AIB's US partner M&T Bank reported second quarter results that beat market forecasts by 5%.
AIB has a 24.2% stake in the bank. M&T said its mortgage banking revenues recovered from $14m in Q1 to $36m in Q2, though this was below the $42m reported for Q2 2006.
For the three months earnings per share of $1.95 is 10c (5%) ahead of consensus of $1.85c and 4.3% up year-on-year (yoy).
Davy Stockbrokers said M&T is keeping a close eye on its $2bn residential builder exposure, though management reiterated that its mortgage business outside residential origination remains stable.
'It expects that this sector will remain under a bit of pressure as the number of new homes built declines, but it stresses it is on top of things', it said in a research note.
