First Maryland Bancorp, AIB's US subsidiary, has agreed to sell its remaining credit card business to Bank of America NA. The credit card unit of Bank America will acquire around $623 million (£425 million) in receivables from First Omni Bank and Dauphin Deposit Corp, FMB's subsidiaries.

The consideration was not disclosed but AIB said the portfolio was sold at a premium to book value.

Banking analysts say a premium of 7 to 8 per cent to the book value of the business is not uncommon in the industry.

AIB made an exceptional gain of $28.2 million on the sale of its $360 million Bell Atlantic co-branded credit card business earlier this year.

The agreement with Bank of America is subject to regulatory approval in the US but AIB expects to close the sale early in 1998.