Analysts: Politics won’t scupper AIB sale plan

There is a very low risk that political strains at home will scupper the launch of a sale of shares in AIB by early summer, analysts have said.

Owen Callan, analyst at Investec Ireland, said the bank’s decision to restart paying a dividend for the first time since the financial crisis had “smoothed” the path for the Government to confirm it will sell a 25% stake in AIB.

Potential investors will view the dividend payment as a signal the regulator is confident that AIB has a grip over its still elevated level of non-performing loans, the analyst said.