DUBLIN, Ireland, Feb. 24, 2004 (PRIMEZONE) -- Allied Irish Banks, p.l.c.:
"Earnings in line with expectations" AIB Group Chief Executive Michael Buckley said: "2003 was a year of record business volumes, transition in the USA and restructuring initiatives. Underlying earnings per share increased by 3%, or 7% adjusting for currency translation movements, in line with market expectations."
Operating businesses performed very strongly, notably our Irish and British retail and commercial banking businesses which achieved record lending volumes with growth of 28% and 25% respectively. The merger of Allfirst and M&T took place on 1 April and the two banks have been successfully integrated. "A sharp reduction in deposit margins reduced revenues in Poland, but significant cost savings were achieved from a further restructuring programme and asset quality improved. We recently announced an early retirement offer to a limited number of staff, largely in Ireland. Our Corporate Banking business performed strongly with significant volume growth in our British and North American corporate loans. Tangible ROE, having absorbed the loss on disposal of Govett and restructuring and early retirement costs, was 20%.
"Our confidence in future earnings prospects is shown by the Board's decision to recommend a total dividend increase of 10% on the 2002 level. Business performance so far in 2004 is strong with another buoyant year for business volumes expected. Though the net impact of translating foreign currency earnings will still be a negative factor, we expect to benefit from a significant turnaround in Polish profits and double-digit earnings growth in M&T."