Bank of Ireland is most at risk out of 38 European banks by marking to market of its balance sheet , a report from US investment bank Citi said on Monday.

According to a review of the Q1 earnings of 38 European banks, Bank of Ireland is the bank most at risk to valuing all financial instruments on balance sheets at fair value.

If the bank’s balance sheet was to be marked to market a full fair value basis, Bank of Ireland’s net asset value (NAV) would be wiped out, Citi argues.

If a similar measurement was applied at UK bank Lloyds, its NAV would drop by 31 per cent; Barclays Bank would decline by 24 per cent; and Royal Bank of Scotland by 20 per cent.

On the other hand, anks with “much higher” NAV at full fair value include Caixabank, Bankia, and Banco Populare.

Pension deficits also pose a problem for BOI, and the bank is one of the most exposed to the impact of deficits on its regulatory capital as discount rates drop. BOI’s gross pension liabilities account for 101 per cent of NAV, compared with 86 per cent at Lloyds and 70 per cent at RBS.