Strategic updates the main catalyst for re-ratings

  • Sectors : Banks
  • Companies : Bank of Ireland | permanent tsb Group | Lloyds Banking Group | Virgin Money UK | AIB Group | RBS


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
AIB Group OUTPERFORM 23/01/19 Neutral 14/08/18 260c
Bank of Ireland OUTPERFORM 11/03/13 Neutral 14/08/12 367c
Virgin Money UK NEUTRAL 28/05/19 N/A N/A 107p
Lloyds Banking Group OUTPERFORM 28/05/19 Neutral 14/02/18 51.7p
permanent tsb Group NEUTRAL 06/03/19 Outperform 01/08/18 122c
RBS NEUTRAL 11/02/19 N/A N/A 195p


On a year-to-date basis, Irish banks and CYBG continue to significantly underperform the SX7P index; in contrast, Lloyds Banking Group (LLOY) and RBS have modestly outperformed the index. The de-rating reflects a range of concerns stretching from Brexit to sustainable levels of returns in the context of the interest rate and competitive environment. While the probability of a ‘hard Brexit’ has receded, we believe that addressing concerns on sustainable returns is a more pertinent catalyst for potential re-ratings, with full-year results in late Q1 2020 the likely timeframe.

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Oct 9 2019, 06:45 IST/BST