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Apr 29 2021, 07:00 IST/BST
Ratings and price correct at time of issue
|Company||Rating||Date||Previous Rating||Date||Closing Price|
|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.