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Jan 29 2026, 14:40 GMT
Banks
Positive liability dynamics
- Sectors : Banks
- Companies : 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 | 928c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 1707c |
DAVY VIEW
We retain a constructive outlook on the Irish banks into 2026. The Irish economy is set for ongoing growth, while bank balance sheets are also well primed. In the report, we assess the liability side of balance sheets, with a particular focus on deposits and the structural hedge. We modestly increase our net interest income (NII) forecasts, based upon better trends in deposit growth and modestly higher rates. This should continue to support valuations, as should higher than sector average distributions. We increase our price targets to €10.95 (from €10.10) and €19.10 (from €18.30) for AIB Group (AIBG) and Bank of Ireland (BIRG) respectively and retain our ‘Outperform’ ratings.
