AIB says it is expecting double digit profit growth this year. In a trading statement today, the bank says it is seeing strong business momentum throughout the Group, underpinned by a good business pipeline in each of its franchises.
With regard to the foreign exchange charges investigation currently underway at the bank, AIB says it expects to make a charge of €50m, which includes professional fees and associated costs, in its annual accounts.
The bank has already lodged €25m with the Central Bank in respect of the reimbursment of customers. 'We expect that the ultimate amount to be reimbursed to customers on foot of the foreign exchange investigation will not differ materially from this figure,' the statement says.
Adjusted earnings per share in 2003 were 58.5 cent and 109.5 cent for the interim and full year results. AIB says it is targetting a mid single digit growth in adjusted earnings per share for both the interim and full year stages.
In Ireland, AIB says its loan book is on target to increase by around 20% this year, reflecting further market share gains across both the business and personal markets sector. Sales performance at Ark Life is good and the business is benefitting from the operating changes made last year, the bank adds.
In the UK, AIB says it aims to operate from 48 offices by the end of the year, up from 42 last year. Loan and deposit volumes for the division are on track to grow by around 20% and 15% respectively this year.
Loan growth in the mid to high teens is expected at the bank's Capital Markets division, reflecting recovery in demand from its Irish customers and continuing good growth in its UK and US portfolios. AIB adds that investment banking is ahead of expectations and profitability is benefitting from the sale of the Govett business last year.
AIB says its expects to see a 'significant' increase in profits at its Polish operations this year, with loans growing by double digits. Meanwhile, in the US M&T continues to target double digit earnings growth in 2004.
AIB shares closed 10 cent higher at €12.35 in Dublin this evening.
