Davy Research

Banks

Monthly update – appetite for destruction
Banks
AIB Group | permanent tsb Group | Bank of Ireland

DAVY VIEW

Q4 bank earnings have been largely overshadowed by the political cloud surrounding mortgage non-performing loans (NPLs) resolution. Opposition to NPL sales and repossessions challenge the necessary sustainable work-out of long-term arrears. The role of the unique personal insolvency arrangement (PIA) resolution tool is largely absent from the public debate. Unsurprisingly, Irish banks have underperformed against this backdrop; with further pain now caused by a politically damaging opposition initiative as the public accounts committee (PAC) contests banks’ deferred tax assets (DTAs).

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • AIB Group

    Closing Price: 489c

  • RATING 03/08/17

  • PREVIOUS RATING 28/10/16

    Under Review

  • Bank of Ireland

    Closing Price: 729c

  • RATING 11/03/13

  • PREVIOUS RATING 14/08/12

    Neutral

  • permanent tsb Group

    Closing Price: 196c

  • RATING 03/08/17

  • PREVIOUS RATING 03/10/16

    Outperform

Analyst(S)

Banks

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