State’s stake in AIB falls below 40%, reigniting salary cap debate

AIB is expected to report annual operating profits of €2.7 billion on Wednesday

A spokesperson for the Department of Finance said that the reduction in the state’s share in AIB was a “significant milestone” for both parties. Picture: Aidan Crawley

The state has reduced its stake in AIB to below 40 per cent, ahead of the release of the bank’s annual results on Wednesday.

The government’s share in the bank now stands at 39.98 per cent, down from 40.77 per cent, following a transaction on February 29.

In January, Michael McGrath, the finance minister, announced that the government’s trading plan in AIB shares, a mechanism by which it has been reducing its stake in the bank since 2022, would be extended into a fifth phase until July 23 at the latest.