AIB CHIEF'S 'REGRETS' ON LENDING - AIB Group has reported that its earnings per share fell by 68% in the last financial year. Results for 2008 show there was a significant fall in the value of AIB's property portfolios and loan growth was slower.
The bank said it expects its business environment to remain extremely difficult this year. In a statement accompanying its results this morning, the bank says it takes some responsibility for its fall in profitability.
It says that some decisions, particularly in relation to its exposure to the property and construction sectors, negatively impacted on its business. Chief executive Eugene Sheehy said he regretted some of the lending decisions the bank made.
Mr Sheehy said the results were disappointing and loan losses were much higher than the bank had anticipated. He said the bank was writing off around €1.8 billion in loans. Mr Sheehy said the bad loans came mostly at the end of the building boom.
Mr Sheehy said the bank had a strong capital base compared with other international banks after the Government's recapitalisation plans. He said though the outlook was not good, AIB was capable of generating profits to replenish its base.
Asked about Transport Minister Noel Dempsey's comments about bankers at the weekend - when he compared the damage done to the country to that done by Cromwell - Mr Sheehy said the Minister was reflecting public anger, but he didn't regard his staff as 'Roundheads'.
Asked about his own position at AIB, he said he wanted to lead the bank in the coming years to see it recover.
Mr Sheehy said his salary had been cut by 25%, and said he would not take any bonus for the rest of his career. He said a Government report on executives' pay would guide the bank in the future.
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NEWS IN BRIEF - Bookmaker Paddy Power has reported a 4% increase in pre-tax profits for last year to €79m.
Building materials group Kingspan has reported pre-tax profits of €68m for last year, a drop of almost 70% from the €224m reported in 2007.
