Irish bank shares rise as lenders weather €200m levy increase

Speaking as part of Budget 2024, Finance Minister Michael McGrath said the levy would be increased from €87m to €200m in 2024

With the existing bank levy of €87m expiring this year, investors were met with large uncertainty, with questions of whether or not a new levy would be introduced, and if it would better reflect the bumper profits posted by Ireland's pillar banks so far this year.

Shares in AIB, Bank of Ireland and Permanent TSB have been left largely unaffected by Budget 2024 which saw Ireland become the latest EU country to raise its bank levy. 

Speaking in the Dáil on Tuesday, Finance Minister, Michael McGrath announced that the bank levy, which raised €87m in 2022 and is expected to do the same by the end of 2023, would be increased significantly to €200m in 2024.