Allied Irish Banks plc (AIB)
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AIB Forum Topics
- All Comments on AIB
- General Discussion on AIB
- Ireland's Ailing Banking Sector [view article]
- Allied Irish Bank: Diversified Earnings, Compelling Valuation [view article]
- Six More Countries Join the Fight Against Short Selling [view article]
- Ireland Imposes Some Discipline, Reaches Pay Freeze Deal [view article]
- Attractively Valued International Dividend Stocks [view article]
- Allied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
- Replacement Candidates for David Merkel's Portfolio: From AA to ZZ [view article]
- By How Much Have Foreign Bank Stocks Fallen? [view article]
- The Ten Highest Yielding NYSE Stocks [view article]
- 10 Highest Yielding Semi-Annual Dividend Payers [view article]
- The 20 Largest Trading Losses in History [view article]
loading ...Recent AIB Articles
- Ireland's Ailing Banking Sector
- Six More Countries Join the Fight Against Short Selling
- Ireland Imposes Some Discipline, Reaches Pay Freeze Deal
- Attractively Valued International Dividend Stocks
- By How Much Have Foreign Bank Stocks Fallen?
- Allied Irish Banks: With 9% Dividend, This Bank Could Thrive
- The Ten Highest Yielding NYSE Stocks
- Replacement Candidates for David Merkel's Portfolio: From AA to ZZ
- NETS Launches First U.S. ETF to Cover Ireland
- 10 Highest Yielding Semi-Annual Dividend Payers
- Full List of Articles »
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Ireland's Ailing Banking Sector [view article]
Where do I start?Maybe I should let RTE's current affairs program do it for me:
www.rte.ie/news/2008/1...
The problem in the Irish financial system is twofold - a lack liquidity due to the international credit crunch - and SOLVENCY which will become all too clear when the Irish banks are forced to reveal all the hidden bad debts on their books from collapsing Irish property market.
Although the Allied Irish Banks (AIB) share price has bounced nicely, we can look forward to extended negative shocks. Both the bank's management, the country's politicians and even the financial regulator, Patrick Neary, are effectively in complete denial about the domestic source of the problem - huge property speculation financed by the banks, and completely useless regulation which permitted the leveraging to explode with no basis in fundamentals. The massive deleveraging process taking place across the globe will be magnified in Ireland.
So why are we not seeing this in their balance sheets? As one Irish senator put it - Irish banks are incestuous - among themselves and with their clients. They're in bed with the property developers and constructors to such an extent that they are avoiding calling in their loans which are massively in breach of the covenants (conditions) already. The values of the assets on the banks' balance sheets is now completely unrealistic and therefore the amount of bad debt is invisible to investors doing their due diligence.
At least, it will be an interesting fourth quarter. Avoid AIB, (ALBK on the London Stock Exchange) and IRL (Ireland ETF) for the moment. Reply
Ireland's Ailing Banking Sector [view article]
I have a few shares of AIB bought earlier this year after it tanked. Several different analysts in different media said it was good buy and was not involved in subprime. Of course, it tanked even more in recent months. It is barely breaking even. So I should do more due diligence than rely on several apparently unrelated experts who agree. And not be sentimental about ancestral Ireland, which now has a half million African and Mideast foreigners there as resident workers. But then the globalists hate individuality.I bought a few shares of IRL around two years ago, and then added some more earlier this year. So this is further proof that international diversity has to be more carefully thought out and executed.
I will continue to hold both and will add to both in the future to cost average. But no more money goes in right away.
One thing I found interesting in New Ireland's annual report was that it did not list major shareholders. It simply said all shares were held by Cede, the clearing house trust that holds all shares presumably, which is a scary thought. We really do not seem to own our shares. We have a claim on them. Sometimes I wonder what if our benificent government would resolve some future economic calamity by turning everyone's shares held in CEDE to some foreign creditor with claims on the nation and its inhabitants. But that is off topic. Reply
Ireland's Ailing Banking Sector [view article]
I am underwater on AIB. I bought it cheap and it got cheaper. Yet at a PE of something like 2, and at less than book value, I'll stay aboard. Low prices, after all, are not a good reason to sell anything.A leading and profitable bank in one of the world's most educated and developed countries, with assets in Poland and the US that it could sell to raise emergency cash if ever needed, and with government backing of deposits that has caused a flood of deposits has got to be worth more than that. Reply
thought
Ireland's Ailing Banking Sector [view article]
I own shares of IRE and have been following this for sometime. I am way underwater on them of course but I have continued to hold on because I have yet to see any solid or convincing evidence of why. Tough times ahead but people still need banks. ReplyIreland's Ailing Banking Sector [view article]
Agreed, Georealist.Carl took a blind and erroneous hit on AIB on his last piece. We asked for clarification then and never received it.
