Irish bank shares fall as summer rate cut looms into view

The euro hit a two-month low against the dollar

Profits at AIB, Bank of Ireland, and PTSB had surged in 2023 as the banks tapped huge amounts of additional interest income when the ECB hiked rates to their highest levels since the birth of the euro

Shares in all three Irish stock market-listed banks fell sharply, as cuts to elevated interest rates that had driven their profits last year loomed into view.

AIB shares closed 3.3% lower, Bank of Ireland were down 2.5%, and PTSB shares ended 2.3% lower after the European Central Bank left official interest rates unchanged at its meeting in Frankfurt, but signalled nonetheless that rates would start to be cut at its next key gathering in June.