Sinn Féin polling slump reduces risk of ‘dramatic economic policy shift’ for banks, say analysts

Party would need a majority to ‘fully enact the more radical of its stated policies that affect the banks’, said the Barclays analysts

Sinn Féin president Mary Lou McDonald and the party's finance spokesperson Pearse Doherty. Photo: Gareth Chaney

Sean Pollock

The risk of a “dramatic shift” in economic policy hitting Ireland’s banks has reduced due to Sinn Féin’s poor performance in recent polls, according to analysts at UK-headquartered investment bank Barclays.

The Barclays analysts highlighted how what they described as “populist left” policies could lead to an earnings per share reduction of around 10pc at the Irish banks. The potential risks to the banks were included in an equity research note.