2003 a ‘transitional year’ for AIB

AIB said it expects profits this year to grow by no more than 5% after a number of charges, including the Government’s banking levy, hitting its bottom line.

In a trading update for the year to the end of December 2003, the bank said profits would grow by “low single digit” and that a number of one-off factors will affect earnings growth.

The bank said the adoption of a new accounting standard, known as FRS 17, means that AIB will have to account for its pension fund deficit. It also said profits will be hit by the banking levy and from redundancy costs related to the sale of its investment managers arm Govetts.