Bank Zachodni

AIB ownes 70% of Bank Zachodni in Poland. It has been and remains a good investment in a country that is doing better than us now. The value of AIB’s share in this bank is now about €2.6 billion. Zachodni has 512 branches across Poland. It offers commercial and retail services as well as mutual funds and broking. The bank had assets of €13.2 billion at end of 2009. Profits were €196 million in 2009 and €263 million in 2008. The Polish government expects their economy to grow about 3% in 2010.

If AIB has to pay 5% for money now, the €2.6 billion from Zachodni would cost €130 million per year to borrow so it seems that selling Zacnodni is not a good idea. As a taxpayer Irish citizen shareholder, I object to this sale. It is not in the national interest.