Sign In
20 Apr 2009 07:00
ο»Ώ
|
Embargo 07:00 |
20Β AprilΒ 2009 |
Allied Irish Banks, p.l.c.Β Capital Update
On 12 February Allied Irish Banks p.l.c.Β ("AIB") [NYSE: AIB]Β announced an agreement with the Irish Government in relation to the proposed recapitalisation of the bank. Since then, market and public uncertainty about our capital adequacy has persisted despite the proposed addition of β¬3.5 billion in core tier 1 capital. As previously announced, we will be seeking shareholder approval at an EGM on 13 May to accept the aforementioned capital. FurthermoreΒ following discussions with theΒ Minister for FinanceΒ and reflectingΒ hisΒ desire to ensure that systemically important banksΒ would remain adequatelyΒ capitalised,Β even in stressed scenarios,Β we have decided to take further action to strengthen our capital position as outlined in this announcement.
In cooperation with AIB,Β theΒ Minister for FinanceΒ hasΒ beenΒ conductingΒ due diligence and stress test scenarios.Β Arising from these stress testsΒ the Minister for FinanceΒ and AIBΒ haveΒ formed a view thatΒ toΒ strengthenΒ our capital position a total amount of β¬5.0 billionΒ new core tier 1 capital is appropriate.Β As a consequence,Β in addition to the proposed β¬3.5 billion injection by the Government, weΒ aimΒ toΒ increaseΒ core tier 1 capital byΒ a further β¬1.5 billion before the end of 2009. Potential sources of this capital includeΒ theΒ disposal ofΒ assets andΒ marketable assets will be considered as part of this process.Β This commitment represents a reappraisal of our previous viewΒ in relation to assetΒ disposal.Β The bank acknowledges that the Minister has said that if any further capital injections are required from the State these would be in the form of equity capital. Β
We also wish to state our supportΒ forΒ whatΒ we believe is a positive step taken by the Government in its recent decision to create a National Asset Management Agency (NAMA)Β and AIB wishes to signal its intention to participate in this initiative. NAMA is currently at an initial planning stage.Β AIB will work closely with theΒ authoritiesΒ toΒ achieve itsΒ implementation.
- Ends -
For further information please contact:
|
Alan Kelly |
Catherine Burke |
|
General Manager, Group Finance |
Head of Corporate Relations |
|
AIB Group |
AIB Group |
|
Dublin 4 |
Dublin 4 |
|
Tel: +353-1-6600311 ext. 12162 |
Tel: +353-1-6600311 ext. 13894 |
Follow the stocks
