Allied Irish Banks today reported record pre-tax profits of €1.4 billion for 2004, up from just over €1 billion the previous year.
Profits in the Republic were up 11 per cent at €695 million, despite incurring a €50 million charge linked to an investigation for foreign exchange overcharging.
The bank said loans in the Republic were up by 30 per cent and deposits 16 per cent higher.
In Britain and Northern Ireland, profits rose by 16 per cent to €289 million, with lending growth of 29 per cent. AIB Capital Markets' profits were up 30 per cent at €329 million, with corporate banking profits jumping by 54 per cent.
Underlying profits in AIB's Polish banks more than doubled to €80 million, helped by a reduction in costs after a restructuring. US bank M&T, in which AIB has a 22 per cent stake, contributed €195 million to profits, up 15 per cent in US dollar terms on 2003.
The bank said adjusted earnings per share of 133.1 cents in the year to end-December - up 13 per cent compared with 2003 earnings of 118 cents, which had excluded restructuring and early retirement costs.
Loans grew by 28 per cent across the group in 2004, while deposits increased by 14 per cent.
The better-than-expected figures boosted shares by 2.2 per cent to €16.55, while shares in rival Bank of Ireland were up 1.7 per cent at €13.10.