By Anthony O. Goriainoff
AIB Group plans to sell its stake in the AIB Merchant Services joint venture to its partner Fiserv for an undisclosed amount.
The Irish lender on Friday said the sale of its 49.9% shareholding in AIBMS is expected to result in a positive effect of around 35 basis points on its CET1 capital--a key component of a bank's regulatory capital requirements.
AIB said it would continue to work with AIBMS and Fiserv by referring customers requiring merchant card services.
The lender said AIB recognized income of 34 million euros ($38.9 million) in 2024 related to AIBMS in its income from equity accounted investments line--an accounting technique used by a company to record the profits earned through its investment in another company.
The transaction--for which no financial details were disclosed--is expected to complete later in the year, it said.
"Following a successful joint venture partnership, we believe Fiserv has the commitment, experience and innovative technical solutions to grow AIBMS," AIB Chief Executive Colin Hunt said.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
June 06, 2025 02:37 ET (06:37 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.