DUBLIN, Ireland, Aug. 03, 2005 (PRIMEZONE) -- Allied Irish Banks, p.l.c. ("AIB") (NYSE:AIB) Highlights:
- Basic earnings per share EUR 72.3c, up 16%(1) or up 15% before the net impact of hedge ineffectiveness and timing of funding payments on certain capital instruments under IFRS(2) Revised guidance for 2005
- EPS in the range of EUR 140c to EUR 142c Divisional Profit Performance (3)
- AIB Bank ROI up 34% or 17% excluding the 45m Euro investigation related charges incurred in 2004
- AIB Bank GB & NI up 13%
- Capital Markets up 33%
- Poland up 17% Income/cost gap + 4% Cost income ratio down 2% to 54.6% Return on equity 20% Tier 1 capital ratio 7.7% Interim dividend of EUR 23.0c, up 10% Double-digit US$ earnings growth from M&TAIB Group
Chief Executive Eugene Sheehy said: "In the first half of 2005 AIB has continued to deliver a strong and broad based performance. Our success is founded on sound business strategies in good markets executed by top quality staff. We are confident that this level of performance is sustainable and we continue to invest heavily in people and systems to support our activities."
Dividend
The Board has declared an interim dividend of EUR 23.0c per share, an increase of 10% on the half-year ended 30 June 2004. The dividend will be paid on 23 September 2005 to shareholders on the Company's register of members at the close of business on 12 August 2005.
(1) A 16% increase compared with the half-year June 2004 pro-forma earnings per share of EUR 62.4c.
(2) The impact of hedge ineffectiveness under IFRS was to add 2 million Euros to profit before taxation for the half-year. Under IFRS, funding payments in relation to certain capital instruments are accounted for as they are paid rather than on an accruals basis. This gives rise to a timing benefit in the first half-year. This timing benefit will be eliminated in the second half-year.
(3) Excluding the impact of exchange rate movements on the translation of foreign locations' profit.
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