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Jun 30 2026, 07:00 IST/BST
Banks
Banks monthly: Capital - strong growth, returns and insulation
- Sectors : Banks
- Companies : 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 | 1040c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 1735c |
DAVY VIEW
In recent years, Irish banks have delivered attractive organic capital generation, above that of European peer levels. Sustainable capital generation is key to increased capital returns, which are a key element of investment cases. This has been achieved against an ongoing backdrop of higher capital buffer requirements and higher risk weighted densities in Ireland. Over time, opportunities remain for risk weighted density (RWD) optimisation, including from significant risk transfers (SRTs). The outlook for strong capital generations and returns remains firmly intact.
