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
A cheapskate's guide to tech From ebooks to phone service, here are some tips for living your digital life on the cheap. More
2015 Mustang's asphalt-peeling power goes modern The new Ford Mustang has been upgraded and updated to compete globally - but never fear, it's still a monster. More
15 top executives with $1 salaries Some CEOs and founders agree to salaries of just $1 a year. But once goodies like bonuses and stock options are added in, some of those executives end up taking home many millions of dollars a year. More

Special Offer
Market indexes 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. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.