BALTIMORE, July 31, 2002 (PRIMEZONE) -- Allied Irish Banks, P.L.C. (NYSE:AIB) announces Interim Results for 2002.
-- Attributable profit of EUR 519m, up 8% -- Basic earnings per share EUR 60.0c, up 8% -- Adjusted earnings per share EUR 61.9c, up 8%(1) -- Return on equity 22.2% -- Tier 1 capital ratio 6.8% -- Interim dividend of EUR 17.25c, up 12% -- Operating profit before provisions, up 13% -- Provisions up EUR 67m -- Profit before taxation EUR 703m, up 5% -- Tangible cost income ratio down 1.1% to 57.3%
Divisional profit performance
- AIB Bank ROI up 8% - USA down 25% - Capital Markets up 14% - AIB Bank GB & NI up 14% - Poland up 18% (1) Before goodwill amortisation
AIB Group Chief Executive Michael Buckley said: "AIB delivered a strong performance in the first half of 2002. The strength of our franchises is demonstrated by the delivery of profit increases against a backdrop of uncertain and volatile markets. AIB is proving its resilience in tough times and this is good news for our shareholders."
Statement from the AIB Group Chief Executive
AIB delivered a strong performance in the first half of 2002. The strength of our franchises is demonstrated by the delivery of profit increases against a backdrop of uncertain and volatile markets. This difficult operating environment was compounded for AIB by the Allfirst fraud. This event and its aftermath created significant challenges for our company but these were met without losing our focus on growing the business.
The half-year results from our banking operations in the Republic of Ireland, Northern Ireland and Britain were very good. The performance in Poland was pleasing as it was achieved in a weak macroeconomic environment. It is directly linked to our success in reshaping the business model in that market. The impact of the fraud on our Allfirst business was very substantial yet Allfirst increased its underlying operating profit compared with the same period last year. This proves the success of our business retention efforts and demonstrates the strength of this franchise.
AIB's income growth outpaced growth in costs. In fact, reducing our rate of cost growth has helped our core operating profit (before provisions) rise by 13% compared with the same period last year. The general economic climate is far from benign. In these circumstances our provision charges are significantly higher for this halfyear than the exceptionally low charges of the last few years, notably in Allfirst. AIB's provision cover remains good. In 2002, AIB has accelerated its core strategy of building a distinctive customer service proposition and at the same time is becoming a more cohesive and productive business.
There is still more to do. But we are well positioned to enjoy continued growth for the rest of this year and into the future. AIB is proving its resilience in tough times and this is good news for our shareholders.
Michael Buckley Chief Executive
To view this release in its entirety, please click the link:http://reports.huginonline.com/867984/106105.pdf