Allied Irish Banks (AIB) is expected this week to report growth in its main businesses as it puts last year's trading scandal at US unit Allfirst behindit.
The bank, whose 2001 results were hit by one of the biggestfrauds in banking history when Allfirst employee John Rusnakracked up nearly $700 million in trading losses, is expected to post a 4 per cent rise in yearly pre-tax profit before exceptionals to around €1.4 billion.
The bank signalled in a trading statement in December it would deliver mid-single digit earnings growth for 2002, driven by strong retail and commercial business in Ireland and Britain.
"I think it will be a good solid set of figures," saidanalyst Mr John Kelly at brokerage NCB, who forecast underlying profit of €1.43 billion and 5 per cent growth in earnings per share (EPS) to 122.1 cents.
Mr Kelly predicted a 10 per cent rise in the final dividend to 48.1 cents per share in results due on Wednesday. He said the market would be looking for details from AIBabout progress with the sale of Allfirst to M&T Bank due to be completed in March, and about the Irish bank's operations in Poland.
"We'll be looking for reassurance again that 2003 will bethe year when they execute their deal in the U.S. successfully, and begin to get restructuring benefits from the Poland division where they've had a big cost-cutting programme," he said.
Allied Irish has retained a 22.5 per cent stake in theenlarged US group and will receive nearly $900 million cash.
Davy Stockbrokers forecast underlying profit of €1.39 billion from AIB, with adjusted EPS of 120.4 cents. An exceptional charge of $35 million is expected from costs associated with Allfirst.
AIB shares were trading at just 9.4 times the brokerage's2003 earnings forecasts, it said, representing a modest discount to the average British and European bank ratio of 9.6 times.