Broker lowers share price targets for AIB and BOI on slowing mortgage and SME loan growth

Irish banks face “numerous headwinds” in growing lending to households and SMEs, said Investec Ireland, as it cut its share price targets for AIB and Bank of Ireland (BoI) and raised its target for Permanent TSB.

Analyst Owen Callan said a “step down” in growth in new mortgage lending means it now forecasts new mortgage lending to reach €8.7bn this year, down from its earlier forecast for €9.1bn.