BoI benefits from stress tests as shares rise 40%

BANK of Ireland benefited from avoiding a push into majority state ownership as part of Thursday’s financial stress tests, with its share price rising by more than 40% yesterday.

However, the very real threat of Government ownership at Irish Life & Permanent (IL&P) dragged that institution’s share price down by nearly 60% as trading in Irish banking shares resumed following the Central Bank’s latest capital requirement findings.

In its post-stress test commentary, Davy Stockbrokers said that “only Bank of Ireland retains a reasonable prospect of recreating an equity investment case in the near term.”