AIB’s chances of offloading its 23% stake in US bank, M&T were done no harm yesterday, with the New York-based company announcing a near $140 million (€109m) year-on-year increase in second quarter profits.

M&T BANK, the US bank in which AIB holds a near 23% stake, has reported a 40% year-on-year increase in third quarter net profits but has still seen a like-for-like fall of 46% in profit for the year to date.

M&T Bank, in which AIB has a 22% stake, has reported net profits of $782 million (€645m) for 2005.