AIB post strong first half year profits

Allied Irish Bank A (AIB) have posted promising first half profits attributing them to a strong performance from its Ireland and UK operations.

The Dublin based bank have apparently shook off the effects of economic slowdown to record a pre-tax profit for the six months to June 30 of £409.8 million which is up from £374.1 million last year.

AIB Group Chief Executive Michael Buckley said: “Attributable profit growth of 12 per cent demonstrates AIB's capability to generate revenue growth in slower economic conditions. It also reflects AIB's strong competitive position in its chosen markets. Asset quality remains strong and AIB continues to make substantial investment in its business, particularly in Poland and Allied Irish America.'

However economic conditions took their toll on AIB’s operations in the US and Poland. Profits at the group’s American businesses rose by just 4 per cent while Poland Bank Zachodini in which AIB has a 70.5 per cent stake saw its profits dive by 42 per cent to £ 16 million.

Operating income rose to £1.10 billion from £ 983 million. The group is paying an interim dividend of 9.5p, which is an increase from last year’s dividend of 8.3p. (AMcE)