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Mar 20 2023, 12:55 GMT
Banks
Model updates: exceeding guidance in an uncertain world
- 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 | 354c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 895c |
| permanent tsb Group | OUTPERFORM | 04/02/21 | Neutral | 06/03/19 | 239c |
DAVY VIEW
Events elsewhere have resulted in an abrupt U-turn on market expectations for central bank rates and, as a result, bank earnings outlooks for European banks. We apply a conservative approach to our forecast updates whereby no further ECB rate increases occur and all three Irish banks achieve 2023 guidance (and medium-term targets) across our forecasts. We believe Irish banks remain well positioned with undemanding valuations. We retain our ‘Outperform’ ratings across all three.
