Grim news from Allied Irish at the interim update
MORNINGSTAR VIEW: Full-year loan loss guidance upped by 25%, coupled with some confusing rationale for management changes
AIB also announced management changes. Dan O'Connor, who became nonexecutive chairman in July, will become executive chairman as he takes on the roles of both chairman and CEO. Current CEO Eugene Sheehy will retire at the end of the month. The day-to-day task of running the bank will be taken on by Colm Doherty in the role of group managing director. AIB said that the appointments were part of its plan to attract new external talent, which leaves us scratching our heads. O'Connor has been a board member since 2007 and Doherty has worked for AIB since 1988. AIB has several key positions yet to be filled, and we'd strongly prefer that its next external candidates actually come from outside the troubled bank.
Erin Davis is a Morningstar stock analyst.