AIB confirmed this morning that unauthorised deals by rogue trader John Rusnak at its US operations had slashed its pre-tax profits to €612 million - down 47% from the previous year. If the losses from Allfirst were taken out, pre-tax profits would have been €1,401 million, up 10%.
Profit attributable to shareholders amounted to €484 million - a 38% decrease for the year. Basic earnings per share for the year amounted to 56.2 cent, a fall of 39% while adjusted earnings per share came at 119.4 cent per share - up 12%. The board has recommended a final dividend of 28.40 cent a share.
The group said that slower economic conditions in the second half of the year were exacerbated by the September 11 attacks in the US and had an impact on subsequent revenue growth across the group.
Looking ahead, AIB said it was targeting mid single-digit growth for 2002.
'The Irish economy remains fundamentally strong and competitive, there are signs of recovery in the US, the UK has proved resilient and interest rates have reduced significantly in Poland. Consequently there are signs for optimism particularly for the second half of 2002,' it said.
AIB also confirmed that it had finalised the losses at Allfirst Treasury at $691 million. It said that the losses extend back to 1997.
The independent investigation into the affair at Allfirst, being conducted by US banker Eugene Ludwig, is expected to be completed by March 9. AIB has said it will make its findings and recommendations public.
In its results statement, AIB said its banking operations in Ireland produced a strong performance with increased profits due to good growth in business volumes. Loans were up 13% with customer accounts up 14% since December 2000. Costs increased by 8% as a result of growth in business activity, some one-off euro costs and salary increases.
In the UK, profits were up 8% to €223m on higher business volumes and good growth in fee income. Its Polish operations were up €36 million for the year, after costs of €38 million for the merger between WBK and Bank Zachodni where a staff restructuring programme is underway.
The US division reported a loss of €434 million after the Allfirst fraud. Excluding that, profits in the US would have risen by 8% to €355 million.
AIB shares closed down two cent to €11.95 in Dublin.
