herald

Monday 20 August 2018

BANKING: AIB Polish sale in probe

AIB's sale of its stake in Bank Zachodni is being probed by the Polish financial regulator and may be referred to the European Commission.

The deal, which saw the Irish bank offload its stake to Banco Santander for €3.1bn, is being investigated by Poland's Financial Supervision Authority (PFSA) after "certain doubts" have arisen.

A spokesperson for PFSA said that there were some concerns regarding whether confidential information was revealed to the potential buyers.

The PFSA said that the investigation follows normal procedure, and AIB have confirmed that the sale process was conducted in "an entirely appropriate manner."

The Zachodni sale marked the first step in AIB's bid to improve its capital base by €7.4bn before December 31 to meet targets set by the Financial Regulator here.

The Colm O'Doherty-led bank's 22pc stake in US bank M&T is also on the market, which could potentially generate €1.2bn in capital.

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