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Feb 19 2025, 07:00 GMT
Banks
Returns, distributions and growth
- 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 | 626c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 1011c |
| permanent tsb Group | OUTPERFORM | 04/02/21 | Neutral | 06/03/19 | 149c |
DAVY VIEW
We expect Irish banks to be well positioned to manage the falling rate environment. While margins will decline, loan growth will support income prospects. This will support return on equity and capital generation. Allied to strong capital positions, payouts and yields will remain attractive. Valuations are not fully reflective of these dynamics; we retain our ‘Outperform’ ratings with price targets of €6.50 (from €6.10), €14.10 (unchanged) and €3.00 (unchanged) across AIBG, BIRG and PTSB respectively.
