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Mar 30 2020, 08:15 IST/BST
Banks
2019 dividends withdrawn in line with ECB recommendation
- Sectors : Banks
- Companies : permanent tsb Group | AIB Group | Bank of Ireland
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 | 112c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 195c |
| permanent tsb Group | NEUTRAL | 06/03/19 | Outperform | 01/08/18 | 56.0c |
DAVY VIEW
The announcements by both AIB Group (AIBG) and Bank of Ireland (BIRG) that the 2019 dividends will not be paid should not come as a surprise and will be understood as the prudent course of action. It remains far too early to assess the impact of the pandemic but, given the material uncertainty that it generates, conserving capital resources is the correct measure at this time. Given the significant measures announced by regulators, we would not expect any read-across to AT1 coupons and anticipate that these will continue to be paid.
