AIB's board will decide next week whether to proceed with a proposed buyback of shares from the state, which was approved by shareholders on Thursday after the bank's share price fell since the plan was announced on March 5.
In early March, AIB announced it would buy back €1.2 billion worth of shares from the government, which holds 12% of the shares, as part of a programme to boost shareholder returns.
However, the share price has since fallen below the buyout minimum of 6.26 euros per share due to a slump in global stock markets triggered by US President Donald Trump's tariffs.
AIB shares fell 0.8 percent to 5.92 euros on Thursday afternoon, above the 5.16 euros low hit on April 9 but well below the 7 euros hit on March 5.
At AIB's annual general meeting on Thursday, shareholders approved the buyout proposal, with 97% of those voting in favor. The bank's board must decide by May 8 whether the plan is in the bank's best interests, according to an AIB trading report.
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“We are obviously facing a high degree of external uncertainty and a fairly volatile market environment, but let's wait and see what happens in the coming days,” AIB CEO Colin Hunt told reporters after the meeting.
The government agreed in principle to the buyout proposal a month ago and said it could reduce its stake in the bank to about 3 percent from the current 12 percent as it plans to exit the bank entirely this year.
The delay in the buyback could delay the exit from the bank, which was effectively nationalized in 2010 when €21 billion was injected into it after the banking collapse. The lower share price could also slow a separate gradual sale of shares.
On Thursday, AIB reiterated its full-year guidance provided in March. It said its net interest income for the first quarter had fallen in line with expectations and its core Tier 1 capital ratio had increased significantly to 16.8% from 15.1% three months ago.
Sourse: breakingnews.ie
