Banks - Q3 preview: no fireworks

Davy Research
/Read Important Disclosures

The recent introduction of Level 5 restrictions is likely to overshadow the good recovery in activity levels in Q3 and into early October. We do not expect material changes to provisioning from the increase in restrictions due to the proactive approach to provisioning in H1 and the increase to state supports following the move to Level 5. We expect capital to remain significantly above regulatory requirements, providing further reassurance on the ability to manage heightened restrictions.