State gains €825m on AIB and BOI stock options

THE STATE’S rescue of Bank of Ireland and Allied Irish Banks has resulted in an €825 million win for the taxpayer as a result of the state holding options on a 25% stake in each of the banks.

Bloxham stockbrokers’ Kevin McConnell said: “There is already an €825m benefit to taxpayers from recovery in the market value of Allied Irish Bank and Bank of Ireland.

“This is apart from the benefit of the annual 8% yield from the €7 billion injection into the two main banks, which adds a further €560m to the return per annum.”