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Jul 27 2021, 07:00 IST/BST
Banks
Positive backdrop into H1 2021 results
- 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 | 201c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 425c |
| permanent tsb Group | OUTPERFORM | 04/02/21 | Neutral | 06/03/19 | 142c |
DAVY VIEW
We expect a continuation of Q1’s positive trends in Irish banks’ upcoming H1 results, with recovery in loan growth and income. Asset quality should remain robust in contrast to last year’s provision increases, but H1 may be too early to see reversals occur due to ongoing restrictions and upcoming phased withdrawals of state supports. Recent valuation weakness is at odds with the changed prospects in a sector context – we expect H1 to shed further light on what continues to be the key catalyst.
