Overhaul of AIB in Republic expected

A MAJOR reorganisation of AIB’s Irish operations is expected to emerge next week as the bank’s new Republic managing director, Robbie Henneberry, seeks to put his stamp on the business.

Speculation yesterday focused on dividing the bank in the Republic into two parts: a business bank and a personal bank. Under this plan, the current regional structure would be replaced.

AIB has traditionally split its operations into Dublin, the southern area and the rest of the Republic, with three divisional heads running the regions.

A split into two parts – a business and a personal bank – would simplify existing reporting norms.

AIB has more than 250 branches in the Republic, with the manager of each reporting to a group of regional directors who in turn report to the three divisional area heads.

There is an expectation that a substantial number of top executives within the bank will see their roles change as Mr Henneberry realises his vision for the new structure. This is likely to include a new philosophy on lending policies.

Mr Henneberry was until April head of AIB’s Northern Ireland and British operations. He took up his new post after Donal Forde was appointed as director of group strategy and departed AIB’s board. On Thursday AIB said it would replace Mr Henneberry at AIB Group (UK) with Nick Treble, currently group chief risk officer at AIB group.

Any new structure at AIB in the Republic will be inherited by a new group chief executive upon the departure of Eugene Sheehy, which was signalled in April. Mr Sheehy will leave as soon as his successor is appointed.

AIB group chairman Dermot Gleeson will stand down in July, to be replaced by Dan O’Connor.