Davy reassures Irish banking stock investors

DOMESTIC and international investors in Irish banking stocks are being urged to keep the perceived increase in competition in the bank sector here in perspective.

Davy Stockbrokers says investors should not be overly concerned that an increase in competition could adversely impact on company profits or market prices.

According to Davy analyst, Scott Rankin: "New entrants to the market will undoubtedly grow their market share. However, one must note that they will be growing those shares off a low base. The only really new entrant into the market has been Bank of Scotland. Danske may technically be a new player here, but through its ownership of National Irish Bank, it's more a case of a new name over an existing door."