Rebuilding AIB - The Strategy
When I took up the role of Executive Chairman, I made a commitment to undertake a review which would develop a new strategy for AIB.
Throughout this review process it has been clear that the challenges we face are enormous but, nevertheless, surmountable.To overcome these challenges will require radical change of a magnitude never before undertaken in AIB. This will happen across the organisation and this will involve difficult decisions and strong actions in relation to our structure, size and focus.
We will establish a new core bank with a restructured balance sheet achieved through the separation and progressive disposal and winding down of non-core assets.The present divisional structures will be dismantled and replaced by business units focused on our customers’ needs. Credit, risk, control and support functions will be significantly restructured and consolidated.
The core business will concentrate on the Irish market including Northern Ireland. It will focus on the personal, small business, commercial and corporate sectors and also include a selective overseas presence, supporting expatriate Irish business as well as cross-border trade and investment flows.
Non-core will comprise assets that no longer fit with our new strategic direction and some businesses or portfolios which represent excessive risk or offer a poor return profile.
These businesses will be wound down and reduced in size over time. Hasty disposals – or fire sales – of assets will be avoided.
To ensure AIB is best placed to serve our business and personal customers, our product ranges will be simplified and re-positioned to give value at an acceptable return.
We will invest in new technologies to increase our speed, reach and efficiency. All of this will be achieved without losing sight of the key objective of supporting our customers through this challenging period and helping to revitalise the national economy.
AIB will become a smaller organisation with a fresh leadership team, a restructured balance sheet, a redefined customer strategy and a new operating model.
This new AIB will form a strong foundation from which a profitable business can be rebuilt.This business will be well positioned to gain a significant share of the stronger national banking market which, we believe, will emerge in time. The combination with EBS will further strengthen this proposition.