Irish bank’s profits up

Aug 5 2008 LDP Business

ALLIED Irish Bank has reported profits in its UK division increased 3% to £86m for the half-year to June.

Pre-tax profits for the Dublin-based group, which is Ireland’s largest bank, were down £40m but were still more than £1bn.

Allied Irish Bank (GB), which focuses mainly on business banking, said its increased profits were driven by a combination of solid growth in net interest income – from a 13% increase in customer deposit balances since December 2007 – and a 6% reduction in costs.

AIB(GB) has 28 sites, including North West offices in Liverpool and Manchester. In January, it moved its Liverpool office from its Dale Street home to take 6,500 sq ft in St Paul’s Square.

AIB Group Chief Executive Eugene Sheehy said: “The pre-tax profit represents a well-balanced operating performance across our domestic and international businesses.

“This performance was achieved despite the adverse effect of slowing economies and difficult market conditions.

“It reflects the commitment of our people, deep customer relationships across geographically diverse franchises and a resilient risk management framework. All of this enables us to continue to operate effectively in the current challenging environment.”