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Nov 9 2020, 07:15 GMT
Banks
Q3 reflections
- 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 | 98.0c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 210c |
| permanent tsb Group | NEUTRAL | 06/03/19 | Outperform | 01/08/18 | 51.0c |
DAVY VIEW
The bifurcation in bank debt and equity markets remains extreme. Irish bank assets (continue to) trade at, or close to, net book value while Irish banks trade at 0.14-0.28x tangible book. Returns in 2021 will likely remain below European peers but catalysts, principally on costs and capital positions, are not fully incorporated into valuations. Q3 provided supportive steps on this pathway, and we expect this to further evolve in the coming months as strategies are updated. We retain ‘Outperform’ ratings on AIB (PT: 165c) and BOI (PT: 350c) and ‘Neutral’ on PTSB (PT: 75c).
