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Feb 9 2023, 07:25 GMT
Banks
SSM SREP highlights conservative approach to Ireland
- 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 | 384c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 965c |
| permanent tsb Group | OUTPERFORM | 04/02/21 | Neutral | 06/03/19 | 214c |
DAVY VIEW
We have known for some time, and the 2023 Supervisory Review and Evaluation Process (SREP) disclosure is another reminder, that Irish banks are subject to stricter capital requirement regimes relative to other countries across individual bank and country specific buffers. Higher risk weighted asset density compounds the conservative approach. The upside? It may strengthen the case for material capital returns as capital positions are fundamentally conservative and returns exceed cost of equity in the coming years.
