BANK of Ireland and AIB both saw their shares plunge yesterday despite analysts saying there are a number of positives from having the Government as a stakeholder.

BANK of Ireland is still rated a buying opportunity since its recent loss in share value, according to Merrion Stockbrokers.

IRELAND’s two biggest banks — AIB and Bank of Ireland — are likely to make losses for the next two years, according to one of the country’s leading stockbroking firms.

MASSIVE bad debt write-offs are expected to cut billions of euro off the profits of Ireland’s main financial institutions — AIB Bank, Bank of Ireland, Irish Life and Permanent and Anglo Irish Bank — over the next 12 months.

THE Government will have to invest billions in the republic’s banks to offset huge losses on property backed loans, according to banking experts.