LAST UPDATE | 23 Sep 2022

THE IRISH STATE is no longer a shareholder in Bank of Ireland having completed the sale of its shares. 

The Minister for Finance, Paschal Donohoe TD, confirmed the completion of the sell off declaring it as an important milestone in delivering on the Government’s policy of returning the banking sector to private ownership.

Proceeds generated from the trading plan, which was managed by Citigroup Global Capital Markets amount to approximately €841 million.

The Government has now recovered almost €6.7 billion in cash from its €4.7 billion investment in and support for Bank of Ireland over the 2009-2011 period.

Shares were sold through phase three of the trading plan at an average price of €6.17 per share, up from an average of €5.64 in phase two and €4.96 in phase one.

“When I announced the launch of the share trading plan in June 2021, I commented that banking is an activity that involves taking credit risk and therefore should be provided by the private sector.

“It follows that taxpayer funds which were used to rescue the Irish banks, should be recovered and used for more productive purposes. The gradual disposal of the State’s investment in Bank of Ireland into a rising market has been successful in delivering on this objective for our citizens,” the Minister said. 

Donohoe said that the State has “made great progress” in relation to the PTSB and AIB investments which collectively are worth more than €4.9 billion.

“Our stake in PTSB is expected to reduce from 75% to approximately 62.4% later this year when the bank issues new shares in part exchange for the Ulster business it has agreed to purchase from NatWest Group Plc. Meanwhile at AIB, which is by far the State’s largest remaining investment, our stake has reduced from 71.2% to 63.5%,” he added. 

Gavin Kelly, Interim Group CEO of Bank of Ireland, welcomed news of the sale. 

“The completion of the sale of the State shareholding in Bank of Ireland is a very positive moment for Irish taxpayers, for Bank of Ireland, and for the sector as a whole.”

“Bank of Ireland should never have needed support from the taxpayer. We will always be grateful for the help we received.

“This is a milestone moment for Bank of Ireland as we move conclusively beyond the financial crisis, and is a very important step towards full normalisation of our relationship with the State,” he said.