Davy Morning Equity Briefing
Dec 04, 2025
Irish banks
October deposit growth and positive rate dynamics
October deposit volumes saw continued growth with particularly strong monthly growth. This may reflect statistical collection changes, but the underlying trend still points to positive momentum and a preference to overnight accounts. Deposit rates edged lower, extending the recent trend, while mortgage rates held steady, reinforcing a stable pricing environment. Combined with easing deposit costs, this points to margin tailwinds ahead.
Irish economy
Entire 2025 surplus explained by November’s corporation tax
Exactly as we forecast five months ago, November’s corporation tax reached €10bn – equivalent to the entire projected surplus this year in last month’s Budget. Strong growth for other taxes also implies continued resilience for Ireland’s real economy this year despite recent concern over a slowdown in consumer spending. Lastly, we think the Government’s Accelerating Infrastructure Report (published on December 3rd) has scope to significantly improve the efficiency of its ambitious public capital spending programme.
