Shares bank of Ireland or aib

Dixons

Hey I was wondering would now be a good time to invest in shares in the bank of ireland or allied Irish any help would be greatly appreciated

euroboom13

Bank of Ireland =yes
A.i.b. =not yet(when government sell at least 70%)
Good luck

ranger4

BKIR.

HobbyMan

On a valuation basis Bank of Ireland is much cheaper than AIB.

I personally think that BOI has understated liabilities on the balance sheet in collusion with the government, for obvious reasons, but it looks like they'll stand the test of time especially with house prices and rents rising again in parts of the country.

A client has asked me about BOI so I must go through the last set of results with a fine tooth comb. thanks for the reminder. :-)

Most people become a little less gung-ho about investing in banks and insurance companies when they find out that these type of companies are essentially insolvent institutions which are only successful based on trust. If all depositors withdraw their savings (for whatever reason) at once or file their claims at once then those institutions cease to trade.

That's not to say that these type of companies make bad investments but you should really know how they operate before investing (or speculating).

Trish56

Good article today on Bank of Ireland and AIB shares in the Irish Times.

zetalambda

euroboom13 wrote: »

Bank of Ireland =yes
A.i.b. =not yet(when government sell at least 70%)
Good luck

Why is that? And what would be the possible implications of buying shares in AIB now?

robp

zetalambda wrote: »

Why is that? And what would be the possible implications of buying shares in AIB now?

Have a look at article in today’s Irish Times.
Is now the right time to buy back into the Irish banks?

“Its share price is significantly inflated,” he says. “It’s trading at six times net asset value while its European peers are trading at roughly 1x time. So, in effect, it’s six times overvalued”.
“I would caution anyone buying into it. It’s not a true valuation or a realistic price. Beware,” says Callaghan.
Digby agrees: “I have been strongly warning people that there’s a delusion with the pricing,” he asserts.
It’s likely that AIB, with the approval of the Government as a 99.8 per cent shareholder, will at some point consolidate the shares and lower the amount in circulation. That may push the price up. However if you buy now, according to Sommerville, “you will gain no monetary benefit from this”. “If you want to buy AIB and believe it will recover well, you will have to wait until the Government sell some part of the bank so there is a proper liquid market in the shares,” he says.
Buying now means “you are literally throwing money away” he adds.”

zetalambda

Would the situation with Permanent TSB shares be the same as AIB?

lucky john

HobbyMan wrote: »

Most people become a little less gung-ho about investing in banks and insurance companies when they find out that these type of companies are essentially insolvent institutions which are only successful based on trust. If all depositors withdraw their savings (for whatever reason) at once or file their claims at once then those institutions cease to trade.

That's not to say that these type of companies make bad investments but you should really know how they operate before investing (or speculating).

That's an interesting perspective. Is the same not true of plenty of other companies? If a 2 ryanair/airlingus planes crash in a week do we all stop flying and finish them. If a ship sinks is that the end of irish continental. If there's no oil of irelands coast is providance a gonner? If we all stopped buying papers tomorrow, good bye inm ect.

Every company sells something and we all place a certain trust in their produce/service before we buy it. No?

robp

lucky john wrote: »

That's an interesting perspective. Is the same not true of plenty of other companies? If a 2 ryanair/airlingus planes crash in a week do we all stop flying and finish them. If a ship sinks is that the end of irish continental. If there's no oil of irelands coast is providance a gonner? If we all stopped buying papers tomorrow, good bye inm ect.

Every company sells something and we all place a certain trust in their produce/service before we buy it. No?

I suspect that banks are inherently less stable than say consumer goods.

RobertKK

Look at the banks, AIB got itself in trouble for the second time in 30 years I think it is.
BOI was the best of a bad lot.

Personally, I have never invested in a banking stock. They don't mkake me excited about my investment.
The best time to invest in BOI was when that American did, that rise was exciting though.

arrowloopboy

Their seems to be a serious fetish on here for two sh1tty banks :eek: .

euroboom13

Any idea`s on what's happening with aib this week????

tralalala

no but they might know

news.google.ie/news

then type AIB

Barneyc

Dixons wrote: »

Hey I was wondering would now be a good time to invest in shares in the bank of ireland or allied Irish any help would be greatly appreciated

Just wondering what peoples thoughts are on bank the bank shares now been watching BKIR for a while now seems to be struggling bait now.?

Rightwing

Barneyc wrote: »

Just wondering what peoples thoughts are on bank the bank shares now been watching BKIR for a while now seems to be struggling bait now.?

They are over valued. Just look at the mkt cap, not the price they are trading at.

The Cuban

AIB Market Cap 14 Billion SP now €5.20
BOI Market Cap 7 Billion SP now €0.23

CeilingFly

The Cuban wrote: »

AIB Market Cap 14 Billion SP now €5.20
BOI Market Cap 7 Billion SP now €0.23

Don't know where youy are getting your figures, but AIB have traded between 4.61 & 4.65 in the first few minutes of trading

The Cuban

CeilingFly wrote: »

Don't know where youy are getting your figures, but AIB have traded between 4.61 & 4.65 in the first few minutes of trading

Sorry you are correct, I was looking at the Dollar price on Bloomberg,
Still its strange that theres so much of a difference between the market caps of both banks

CeilingFly

The Cuban wrote: »

Sorry you are correct, I was looking at the Dollar price on Bloomberg,
Still its strange that theres so much of a difference between the market caps of both banks

from Irish times


The higher market capitalisation for AIB compared to Bank of Ireland is partly based on a market view that it has a higher level of “excess” capital on its balance sheet, which analysts at US investment bank Keefe, Bruyette & Woods estimate will exceed €3 billion by 2019. The expectation is that much of this can be returned to shareholders by way of special dividends or share buy backs in time, subject to regulatory approval.


Its valuation also reflects the fact that AIB has a stock of about €3 billion of losses accumulated during the financial crisis that it can use to slash its tax bill for up to three decades. Bank of Ireland, on the other hand, had €1.3 billion of so-called deferred tax assets on its books as of the end of December.

Roonbox

CeilingFly wrote: »

The Cuban wrote: »

Sorry you are correct, I was looking at the Dollar price on Bloomberg,
Still its strange that theres so much of a difference between the market caps of both banks

from Irish times


The higher market capitalisation for AIB compared to Bank of Ireland is partly based on a market view that it has a higher level of “excess” capital on its balance sheet, which analysts at US investment bank Keefe, Bruyette & Woods estimate will exceed €3 billion by 2019. The expectation is that much of this can be returned to shareholders by way of special dividends or share buy backs in time, subject to regulatory approval.


Its valuation also reflects the fact that AIB has a stock of about €3 billion of losses accumulated during the financial crisis that it can use to slash its tax bill for up to three decades. Bank of Ireland, on the other hand, had €1.3 billion of so-called deferred tax assets on its books as of the end of December.

Its a bit unfair, from a capitalistic poit of view, that AIB is now in a better position after having been bailed out while B Of I, without needing as much help, is now being punished for it.,