Irish banks - Monthly update – appetite for destruction

Davy Research
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Q4 bank earnings have been largely overshadowed by the political cloud surrounding mortgage non-performing loans (NPLs) resolution. Opposition to NPL sales and repossessions challenge the necessary sustainable work-out of long-term arrears. The role of the unique personal insolvency arrangement (PIA) resolution tool is largely absent from the public debate. Unsurprisingly, Irish banks have underperformed against this backdrop; with further pain now caused by a politically damaging opposition initiative as the public accounts committee (PAC) contests banks’ deferred tax assets (DTAs).