DAVY VIEW

H1 2021 results are well ahead of our forecasts on income, impairment provisions and capital – trends on all are guided to continue inferring a material upgrade to FY 2021 for both Davy forecasts and consensus. H1 results demonstrate good organic recovery (pre-provision has now recovered to higher levels than 2019), underpinned by a very strong capital position. Inorganic activity will likely come through in 2022, supporting a further re-rating of the stock in the months ahead.