S&P flags profitability concerns for Irish banks

S&P also said a housing and general property price bubble remains a real threat to banks across Europe, including Ireland’s main lenders

S&P sees Irish house price growth moderating, but has concerns over bank profitability.

Irish banks are facing “profound” profitability challenges as the banking market shrinks, ratings agency S&P has warned.

In a wide-ranging report on European banks, S&P Global Ratings said it sees the Irish economy growing by 4%-5% over the next two years and said the balance sheets of the Irish banks remain “robust” with their levels of non-performing assets being “manageable” at present.