Allied Irish Banks rose as much as 11 per cent in Dublin trading this morning.
The rise came after the lender said it sold a five-year bond not covered by the Government guarantee, and the final stages of Ireland’s National Asset Management Agency legislation were passed in the Dáil last night.
AIB climbed as much as 19 cents to €1.95 and traded at €1.93 at 8.33am. Bank of Ireland rose 4.2 per cent to €1.99. At 10.45, AIB was up 8.125 per cent at 1.93, while BoI was at 1.972.
Shares in Aer Lingus climbed some 5 per cent this morning to 0.56 after the carrier reported a slight fall in traffic during the month of October. Passenger numbers fell 0.2 per cent from a year earlier to 902,000 for the month.
Elsewhere, European stocks were little changed before a report forecast to show US employers cut fewer jobs last month.
The Dow Jones Stoxx 600 Index slipped less than 0.1 per cent to 240.48 as of 10.21am in London.
Banking stocks rallied in late Dublin trading yesterday, with both BoI and AIB closing up and pushing the Iseq to outperform the European markets.
BoI finished at €1.91, up 9.14 per cent and AIB closed at €1.76, up 4.14 per cent. Strong rises for BoI came on the back of news the bank is about to raise additional capital through internal measures and is poised to claw back some of its losses, traders said.
Additional reporting Bloomberg