Pearse Doherty (Donegal South West, Sinn Fein)
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131. To ask the Minister for Finance the expected returns, in dividends or in any other form, from the State’s stake in Allied Irish Banks and Permanent TSB in 2015 and 2016; and if he will make a statement on the matter. [32857/15]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware the Irish banking system is now in a much stronger position than it has been in recent years. Profits are recovering, balance sheets have been restructured and we have started the process of returning cash to the taxpayer following the huge investments that were made over the 2009-11 period. 

In relation to AIB, the State received a cash dividend of €280m in relation to its holding of €3.5 billion of 2009 Preference Shares for the first time in 2015. The State also received interest on its €1.6 billion holdings of Contingent Capital Notes (CoCo) of €160m. The CoCo is scheduled to mature in July 2016 at which point the State will receive its final interest payment of €160m and redemption proceeds of €1.6 billion in capital.

In relation to the Preference Shares, at present we are assuming a further cash dividend of €280m to be received in May 2016 however, as the Deputy will be aware, work is continuing in relation to potential capital restructuring options and sequencing in order to maximise the return of cash to the State from our AIB investments over time. These decisions include considerations around the potential restructuring of the Preference Shares. Any decision in relation to the capital restructuring will have an impact on the expected returns from AIB in the coming year. While this is just the start of the process, it is an essential first step on the road to recovering value for the taxpayer through our remaining shareholding in the bank. I have already confirmed that I will not take any decision in relation to the sale of ordinary shares in AIB in advance of the upcoming election.

In relation to PTSB, in 2015 the State recouped €509 million in capital receipts from the sale of shares (€98m) and the repurchase of the Contingent Capital Notes or CoCos (€411m) bringing the total capital receipts to c. €1.8 billion since our investment in 2011-2012 and our current shareholding to 74.92%.  I have no current plans to sell any of the State's ordinary shareholding in PTSB.  

In relation to future ordinary dividends in respect of our outstanding shareholdings in each of the banks, these are a matter for the boards of those institutions having regard to their financial performance and outlook along with their on-going capital and regulatory requirements.