AIB has reported pre-tax profits of €636m for the first half of this year, down from €703m in the same period last year, with strong growth in its Irish and British banking business outweighed by exchange rate movements which knocked 4% off earnings.
Adjusted earnings per share were down 5% at 58.5 cent and a 10% higher interim dividend of 19 cent per share is to be paid. AIB said the reporting of the figures was affected by its deal to sell its US subsidiary Allfirst to M&T Bank in return for a 22% stake. AIB took €30m in charges relating to restructuring costs and goodwill amortisation related to the deal.
Net interest income rose marginally to €919m but finance income fell 75% to €7m because of the decline in the stock markets.
AIB estimates that the Government levy on financial institutions will cost it €30m for the full year.
In the Republic of Ireland, profits rose by 6% to €310m, with lending growing by 13%. Mortgage lending was up 14%, but profits at life assurance business Ark Life fell 48% to €26m because of subdued demand for investment products and the comparison with last year's strong SSIA sales.
AIB's British profits rose 18% to €125m, with loans up 10%. AIB Capital Markets profits were up 4%.
In the US, profits were down 33% to €66m, reflecting the deal with M&T which was completed in April. AIB's Polish profits fell 32% to €8m, with the figures hit by lower interest rates and sluggish lending.
Shares in the bank were down four cent to €12.61 this afternoon in Dublin.
