Weilkopolski Bank Kredytowy (WBK), the Polish bank in which AIB has a 60 per cent stake, is to invest about 70 million zlotys (£13.5 million) to modernise and expand its operations this year.
A spokesman for the Polish bank said that about half of the funds would be spent on developing the computer system while the balance would be used to expand WBK's network.
A WBK spokesman, Mr Marek Szczepanski, said the bank had earmarked 70 million zlotys for investment this year. But he added: "This plan can still be changed". WBK planned to gradually sell the shares of non-financial companies which it had acquired in debt for equity swaps, he said. He did not name the companies whose shares will be sold.
The WBK share price stood at 19 zlotys yesterday, down from a high this year of 28 zlotys on February 19th. But the shares are up from lows of around 17 zlotys touched in May and again in July.
Bank shares have suffered in Poland in recent months because the Central Bank has moved twice this year to raise obligatory reserves levels.
WBK has opened some 27 new branches so far this year and added 25 by acquisition. By year-end the bank will have 150 branches in western Poland.
Investment in expanding and developing the operation in the next few years would mean that there would be no great profit increases in the medium term, AIB chief executive Mr Tom Mulcahy said recently.
WBK contributed profits of £12.3 million to the AIB group for the six months to the end of June.
