AIB has reported pre-tax profits of €1.706 billion for 2005, up from €1.37bn in 2004 and better than expected.
The bank said strong demand was underpinning a confident outlook for 2006 and beyond.
The bank's profits in the Republic rose by 24% to €779 million, though growth was 15% when the effect of the 2004 investigation into foreign exchange charges was stripped out.
Profits at its UK and Northern Ireland business rose by 18%, while profits at its Polish operations were up 13%.
Earnings per share rose by 15% to 145.9 cent.
