AIB's share price showed no reaction to the latest scandal to hit the bank this morning as analysts shrugged off the news that the bank had overcharged customers for foreign exchange.
AIB has apologised for overcharging certain foreign-exchange customers over an eight-year period but insisted senior management only learned of the overcharging in recent days. The amount involved is reported to be about €14 million.
Analysts pointed out that the impact on group earnings is likely to be modest considering the bank posted over €1 billion in profits last year. AIB shares were trading at €12 this morning, unchanged on the day.
Analysts pointed out that the overcharging scandal is a group specific issue and is unlikely to affect other banking shares that have been depressed over concerns about competition from lower-cost rivals and persistently low interest rates that have squeezed profit margins on lending.