After confirming that the changes were compatible with the EU state aid rules, the commission decided not to force the bank to divest its Ireland Asssurance Company (NIAC), as it can negatively affect BOI´s capital and capacity to return to profitability.
Ireland, which filed a request in June 2013 with the EU, has agreed to sell its ICS Building Society mortgage distribution platform, including €1bn of mortgage assets and deposits.
In a statement, the commission said, "The recent sale of Ireland’s largest life insurance company has affected the number of potential buyers for NIAC, increasing the likelihood of selling it with losses. Moreover, NIAC made a key contribution to Bank of Ireland’s 2012 operating profit."
In 2010, the EU ordered the bank to divest NIAC as part of terms and conditions agreed to receive €3.8bn ($4.9bn) of state aid during the Ireland’s property market crisis.
Finally, the commission was satisfied with the commitment of Irish authorities that BOI will extend limitations on the distribution of dividends beyond December 2015.
