Bank of Ireland has started its €50m share buyback programme announced last month after obtaining regulatory approval for the scheme.
The bank unveiled plans to buy back ordinary shares when reporting an annual net profit of more than €1bn in February in order to reduce its share capital.
UBS will conduct the programme to repurchase the shares on behalf of the group and to make trading decisions in accordance with certain pre-set parameters, Bank of Ireland said.
The programme will end no later than 25 May, with up to 50m shares being repurchased on the Euronext Dublin exchange, at a minimum price of €1 each, before being cancelled.
Speaking last month, Bank of Ireland CEO Francesca McDonald said the bank increased it operating profit by 25% compared to 2019, growing income, reducing costs and increasing capital ahead of its planned acquisitions of portfolios from Davy and KBC Bank Ireland.
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"The outlook across our core markets is positive. We see continued momentum as we execute our strategy, leading to growth in sustainable returns for shareholders. This underpins our target to deliver a sustainable return on tangible equity in excess of 10%," she continued.
"We look forward to becoming the first Irish bank to return to full private ownership this year."
Bank of Ireland saw net interest income rise 5% in 2021 on the back of reduced funding costs and negative interest rates, while income was up across its business (+15%), wealth and insurance (+24%), corporate and markets (+13%) and retail Ireland (+3%) divisions.
Operating expenses fell 4% while staff costs were down 8%, with the lender having cut 1,700 jobs over the past couple of years. Customer deposits rose €4.2bn year-on-year to €76.3bn while customer loan values fell €300m to €76.3bn.
The Competition and Consumer Protection Commission (CCPC) last month warned of its concerns about Bank of Ireland's plans to purchase €9bn worth of performing assets from KBC as it could substantially reduce competition in the mortgage market.
The CCPC said a full investigation was required to establish if the proposed transaction could lead to a substantial lessening of competition in the state, which it expects to conclude by May.
Photo: Pictured at the announcement of Bank of Ireland's 2021 Annual Results are Francesca McDonagh, Chief Executive and Myles O'Grady, Chief Financial Officer. (Pic: Naoise Culhane)
