Bank of Ireland - Stronger start in Q1 leading to 2021 upgrades

Davy Research
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Bank of Ireland (BOI) started 2021 strongly, with lending balances, new lending, net interest margin (NIM) and ongoing cost performance supporting a better underlying outcome in Q1 – all despite the ongoing challenges posed by the extreme nature of the Irish lockdown. The strong performance indicates upside to our (and consensus forecast) PBT of c.10% on better net interest income (NII). Asset quality remains robust, with potential upside from the half-yearly asset quality review. This is a very supportive update coming ahead of the significant earnings catalyst from its KBC transaction.