Talk of takeover played down as share price continues to decline

AIB says it does not expect to be gobbled up in the current round of consolidation in the banking industry.

Shares in the bank have fallen by 20% since hitting an all-time high in February and with the property market cooling down, AIB was singled out last week in a report by Merrill Lynch as a likely takeover target.

But chief executive Eugene Sheehy says the bank has justified its independence and said very few rivals could summon the resources to mount a takeover approach.