Banking

Lorcan Allen: Bank of Ireland set to rival AIB with bumper profits fuelled by price hikes

Irish banks’ profitability is predicted to return to Celtic Tiger levels overall this year and shareholders are gearing up for a cash bonanza

Bank of Ireland’s branch in Lower Camden Street, Dublin. Its share price has surged 75 per cent in the last year and the bank is now valued at €10 billion. Picture: Fergal Phillips

On Friday morning last week, shares in Bank of Ireland shot up by 5 per cent in early morning trading after AIB, its main rival, reported bumper profits for the first six months of the year. Investors were right to be excited.

AIB’s performance is a clear signal that Bank of Ireland will also report very strong profits when it announces its half-year results tomorrow morning, given the similarities in the business model and scale ...