Davy Morning Equity Briefing

Jun 26, 2026

Irish banks

May mortgage approvals: strong double-digit growth

May mortgage approvals were particularly strong, with double-digit growth in both value and volume. First-time buyers (FTBs) remain the primary driver. Remortgaging and top-up activity continues to accelerate at pace and accounts for a material share of total approvals. Mover purchase approvals maintain growth, but the share of overall activity remains below historical norms, reflecting constrained housing liquidity. We remain confident in our mortgage drawdown forecast.

XPS Group

APR acquisition; expanding capabilities into general insurance market

This morning XPS Group announced the acquisition of Austin Professional Resourcing LLP (APR). The acquisition expands XPS’ capabilities and accelerates diversification into the general insurance consulting market. The valuation is attractive relative to APR’s revenue base and reflects clear upside from cost synergies and profit growth. While modest in size, the deal is strategically meaningful, strengthening XPS’ insurance offering in a core long-term growth area.

Glanbia

H1 preview – model update

Ahead of H1 results, we update our Glanbia model – positive consumption trends for Optimum Nutrition (ON), a stronger Q2 for Health & Nutrition (H&N) and strengthening tailwinds for Dairy Nutrition (DN) drive a 1% EPS upgrade to FY26 forecasts. We expect a strong H1 performance with 8% EBITDA growth. The business sits at the intersection of the protein/nutrition mega-trend, which is translating into healthy top-line growth and strengthening momentum. Interim results are due on August 6th.

Entain

Reduces its holding in CEE

Entain has confirmed that it will reduce its holding in its CEE joint venture (JV) from 67.5% to 47.5%, netting a cash inflow of £366m. The disposal values the business at 10x EBITDA and it will use the proceeds to reduce debt. It has also flagged that it is evaluating options to dispose of the remainder of its stake. The initial disposal will be largely EPS and cash flow neutral (on a FY26 pro-forma annualised basis). The reduction in net debt combined with a disposal multiple far in excess of Entain’s group multiple will likely trump any investor concern on reducing exposure to the relatively attractive CEE region. It also reiterated its guidance for FY26 on an underlying basis.