Back to the future – the changing banking landscape

  • 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 247c
Bank of Ireland OUTPERFORM 11/03/13 Neutral 14/08/12 476c
permanent tsb Group OUTPERFORM 04/02/21 Neutral 06/03/19 132c


Fundamental structural changes are afoot in Irish banking. Gone are the concerns of new entrants and irrational behaviour, replaced by exits of two foreign-owned banks – taking the rational decision to exit on lack of scale, negative interest rates and a regulatory preference for the safest of banking systems. Structural change presents significant opportunities, with scale benefitting profitability and returns for the domestic banks. We argue further upside is merited on an inherently stronger long-term proposition.

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Apr 29 2021, 07:00 IST/BST