Dublin – The Irish government is set to further reduce its stake in AIB, following Cabinet approval of a €1.2 billion share buyback plan. The government currently holds approximately 12% of the bank’s shares, a stake acquired as part of the 2008 financial crisis bailout.
Under the approved plan, AIB will repurchase its own shares, significantly lowering state ownership. The sale is expected to be finalised following AIB’s Annual General Meeting on May 1, according to Minister for Finance Pascal Donohoe.
Further Reduction of Government Stake
This move follows a €652 million sale in January, where the government divested 5% of its AIB holdings. Once the latest transaction is completed, the government’s stake in the bank will shrink to just 3%.
AIB has confirmed that discussions regarding the buyback are in progress. Minister Donohoe stated that, in addition to a €100 million dividend, an additional €1.2 billion in equity will be returned to the state upon the successful completion of the transaction.
AIB reported a profit of €2.35 billion in 2023, delivering €2.6 billion in returns to shareholders. With a robust financial position, the bank is in a position to execute the share repurchase and further reduce government involvement.
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