Banking

Explainer: Why the government stands to bank significant cash if AIB delivers blockbuster returns

AIB is supposed to pay out €1.4 billion in shareholder returns and as the top shareholder, the Irish government could reap over €500 million

A surge in interest related income has provided a boon for AIB’s operating profits, which are expected to be higher than the €1.9 billion reported by Bank of Ireland. Picture: Aidan Crawley

Tomorrow morning AIB is expected to announce about €1.4 billion in shareholder returns after the rapid hike in interest rates has helped fatten the bank’s bottom line and left it swimming in surplus cash.

As the top shareholder, the Irish government could reap over €500 million as part of these bumper capital returns to investors.

A surge in interest related income has provided a boon for AIB’s operating profits, which are expected to be higher ...