Thursday 24 January 2019

The state of play on bank bailouts

Stock image
Stock image

Taxpayers have more than €10bn of recoverable value tied up in bank shares, but will still book a near €30bn loss on the bank bailouts because so little will ever be clawed back from Anglo Irish Bank and Irish Nationwide Building Society.

The Government pumped €4.8bn into Bank of Ireland during the crash and since then has reaped over €6bn back, including from fees, share sales and debt repayments. The value of its remaining 14pc stake is worth close to €1.1bn.

At AIB, fees, share sales and debt repayments have raised about €10bn, against the roughly €21bn cost of rescuing the bank. At current prices, another €9.6bn stands to be recouped from selling the State’s remaining 71pc stake.

Permanent TSB is the worst performer, relatively, out of the three recovering banks. During the crash the bank received a €4bn lifeline and still owes the State just shy of €1.5bn.

Online Editors

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