AIB's chief executive Bernard Byrne said it could take five to 10 years before the bank fully pays back its €21bn bailout. He said the bank was mindful of its duty to the taxpayer
AIB’s Chairman Richard Pym has said today is a critical step towards a return to normality for the lender, and that the bank was fulfilling its duty to the taxpayer.
"We have paid around €3bn to the State, by way of fees related to the government guarantees and coupon payments on the preference shares and contingent capital notes," he said.
"However, today marks the start of our repayment of the capital, and we remain grateful to the Government and the taxpayers of Ireland for their continued support."
AIB hosts an extraordinary general meeting this morning, seeking shareholder approval for a series of measures allowing the bank to pay back some of its €21bn bailout.
Shareholders will vote on a plan which will see AIB repay €1.7bn to the State in the coming weeks. The State owns 99.8% of the bank.
A total of almost €4bn will be returned to the taxpayer over the next 12 months including repayments and dividends.
The vote also clears the path for the bank to launch on the stock market next year, with Minister for Finance Michael Noonan previously indicating that 25% of the company would be made available to investors.