Banks

Capital relief provides space to support customers

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

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Mar 19 2020, 07:30 GMT

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