The banking group, which operates predominantly in the Republic of Ireland and the UK, has been restructured in recent years with the aim of becoming a customer-focused, profitable and lower-risk institution that was well-positioned to support economic recovery in Ireland.

In its latest results, the bank reported new lending approvals to customers of approximately £11.2m during 2016 with a 16% increase in new lending in Ireland.

Its strong business performance helped drive AIB’s profit for 2016, along with net credit provision writebacks of approximately £254.3m and one-off benefits, including the Visa Europe transaction.

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“The bank is now ready for an IPO, when market conditions permit and the minister decides,” said Bernard Byrne, CEO of Allied Irish Banks.

“With a market-leading franchise, strong customer focus and investment in digital, AIB Group is well placed to continue to support our customers and the growing Irish economy."

Bernard revealed that AIB had returned a further £1.56bn, approximately, to the Irish state during the year.

"2016 has been another milestone year for AIB Group.

“Our strong financial performance and robust capital base support our proposed dividend of [approximately £216m] to ordinary shareholders,” Bernard added.

“This reflects our sustainable profitability, strong capital generation and focus on delivering for shareholders and customers.”