AIB has spent €500m buying back another tranche of shares from the State, with the State's shareholding in the bank falling to 22.04% from 24.88%.
It brings to €3 billion the total paid by AIB to the State so far this year and over €16 billion in total.
The shares were bought at a price of €5.445.
Colin Hunt, AIB's chief executive, said today's transaction is another important milestone in the process of repaying the taxpayer for their support, enhancing liquidity in AIB shares and normalising the share register.
"Following a very strong first half and with momentum in our business, AIB continues to support our 3.3 million customers, our communities and the wider economy while delivering attractive, sustainable returns for our shareholders," he added.
Finance Minister Jack Chambers said the completion of this latest share buyback transaction with AIB is a further positive step for both AIB and the State, adding that it further normalises the relationship between both parties with the ultimate aim of getting the bank back into full private ownership.
"It continues to be this Government's belief that banking in the main is an activity that should be provided by the private sector and that taxpayer funds which were used to support the banking sector should be recovered and put to more productive uses like enhanced delivery of public services and helping us to overcome many of the challenges we face now and into the future including areas like housing and public infrastructure," he added.
The Minister noted that the price achieved on today's transaction represents the highest AIB closing price since February 2018 at €5.445. He added that the proceeds from this transaction will be held within the Irish Strategic Investment Fund.
The total amount returned to the State from its investment in AIB has now reached about €16.6 billion.
"Significant progress has been made in reducing our shareholding in AIB from about 71% at the beginning of 2022 to 22.04% today. The State remains the largest shareholder in AIB and I will continue to assess additional opportunities for share sales as they arise," Mr Chambers added.
Shares in the bank ended higher in Dublin trade today.
