AIB's Polish subsidiary, Bank Zachodni WBK has received a broker downgrade partly due to slowing growth in the Polish mutual funds business.

In a research note today, brokerage Wood & Co. cut its recommendation on the bank to to "hold" from "buy", and raised the bank's target price to 300 zlotys from 280.

Wood & Co. said slowing growth in the Polish mutual funds business and the fact that BZ WBK has stopped gaining market share in the asset management business made accumulating further BZ WBK stock not worth the risk.

Yesterday the bank reported a 53.2% rise in pretax profits to 366.4 million zloty (€97.12m) in the first three months of 2007. AIB has a 70.5% stake in the Polish bank.