Byrne will be succeeded by Colin Hunt, who joined the bank in 2016 after holding a number of senior positions in Macquarie Capital, Goodbody Stockbrokers, Bank of Ireland and NatWest, as well as serving as a government advisor.

AIB surprised investors in late October with the news that Byrne was leaving Ireland's second-biggest bank to take up a senior role at local stockbroker Davy, leaving it looking for a new CEO as well as a chief financial officer.

"We are delighted that the next proposed leader of AIB has emerged from within our own ranks. This proposed appointment also ensures continuity of the current successful strategy for the bank," AIB chairman Richard Pym said in a statement.

(Reporting by Padraic Halpin; Editing by Alexander Smith)