AIB profits soar past €2bn

Operating profits at AIB's busnesses in Ireland were up 23% last year, the bank announced today. Before-tax profit came to €2.6bn, up from €1.7bn in 2005.

The UK saw an 18% hike in operating profits, while strong business lending saw profits in Poland surge by 52%.

Adjusted earnings per share were up 182.8c, a rise of 25%. The board is recommending a final dividend of 46.5c per share payable on May 10, 2007 to shareholders. The final dividend, together with the interim dividend of 25.3c per share, amounts to a total dividend of 71.8c per share, an increase of 10% on 2005.

AIB group boss Eugene Sheehy said: "‘2006 was a year when AIB enjoyed outstanding growth across all its divisions… I’m confident that the prospects remain bright for sustaining AIB’s level of high-quality growth into 2007 and beyond."

The bank's Irish profits include income from the disposal of the existing bank centre (€289m after tax), profit on disposal of Donnybrook House (€25m after tax) and profit on the sale of 11 branches (€58m after tax).

It also includes profit on the disposal of Ark Life discontinued operation (€ 112m after tax), profit from the sale of 50% stake of AIB/BNY Securities Services (Ireland) Limited to the Bank of New York Company (€51m) and the transfer by Ark Life of the management of certain investment contracts to life and pensions products business Aviva as part of the disposal of Ark Life (€26m after tax).