DAVY VIEW

Having outlined 2023 guidance and medium-term targets seven weeks ago, it was likely that guidance would be reiterated with the Q1 results and this is the case – for now. New lending activity is very strong, driven by Irish mortgages. Upside to company guidance is likely to arise from higher ECB rates, albeit consensus may capture some of the upside at this point. The investment case remains unchanged: strong positions across its core markets in Ireland, higher capital generation and return on equity, leading to higher distributions – all of which support a further re-rating.