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AIB HAS ANNOUNCED a return to profitability in 2021 and confirmed that discussions are underway about a buyback of some State shares.
The bank had a full-year profit after tax of €645 million in 2021, despite uncertainties related to the Covid pandemic. It will pay out €213 million to shareholders.
AIB CEO Colin Hunt said he was “particularly delighted” that the bank is back to paying dividends to shareholders, including the State.
He said the bank will conduct a share buyback of €91 million and is now in discussions with the State about buying back some of the State’s 71% shareholding.
AIB has a 28.3% share of the Irish mortgage market and during 2021 its performing loans increased to €55.3 billion, up from €55.1 billion in December 2020. Non-performing exposures were down, primarily due to portfolio sales.
In a message to AIB Group staff today, Hunt said he was conscious that the bank was reporting results while “a terrible war is being waged against the people of Ukraine”.
“A humanitarian crisis is unfolding in real time before our eyes,” he wrote. “We are working very closely with our partner, GOAL, on its Ukraine Crisis Appeal and will be promoting the appeal across all our channels.”
He said AIB will match all employee donations to the appeal and will also immediately donate €250,000 to GOAL to assist them in their response to the crisis, as part of an overall €500,000 commitment to support those in need.
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We/government owned 99%, so if AIB have 28% When did they repay 27% of their loan? It would also be nice to see the tax payer get part of the loan back too.
@Rob Cunningham: It wasn’t a loan. We (i.e. the state) effectively bought AIB shares, which have since been sold back into the market, hence we now hold 71% of AIB. A share buyback could reduce this slightly but we will remain majority shareholders.
So now that it is turning a profit its time to sell the governments share to private individuals until it goes belly up again. The government can buy it back and bail out the shareholders agian then is it? If it is making more money for the state than the interest on the loans to bail it out surely it would make more sense for the state to keep it.
So can they look after our USC repayments now?
Great, does that mean they will get rid of USC? Remember the temporary tax?
@Míleata Watch Co: mm literally said in the last two weeks that they wouldn’t do away with usc because the country can’t afford to! Such nonsense!
Why sell a profitable asset? Add its profits towards a sovereign wealth fund after we have been payed back twice what we spent.
Why sell the shares back when making profit?
Why not use the profit to help give those renting get a mortgage and own their own home?
I’d like reimbursement for my shares thanks
Let them buy it back at €6 a share if they want them that badly.
Profit my foot. Loans written down to tiny fractions of original amounts being paid off as small landlords sell off their properties now at new values, is not profit. And we wonder why there is a housing crisis.
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