AIB has said it is still aiming for low double-digit percentage growth in its earnings this year. A trading statement this morning reiterated the target already set in its 2006 results and repeated at its AGM last month.
Earnings per share last year were 182.8 cent. AIB also said it expected operating profits before bad debt provisions to rise by a 'mid to high teen' percentage for the year. It said half-year earnings and operating profits growth would be in line with full-year targets.
Commenting on its banking business in the Republic of Ireland, the bank said it welcomed the slowdown in house price growth and house building. It expects mortgage loan growth in a 'low to mid teen' percentage this year, with strong business lending lifting overall loan growth to around 20%. This is well down on last year's 32% growth.
AIB said profit growth in its capital markets division would be lower in the first six months than in the same period last year, when it benefited from exceptional gains of €34m.
It said it expected loan and deposit growth of 20% in its UK division, with 20% loan growth in Poland as the country's economy grows strongly. The bank said a fall in US bank M&T's earnings would be reflected in first-half results but it expected an increased contribution for the full year.
AIB said costs would grow by around 9% this year, while net interest margins would fall by around 0.12 points.
AIB shares closed down 61 cent at €21.18 in Dublin.
