Easing of mortgage rules supportive of outperformance

  • Sectors : Banks
  • Companies : permanent tsb Group | Cairn Homes | Glenveagh Properties | Bank of Ireland | AIB Group


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 305c
Bank of Ireland OUTPERFORM 11/03/13 Neutral 14/08/12 731c
Cairn Homes OUTPERFORM 26/08/15 N/A N/A 97.4c
Glenveagh Properties OUTPERFORM 10/11/17 N/A N/A 99.2c
permanent tsb Group OUTPERFORM 04/02/21 Neutral 06/03/19 175c


The Central Bank of Ireland’s (CBI) easing of mortgage rules is another demand-side response to a supply-side issue. It will have an inflationary impact but should not stretch credit quality given the highly conservative starting point. The easing provides greater confidence in mortgage activity – good for Irish bank balance sheet growth – while Irish homebuilders are likely to outperform builders from other geographies in this environment.

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Nov 11 2022, 10:45 GMT