AIB announced today it has sold its stake in a fund administration unit that employs 600 people to Bank of New York.
AIB/BNY Securities Services (Ireland) was set up in 1995 a joint venture between AIB and Bank of New York. The firm administers $210 billion in assets and employs 600 in its Dublin and Cork offices.
Although the sale price was not disclosed, AIB said the profit and capital impacts will not be material for AIB.
Mon O'Driscoll, head of investment banking at AIB Capital Markets, described the deal as "a natural and correct strategic decision for both AIB and BNY" as scale is now imperative to compete in the increasingly global custodial and funds administration business.
The sale, which will require regulatory approval, is expected to be completed by the end of the third quarter of 2006.