AIB sets EU1 billion share buyback, ups dividend despite profit slip
AIB Group PLC on Wednesday launched a new €1 billion buyback scheme and raised its dividend, despite reporting an annual profit downturn.
Shares in the Dublin-based bank rose 3.5% to 764.00 pence on Wednesday morning in London and are up 38% over the past year.
Pretax profit fell by 11% to €2.40 billion in 2025 from €2.70 billion in 2024.
Operating income declined by 18% to €4.05 billion from €4.91 billion, while net interest income dropped by 9.2% to €3.75 billion from €4.13 billion on-year, with AIB citing lower interest rates for the decrease. Other income totalled €756 million, down from €779 million the previous year.
Net fee and commission income, however, edged up to €692 million from €666 million, ‘primarily reflecting higher card, wealth and insurance income partially offset by lower foreign exchange income,’ AIB said.
New lending increased to €14.7 billion in 2025 from €14.5 billion in 2024, while total customer deposits climbed to €117.2 billion from €109.8 billion.
The bank has declared a final dividend of 46.26 euro cents per share, lifting its total dividend to 58.59 cents, up 58% from 36.98 cents in 2024.
AIB also launched a fresh round of share buybacks, for up to €1 billion, run by Goodbody Stockbrokers UC and Morgan Stanley & Co International PLC. The programme will be completed by the end of 2026, with all repurchased shares to be cancelled.
Additionally, the lender plans to seek shareholder approval for a follow-on odd-lot offer to smaller shareholders. This is a response to requests from its investors, it said.
AIB’s return on tangible equity was 25% in 2025. In the year ahead, the bank expects ROTE of at least 20%. It sees net interest income remaining broadly stable at €3.8 billion, and expects other income to be above €750 million.
‘Strong funding and capital ensure AIB is well-positioned for sustainable growth,’ it said on Wednesday. It maintained that capital was ‘robust’, with a common equity tier one ratio of 16.2% as of December 31, up from 15.1% a year prior.
Chief Executive Colin Hunt called 2025 ‘a landmark year’ for the bank.
‘We are successfully executing our strategy supported by a resilient Irish economy, a growing customer base and accelerating technological change,’ Hunt noted.
‘Notwithstanding geopolitical uncertainty, our focus remains on completing the final year of our current strategic cycle and planning for the future with confidence.’
Copyright 2026 Alliance News Ltd. All Rights Reserved.