M&T, the Buffalo-based bank in which AIB has a 23 per cent stake, said first-quarter profit rose by 19 per cent, helped by growth in commercial lending as expenses and bad loans declined.
Net income at the bank, in which billionaire Warren Buffett has a 6 per cent stake, rose to $189.3 million (€144.9 million), or $1.62 per share, compared to $159.5 million, or $1.30, a year earlier.
The results, which were in line with expectations, had little impact on AIB which closed 10 cent higher at €16.29 yesterday.
M&T's chief financial officer, Michael Pinto, said the bank was particularly pleased with the growth experienced in its commercial loan portfolio.
"Credit quality trends continue to be favourable with relatively low levels of non-performing loans and net charge-offs," he said.
M&T was also happy with the performance of its residential mortgage banking business in the quarter, while it said it was able to contain operating expenses successfully.
The bank expects full-year earnings per share of $6.60 to $6.80.
A breakdown of the results showed that lending income increased by 5 per cent to $446 million although the bank's net interest margin fell to 3.83 per cent from 3.92 per cent.
Fee income rose 3 per cent to $234 million while expenses fell by 6 per cent to $367 million.
Loans and leases rose by 7 per cent to $39 billion, deposits increased 9 per cent to $36 billion and assets rose 6 per cent to $54 billion. Non-performing loans fell 30 per cent to $180 million.
