New chief executive ‘within months’

A NEW chief executive should be in place at AIB within the next two to three months, the bank claimed yesterday.

Management at the bank led by executive chairman David Hodgkinson said yesterday, in the aftermath of the company’s full-year financial results announcement, that its strategic review is now complete.

Mr Hodgkinson, who joined AIB last November, said while the recent Central Bank stress tests on the main banks held up the process somewhat, it is hoped that a new chief executive can be named towards the end of the current quarter, or early in the third quarter of the year.

The successful candidate would replace — on a permanent basis — Colm Doherty, who left as group managing director towards the end of last year. Outside of the main job, the process surrounding the selection of other senior management positions — basically, making up the bank’s group executive committee — is more advanced, and pending the necessary approval, should be completed relatively soon.

Meanwhile, Mr Hodgkinson and chief financial officer Bernard Byrne said that while the long-term objective must remain coming out of state ownership, such an outcome is not likely to happen for years.

However, management said that keeping a small public share listing is important, as it would make any future ownership change — via a return to a full public listing, or a trade sale — easier to undertake. AIB’s share price fell by 12%, to 22c, on the back of yesterday’s news.

They said the sale of AIB Investment Managers is still on the agenda, even after preferred bidder Irish Life & Permanent pulled out. Mr Hodgkinson said that other bidders were in the frame.

AIB also said that deposit outflows have continued to slow.