AIB says it expects 'low single digit' growth in underlying earnings for 2003.
In a trading statement, it said this estimate included the impact of currency movements, which would knock around 4% off earnings.
But it does not include the impact of the Government levy on financial institutions, restructuring charges and the recent disposal of the Govett asset management business.
In the Republic of Ireland, AIB said its overall loan book would grow by well over 20% this year, with residential mortgages up by over 30%.
It said Ark Life put in an improved second half performance, and profits would be in line with 2002, despite sluggish demand for equity-linked products.
AIB said profits at its Polish operations would be 'significantly below' last year, though there were early signs of improvement in the trading environment, and a cost cutting programme announced earlier this year was on track.
Its US regional banking operations, which comprise a 22% stake in M&T, are expected to contribute to earnings this year.
AIB said costs would grow by 6-7% this year, adding that it was in talks on a limited early retirement scheme for 2004. It also said its bad debt provision would be lower than previously expected.
Shares in the bank closed down 15 at €12.22 in Dublin.
