AIB profits fall, but shareholders gain

AIB has announced a full year earnings drop of 26% as a result of FRS 17 pension adjustments, the Government levy and a disposal charge.

Pre-tax profits fell to €1.011bn in the 12 months to December 2003, this compared to €1.37bn a year earlier and was in in part affected by the stronger euro.

Adjusted earnings per share rose 3%. AIB also raised its dividend by 10% on 2002 to 54c per share.

This will be payable on April 30, 2004 to shareholders on the company register of members by close of business on March 5, 2004.

Michael Buckley, chief executive of the group, said: "Our confidence in future earnings prospects is shown by the decision to recommend a total dividend increase of 10%."

Net interest income rose 6% on an underlying basis, and the group reports a 20% increase in its Irish loan book.

Demand for mortgages was up 34%, this was partly due to record low interest rates.