€1.7 billion - AIB's record profit

AIB has reported record annual profits for an Irish bank of €1.7 billion, as loan growth and lower tax charges outstripped cost increases.

The bank's 2005 pre-tax profits, which were 24% higher than in 2004, also include a €44 million gain on the sale and leaseback of its head office in Dublin.

Chief executive Eugene Sheehy said the bank has seen strong loan growth in Ireland and Britain, while the capital markets division and Polish banking arm BZ WBK also enjoyed a rise in profits.