AIB ‘will not need another bailout’

AIB will not require another taxpayer-funded bailout because of mortgage losses, chief executive David Duffy has said.

Speaking on Newstalk’s Pat Kenny Show, Mr Duffy said: “The real question here is whether we have enough capital to deal with the realistic arrears problem and the answer is yes, absolutely we do. If you look at it, what is owed to the bank that has not been paid and that is €450m. That is a good definition.”

AIB has €3bn set aside in provisions to cover bad debts and a total tier-one capital ratio of 15.1%, which was more than adequate to cover “the quantum of losses”, he said. The biggest risk to whether it will be forced to raise capital in the future comes from a potential regulatory change included in the Basel III guidelines, said Mr Duffy.