The Hindu Business Line  Sep 15  Comment 
Comedy collective AIB is launching a brand new news comedy series called On Air with AIB on the Star Network in October. The 20-episode show (10 in English, 10 in Hindi) will be released on...
The Hindu Business Line  Aug 20  Comment 
Members of AIBOC (All India Bank Officers Confederation) met here on Wednesday evening to condemn the attack of an officer of Canara Bank's Somandurai Branch near Pollachi last week. AIB...
newratings.com  Aug 7  Comment 
DUBLIN (dpa-AFX) - Allied Irish Banks Plc (AIBYY.PK, ALBK.L) reported Wednesday that its first-half pre-tax profit was 1.2 billion euros, compared to 437 million euros a year ago. Profit for the period attributable to owners of the parent rose to...
Benzinga  Jul 3  Comment 
Infosys (NYSE: INFY) today announced that it has been selected as a strategic partner by Allied Irish Banks, p.l.c. (AIB), a financial services group operating predominantly in the Republic of Ireland and the UK. Leveraging the momentum of this...
Financial Times  May 29  Comment 
Lender chooses insider to guide group’s return to stock market
newratings.com  May 29  Comment 
DUBLIN (dpa-AFX) - Allied Irish Banks Plc. (ALBK.L, AIBYY.PK) Friday said it has appointed Bernard Byrne as its new chief executive with immediate effect. He replaces David Duffy who is leaving to pursue a career opportunity overseas. On Jan....
guardian.co.uk  May 12  Comment 
Bailed-out bank seeks to cross-examine O’Reilly, once Ireland’s richest man and ex-boss of Heinz and Independent newspaper group, over his financial means Sir Anthony O’Reilly, once one of Ireland’s most distinguished businessmen and the...
newratings.com  May 1  Comment 
DUBLIN (dpa-AFX) - Allied Irish Banks Plc. (ALBK.L, AIBYY.PK) Friday said it remained profitable in the first quarter and has continued to deliver on its strategic objectives. Fully loaded CET1 capital, which includes 2009 preference shares,...
Mondo Visione  Apr 16  Comment 
Novantas, a leading financial services analytic advisory and solutions firm, is pleased to announce that Allied Irish Banks, p.l.c. (AIB) has selected Novantas’s PriceTek (R) Deposits Platform to improve analytical efficiency and provide a...
Financial Times  Mar 8  Comment 
Duffy joining Clydesdale after opening way for Irish bank’s IPO


Allied Irish Banks (NYSE: AIB) is the second-largest bank in Ireland by assets. The firm offers various financial services, including lending and capital markets activities. Debt contagion in Ireland has caused the bank to suffer losses in the past two fiscal years, as interest rate changes cause the bank to make less net interest income. In addition, the bank's Irish clients are failing to repay loans, as Ireland's economy is drowning in debt.

Business Overview

In the past fiscal year, Allied Irish Banks turned a loss due to debt contagion in Ireland.[1] As the debt crisis consists,[2] AIB and other Irish banks may continue to turn losses.

Trends and Forces

AIB Suffers from European Debt Contagion

AIB is directly and indirectly affected by market conditions. For example, changes in interest rates could adversely affect net interest margin — the difference between the yield the bank earns on assets and the interest rate it pays for deposits and other sources of funding — which could in turn affect earnings. Market risks include fluctuations in interest and currency exchange rates, and equity and futures prices. Such risks affect loans, deposits, securities, short-term borrowings, long-term debt, trading account assets and liabilities, and derivatives. In the past fiscal year, these risks have had a negative affect on European banks, as the PIIGS (Portugal, Ireland, Italy, Greece, and Spain) have been at risk of default.

AIB has Exposure to Lending and Credit Risks

A number of AIB's products expose it to credit risk, including loans, leases and lending commitments, derivatives, trading account assets and assets held-for-sale. As one of the Ireland’s largest lenders, AIB relies heavily on accurately predicting how well its customers will repay their loans. The corporation must constantly weigh ongoing economic factors and should they overestimate its customers' ability to repay loans, the bank's overall performance will suffer.



  1. AIB 2010 20-F
  2. Seeking Alpha, "The Biggest Loser in Ireland's Ongoing Debt Crisis," 12/02/2010
  3. Bloomberg, "Bank of Ireland Becomes 'Slave' to Country's Sovereign Debt Woe," 06/15/2011
  4. Retail Banker International, "Barclays overtakes RBS to rank UK no.1 by assets," 08/06/2010
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