AIB today reported half-year profits of euro 463 million and said it is still confident of meeting its target of double digit growth in 2001 despite deteriorating economic conditions.
AIB Bank, the group’s retail unit, reported a 15 per cent increase in interim profits to euro 372 million thanks to strong performance in all key business units in Ireland, Northern Ireland and Britain.
The Irish banking division benefited from the strong growth in business volumes particularly in the second half of 2000 with growth in loans of 17 per centand customer accounts of 16 per cent since June 2000.
Loans increased by seven per cent since December 2000 with growth well spread across all economic sectors. There was a nine per cent increase in new mortgage lending since December.
Finance and leasing performed particularly well benefiting from higher margins and good growth in other income.
Asset quality remained strong in Ireland, Britain and the USA in the first half, the bank said in a statement. "Underlying productivity continues to improve and the return on equity remains very satisfactory" it said.