Taxpayers have so far recovered €18.5 billion from the bailed-out bank
AIB chief executive Colin Hunt and chairman Jim Pettigrew. The bank plans to buy back further €1.2 billion of Government-owned shares. Photograph: Shane O'Neill, Coalesce. AIB plans to buy back a further €1.
2 billion of stock from the Government, leaving taxpayers on track to sell its remaining crisis-era shares in the bank by the middle of the year.The bank proposed the buyback as it reported that its net profit rose 14 per cent last year to €2.35 billion, as net interest income advanced 7 per cent to €4.13 billion, even as official interest rates fell at pace between June and December. “The Group’s share register has continued to normalise and, with the State’s shareholding currently at 12.39 per cent, there is a clear path to a return to full private ownership this year,” said chief executive Colin Hunt.A Communion in the house? Your child’s first chance to learn about money I’m in my 70s and have €500,000 in savings. If I need to go into a nursing home, what happens if I run out of money?“To date, the Group has returned €18.5 billion to the State, with €4.4 billion returned since January 2024. Additionally, discussions are underway with the Department of Finance for a further €1.2 billion directed share buyback.” The bank, which received a €20.8 billion rescue investment from the State between 2009 and 2011, also plans to pay an €861 million dividend on last years earnings, it said. The net interest income figure was helped as average customer loans rose to €68.3 billion from €63.4 million and the bank managed to increase its net interest margin – the difference between the average rates at which it funds itself and lends to customers – rose to 3.16 per cent from 3.11 per cent. Still, the margin had fallen back to 3 per cent by the fourth quarter. “The outlook for net interest income remains resilient in a lower rate environment due to growth in our loan book, our stable and granular deposit base and proactive management of our structural hedge programme,” AIB said. The structural hedge relates to financial contracts the bank has entered into to ease the impact of falling official and market rates. AIB sees its net interest income topping €3.6 billion, based on a forecast that the European Central Bank deposit rate will fall to 2 per cent in June. The rate has fallen from 4 per cent to 2.75 per cent over the past nine months as a result of falling inflation. The bank delivered a return on tangible equity – a key measure of profitability of 26.7 per cent, relative to shareholders’ equity in the business – and said that the result for this year will be “meaningful ahead” of the group’s 15 per cent medium-term target.Germany’s Merz unveils huge borrowing plan ‘Where I come from, people don’t do medicine. It’s not on your radar’: how a new generation of doctors is being trained‘My son is getting married in the summer, and the likelihood is that I’m going to be able to see that’Trump declares ‘America is back’ as speech sparks Republican rapture and Democrats' departure
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