IRISH BANK AIB has announced that it intends to distribute €1.7 billion to shareholders after reporting a post-tax profit of over €2 billion.  

As interest rates rose, AIB’s net interest income rose from just over €2 billion in 2022 to €3.8 billion last year – a jump of 83% – due to the “changed interest rate environment and higher average customer loan volumes”.

The bank recorded a customer base of 3.3 million in 2023, compared to 2.8 million in 2020. During that time, as Ulster Bank pulled out of the Irish market, AIB acquired €6.8 billion worth of Ulster Bank’s loan books, with another €1 billion due this year. 

AIB has today published its annual financial results for 2023, describing it as a “landmark year”.

CEO Colin Hunt called the 2023 results an “exceptionally strong financial performance”.

“During 2023, the Group returned to majority private ownership and we are keen to return further capital to the State with proposed distributions of c. €1.3 billion, including a €1 billion directed share buyback for which discussions are underway,” he said.

The bank said its operating costs increased 10% to €1.8 billion.

It attributed the increase in costs to “the impacts of wage and general inflation, an allowance for limited variable remuneration payable in 2024 (following the relaxation of some pay constraints) and increased cost to service an enlarged Group and customer base”.