Wednesday, September 29, 2010

How Much More Capital Does AIB Need?

Ireland’s regulator is studying how much more capital Allied Irish Bank (AIB) will need as a buffer against future losses. It is expected that it will need to raise 7.4 billion euros by year end.

AIB is expecting a 45 percent discount on real-estate loans it is selling to the National Asset Management Agency (NAMA). With approximately 16 billion of loans earmarked for NAMA this would be 7.2 billion of losses and 6.2 billion more than currently provided for.

AIB has already raised 2.5 billion euros by selling Bank Zachodni WBK SA, to Banco Santander.

To see Edwards full report on AIB

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