AIB plans capital relief as focus turns to investor payouts

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Lender set to follow Bank of Ireland with credit risk transfer deals via IrishTimesBiz

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Rival Bank of Ireland has carried out a number of similar credit-risk transfer deals since 2016, covering Irish business loans, mortgages, project finance loans and UK corporate and leverage acquisition finance exposures. AIB, which plans to pay out €381 million to shareholders by way of dividends and share buy-backs, indicated in December that it plans to hand over billions of euro of excess capital to investors in the coming years as its profitability improves amid rising rates and loan book growth, aided by the acquisition of Ulster Bank loans.

 

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