Banks

CBI sets out conservative stance; BOE rate move

  • 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 219c
Bank of Ireland OUTPERFORM 11/03/13 Neutral 14/08/12 506c
permanent tsb Group OUTPERFORM 04/02/21 Neutral 06/03/19 149c

DAVY VIEW

The Central Bank of Ireland’s (CBI) consultation points to little, if any, change in the mortgage measures. Indeed, the main focus appears to be on differentiated loan-to-value (LTV) measures, which is somewhat odd given significant evidence in support of this approach. Loan-to-income (LTI), a crude measure, appears to be here to stay with little indication that the 3.5x multiple will change either; in this case, new mortgage lending will remain extremely conservative versus other European markets. Elsewhere, the BOE’s rate increase will provide modest, but welcome, benefits to both BOI and AIB.

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Dec 17 2021, 07:15 GMT

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