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Jun 2 2021, 06:30 IST/BST
Banks
Write-back at you
- 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 | 273c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 524c |
| permanent tsb Group | OUTPERFORM | 04/02/21 | Neutral | 06/03/19 | 149c |
DAVY VIEW
Impairment charges in 2020 far outpaced the increase in Stage 3; key aspects of the Irish economy, like economies elsewhere, have proven far more resilient than initially thought – aided by early intervention and state support. Our review of the current state of play indicates that existing guidance for 2021 is too conservative, with lower impairments supporting earnings in the coming years. We also assess valuations in the context of potential accretion and believe that significant upside remains.
