REG - AIB Group PLC - AIB Group announces sale of AIB Merchant Services

AIBAnnouncement

06/06/2025 07:00

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RNS Number : 7041L  AIB Group PLC  06 June 2025

  6 June 2025

AIB Group plc announces sale of minority shareholding in AIB Merchant Services

 

AIB Group plc ("AIB") today announces that it has reached agreement on the
sale of its minority stake in AIB Merchant Services ("AIBMS") to Fiserv, Inc.
("Fiserv") (the "Transaction"). Founded in 2007, as a Joint Venture((1)) (JV)
between AIB and Fiserv, AIBMS is one of Ireland's largest payment solution
providers and one of Europe's largest e-commerce acquirers.

 

AIBMS has had a strong financial performance over the past number of years and
is well-positioned for the future. Considering the evolution of the business
and the strategic priorities of both AIB and Fiserv, AIB has reached an
agreement to sell its minority shareholding of 49.9% to its JV partner Fiserv.

 

Upon completion, the Transaction is expected to result in a circa 35bps
positive impact on AIB's CET1 capital. In 2024, AIB recognised income of
€34m relating to AIBMS in its income from equity accounted investments line.

 

Merchant card acquiring services are important for many of our existing
customers and AIB will continue to work with AIBMS and Fiserv by referring AIB
customers who require these services to support them in their business needs.

 

Colin Hunt, Chief Executive Officer of AIB, said:

 

"Following a successful Joint Venture partnership, we believe Fiserv has the
commitment, experience and innovative technical solutions to grow AIBMS and
that our customers will continue to be well-served under their sole ownership.
Recognising the strength of the AIB customer franchise, we are pleased to
support our business customers by maintaining a close on-going relationship
with Fiserv. AIB continues to implement its strategy at pace, with strong
progress in each of our three focus areas: Customer First, Greening our
Business and Operational Efficiency and Resilience"

 

The Transaction is expected to be completed later this year subject to all
relevant regulatory approvals and customary closing conditions.

 

Notes:

1)        AIB's investment in AIB Merchant Services is classified as an
associate and is accounted for using the equity method in AIB's financial
statements

 

-Ends-

Contact details:

   Niamh Hore                                                 Will Goodbody
   Investor Relations                                         Media Relations
   Tel: +353-86-3135647                                       Tel: +353-86-8502204
   email: niamh.a.hore@aib.ie (mailto:niamh.a.hore@aib.ie)    email: will.r.goodbody@aib.ie

 

Forward Looking Statements

This document contains certain forward looking statements with respect to the
financial condition, results of operations and business of AIB Group and
certain of the plans and objectives of the Group. These forward looking
statements can be identified by the fact that they do not relate only to
historical or current facts. Forward looking statements sometimes use words
such as 'aim', 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan',
'goal', 'believe', 'may', 'could', 'will', 'seek', 'continue', 'should',
'assume', or other words of similar meaning. Examples of forward looking
statements include, among others, statements regarding the Group's future
financial position, capital structure, Government shareholding in the Group,
income growth, loan losses, business strategy, projected costs, capital
ratios, estimates of capital expenditures, and plans and objectives for future
operations. Because such statements are inherently subject to risks and
uncertainties, actual results may differ materially from those expressed or
implied by such forward looking information. By their nature, forward looking
statements involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future. There are a number of
factors that could cause actual results and developments to differ materially
from those expressed or implied by these forward looking statements. These are
set out in the Principal risks on pages 17 to 20 in the 2024 Annual Financial
Report. In addition to matters relating to the Group's business, future
performance will be impacted by the Group's ability along with governments and
other stakeholders to measure, manage and mitigate the impacts of climate
change effectively. Future performance could also be impacted by geopolitical
tensions and global conflict. Any forward looking statements made by or on
behalf of the Group speak only as of the date they are made. The Group
cautions that the list of important factors on pages 17 to 20 of the 2024
Annual Financial Report is not exhaustive. Investors and others should
carefully consider the foregoing factors and other uncertainties and events
when making an investment decision based on any forward looking statement.

 

 

 

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