AIB may buy back €500m of State shares in 2021

Recent slump in the bank’s share price has pushed out the timeline of special buyback

IB’s shares have fallen 42% in the past 12 months. Photograph: Aidan Crawley/Bloomberg via Getty

IB’s shares have fallen 42% in the past 12 months. Photograph: Aidan Crawley/Bloomberg via Getty

AIB may pay a €300 million special dividend to shareholders next year and buy back €500 million of the State’s shares in the bank in 2021 as it works through excess capital on its balance sheet after years of restructuring, according to analysts at Davy.

Davy analysts Stephen Lyons and Diarmaid Sheridan had expected that AIB would move next year to repurchase some of the government’s remaining 71 per cent stake next year.

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