Bank of Ireland - Positive catalyst: material scale benefits from KBC Ireland exit

Davy Research
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A potential acquisition of KBC Ireland’s performing loans and deposits would have a meaningful impact on profitability, generating significant scale from an operating perspective and utilising surplus capital. The move would also further consolidate the Irish market – a reflection of the low returns and deleveraging of the past 13 years. A transaction could increase pre-provision operating profits by mid-teen percentage points and would be highly returns accretive.