DAVY VIEW

A number of assertions, even if contradictory, can be true all at once. The threat of competition for Irish banks has increased but is not evident in operating performance. Interest rates have risen but perhaps not to the same extent as expected in recent weeks. H1 results will go some way to understanding these ebbs and flows, with competition, state savings schemes and guidance the key areas of focus. Although valuations are not far from recent post-Global Financial Crisis (GFC) peaks, we argue that both AIB Group (AIBG) and Bank of Ireland (BIRG) retain value and reiterate our ‘Outperform’ ratings.