Home > Financial > AlB increases post-IPO dividend payments

AlB increases post-IPO dividend payments

Written by Business World, on 1st Mar 2018. Posted in Financial

article headline

Allied Irish Banks (AIB) will raise its dividend, it said, after annual results on Thursday that showed higher capital, lower nonperforming loans and a drop in pretax profit on fewer one-off gains.

In its first set of annual results since the state sold a 29% stake in Europe's largest initial public offering (IPO) of 2017, AIB proposed dividend payments at 12.0 euro cents per share, totalling 326 million euros .

That compared to a 250 million euro payment made to the government a year ago when the then 99.9% state-owned bank became the first domestically owned lender to restart dividend payments since the financial crisis.

AIB's tier one capital ratio rose to 17.5% from 15.3% a year ago, far above its medium term target of 13%. Its expected level of excess capital over the next two to three years was a key selling point in last year's IPO.

AIB plans to return the excess capital to shareholders in the first part through normal dividends with the remainder available via special buybacks or other means.

AIB, whose original 21 billion euro taxpayer bailout was the biggest for any Irish bank still trading, reported a full year pretax profit of 1.3 billion euros, down from 1.7 billion.

Excluding exceptional items, its annual profit rose 6% to 1.57 billion euros.

AIB's net interest margin rose to 2.58% from 2.57% in the third quarter while its impaired loans fell by 2.8 billion euros to 6.3 billion. (Reuters)

Source: www.businessworld.ie

More articles from Financial

image Description

Irish loan refusal rates increase from 24% to 36%

Read more
image Description

Government has additional 800m for budget 2018

Read more
image Description

Central Bank warns that Brexit poses major threat to economy

Read more
image Description

Bank of Ireland to increase lending while investing in tech

Read more
image Description

Irish people becoming more optimistic about retirement

Read more