AIB update boosts profile

The prospect of the Government selling 25% of its near total stake in AIB next year looks to have strengthened, with the bank yesterday noting continued trading momentum.

The Government is currently tendering for a sales advisor, and analysts believe the time is right to sell, with investor sentiment towards banking stocks improving and AIB’s capital strength and operational performance suggesting it is ready. Late spring or the autumn of 2017 are the anticipated potential timelines.

“The increase in bond yields over the past few months has seen investor sentiment turn more positive on the European banking sector,” said Dylan Simmonds, an equity analyst at Merrion Stockbrokers.