AIB directors became richer (on paper anyway) yesterday as they added to their shareholding in the bank, taking extra shares in lieu of a cash interim dividend.

AIB managing director, Mr Tom Mulcahy, received 3,151 extra share at £5.24 each, bringing his total shareholding to £1.3 million.

Under the scheme, director, Mr John McGuckian's stake rises to £909,574, while chairman Mr Lochlann Quinn's increases to £826,463. Mr Kevin Kelly now holds shares worth £337,225 while Mr Michael Buckley holds £190,295 shares.

AIB has issued 2,126,335 new shares to 22,700 existing shareholders who opted to take their 6.8p per share interim dividend for the year to end December 1997 in shares rather than in cash. Some 53.8 per cent of the bank shareholders opted to take shares in lieu of the cash payment.

The shares were issued at £5.24 each, resulting in £11.1 million, or 24 per cent of the cash dividend that would have been payable to shareholders, being reinvested in the bank. AIB shareholders have the option to take their dividends in the form of new shares. The shares are allotted at the market price and no brokers commissions or stamp duty is payable. Shares received in lieu of dividends by Irish or UK resident shareholders are not subject to income tax.