The Government continues to hold a 71 per cent stake in the bank after its bailout during the financial crisis. The expectation has been that special dividends would be the most likely route, rather than share buybacks. “At this distressed value, we believe the focus should be on whether AIB can maintain the share count and not need to raise capital,” the KBW analysts said in a note to clients. “We believe any potential additional dividends or a buyback will now be on hold. While shares in European banks are changing hands, on average, at a distressed level of 0.4 times the net value of assets on their books, AIB is trading at half that ratio, according to KBW.

Source: The Irish Times March 23, 2020 05:40 UTC