Latest news with #AIBGroup
Bloomberg
4 days ago
- Business
- Bloomberg
Ireland Removes Pay Caps for AIB and PTSB Executives
Salary caps for executives at AIB Group Plc and PTSB Group Plc will be removed, Ireland's Minister for Finance Paschal Donohoe has announced 'I am announcing now a further normalization of the relationship between the state and the domestic banking system,' Donohoe told reporters Tuesday. 'This means the removal of certain crisis era measures which continue to be in place today, including certain restrictions relating to pay,' he added.
Yahoo
4 days ago
- Business
- Yahoo
Ireland launches sale of final stake in AIB Group
The Irish government has initiated the sale of its remaining 2% stake in the Irish lender AIB Group through an accelerated bookbuild transaction. This step is part of a broader strategy to return the banking sector to private ownership. Minister for Finance Paschal Donohoe said: 'The State has launched a final sell down of its directed shareholding in AIB by way of an accelerated bookbuild transaction. This ABB transaction represents our seventh such disposal in AIB and will reduce the State's directed shareholding in the bank to zero. This is an important milestone in delivering on the government's policy of returning the banking sector to private ownership.' In the aftermath of a property crash in the late 2000s, Ireland injected €64bn ($73.8bn) into its banks, which amounted to nearly 40% of its annual economic output at the time, reported Reuters. Despite the massive bailout, two of the banks still failed. AIB received the lion's share of the remaining funds, amounting to €21bn, and as of last month, the state's return from the bank stood at €19.2bn. The bank is also in discussions to repurchase stock warrants held by the government, as per Reuters. The government still holds a 57% stake in Permanent TSB, which it plans to sell to complete its exit from the sector. This follows the sale of its shares in Bank of Ireland, AIB's main competitor, in 2022. While it is unlikely that Dublin will fully recover the costs of the AIB bailout, Donohoe noted last month that the state had already surpassed the break-even point on its €29.4bn investment in the three banks. This was primarily due to the recovery of €6.7bn from the €4.7bn injected into Bank of Ireland. Following the sale of its Bank of Ireland shares, the government lifted a €500,000 pay cap for the bank, after a review of the sector's pay restrictions. However, the pay cap remains in place for AIB and Permanent TSB. "Ireland launches sale of final stake in AIB Group" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Reuters
5 days ago
- Business
- Reuters
Ireland sells final AIB shares 15 years after banking crisis
DUBLIN, June 17 (Reuters) - The Irish government said on Tuesday that it had sold its remaining shares in AIB Group (AIBG.I), opens new tab, one of the country's two dominant lenders it effectively nationalised 15 years ago as part of the euro zone's biggest state rescue. The state sold a 2.06% stake in AIB at 6.94 euros per share, which will generate 305 million euros ($352.6 million) upon settlement, the finance ministry said in a statement. That will take to 19.8 billion euros the total amount returned to the state to date from its investment in AIB, it added. ($1 = 0.8650 euros)
Reuters
5 days ago
- Business
- Reuters
Ireland to sell final AIB shares 15 years after banking crisis
DUBLIN, June 16 (Reuters) - The Irish government on Monday launched the sale of its remaining shares in AIB Group (AIBG.I), opens new tab, one of the country's two dominant lenders it effectively nationalised 15 years ago, Finance Minister Paschal Donohoe said. Ireland pumped 64 billion euros ($74.10 billion) or almost 40% of its then annual economic output, into the country's banks after a huge property crash in the late 2000s stemming from the global financial crisis. Two banks that swallowed up more than half of the capital still failed. Most of the remaining funds - 21 billion euros - went into AIB and the state's return from the bank stood at 19.2 billion euros last month when its shareholding dropped to 3.3%. AIB is also it talks to buy back stock warrants the government holds in the bank. The transaction will leave Ireland with a 57% stake in the smaller Permanent TSB (PTSB.I), opens new tab to sell to complete its long withdrawal from the sector. It sold the last of its shares in AIB's chief rival Bank of Ireland (BIRG.I), opens new tab in 2022. "This is an important milestone in delivering on the policy of returning the banking sector to private ownership," Donohoe said, announcing the sale of the state's final 2% holding by way of an accelerated bookbuild transaction. The government has sold small amounts of shares between its bigger transactions, resulting in the now 2% holding. Books on the transaction are covered, a bookrunner on the deal said shortly after it was announced. While Dublin is unlikely to fully recoup the cost of bailing out AIB, Donohoe said last month the state was at that point 300 million euros above break-even on its 29.4 billion investment in the three banks, mainly thanks to recovering 6.7 billion euros from the 4.7 billion it pumped into Bank of Ireland. The government removed a 500,000 euro pay cap from Bank of Ireland after completing a review of the sector's pay restrictions shortly after the bank returned to full private ownership. The cap remained in place for AIB and Permanent TSB. ($1 = 0.8637 euros)
Bloomberg
5 days ago
- Business
- Bloomberg
Irish State to Exit AIB, Putting Lender Into Private Ownership
The Irish state has launched its final share sale with AIB Group Plc, reducing its stake in the lender to zero and putting it into private ownership. The Finance Ministry has announced its intention to exit the state's directed shareholding by way of an accelerated bookbuild transaction, the Department of Finance said in a statement Monday.
