Fitch: Pillar banks set for return to profitability

AIB and Bank of Ireland are on course to return to profitability next year for the first time since 2009, according to the credit ratings agency Fitch.

“This is one of the drivers for our stable outlook for the sector as internal capital generation is essential for reducing Irish banks’ use of perpetual preferred stock to meet minimum regulatory capital requirements,” Fitch said in a statement.

“However, capital ratios are likely to fall further for 2013 due to losses which could be exacerbated following the Central Bank of Ireland’s balance sheet assessment.”