Davy Morning Equity Briefing

Jun 26 2019

Market Comment

Brexit fears weighing on SME lending

New Central Bank data show that Irish bank lending to SMEs was just €1.1bn in Q1 2019, the weakest quarter since mid-2017, with credit demand no doubt hurt by Brexit fears. However, the construction sector bucked the trend, seeing the strongest quarter of lending this cycle, with total corporate lending up 3.7% on the year.

Bank of Ireland

Click here to enter text. CFO to step down by end-2019

Over the past seven years, Andrew Keating was a key member of Bank of Ireland’s (BOI) Board and senior management team, which oversaw the repayment of state aid, the de-risking of the balance sheet and the commencement of a substantial transformation programme. A process to appoint his successor has now commenced and will be set against the backdrop of ongoing constraints in the remuneration of banking executives at the three domestic banks – leaving them at a competitive disadvantage.

Tullow Oil

Progress but ‘hard yards’

Tullow Oil’s June operating review shows another half year of progress on several fronts but not always easily. Its two headline projects onshore Africa are steadily, but slowly, making their way through official channels. Elsewhere, the group’s operations performed much in line with expectations and new venture activity swings into action with the first of three second half wells expected to commence in the very near future.