A slowdown in economic growth should be welcomed and will give the Irish economy a chance to build an infrastructure capable of accommodating its needs, according to AIB chairman Mr Lochlann Quinn.
Addressing shareholders at the bank's annual general meeting in Dublin yesterday, Mr Quinn was also optimistic that although the foot-and-mouth outbreak will have an immediate impact on the tourism sector, when things get back to "normal" this situation should reverse dramatically.
"An economy growing at break-neck speed had to slow down. The economy had grown so fast it outgrew public infrastructure needs which can now be addressed," he said.
The slower pace of growth in the economy has not had a dramatic impact on the bank's business to date, not even in the US where it has been more marked, according to Mr Quinn.
AIB had planned to hold the meeting in Belfast, but was forced to switch it to Dublin because of the foot-and-mouth restrictions. Mr Quinn said it still intended to bring the meeting there and would reassess this option for next year.
The meeting was constantly interrupted by dissident shareholder Mr Niall Murphy who had proposed a resolution to remove all of the bank's board of directors with the exception of its newest appointment, Mr Derek Higgs. The motions were all decisively defeated.
Mr Quinn was also asked about the bank's international operations - principally in Poland and in Singapore. He was upbeat about its prospects in Poland stating that the bank aimed to win 10 per cent of the Polish banking market in the next couple of years. "AIB has a remarkable asset there. People will look back and say it was a very clever strategy. Most of the international banks would break our arm off to get it."
AIB also has an option to acquire a stake in Keppel TatLee Bank in Singapore. The option expires in July 2002 and Mr Quinn said the bank was still considering its next move there. "Taking up this option would require a very significant investment. It is very exciting but would be a very significant commitment," he said.
