Davy Research

permanent tsb Group

Dividends to be correlated to NPL reduction
Banks
permanent tsb Group

DAVY VIEW

Our key forecast revision relates to impairments as a lower underlying charge partly compensates for ’lower for longer’ House Price Index (HPI)-related releases. The latter is inextricably linked to elevated non-performing loans (NPLs), and PTSB is looking to develop the next phase of its NPL strategy during 2017. Completion of mandated deleveraging and robust capital leaves it well placed to pursue its sustainable commercial and profitable growth ambition; however, dividend prospects will be dictated by further NPL reduction and the final Targeted Review of Internal Models (TRIM) outcome.

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  • RATINGS AND PRICE CORRECT AT TIME OF ISSUE


  • permanent tsb Group

    Closing Price: 248c

  • RATING 03/10/16

  • PREVIOUS RATING 11/05/16

    NEUTRAL

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