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Feb 3 2023, 08:25 GMT
Banks
ECB rates and net interest income – forecasts remain conservative
- 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 | 374c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 947c |
| permanent tsb Group | OUTPERFORM | 04/02/21 | Neutral | 06/03/19 | 214c |
DAVY VIEW
Official rates are moving higher, yet the market is not buying this and continues to expect easing towards the end of 2023 or early 2024. Bad news for banks? We argue that the revenue outlook does not appropriately incorporate the market’s view of rates – never mind the officialdom’s view and the likelihood of guidance ahead of our forecasts or consensus remains high.
