Sunday, April 12, 2009

AIB suffers losses through Polish bank

Allied Irish Banks (AIB) took another hit this week as its Polish arm saw shares downgraded by UniCredit.

The group moved Bank Zachodni BWK - which AIB holds a 70.5 per cent stake in from hold to sell - resulting in share prices tumbling, the Irish Independent reports.

Warsaw's BRE Bank also saw its stance downgraded by UniCredit, a move one of the company's analysts believes is a sign of the turbulent times ahead for the country's lenders.

"Given the ongoing deterioration in the economic and banking environment, we believe that 2009 will be a very challenging year for Polish banks," said Iza Rokicka, a spokesperson for the brokerage.

The news follows a recent scandal which saw AIB fall victim to an alleged loans scam thought to have been worth somewhere in the region of 56 million Euro involving a number of its London offices.