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Oct 7 2024, 07:00 IST/BST
Banks
Assessing lower interest rates
- 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 | 482c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 927c |
| permanent tsb Group | OUTPERFORM | 04/02/21 | Neutral | 06/03/19 | 170c |
DAVY VIEW
Over the last quarter, market expectations for European Central Bank (ECB) interest rates show larger declines during 2025 and 2026; as a result, we now have a more cautious view on net interest income than previously with below consensus forecasts. Growth in lending and fee income will provide some offsets, while organic capital generation and capital positions are stronger – supporting the capital returns thesis. In our view, returns remain very attractive versus the sector, and we reiterate our ‘Outperform’ rating.
