The Irish Department of Finance has officially announced the completion of the sale of the State's remaining stake in AIB, marking the end of the bank's bailout during the global financial crisis. The government's rescue and nationalization of AIB amounted to €22 billion.

The sale of the final state-owned shares is expected to result in a loss of approximately €2 billion on the AIB bailout. In contrast, taxpayers made a notional profit on the smaller rescue of Bank of Ireland.

While AIB is being fully privatized, the State still holds majority ownership in PTSB, the third bailed-out lender that survived the financial crash. Other rescued institutions like Anglo Irish Bank and Irish Nationwide Building Society were eventually liquidated.

The sale of the remaining AIB shares will be conducted through an accelerated bookbuild transaction, likely to be completed with a small group of institutional investors in a short timeframe.

At the current share price of €7.01, the 3.07% remaining stake is valued at around €460 million, close to the highest levels since 2017. In total, taxpayers are expected to recoup approximately €19.5 billion from AIB through share sales, interest on rescue loans, and other fees.

Finance Minister Paschal Donohoe emphasized the importance of returning the banking sector to private ownership, marking a significant milestone for the government. The last tranche of shares was sold in mid-May, with AIB buying back €1.2 billion worth.

As the State exits AIB, questions arise about the future of the €500,000 limit on executive pay at the bank. AIB has raised concerns about this ceiling, lobbying the government multiple times. The cap was introduced in 2009 after the bailout, and discussions about lifting it have been ongoing.

With the completion of the AIB share sale, focus now shifts to PTSB, where the State still holds a 57% ownership stake.