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AIBG

-1.34%
GOOD

AIB Group sells minority stake in AIB Merchant Services

Why we think this is good

The RNS announcement details AIB Group's sale of its 49.9% minority stake in AIB Merchant Services to its joint venture partner Fiserv. The transaction is expected to have a positive impact on AIB's capital position, with a circa 35bps increase in CET1 capital. While the sale price is not explicitly stated, the financial impact suggests it is a reasonable transaction. AIB will also maintain an ongoing relationship with AIBMS and Fiserv by referring customers. Overall, this appears to be a positive strategic move for AIB, though the lack of specific financial details limits the sentiment to 'Good'.

Key Points

  • AIB Group to sell 49.9% stake in AIB Merchant Services to Fiserv
  • Transaction expected to have 35bps positive impact on AIB's CET1 capital
  • AIB recognised €34m income from AIBMS in 2024
  • AIB will maintain relationship with AIBMS and Fiserv by referring customers

Summary

The financial services group has agreed to sell its minority stake in a payments processing joint venture, boosting its capital position.

AIB Group plc has reached an agreement to sell its 49.9% minority shareholding in AIB Merchant Services (AIBMS) to its joint venture partner Fiserv, Inc. AIBMS is one of Ireland's largest payment solution providers and one of Europe's largest e-commerce acquirers. The transaction is expected to result in a circa 35bps positive impact on AIB's CET1 capital. In 2024, AIB recognised income of €34m relating to AIBMS. AIB will continue to work with AIBMS and Fiserv by referring AIB customers who require these services.

GENERAL UPDATE