Capital position good despite steep deterioration in bad debt, says bank

DESPITE the sharp deterioration in its bad debt position AIB says its capital position is good and it was expected to remain resilient in all plausible scenarios through the downturn in the credit cycle.

It added that it expected to have significant levels of retained profits for this year and next that will ease any pressure on funding.

The retained earnings reflected a robust operating profit within the group even in a period when allowing for the darkening bad debt outlook, it said.