ALLIED IRISH Banks (AIB) has named Bernard Byrne, a senior executive at the ESB, as chief financial officer in the first external appointment to the bank’s executive management team since the onset of the financial crisis.
Mr Byrne, who is currently group financial and commercial director at the EBS, will take up his new role in May, joining AIB’s group executive committee.
The bank agreed to appoint an outsider as chief financial officer following criticism of the appointment of internal candidate Colm Doherty, who was head of the bank’s capital markets division, as managing director last November.
Mr Byrne started his career with PricewaterhouseCoopers in 1988 and joined ESB International in 1994 as commercial director before leaving in 1998 to become finance director with household goods firm, IWP International.
He rejoined the ESB in 2004 as finance director and took up his current role at the semi-state company last year.
Mr Byrne’s appointment highlights the bank’s focus on its 70 per cent stake in Polish lender Bank Zachodni and 23 per cent stake in US bank MT, both of which have been suggested as possible disposals to generate capital.
He has international experience working in the financial management of businesses in Britain, Poland and the US where AIB has significant interests.
“His familiarity with our areas of operation coupled with the external perspective he brings to the role will be a major asset to the group as we position ourselves for the future,” said Mr Doherty.
AIB has said an external candidate will also shortly be appointed to the role of chief risk officer.
The job of chief financial officer will be retained on an acting basis until May by Maeliosa Ó hOgartaigh, who has filled the role since the departure of finance director John O’Donnell last August.
Mr Ó hOgartaigh was last week appointed head of corporate development in a reshuffle of AIB’s senior management team.
An AIB spokeswoman said Mr Byrne’s pay would be within the Government guidelines on bank pay, capped at €500,000 a year.
Mr Byrne told The Irish Timesthat banking continued to be "volatile" but that there were plenty of opportunities with the changes required in the industry. "It is an exciting opportunity and not without its challenges," he said.
He was one of the first candidates to be interviewed by the Financial Regulator under its new vetting process to assess applicants for senior banking jobs.
