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Sep 18 2020, 07:55 IST/BST
Banks
Ulster Bank exit could provide opportunities for rival banks
- 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 | 100c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 179c |
| permanent tsb Group | NEUTRAL | 06/03/19 | Outperform | 01/08/18 | 42.0c |
DAVY VIEW
Speculation that Natwest might consider a wind-down of Ulster Bank (UB) comes as a surprise to us. It does, however, highlight the profitability challenge for the sector – particularly the smaller banks – given its small scale, regulatory burden, political interference and weak credit demand. UB has significant excess capital, the extraction of which would presumably be more difficult in a prolonged wind-down.
