6 of 6
BACK NEXT
Allied Irish Banks PLC
Allied Irish Banks PLC
Headquarters: Dublin
U.S. Ticker: AIB (NYSE)
P/E (2008 est.): 7.4

With major U.S. financial institutions like Citigroup racking up huge losses and Bear Stearns having a near-miss with bankruptcy, you might be tempted to write off banks as investments altogether. But before you do, take a look at Allied Irish Banks.

Allied Irish is a mid-sized bank with about $260 billion in assets, that operates primarily in Ireland and the U.K. it also owns part of an operation in Poland and a small stake in U.S. regional M&T Bank. But unlike many of its peers, it has limited exposure to subprime mortgages.

Still, AIB is trading as if the company was having serious problems. At only 7 times 2008 earnings estimates, the shares are "really really cheap," according to Zacks senior equity analyst Ann Heffron.

To be sure, earnings are expected to be flat this year. But analysts are projecting annual profit increases of 19% a year for the next few years thanks to continued strength in the Irish economy, aka the Celtic Tiger. Bear Stearns analyst Vikash Patel also points out that the bank, which has increased its dividend by about 10% a year, should continue boosting its payout even if the Irish economy starts to slow down a bit.

More galleries

Last updated June 20 2008: 1:19 PM ET
More Galleries
6 luxury getaways to escape your digital life Step away from your smartphone. No Facebook or Twitter here. These are six places where luxury travel agents send clients looking to unplug and experience the ultimate digital-detox getaway. More
Most reliable cars - Consumer Reports These cars, trucks and SUVs scored best in the magazine's latest survey of vehicle owners. More
Some Converse copycats cost big bucks A few bargain brands got swept up in Chuck Taylor's net, but others cost a pretty penny. More

Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.