Allied Irish Banks recorded profits of €1.7 billion last year up 15 per cent on 2004, it was announced this morning. The bank said customer demand was the main driver for the better-than-expected increase in profits and expressed its confidence for 2006.
The State's largest listed company, which also operates in Britain and Poland, reported adjusted earnings per share of €145.9 cents with pre-tax profit up to €1.7 billion from €1.4 billion previously.
"Our 2005 performance reflects quality growth in all our main franchises. Strong customer demand continues to drive momentum and underpins our confidence in the outlook for 2006 and beyond,' AIB's Group CEO Eugene Sheehy said.
"It's been an exceptional year, a very strong performance, and [we have] very solid foundations in every respect to go forward," Group Finance Director John O'Donnell said.
He said the bank, which has a market capitalisation of €17 billion, was anticipating low double-digit earnings growth for 2006.
AIB's profits in the Republic were up by 24 per cent to €779m last year although when the costs associated with the 2004 investigation into foreign exchange charges were stripped out growth fell to 15 per cent.
Profits at its British and Northern Ireland business were up 18 per cent and profits generated by the bank's Polish business were up 13 per cent.
"They beat our expectations by 2 per cent. Very strong across the board," said John Bowe an analyst at Merrion Stockbrokers. "However, the guidance for low double-digit growth next year (2006) may be a bit disappointing," he added.
Shares in AIB were off 1.3 per cent at €19.43 by 08.45 am on a slightly negative ISEQ.
Additional reporting Reuters