DAVY VIEW

FBD holds strong positions in its core markets, is profitable and is significantly overcapitalised. These are not traits typically associated with a company trading at a discount to book. Yes, Business Interruption (BI) is an overhang, but clarity should be achieved in the autumn. FBD should restart dividends with FY 2021 results and thereafter begin the process of normalising its surplus capital position. We reiterate our ‘Outperform’ rating with a price target of €11.90 per share.