Latest news with #AlliedIrishBanks
The Independent
16 hours ago
- Business
- The Independent
Ireland completes disposal of AIB shares
Ireland has reduced its shareholding in Allied Irish Banks (AIB) to zero, completing its return of the bank to private ownership after the financial crash. AIB's exposure to Ireland's property market crash nine years ago brought the country to its knees and triggered a 20.8 billion euro bailout to save the lender from the abyss. Acknowledging the full return to private ownership on Tuesday, AIB said it 'owes an immense debt of gratitude to Irish taxpayers'. The sale of the State's final holding in AIB is expected to generate more than 300 million euro upon settlement and bring the total amount returned to Ireland from its investment in the bank to around 19.8 billion euro. The State is also considering its options with regard to warrants it still holds in AIB, including the bank purchasing them back. Including the warrants, the completion of disposal will leave the bank hundreds of million euro short of repaying the full bailout amount. However, the Department of Finance said the State is around 600 million euro above break-even on its 29.4 billion euro bailout in AIB, Bank of Ireland, and PTSB. Minister for Finance Paschal Donohoe said: 'This is an important milestone in delivering on the Government's policy of returning the banking sector to private ownership. 'When I announced the launch of the share trading plan in December 2021, I commented that banking is an activity that involves taking credit risk and therefore should be provided by the private sector. 'It follows that taxpayer funds which were used to rescue the Irish banks should be recovered and used for more productive purposes. 'The gradual disposal of the State's investment in AIB into a rising market has been successful in delivering on this objective for our citizens.' AIB Group chief executive officer Colin Hunt, said: 'Reaching this milestone is a significant day for the Group. 'AIB profoundly regrets that the institution had to be rescued by the State almost two decades ago and owes an immense debt of gratitude to Irish taxpayers for the support provided during that challenging time. 'Since then, our focus has been on rebuilding trust, repaying the State and continuing to support our customers, communities and the wider economy. 'The Group has undergone significant transformation and through the implementation of our proven strategy, we are well-positioned to continue generating value for all our stakeholders over the medium-term. With our market-leading customer franchise, resilient revenues and a strong capital position, we remain confident in the strong fundamentals of our business and our ability to play a positive role in the Irish economy, helping to build a more sustainable future for our customers while delivering sustainable returns for our shareholders.'
Euronews
28-01-2025
- Business
- Euronews
Irish state cuts AIB stake in further move towards privatisation
The Irish government is offering a 5% stake in Allied Irish Banks (AIB), reducing its holding from 17.5% to 12.5%. In a statement, the finance ministry said on Tuesday it had sold 116 million shares at €5.60 each - raising around €652m. This latest transaction achieved a price which was 14% higher than that achieved in the previous AIB sale last June. The total will be placed into the Ireland Strategic Investment Fund, awaiting further direction from Minister for Finance Paschal Donohoe. The State's investment in AIB has so far brought it €17.9 billion. 'We have made significant progress in reducing the State's shareholding in AIB from c. 71% at the beginning of 2022 to c. 12.5% today,' said Donohoe in Monday's statement. 'It is now a realistic target that the State could exit its position in AIB later this year should market conditions allow,' he added. Commenting on the share sale, AIB Group Chief Executive Officer Colin Hunt said: 'This well-supported transaction is another important milestone in the process of returning the State's investment in the Group and a normalisation of the share register.' 'It will return a further c. €652 million to Irish taxpayers to whom AIB is deeply grateful, for their support during the financial crisis.' Along with other Irish banks, AIB was bailed out by the state following the 2008 crash, emerging as a warning sign against reckless lending. As the bank's finances have improved, the state has slowly been reducing its stake, launching an IPO for a portion of its shares in 2017. The €29bn rescue still remains present in the minds of policymakers as they seek to learn from the complacency of the Celtic Tiger boom era. Dublin has notably been storing away income into sovereign wealth funds, boosted by multinational tax revenue. Some experts nonetheless argue that more money must be allocated to these pots - particularly in light of uncertainty surrounding the Trump presidency. AIB will deliver new 2024 financial results on 5 March.
