AIB plans to return a "serious sum" of money to shareholders

AIB plans to give shareholders a "jackpot" of surplus capital from 2020, after the bank has finally reduced its nonperforming loans to average European levels, announced Friday the group's CFO. Analysts after the AIB has announced a pre-tax profit of 762 million euros for the first half, Mark Bourke said the lender will likely decide in the first quarter of 2020 whether the return on capital will be under the form of a repurchase of shares or With badysts estimating that AIB could have more than 3 billion euros of excess capital following a rescue of 20,8 billion euros by taxpayers during the financial crisis, the government will want to make sure that this is reflected in the market value of the company before it is to sell other shares. AIB shares have fallen by almost 12% since the beginning of the year

'Material fall & # 39;

The state sold an initial 28.8% stake in the market last June for 3.4 billion euros. Conor O 'Kelly, executive director of the National Treasury Management Agency (NTMA), has called on the government to sell more bank securities or risk a "big drop" as black clouds appear on the horizon for the stock markets

The half-year earnings, although consistent with the same period last year, was helped by a gain of 140 million euros from the sale unproductive loans to a group led by Cerberus, a troubled US debt company.

the bank released an additional 130 million euros of previously constituted provisions for bad debts.

Mortgage Crisis Tracker

However, the bank took an additional charge of 32 million euros in the first half to cover repayments and indemnifications related to the mortgage crisis tracker, bringing in 262 million euros the total amount of its provisions.

AIB's credit portfolio, which has been declining for nine years across the sector, has increased by 500 million euros in the first half of the year, excluding the impact of net lending. decreased by 100 million euros to 59.9 million euros by the time the Bank of Ireland Bank is expected to confirm next week During the first half, NPLs fell by 27 percent to AIB, to 7.5 billion euros, the ratio of bad debts rising from 16 to 12 percent. Due to the sale of portfolio and the restructuring of the problem debt, the bank continued to restructure its problem debt

Ratios

The bank indicated that it was on track achieve non-standard loan levels. , while the European Central Bank is pushing lenders with big loans to reduce their ratios to the EU average of 5 percent.

Analysts Davy Stephen Lyons and Diarmaid Sheridan said the ability of AIB to increase its core capital ratio. Measuring a bank's reserves at A loss of 17.0% vs. 17.5% in the first half underlies a market expectation that the group will be able to return excess capital to investors over time .