AIB chief says lender faces very valuable IPO

Bernard Byrne, the new chief executive at Allied Irish Banks, confirmed a so-called capital restructure is at an advanced stage, saying that the lender — bailed out at huge cost by Irish taxpayers — will be highly attractive when it returns to the market.

AIB’s Government owner has repeatedly said that a stake of 25% will be sold next year — after the election, but that restructuring the bank’s €3.5bn of preference shares — part of the €20.6bn taxpayers injected into the bank during the crisis — will be needed for the State to start getting back its cash.

Talking to reporters on the sidelines of a banking conference yesterday, Mr Byrne, who took up the top job at the bank in May, said plans to give back “a meaningful amount” of the bailout cash to the State by way of the preference shares will be completed by the end of the year. He denied that the looming election was driving any timetable by the bank and its Government owner to return some cash to the State by an early date.