AIB has announced the appointment of David Duffy as its new chief executive.

Mr Duffy (50) was one of two candidates on the shortlist for the job.

He has held a number of senior roles in the international banking industry including, most recently, the post of chief executive at Standard Bank International.

He was previously president and chief executive, Americas, of ING Barings.

AIB, which is 99.8 per cent owned by the State, submitted a pay proposal to the Department of Finance last month for the role of chief executive.

The bank has agreed to abide by the Government's pay cap for bankers by seeking to pay the candidate the €500,000 limit.

The other candidate on the shortlist for the AIB post was Brendan McDonagh, former head of HSBC's North American business.