
DAVY VIEW
The proposed formation of a new government comes as the re-opening of the Irish economy is accelerating. Both factors should positively impact the Irish banking sector. The majority government will provide a more stable backdrop, while the priorities for government will create green and mortgage lending opportunities. This comes against the backdrop of increasing activity levels as the re-opening of the economy progresses. Both should benefit fee income recovery and the outlook for impairment charges.
