Richard Pym has been named as the next chairman of AIB.

Mr Pym – 64 - will replace David Hodgkinson, who is due to retire from the bank’s board in December.

Mr Pym has served as chairman of Britain’s Co-Operative Bank since June 2013, but in May announced his intention to step down from the role.

He is also chairman of Nordax Finans AB, and was previously group chief executive of Alliance & Leicester.

Mr Pym will be made a non-executive director and chairman designate at AIB in October.

He said he looked forward to "contributing to the progress that has already been made in re-building a strong bank", and said he was conscious of responsibilities in the context of the taxpayers' "considerably sacrifices in supporting the banking system".

AIB chief executive David Duffy welcomed Mr Pym, and thanked Mr Hodgkinson for his work at the bank.

Minister for Finance Michael Noonan welcomed the appointment and said he looked forward to working with Mr Pym on the continued recovery of the bank.