Executive Summary
Allied Irish Bank Group (AIB)[1] offers banking services to personal and business customers in Ireland, Poland, the UK and the US. From its head office at Bankcentre (Dublin), the Group conducts a broad retail and commercial banking business in Ireland, which, in addition to having one of the leading national branch networks, includes significant corporate lending and capital markets activities. AIB employs 25,919 people. The Group earned an operating income of €5,068m in 2008, and achieved an operating profit of €862m. AIB shares are quoted on the Irish, London and New York Stock Exchanges. Approximately 43% of AIB's shareholders are institutional and 57% are retail.
AIB is structured into four divisions:
- AIB Bank Republic of Ireland division: the division had total assets of €80.8bn at 31 December 2008, encompassing the Group’s retail and commercial banking operations in Ireland, Channel Islands and Isle of Man.
- Capital Markets division: the division’s total assets were €60.5 billion at 31 December 2008, comprising corporate banking, global treasury and investment banking, including asset management and stock broking activities.
- AIB Bank UK division: AIB UK operates in Great Britain and Northern Ireland. The division had total assets of €22.0bn at 31 December 2008.
- Central and Eastern Europe division: based in Poland, the Central and Eastern European division had total assets of €12.4bn at 31 December 2008. AIB is the major shareholder in BZWBK[2](70.5% ownership).
Following the global financial crisis, AIB accepted a €3.5bn capital injection, in the form of preference shares, from the Irish government. The company is still struggling in the current financial climate, and has recently reported further losses (see below). [3]
Company History
AIB, originally named Allied Irish Banks Limited, was incorporated in Ireland in September 1966 as a result of the amalgamation of three long established banks: the Munster and Leinster Bank Limited (established 1885), the Provincial Bank of Ireland Limited (established 1825) and the Royal Bank of Ireland Limited (established 1836). Since that time, it has grown to become the largest Irish-based banking group based on market capitalisation at 31 December 2008.
- 1970s onwards: AIB established retail and corporate banking services in the UK, including Northern Ireland.
- July 1991: AIB acquired TSB Bank Northern Ireland p.l.c.
- 1995: AIB entered the Polish market through the acquisition of a minority interest in WBK. Since then, it…
