Banks to continue buy-back schemes

AIB and Bank of Ireland's share buy-back sprees could continue over the next two years, as management at both banks use the tactic to support earnings in the face of reduced growth.

Davy Stockbrokers yesterday speculated that the share buy-back programme at AIB which was initially intended to eliminate €450 million in shares and the similar Bank of Ireland programme could both continue for far longer than had been anticipated.

Davy is a 100%-owned subsidiary of Bank of Ireland.