This follows the announcement by the Minister on 31 March 2011 of the Government’s decision to combine EBS with AIB.
The transaction has been approved by the Minister. It is expected that the transaction will complete on 1 July 2011, following the statutory notice period required as part of the demutualization process and satisfaction of various conditions, including the receipt of regulatory approvals.
EBS is a savings and loan business predominantly focused on residential mortgage loans in the Irish market with nearly 440,000 active customers and a network of 95 retail outlets.
At 31 December 2010, EBS reported EUR20.1bn of total assets and net assets of EUR692m, EUR16.5bn of customer loans and EUR9.4bn of customer deposits giving a loan to deposit ratio of 175%.
EBS reported a profit of EUR56.4m before impairment charges for the year ended 31 December 2010.
Upon completion of the transaction, EBS will operate as a separately branded subsidiary of AIB with its own branch network.
Both AIB and EBS are substantially owned by the State and, accordingly, the consideration payable by AIB for the transaction is a nominal cash payment of EUR1.00.
