Fianna Fáil to look at splitting EBS away from AIB

Fianna Fáil has said it will "examine the feasibility" of EBS being demerged from AIB and sold separately as a standalone mortgage player. The move would be targeted at stimulating competition for home loans and savings products.

The party’s economic strategy document for the general elections said this would “acknowledge the fact that the loss of the building societies [since the 2008 financial crash] has had a long-term negative impact on the mortgage market”.

EBS was a standalone building society until July 2011 when it was acquired by AIB for €1 following a decision by the State to merge the pair into a pillar bank. EBS had received a €2.375 billion bailout after the crash.

Assets of €14bn

It is currently a standalone, separately branded subsidiary of AIB, with 71 branches and a direct telephone-based distribution division. It offers mortgages and savings products to consumers and had consolidated total assets of €14 billion at the end of 2014.

Speaking to The Irish Times yesterday, Michael McGrath, Fianna Fáil's finance spokesman, said EBS could have its "own identity in the market and the scope to widen its product offering".

“If EBS could stand alone, it could become an important player in the market . . . and be of benefit to consumers,” Mr McGrath said.