AIB Allied Irish Banks SWOT Analysis, Competitors & USP

Allied Irish Banks (AIB)

Regional Banks

Banking & Financial Services

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One of the big four commercial banks in Ireland

Segmentation is based on the type of customer: personal segment, business segment and the wealth management segment.

Targets the SME segment

One of Ireland’s largest financial institution

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of AIB Allied Irish Banks. Strengths are:

1. As AIB has a significant importance in the Ireland financial services sector, the government ensures its well-being.

2. With the change of management, the new management has been successful in attracting high quality individuals through rigorous selection and it currently employs about 14000 people.

3. Its overseas presence is significantly higher than its domestic competitors and it has also performed greater international activities than its competitors.

4. It is recognised as the Big four Irish financial institutions

5. Its services include home, travel and health insurance alongwith retirement solutions

Here are the weaknesses in the AIB Allied Irish Banks SWOT Analysis:

1. AIB has been recording increasing loan losses since the onset of subprime crisis as the credit quality has been deteriorating across various portfolios.

2. The group’s risk management activities are not so successful.

The group is not free from the credit risks with respect to customers and counterparties which could adversely affect the Group’s results, financial condition and further prospects.

Following are the Opportunities in AIB Allied Irish Banks SWOT Analysis:

1. It should involve in deleveraging process which would reduce its dependence on monetary authority funding and bring back the loan-to-deposit ratio within the specified limits.

2. As customers are moving towards mobile banking, it should provide more apps for Android and IOS devices.

3. AIB provides services such as Global Treasury, Corporate Banking and Investment Banking and a positive investment climate in the asset management industry would increase the revenues in these sectors.

The threats in the SWOT Analysis of AIB Allied Irish Banks are as mentioned:

1. Deterioration in the Irish sovereign ratings reduces the government support to AIB.

2. There is prevalence of systematic risk in the Irish banking sector which reduces the investment climate.

3. Its participation in the National Asset Management Agency (“NAMA”) programme gives rise to certain residual financial risks.

Below are the top 3 AIB Allied Irish Banks competitors:

1. Bank of Ireland

2. Barclays PLC

3. Halifax plc