Davy Research

Banks

2018 outlook – embracing normality
Banks
AIB Group | permanent tsb Group | Bank of Ireland

DAVY VIEW

2017 proved a year of contrasting share price performance within the Irish banking sector. We expect the early year recovery at BOI, our top pick for 2018, to continue. The outline of the new CEO’s vision at a Capital Markets Day in Q2 will strengthen the investment case. Mortgage market competition, non-performing loans (NPLs) and prospects for loan book growth remain the key themes for 2018, particularly as tracker examination fears recede. We also raise our price targets on BOI to 890c (+3.5%) and PTSB to 240c (+15%) to incorporate supportive management commentary from our recent North America conference.

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • AIB Group

    Closing Price: 559c

  • RATING 03/08/17

  • PREVIOUS RATING 28/10/16

    Under Review

  • Bank of Ireland

    Closing Price: 806c

  • RATING 11/03/13

  • PREVIOUS RATING 14/08/12

    Neutral

  • permanent tsb Group

    Closing Price: 233c

  • RATING 03/08/17

  • PREVIOUS RATING 03/10/16

    Outperform

Analyst(S)

Banks

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