AP News, March 6th, 2007
Allied Irish Banks PLC, Ireland's largest company, said Tuesday its full-year 2006 profit surged on strong gains in loans, deposits and investment activity across all its units.
AIB said net profit for the year ending Dec. 31 rose 63 percent to 2.19 billion euros ($2.87 billion) from 1.34 billion euros in 2005. Revenue rose nearly 19 percent to 4.33 billion euros ($5.67 billion) from 3.65 billion euros.
The value of AIB's loans grew 32 percent and its deposits 20 percent, reflecting its dominant position in the thriving Republic of Ireland economy.
The 2006 profit also included an exceptional 289 million euros ($380 million) post-tax gain on the 2006 sale and leaseback of AIB's headquarters in south Dublin, a move that exploited Ireland's long-running real estate boom.
Chief Executive Eugene Sheehy said he expected the bank to post "low double-digit growth" in 2007.
AIB shares rose 0.83 percent to close at 21.85 euros ($28.70) on the Irish Stock Exchange in Dublin.
The AIB group runs by far the biggest branch network in the Republic of Ireland, which has the fastest-growing economy in the 13-nation euro zone, and also is the market leader in funding the development of commercial property. It also runs First Trust Bank in the British territory of Northern Ireland, has a majority stake in Bank Zachodni WBK of Poland and a minority stake in M&T Bank of New York.
AIB said its Polish unit performed strongly, with a 56 percent increase in pretax profit to 207 million euros ($271.6 million). It reported exceptionally strong gains in its brokerage and mutual fund business, which expanded its share of the Polish market to 17.4 percent from 12.6 percent in 2005 and enjoyed a 202 percent gain in net income growth.
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