Latest news with #IrishTaxpayers
The Independent
8 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.'
BBC News
9 hours ago
- Business
- BBC News
AIB returns to private ownership after government bailout
Allied Irish Banks (AIB), one of Ireland's two major banks, has returned to full private ownership 15 years after it needed a government bank was effectively nationalised in 2010 during the Irish banking and property Tuesday, the government said it had sold its final 2% shareholding for just over €300m (£255m).The bank's chief executive, Colin Hunt, said it "owes an immense debt of gratitude to Irish taxpayers". Hunt added that AIB "profoundly regrets that the institution had to be rescued by the state almost two decades ago".Ireland's banking sector almost collapsed in the 2000s when a property price crash was exacerbated by an international crisis which left the banks unable to find funding on global Irish government controversially guaranteed the banks' liabilities which later led to huge taxpayer-funded 2021 the Irish government began selling down its then 71% shareholding in Minister Paschal Donohoe said the completion of that process was "an important milestone in delivering on the government's policy of returning the banking sector to private ownership".Bank of Ireland returned to private ownership three years ago, but the state still has a majority stake in said the state had made an effective profit of €600m (£511m)on its €29.4bn (£25m) bailouts of AIB, Bank of Ireland and the collapse of two other institutions, Irish Nationwide Building Society and Anglo Irish Bank, cost taxpayers about €35bn (£29.8m)
Daily Mail
10 hours ago
- Business
- Daily Mail
Irish bank follows NatWest back to private ownership after 2008 bailout
Allied Irish Banks has followed Britain's NatWest back to full private ownership after the Irish government sold its remaining shares after the bank's 2008 bailout. The bank, one of the Republic of Ireland's 'big four', was rescued by the Irish taxpayer with a €20.8billion package in the wake of the global financial crisis. It was confirmed on Tuesday the Irish state's remaining stake of just under 2.1 per cent had been sold, with 44million shares changing hands at €6.94 each. The €305.3million sale, the proceeds of which will be returned to the Ireland Strategic Investment Fund, means the total return to Irish taxpayers falls roughly €700million short of the bailout sum. Boss Colin Hunt said it marked a 'significant day for the group', which 'profoundly regrets' the need for its bailout and 'owes an immense debt of gratitude to Irish taxpayers for the support provided during that challenging time'. He added: 'Since then, our focus has been on rebuilding trust, repaying the state and continuing to support our customers, communities and the wider economy.' AIB, whose shares are quoted on the Euronext Dublin and the London stock exchange, has the largest branch network in Ireland to support its 3.4 million customers. The group was one of six Irish institutions rescued by the state after it was overcome by bad loan debt related to the property bubble. It follows the return of Britain's NatWest to full private ownership at the end of May after its predecessor RBS was the subject of a £45.5billion bailout by the UK Government. Around 17 years after NatWest's rescue, the state's exit marked an approximate £10.5billion loss to the UK taxpayer as the value of shares sold never recovered the initial investment. The Irish government still owns warrants enabling the right to subscribe for new shares in AIB, subject to certain conditions. AIB remains in discussion with the Irish Department of Finance regarding the potential purchase of warrants, which, if transacted, would result in the cancellation of the warrants and additional funds being returned to the state. Hunt said: '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.'
