Bank of Ireland

Strong income and business activity with FY 2022 upgrade

  • Sectors : Banks
  • Companies : Bank of Ireland

Ratings and price correct at time of issue.

  • Bank of Ireland

    Closing Price: 737c

  • RATING 11/03/13

  • PREVIOUS RATING 14/08/12

    NEUTRAL

DAVY VIEW

This is a strong Q3 update for Bank of Ireland (BOI), providing good early insights into two key trends for the coming years. Firstly, the impact of interest rates, with FY 2022 guidance above Davy and consensus forecasts. Secondly, there is strong business activity and new lending momentum in an evolving banking market. Cost discipline is again evident, with asset quality stable and expected to benefit from further sales. We will increase our total income forecast by c.3% and pre-provision operating profit by 8-9%. BOI trades at 0.7x 2023 tangible book – too cheap for a bank with significant profitability tailwinds, sustainable returns and excess capital.

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Nov 9 2022, 07:25 GMT

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