AIB shares drop despite rise in profits

SHARES in AIB slumped by just over 6% yesterday despite posting a rise in underlying earnings for 2003. The bank saw profits, excluding a number of one-off items, increase by 3% to €1.01 billion.

Despite this the shares fell by 83 cents to €12.47 on the Irish stock exchange as the lacklustre results failed to excite the markets.

Although earnings were ahead, the bank took a hit on several fronts. The weakness of US dollar, sterling and the Polish currency against the euro knocked 4% off its earnings per share (EPS), while the bank also booked a loss on the disposal of its British fund manager Govett.