AIB'S POLISH subsidiary Bank Zachodni WBK has said a change of name it is considering as part of expansion plans may cost the bank up to €112 million.

The bank said changing its brand may cost between 200 million Polish zloty (€56 million) and 400 million zloty (€112 million).

The Polish bank's chief executive said: "We haven't yet decided on the change. We will look at the results of our research after the summer holiday."

Operating profit at Bank Zachodni WBK rose 29 per cent to €268 million in 2007 on the back of strong growth in mortgages, retail and business lending.

The Polish bank is embarking on a major investment programme in an effort to double its market share to 10 per cent by 2012. It opened 34 branches in 2007, and is opening new branches at a rate of one a week, planning to increase its network this year by 60 branches to around 270 outlets. It added 1,100 people to its workforce in 2007. It employs more than 9,500 people.

The bank's profit in the fourth quarter of 2007 rose at its slowest pace in three years as expenditure on branch expansion rose. More than €100 million was spent on expanding the bank in 2007.

AIB hopes to exploit the growth in the Polish economy, which is expanding at more than double the pace of western European countries. The Polish economy grew by 6.4 per cent in 2007 and is forecast to grow by 5.5 per cent this year, well over double the growth expected in AIB's three other main markets. Zachodni accounted for 16 per cent of AIB's pretax profits in 2007.

AIB continued its expansion into eastern Europe last month by acquiring a 49.99 per cent stake in Bulgarian commercial lender Bulgarian-American Credit Bank for €216 million.

(Additional reporting - Bloomberg)