AIB reports €1.7 billion profits

Banking group AIB have reported pre-tax profits of €1.706 billion in 2005, up from €1.37 billion.

AIB Group Chief Executive Eugene Sheehy said: "Our 2005 performance reflects quality growth in all our main franchises. Strong customer demand continues to drive momentum and underpins our confidence in the outlook for 2006 and beyond."

Profits rose by 24% in the Republic of Ireland and the Northern Ireland rose by 18%. Operating income increased to €1.493 billion in the year to December 2005, up from €1.214 billion.

The bank said key drivers of the increase were strong loan and deposit growth in Republic of Ireland and GB and Northern Ireland, strong loan growth in corporate banking and very good growth in loan arrangement fees.

AIB said that loans to customers increased by 27% and customer net interest income also benefited from income earned on the €1 billion of perpetual preferred securities issued in December 2004.

The Bank has recommended a final dividend of 42.3 cent per share making a total of 65.3 cent per share on the year, up 10% on the preceding year.

AIB said the business is expected to continue to perform strongly in 2006 in line with "strong positions in the high growth markets where we operate".

"Very good loan and deposit growth and strong asset quality is expected again this year. The resourcing and restructuring of our enterprise wide approach to operations is in implementation and we expect this to further bolster our business capability".

(SP/GB)