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Mar 1 2024, 07:05 GMT
Banks
PTSB rating upgrade; banks’ balance sheets; mortgage approvals
- 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 | 429c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 805c |
| permanent tsb Group | OUTPERFORM | 04/02/21 | Neutral | 06/03/19 | 157c |
DAVY VIEW
The upgrade of PTSB to BBB- by Fitch results in PTSB having two agencies with investment grade. This should attract further fixed income investors, some of whom require two investment grade ratings. Balance sheet trends in January are also consistent with recent months. There is no material change evident in consumer behaviour, with a small increase in term accounts – which now represent 5% of household deposits. Mortgage approvals show similar trends to recent months, showing that first-time buyers remain the most buoyant part of the market but subdued activity in second and subsequent buyers.
