Banks

2019 dividends withdrawn in line with ECB recommendation

  • Sectors : Banks
  • Companies : AIB Group | permanent tsb 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.

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Mar 30 2020, 08:15 IST/BST

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