Irish bank stocks open lower after stress tests

BOI and AIB drop, European banks gain, as investors respond to Friday’s stress tests

Italy’s Monte dei Paschi was the biggest loser in Friday’s stress tests, but it bounced as much as 10 per cent Monday morning after it was the subject to a last-minute rescue deal that means it will avoid a part-nationalisation. (Photograph: MATTIA SEDDA/EPA)

Italy’s Monte dei Paschi was the biggest loser in Friday’s stress tests, but it bounced as much as 10 per cent Monday morning after it was the subject to a last-minute rescue deal that means it will avoid a part-nationalisation. (Photograph: MATTIA SEDDA/EPA)

 

Irish bank stocks opened down on Monday morning, as investors responded to stress tests from the European Banking Authority which placed AIB and Bank of Ireland among the worst performers in Europe.

Bank of Ireland fell by 1.6 per cent, down to €0.1820, while AIB gave up as much as 1.1 per cent in early trading to fall back to €6.4280.

Across Europe however, bank shares largely shrugged off the results of Friday’s tests.

Italy’s Monte dei Paschi was the biggest loser, but has bounced as much as 10 per cent Monday morning after it was the subject to a last-minute rescue deal that means it will avoid a part-nationalisation.

Shares in Barclays, which had a CET1 ratio of 7.3 per cent in the stress tests, rose by 0.1 per cent; shares in UniCredit (CET1 ratio of 7.1 per cent) rose 2 per cent; shares in UBI Banca (CET1 ratio of 8.85 per cent) were up 3.6 per cent and shares in Banco Popolare (CET1 ratio of 9 per cent) were up 5.5 per cent. Royal Bank of Scotland, which had a CET1 ratio of 8.08 per cent, were down 0.1 per cent Monday morning.

(Additional reporting The Financial Times)