AIB said it plans to close the two businesses, AIB Bank and AIB International Savings, by 31 December 2013 and will begin winding down the business immediately.
The bank said the decision to wind-down the businesses is part of an “on-going strategic review” it is undertaking and forms part of its overall plan to become a “smaller, domestically focused bank”. The company added that it has begun a consultation period with affected staff.
The bank suffered, as with many European, particularly Irish banks, during the financial crisis of 2008/09 and last year received a cash injection from the Irish government of more than €6bn. Since then it has decided to sell some of its other subsidiaries, such as its Jersey-based trust company which was sold to Capita Fiduciary Group last year, in a bid to reign in its sprawling operations.
AIB Jersey & Isle of Man chief executive Joe Moynihan said: “Ongoing uncertainty in financial markets since 2009 has had implications for the business and created difficulties that challenge the viability of the offshore business model for AIB.
“The decision has been taken following lengthy and due consideration. I would like to thank our excellent management team and staff in the business over a long period. The orderly wind-down process of the business will begin today.”
AIB Bank and AIB International Savings currently offer a range of international savings and fixed income products in a number of currencies. The company said it would be contacting its customers shortly to discuss future arrangements and “will be facilitated with banking services until alternative arrangements are in place”.