Allied Irish Banks, the country's largest financial institution, today reported a 10.5% rise in annual pre-tax profits of 1,251 million euros. Analysts had been forecasting profits of between 1,237 million euros and 1,263 million euros.
The bank, which has five million customers globally, raised its total dividend by 15% to 38.75 cents.
AIB recorded 44% of profits here with the remainder coming from its overseas operations, primarily in the US and Poland.
AIB's US operation Allfirst, which represents about 27% of the bank's business, reported net income of $184.4 million for 2000, an increase of 7% over the previous year. Profits at the group's Polish division, which accounts for 10% of business through its 60% owned subsidiary Wielkopolski Bank Kredytowy, surged 40% during the year.
The bank said its results included an exceptional charge of 113 million euros for DIRT settlement with the Revenue Commissioners. This followed a probe into the use of bogus non-resident accounts to evade tax in the 1980s and 1990s.
Outgoing Chief Executive Tom Mulcahy said that the bank's performance in 2000 represented the ninth successive year of real profit growth. He said the bank, which he called a truly international operation, remained committed to a policy of portfolio diversification and enrichment of existing franchises.
AIB shares closed down eight cents to 12 euros in Dublin this evening.
