DAVY VIEW

The sell-down will be the state’s first sale of part of its stake since the 2017 IPO and will be welcomed as a demonstration that it is committed to pursuing its strategy of not being a long-term holder in the banking sector. Given its overall stake, we would expect other forms of transactions such as directed buybacks and placings to also form part of the overall long-term strategy. AIB has made substantial progress on implementing its strategy during 2021, deploying capital in an accretive manner while also maintaining significant surplus capital. Distributing surplus capital will be a key milestone for the company but is likely not to arise until FY 2022 results, post execution of the Ulster Bank portfolio acquisition.