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Apr 29 2021, 07:00 IST/BST
Banks
Back to the future – the changing banking landscape
- 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 | 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 |
DAVY VIEW
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.
