Analyst Alvaro Serrano of Morgan Stanley maintained a Hold rating on Bank Of Ireland Group plc, retaining the price target of €14.50.
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Alvaro Serrano has given his Hold rating due to a combination of factors related to the Bank of Ireland’s financial performance and market expectations. The bank’s net interest income (NII) growth year-to-date aligns with Morgan Stanley’s estimates, and the full-year guidance remains slightly above consensus. Customer deposits have seen a modest increase, and the loan book remains stable, although affected by foreign exchange and corporate balance reductions.
Despite these stable indicators, the unchanged cost guidance and the potential increase in UK motor finance provisions could impact the bank’s capital ratios. The bank’s CET1 ratio has improved slightly, but the anticipated provision increase may reduce this ratio. Overall, the financial results are largely in line with expectations, and the stock’s valuation on a price-to-tangible book value basis suggests a balanced risk-reward profile, justifying the Hold recommendation.