Michael Murray: How attractive is AIB now?

Investors have much to ponder with a 25 per cent stake in the state-owned bank coming up for sale

AIB Bank centre, Ballsbridge. ‘We would expect AIB to be of interest to investors globally,’ Investec analysts wrote last week Picture: Feargal Ward

As an investment proposition, banking has changed fundamentally since the financial crisis of a decade ago. Regulatory standards have been raised substantially; capital requirements to cover all of the different risks facing banks, especially for operational risk, credit risk and market risk, have been hiked hugely. The consequence has been a more sober sector in terms of realistically assessed return prospects closer to a regulated utility rather than to the bulging, risk-climbing go-go ...