CITIZENS Financial Group, the US bank in which Bank of Ireland has a 23.5 per cent stake, is paying $57 million (£36.7 million) for the parent company of the Bank of New Haven (BNH). Citizens will make the cash payment for the bank which has assets of $350 million and 11 branches. The price is 2.2 times the book value.

The acquisition, which is subject to the approval of BNH shareholders and US banking regulators, will strengthen Citizens presence in Connecticut to 41 branches and $2 billion in assets. Citizens is 76.5 per cent owned by the Royal Bank of Scotland Group.