M&T BANK, the American regional bank in which AIB has a 22.5% stake, had mixed news for investors yesterday as it disappointed with its first quarter profits, but said full-year results would still be on track.

FINANCIAL services group IFG yesterday signalled its painful restructuring was at an end as it reported a €1.7 million profit last year after a €32.8m loss in 2002.

SHARES in AIB slumped by just over 6% yesterday despite posting a rise in underlying earnings for 2003. The bank saw profits, excluding a number of one-off items, increase by 3% to €1.01 billion.

BOOKMAKER Paddy Power is expected to report a 13.5% rise in pre-tax profits today despite laying losing bets during a winning run for punters at Cheltenham and Aintree.

BANK of Ireland's financial services joint venture with the British Post Office could be worth between stg£800m and stg£1 billion in four to five years, according to Davy Stockbrokers.

THE markets will reward AIB and Bank of Ireland for their €1 billion plus share buyback programme, Merrion Stockbrokers said.

THE positive impact of AIB Bank’s €540m buyback of 40.5 million shares this year on earnings per share will be severely diluted by the introduction of €16 million formerly held in trust for Allfirst staff.

Conor Keane, Business Correspondent

BANK OF IRELAND shares are deemed a buy as the company heads for profits of €1,214m, up 8%, driven by double-digit profit growth in Ireland.

IRISH Life and Permanent’s robust dividends policy seems certain to remain intact despite the setbacks faced by other major insurers, according to NCB Stockbrokers.

IRISH Life & Permanent (IL&P) forecast operating profits this year will be well down on earlier estimates — €50m according to Davy Stockbrokers or €33m predict NCB brokers — it emerged yesterday.