IRELAND has officially ended its ownership of Allied Irish Banks (AIB).
The government confirmed the sale of its remaining 2.06% stake in AIB, generating €305.3 million at a price of €6.94 per share.
This final sale means the state now has no direct shareholding in AIB.
Finance Minister Paschal Donohoe described the sale as a “significant moment” in a statement.
“This sale completes our exit from AIB and highlights continued strong investor interest in Irish financial institutions,” Donohoe said.
Ireland had invested €20.8 billion in AIB during the banking crisis in 2010, which was triggered by a property market collapse and the ensuing global financial turmoil.
This final sale has now returned €19.8 billion to the state coffers.
AIB is also in discussions with the Department of Finance about buying back warrants issued in 2017, which could bring in additional money.
The bailout of Ireland’s banks cost the public purse €64 billion in total, which was akin to 40% of the country’s GDP at the time.
While AIB and Bank of Ireland have since recovered, the failures of Anglo Irish Bank and Irish Nationwide Building Society accounted for more than €37 billion of that total, which is unlikely to ever be returned in full.
Despite not fully recovering the entire AIB investment, Donohoe noted that, when including gains from Bank of Ireland, the State is currently ahead by around €600 million of the €29.4 billion collectively invested in AIB, Bank of Ireland, and Permanent TSB (PTSB).
AIB Group Chief Executive Colin Hunt said in a statement, “This is a landmark day for AIB. We deeply regret that the bank had to be rescued by taxpayers, and we are grateful for the support that allowed us to rebuild.”
Hunt also emphasised the bank’s transformation in recent years, citing its strong financial performance.
With AIB now fully privatised and Bank of Ireland having already sold off in 2022, the government’s only remaining major bank holding is a nearly 60% stake in PTSB.
The government has said it will use the proceeds from these share disposals to support national infrastructure investment, as part of a broader economic strategy.
Shares in AIB dipped slightly on the Dublin exchange following the announcement, a typical market reaction to large-scale equity sales.
The state’s total departure from AIB is the end of a turbulent chapter in Ireland’s financial history.