AIB to cut rates after boost in profits

AIB is the latest bank to report an improving financial position, turning a quarterly profit as it benefited from an improving climate both at home and in Britain.

After weeks of scrutiny on the standard variable rates charged by banks — which was followed by an indication from outgoing chief executive David Duffy late last month that the bank may look to cut its rates — AIB yesterday announced a 0.25% reduction for owner-occupier and buy-to-let mortgages.

Its interim management statement, released yesterday morning, showed that an increase in lending, a cut in impaired loans, and a provision writeback of €300m all helped the bank to profitability in the first quarter of 2015.