AIB HAS ANNOUNCED a return to profitability in 2021 and confirmed that discussions are underway about a buyback of some State shares.

The bank had a full-year profit after tax of €645 million in 2021, despite uncertainties related to the Covid pandemic. It will pay out €213 million to shareholders.

AIB CEO Colin Hunt said he was “particularly delighted” that the bank is back to paying dividends to shareholders, including the State.

He said the bank will conduct a share buyback of €91 million and is now in discussions with the State about buying back some of the State’s 71% shareholding.

AIB has a 28.3% share of the Irish mortgage market and during 2021 its performing loans increased to €55.3 billion, up from €55.1 billion in December 2020. Non-performing exposures were down, primarily due to portfolio sales.

In a message to AIB Group staff today, Hunt said he was conscious that the bank was reporting results while “a terrible war is being waged against the people of Ukraine”.

“A humanitarian crisis is unfolding in real time before our eyes,” he wrote. “We are working very closely with our partner, GOAL, on its Ukraine Crisis Appeal and will be promoting the appeal across all our channels.”

He said AIB will match all employee donations to the appeal and will also immediately donate €250,000 to GOAL to assist them in their response to the crisis, as part of an overall €500,000 commitment to support those in need.