Billions to be shaved off AIB’s value

The Government is likely to slash its €12.2bn valuation of AIB on the State’s books by billions to reflect the torrid times facing European bank shares this year, according to analysts.

The much-reduced valuation could delay any sale by the Government of an initial stake in AIB to 2018.

The Government, through the Ireland Strategic Investment Fund, last revalued AIB at the end of June, when it sharply cut its near 14% stake in Bank of Ireland.