M&T, the US bank in which AIB has a 24% stake, has reported a sharp fall in profits for the second quarter of 2009.
The bank said its net profit for the three months was $51m, a drop of 68% from $160m reported a year earlier.
During the quarter, M&T completed the acquisition of Provident Bankshares Corporation. M&T said it took a charge of $40m linked to the cost of integrating Provident into its business. There was also a $25m impairment charge on certain investments and a special $32.5m levied by the US Federal Deposit Insurance Corporation on financial institutions.
M&T set aside $147m for credit losses, up from $100m in the second quarter of 2008 but lower than the $158m in the first quarter.
