Israel’s Vaccine Sprint Will Boost Banks, Barclays Analyst Says - Bloomberg
With Israel on track to have all of its adult population vaccinated against coronavirus by the end of March, a Barclays Plc analyst expects banking shares to lead a broad re-rating within the country’s stock market.
“We see Israeli banks best positioned to rerate”, Tavy Rosner wrote in a note on Tuesday, adding that their excess capital has made them resilient during the pandemic, though their loan growth has been offset by record provisions. This curb may soon disappear.
If the vaccination target is met, “we are likely to see the banks post significant loan loss provision recovery in the second half of 2021,” he said.
Rosner expects the economy to fully reopen over the coming months, highlighting a central bank forecast of 6.3% gross domestic product growth in 2021 under the rapid vaccination scenario. The nation has so far vaccinated 21% of its population, while sizable parts of its economy are shut down in the latest of three lockdowns.
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