AIB has warned that the UK's vote to exit the EU could have "a material impact" on its business, according to an update of bond documents by the bank.

“The nature, timing and impact of a UK exit from the EU on the UK economy and trade is not fully known but may have negative consequences for the group and consequently the issuer both in terms of its UK and Irish operations and impacts on the UK and Irish economies,” AIB said in an update to the base prospectus for its €20 billion mortgage covered securities programme.

“The regulatory position of the Group’s operations in the UK may also become uncertain. Consequently, the UK’s exit from the EU could have a material adverse effect on the issuer’s and the group’s business, financial condition and prospects.”

The warning is the first of a wave of expected bond document updates across Irish banks to highlight the risks to business following the UK’s decision to leave the EU on June 23rd.

AIB and other lenders had previously highlighted similar risks ahead of the referendum.