Q3 reflections

  • Sectors : Banks
  • Companies : permanent tsb Group | AIB Group | Bank of Ireland


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


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).

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Nov 9 2020, 07:15 GMT