Banks

2018 outlook – embracing normality

  • Sectors : Banks
  • Companies : AIB Group | permanent tsb Group | Bank of Ireland

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
AIB Group NEUTRAL 03/08/17 Under Review 28/10/16 559c
Bank of Ireland OUTPERFORM 11/03/13 Neutral 14/08/12 806c
permanent tsb Group NEUTRAL 03/08/17 Outperform 03/10/16 233c

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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Jan 25 2018, 06:30 GMT

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