Download full report with analyst certification and important disclosures
Feb 16 2021, 06:50 GMT
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 | 163c |
Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 341c |
permanent tsb Group | OUTPERFORM | 04/02/21 | Neutral | 06/03/19 | 92.6c |
It is well known that capital requirements for Irish mortgages are materially elevated (and this is the primary driver of higher cost mortgages versus other European countries). We now know that not only are capital requirements on impaired loans extremely high but performing mortgages do not benefit from lower requirements. In addition, requirements provide no benefit on new lending originated since stricter lending regulations were enforced. The construct of capital models, incorporating the last house price fall as a key assumption, means this is likely to persist.
Feb 16 2021, 06:50 GMT