Hidden value in AIB shares

AIB’S €2.2 billion, 22.5% stake in one of the US’s top 20 banks, M&T Bank, is not reflected in AIB’s share price, according to Davy Stockbrokers.

Davy, 100% owned by arch-rival Bank of Ireland, said despite a great performance by M&T (MTB) shares up around 17% in US currency, or around 7% in euro terms the full value of the 22.5% stake, is still not reflected in the AIB share price.

"In fact, AIB's price is still down slightly this year," Davy analyst Scott Rankin said in a note to clients yesterday.