Ireland's two leading banks dipped into the equity market again yesterday to buy back their own shares as part of their plan to return capital to shareholders.
Bank of Ireland purchased 1.35 million shares at an average price of €11.20 yesterday. This brings the cumulative buyback this year to €148 million.
AIB purchased 675,000 shares for €6.2 million, bringing its cumulative spend to €447.8 million, close to its stated target of €450 million.
Analysts expect Bank of Ireland to continue to purchase more shares as it holds capital well in excess of the standard capital requirement or "Tier 1" used to measure banks' assets.
Stockbrokers NCB estimate Bank of Ireland has about €550 million in excess capital, assuming a 7 per cent Tier 1 which is the industry average.
Bank of Ireland's chief executive, Mr Mike Soden, recently stated that capital management would be a top priority for Bank of Ireland management and so more share buybacks are expected this year.