AIB and Bank of Ireland add €5.5bn to value since Ulster and KBC first revealed exit plans

The boost for Government-owned banks is bad news for customers as investors believe Ireland faces vastly reduced competition

The Government all but controls Permanent TSB with a stake of 75%, has a huge shareholding of 70% in AIB, and holds a minority shareholding in Bank of Ireland of 14%. Picture: Brian Lawless/PA

The three Government-owned banks — AIB, Bank of Ireland, and Permanent TSB — have between them put on more than €5.5bn in market value since late February when news first broke that major rivals planned to quit banking in the Republic, the Irish Examiner can reveal.

The €5.5bn gain in stock market value is good news for the Government which has major shareholdings in all three banks but is bad news for household and business customers as is the clearest sign yet that global stock market investors believe Ireland faces vastly reduced competition that will benefit the surviving lenders.