I hope you have better luck in holding him acountable. Reply
Ireland's Ailing Banking Sector [view article]
A VERY typical Alpha piece..lots of little "buzzwords".... analysis and...OF COURSE...one's picture and name. So..what is the analysis...???Where is AIB going from here?
Is the Ireland property market likely to hold up better or worse than most EU countries?
What are AIBs strengths and weaknesses...what's the story???? Reply
rve
General Discussion on AIB
I too have been attracted to AIB and have been a steady buyer. IMHO there are a couple of overreactions occurring...1. the weakness in the "Celtic Tiger" economy and 2. the fear that is currently attached to almost anything with the work "Bank" in its name. While I suppose the world could go all to hell in a handbasket, a 2X PE on what I analyze as a fairly strong bank will hopefully translate to large gains in the years to come. ReplyAnonymous
Ireland's Ailing Banking Sector [view article]
I was in the UK during most of March and each business professional I met with talked confidently about how the US housing & credit woes wouldn't have a contagion effect on Europe or the rest of the world. I heard the usual buzz terms like "well capitalized", "strong lending practice" and "conservative consumer debt".Its unfortunate but it looks as though "risk" is the word that is being redefined. Reply
Allied Irish Bank: Diversified Earnings, Compelling Valuation [view article]
I was attracted by AIB recently. I bought some ADR at 20$ which seemed a ridiculously low price for that stock. It is now around 17 $ A still better bargain I think. I read their semi annual report for 2008 and it seems tidy. Am I missing an important detail ? ReplySix More Countries Join the Fight Against Short Selling [view article]
Hey guys, what is short selling? No joke, Im just learning all of this stuffDave Reply
Six More Countries Join the Fight Against Short Selling [view article]
haha..forgotDisclosure: NONE! Reply
Six More Countries Join the Fight Against Short Selling [view article]
were you caught naked shorting?you should include a disclosure line... Reply
Ireland Imposes Some Discipline, Reaches Pay Freeze Deal [view article]
I guess Carl is too busy making money on AIB to clarify. ReplyIreland Imposes Some Discipline, Reaches Pay Freeze Deal [view article]
Allied Irish Banks chairman opens walletFri 19 Sep 2008
LONDON (SHARECAST) - Dermot Gleeson, chairman of Allied Irish Banks, continued lifting his stake in the bank today, splashing out more than €300,000 on shares in the company.
He bought 50,000 at €6.25 a time and now has 350,000 shares. He bought identical stakes yesterday and the day before, but paid €5.73 a share Thursday and €6.47 midweek.
Allied Irish Bank has been deeply embroiled in the turmoil that shook up the global banking sector this week following the collapse of the US investment bank Lehman Brothers.
Its share price is down by more than 20% on the week, having slumped by about 65% in the past year.
Back in May, the bank said first half earnings would fall as it felt the pinch of bad debts and global market dislocation.
Reply
Ireland Imposes Some Discipline, Reaches Pay Freeze Deal [view article]
Hi Carl,Thanks for your comments on Irish markets and banks. One thing that struck me was your comments on the fate of Allied Irish Bank. You expressed your concerns on the bank. But as I understand it, AIB is a better managed bank than Bank of Ireland. In their first half earnings announcements, AIB increased their interim dividend by 10% while Bank of Ireland cut their dividend by 50% this week. AIB is also much more diversified than other Irish banks. It has 25% stake in M&T Bank in the US, own 70% of a polish bank, and recently bought stake in a bank in Bulgaria. Can you please elaborate on your concerns about AIB? I know irish property market is busted and their economy is not doing good. But still, won't a better managed bank like AIB come out stronger once the storm settles?
Reply