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Mar 19 2020, 07:30 GMT
Banks
Capital relief provides space to support customers
- Sectors : Banks
- Companies : Bank of Ireland | Virgin Money UK | permanent tsb Group | RBS | Lloyds Banking Group | AIB Group
Ratings
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 | 101c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 184c |
| Lloyds Banking Group | OUTPERFORM | 28/05/19 | Neutral | 14/02/18 | 33.6p |
| permanent tsb Group | NEUTRAL | 06/03/19 | Outperform | 01/08/18 | 45.0c |
| RBS | NEUTRAL | 11/02/19 | N/A | N/A | 128p |
| Virgin Money UK | NEUTRAL | 17/12/19 | Underperform | 15/11/19 | 69.1p |
DAVY VIEW
The reductions in the countercyclical capital buffer (CCyB) will, importantly, create additional headroom, as they are intended to do, while the deferral of the systemic risk buffer (SyRB) removes a capital tail risk. The coming period will see banks focus on working with customers, providing support to navigate the challenges presented by coronavirus, aided by the increased capital headroom. The focus now moves to how regulators will treat newly formed non-performing exposures (NPEs).
