Belfast Telegraph

AIB beats Deutsche Bank in valuation


Allied Irish Banks is now more 'valuable' than German giant Deutsche Bank, at least according to the prices shares trade, which feeds the so-called market valuation.

Earlier this week AIB stock gained more than 9.3% to 15.3%, giving the bank a market capitalisation of nearly €80bn (£68bn).

Based on a valuation by Goodbody Corporate Finance, on behalf of the Irish government at the end of 2012, AIB shares were worth €0.0079, giving it a market value of €4.1bn (£3.4bn).

By comparison, Bank of Ireland, which is 15% owned by the state and is expected to be profitable next year, has a market value of €7.8bn (approx £6bn).

Even factoring in a drop in the stock yesterday, the valuation means AIB is worth more than Deutsche Bank by market capitalisation.

There is no logic to the valuation, which is likely to be based on hopes that the economy is turning a corner and to some extent tracks moves in the Bank of Ireland share price.

Belfast Telegraph