EU pressure on AIB as capital raising not finished

AIB may find it difficult to pass European stress tests, as its capital raising won’t be finished before results are due, says Glas Securities, which specialises in fixed-income markets.

Allied Irish, the country’s second-biggest lender by market value, is seeking to raise €7.4 billion to meet targets set by the country’s Financial Regulator in March.

“AIB is still in the initial stages of its capital-raising programme, which makes it difficult for AIB to pass the EU test as it will be determined using current capital levels while not taking into account any future capital raising plans,” Dublin-based Glas said in a note to clients.