AIB to reduce its share capital by €6bn

The Commercial Court has approved an application by AIB to reduce its share capital by almost €6bn for several purposes, including to clear current and future losses.

The effectively nationalised bank also wants the reduction to establish a reserve to meet other liabilities. The move allows AIB to eliminate a €2.35bn deficit on the bank’s profit and loss account.

The remaining €3.6bn reserve created by the capital reduction will be available to the bank for various purposes including eliminating any future permanent losses.