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Nov 11 2022, 10:45 GMT
Banks
Easing of mortgage rules supportive of outperformance
- Sectors : Banks
- Companies : permanent tsb Group | Cairn Homes | Glenveagh Properties | Bank of Ireland | AIB Group
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 | 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 |
DAVY VIEW
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.
