...Positive Rating Outlook: Fitch Ratings has a Positive Outlook on the IDRs of Bank of Ireland (BOI) and Allied Irish Banks (AIB), and a Stable Outlook on Ulster Bank Ireland (UBIL). The Positive Outlook on BOI and AIB reflects Fitch's expectation of further improvements in their asset quality, business prospects and enhanced capital flexibility. Recovery Drives Sector Outlook: The economic recovery has broadened and is now underpinned by falling unemployment, stronger household consumption, and improved business and consumer confidence indicators. These factors have helped ease asset quality pressures, a trend Fitch expects to continue in 2016. Enhanced Profitability: Fitch expects the improvements in profitability in 2015 to stabilise in 2016, with new lending growth at better margins, low loan impairment charges (LICs) and funding costs counterbalanced by lower gains from sale on securities and lower releases of impairment reserves. Costs may remain under pressure from the need for further...
