AIB shares lose 6.5pc value after its tenth straight day of losses
Shares in Ireland's largest bank, AIB, fell 6.5pc on Wednesday for its 10th successive day of losses, far outpacing a decline on the wider ISEQ market which lost 1.6pc.
According to calculations by Bloomberg, the stock has dropped by 16pc in the past 5 days and by 37pc in the past 30 days as it skidded to €2.32 per share on Wednesday.
Goodbody analyst Eamonn Hughes, who retains buy rating on the stock, moved to cut his price target for the bank, which is 71pc owned by the taxpayer, to €3.50 per share from a prior target of €4.50.
Mr Hughes cited lower earnings forecasts, the increased cost of equity as the October Brexit deadline nears, higher costs and lower interest rate expectations.
The European Central Bank is expected to cut interest rates in September, a move that will bite into eurozone banks' net interest margins.
In July, AIB reported that the first half of the year had seen is new lending rise by 8pc to €6bn.
Non-performing loans at the bank fell to 7.5.pc of gross lending at the end of June, from 9.6 per cent in December and the bank aims to cut that level to 5pc by the end of the year in line with European Central Bank rules.
The decline in AIB's share price has far outpaced that of its rival Bank of Ireland, whose stock was down 1.12pc at €3.164.
Bank of Ireland cut its net interest margin guidance when it announced its first half results in July.