The Group results for the half-year are not directly comparable with June 1999 due to a change in the composition of the Group. The current half-year includes Bank Zachodni ('BZ') in which AIB took a majority shareholding on 16 September 1999.
The underlying percentage change adjusts for the impact of the BZ acquisition in Poland, currency factors and the impact of US$ 5 million securities gains in the USA in 1999.
Group profit on ordinary activities before taxation amounted to Euro 609 million, up 12% on the half-year to June 1999 profit of Euro 542 million. Basic earnings per share increased by 13% to EUR 48.5c per share with tangible earnings per share increasing by 16% to EUR 49.9c per share. Group profit on ordinary activities after taxation was higher by 15% at Euro 442 million and profit attributable to ordinary shareholders at Euro 414 million was up 13%.
Deposit Interest Retention Tax (DIRT) - The Group has a contingent liability in respect of DIRT. Note 18 of this release sets out relevant disclosure of the issue.
Operating profit before provisions
Operating profit before provisions, including associates increased by 18% to Euro 676 million for the half-year to June 2000.
Net interest income
Net interest income increased by 17% to Euro 985 million for the half-year to June 2000. When the impact of the BZ acquisition and currency factors are excluded, net interest income was up 5%. Loans to customers and customer accounts increased by 9% and 7% respectively since December 1999 on a Group basis. Excluding currency factors, loans to customers increased by 7% while customer accounts grew by 6%. The net interest margin was 3.10%, a decrease of 17 basis points on the half-year to June 1999. The decrease mainly occurred in AIB Bank and Allfirst, both operating in very competitive markets.