AIB share value down €800m but profits of €2.75m per day

ALMOST €800 million was wiped off the value of AIB shares yesterday despite the bank making €2.75m in profit a day in 2003. The country’s largest bank made €1.01 billion last year, down from €1.37bn in 2002.

The fall in profits was one of the main reasons the bank's shares slipped as much as 8% yesterday. Other factors were the strength of the euro against the dollar and pound and the Government's three-year banking levy, which shaved €29m off the bottom line.

AIB also suffered from lower earnings from its Polish banking operation and a loss on the sale of its British fund-management business.