Irish bank follows NatWest back to private ownership after 2008 bailout

By MIKE SHEEN

Updated: 09:01 BST, 17 June 2025

Allied Irish Banks has followed Britain’s NatWest back to full private ownership after the Irish government sold its remaining shares after the bank’s 2008 bailout.

The bank, one of the Republic of Ireland’s ‘big four’, was rescued by the Irish taxpayer with a €20.8billion package in the wake of the global financial crisis.

It was confirmed on Tuesday the Irish state’s remaining stake of just under 2.1 per cent had been sold, with 44million shares changing hands at €6.94 each.

The €305.3million sale, the proceeds of which will be returned to the Ireland Strategic Investment Fund, means the total return to Irish taxpayers falls roughly €700million short of the bailout sum.

Boss Colin Hunt said it marked a ‘significant day for the group’, which ‘profoundly regrets’ the need for its bailout and ‘owes an immense debt of gratitude to Irish taxpayers for the support provided during that challenging time’.

He added: ‘Since then, our focus has been on rebuilding trust, repaying the state and continuing to support our customers, communities and the wider economy.’

Big four: Allied Irish Bank has the largest branch network in Ireland

AIB, whose shares are quoted on the Euronext Dublin and the London stock exchange, has the largest branch network in Ireland to support its 3.4 million customers.

The group was one of six Irish institutions rescued by the state after it was overcome by bad loan debt related to the property bubble.

It follows the return of Britain’s NatWest to full private ownership at the end of May after its predecessor RBS was the subject of a £45.5billion bailout by the UK Government.

Around 17 years after NatWest’s rescue, the state’s exit marked an approximate £10.5billion loss to the UK taxpayer as the value of shares sold never recovered the initial investment.

The Irish government still owns warrants enabling the right to subscribe for new shares in AIB, subject to certain conditions.

AIB remains in discussion with the Irish Department of Finance regarding the potential purchase of warrants, which, if transacted, would result in the cancellation of the warrants and additional funds being returned to the state.

Hunt said: ‘The group has undergone significant transformation and through the implementation of our proven strategy, we are well-positioned to continue generating value for all our stakeholders over the medium-term.

‘With our market-leading customer franchise, resilient revenues and a strong capital position, we remain confident in the strong fundamentals of our business and our ability to play a positive role in the Irish economy, helping to build a more sustainable future for our customers while delivering sustainable returns for our shareholders.’

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Irish bank follows NatWest back to private ownership after 2008 bailout

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Read more at DailyMail.co.uk

Irish bank follows NatWest back to private ownership after 2008 bailout