NCB recommends buying Anglo

NCB has issued a buy recommendations for Anglo Irish Bank. The brokers state that the combination of Anglo's relatively small size and enhanced capital strength before its recent £126 million (€160 million) preference share issue leaves it well positioned to accelerate its expansion plans. The brokers believe the cocktail of strong volume growth, stable margins and asset quality sustainable at relatively high levels is resulting in supra-sector growth and rising returns on equity over the coming years. It has increased its forecasts for the bank by 6 per cent following its interim results, but it does caution that Anglo's earnings are more sensitive to the economic cycle than the major Irish financial stocks.