Monthly update: Countercyclical capital buffer (through the cycle)

  • Sectors : Banks
  • Companies : AIB Group | permanent tsb Group | Bank of Ireland


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
AIB Group OUTPERFORM 28/03/18 Neutral 03/08/17 482c
Bank of Ireland OUTPERFORM 11/03/13 Neutral 14/08/12 664c
permanent tsb Group NEUTRAL 03/08/17 Outperform 03/10/16 198c


It was another month of mixed performance for the Irish banks against the backdrop of a flat sector that recovered from a poor start. PTSB outperformed while Bank of Ireland (BOI) reversed its year-to-date (ytd) gains following its strategic update, which prioritises investment over near-term dividend increases. The main domestic newsflow was the introduction of the countercyclical capital buffer (CCyB), which is a statement of intent from regulatory authorities to ensure the “resilience” of the Irish system, adding to capital requirements arising from above average Pillar 2 buffers and risk weighted assets (RWAs).

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Jul 11 2018, 07:20 IST/BST