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.

Stockbroking firm Merrion has cooled its enthusiasm around Irish stocks in the midst of rising Brexit uncertainty.

A leading mortgage broker welcomed a Central Bank move that forces lenders to put aside more capital, but warned it could also herald more stringent mortgage lending controls, making it even tougher for first-time borrowers to buy a home.