DAVY VIEW

The investment thesis on Irish banks remains unchanged – strong capital starting positions and returns above company medium- term targets will support above sector distributions. The focus for Q1 updates will be more operational in nature – activity in the deposit and mortgage market and commentary on net interest income guidance, with interest rates remaining higher than in company guidance. Although valuations have re-rated from early March lows, we continue to see upside and retain our ‘Outperform’ ratings across all three banks.