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Bank of Ireland and AIB to scrap 2019 dividend

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AIB

Bank of Ireland and AIB have withdrawn plans to pay a final dividend to shareholders in respect of last year.

It comes after the European Central Bank last week asked banks not to pay dividends to shareholders or buy back their own shares until at least October, including in respect of last year’s profits.

The State has a 71pc stake in AIB, which had proposed paying a €217m dividend this year.

The ECB wants banks to focused resources on funding for households, small businesses and corporations.

Meanwhile, Bank of Ireland said it expects the coronavirus to have a “material impact” on the group's performance this year.

The full-year outlook that it provided in February should therefore no longer be considered current in these circumstances, the bank said in a statement.

It will provide a further information in its first quarter trading update.

Elsewhere, AIB said it will conduct its AGM on 29 April via a live conference call from the bank's headquarters in Dublin 2.

Colin Hunt, AIB chief executive, said the bank is “strongly capitalised and well positioned to support the Irish economy and our customers at this critical time.”

KBC Bank also today announced it is withdrawing its final dividend over 2019 profit and cancelling its proposed share buy-back.

Online Editors