The High Court has ordered the immediate transfer of Anglo Irish Bank's deposit book to AIB. The deposits of Irish Nationwide Building Society have also been transferred to Irish Life and Permanent.

The direction order was made on the request of the Minster for Finance. It follows an order made on February 8, directing the National Treasury Management Agency to organise a tender for the deposit books.

AIB won the tender for the Anglo deposits, believed to be worth just over €9 billion, while Irish Life and Permanent was the winning bidder for over €4 billion of deposits at Irish Nationwide.

Irish Nationwide said that Permanent TSB paid €2.3m for the deposits.

Both AIB and ILP will also receive matching amounts of NAMA bonds associated with the deposits.

The terms and conditions of the deposits are not affected by the transfer. Around 500 staff at Anglo and Nationwide will be consulted about transferring with the deposits to the new owners of the books.

Anglo Irish Bank's group chief executive Mike Aynsley said the bank is working closely with AIB to ensure the transfer of the deposits. 'The existing terms and conditions applying to the deposits will be maintained following the transfer and depositors will continue to have the same level of protection', he added.

AIB said the key elements of the transfer are receipt of about €7.1 billion deposits in Ireland and the UK, purchase of senior NAMA bonds with a nominal value of €12.2 billion, the purchase of 100% of Anglo's operations in the Isle of Man for €0.2 billion and a cash payment by AIB of €3.5 billion.

In a statement, the bank said that as well as the addition to the immediate positive benefits arising, the transfer represents a significant business development opportunity for AIB.

'We will take a positive approach to retaining and developing the customer businesses we are acquiring. The transfer introduces new deposit distribution capability to AIB including broker, post and telephone channels,' it added.

Irish Nationwide said that this transfer has no immediate impact for existing mortgage account holders.

'This transfer is an important element of the Government's plans to stabilise the Irish financial system and provides reassurance and protection for depositors,' commented Irish Nationwide's chief executive Gerry McGinn.

The chief executive of Permanent TSB, David Guinane, said he welcomed the Irish Nationwide deposit customers and reassured them that the lender 'truly values' their business and fully respects the terms and conditions which they had at Irish Nationwide.

He also said Permanent TSB would seek an early meeting with representatives of relevant staff who would be moving from Nationwide to IL&P.

Central Bank and NTMA welcome deposit transfers

In a statement, the Central Bank said it noted the transfer of the deposit books and said that no action is required by depositors as a result of the transfers.

It said the Finance Department has confirmed that depositors - during and after the transfer - will be protected under the Credit Institutions Eligible Liabilities Guarantee Scheme and the Deposit Protection Scheme.

'Deposits can be accessed as normal through the relevant institutions and depositors can continue to do business as normal with Anglo Irish Bank and Irish Nationwide,' the statement said.

The Central Bank added that both Anglo and INBS continue to operate as credit institutions authorised and regulated by it.

The National Treasury Management Agency also said it was 'very pleased' with the outcome of this process. 'It was encouraging to see domestic and international interest in the transaction and we believe the transfers represent an important step forward in terms of the longer term restructuring of the Irish banking sector,' a statement this evening said.

It noted that some 237 INBS staff will transfer to Irish Life and Permanent and 210 staff in Anglo will transfer to AIB.