Download full report with analyst certification and important disclosures
Aug 2 2021, 07:25 IST/BST
Banks
Stress test results broadly as expected
- 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 | 207c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 448c |
| permanent tsb Group | OUTPERFORM | 04/02/21 | Neutral | 06/03/19 | 146c |
DAVY VIEW
No capital actions are required following the EBA’s EU-wide stress test exercise for Irish banks. The stress was significantly more severe than the 2018 iteration with somewhat mixed results. The increase in Bank of Ireland’s (BOI) capital depletion was lower than the aggregate level while it was higher for AIB. Capital depletion is used to determine Pillar 2G buckets; it looks like no change for BOI but there may be for AIB (albeit there is overlap, which may see AIB unchanged). Irish banks continue to run material buffers to known capital requirements, hence any changes would be unlikely to result in higher capital targets.
