Duffy may seek banking federation role

AIB chief executive David Duffy is eyeing the role of president of the Irish Banking Federation in what would be a break with tradition by the financial sector's representative body.

John Reynolds’s two-year term as IBF president expires in January and a council meeting on December 11th will choose a successor.

Under an informal rotation system operated by the IBF, AIB is due to nominate someone to fill the president's positions this time around and it is understood that Mr Duffy has indicated his desire to take up the role. Traditionally, the post of IBF president is filled by a chief executive of one of the country's smaller retail banks – Mr Reynolds was chief executive of KBC Bank Ireland until earlier this month – or the head of retail at bigger banks such as AIB and Bank of Ireland.

This would mean that Bernard Byrne, AIB's head of personal and business banking, should be in line to assume the title of IBF president.

High-profile position
However, it seems that Mr Duffy wants to take up the high-profile position.

His decision has raised eyebrows in some quarters given the number of challenges facing the bank. AIB has to meet regulatory targets next year on providing resolutions to all its customers in mortgage arrears of 90 days or more.

He has also indicated that SME arrears will be sorted out in 2014 and that the bank will return to profitability.

In addition, AIB will be put through its paces next year when it participates in pan-European capital stress tests.

Ironically, Mr Duffy's counterpart at Bank of Ireland, Richie Boucher, has already served as president of the IBF.

AIB declined to comment yesterday.