5th August 2009
07:00

Allied Irish Banks, p.l.c. ("AIB") [NYSE: AIB] today issues its Half Yearly Financial Report for the half year ended 30 June 2009. Please click on the following link to view:

http://www.rns-pdf.londonstockexchange.com/rns/8370W_-2009-8-4.pdf

 

Key Information - AIB Group interim results 2009

Profitability(1)

Operating profit before provisions of € 1,738 million, down 6%

Loss for the period € 786 million

AIB Bank ROI loss of € 1,522 million; operating profit(2) down 33%

Capital Markets profit of € 252 million down 13%; operating profit(2) up 55%

AIB Bank UK loss of £ 28 million; operating profit(2) down 17%

Poland profit of Pln 313 million down 49%; operating profit(2) down 4%

M&T US$ contribution down 71%; impairment charge of € 200 million taken against investment

Efficiency

Costs 7% lower

Neutral income/cost growth rate gap (income and costs both down 7%)

Cost income ratio down from 49.2% to 48.3%(3) (37.5% headline)

Asset quality

Impaired loans at 8.1% of total loans

Criticised loans at 25.0% of total gross loans

Provision charge of € 2,373 million was 3.58% of average customer loans

Loss per share

Basic loss per share		EUR (43.2c)
less gain on redemption of capital instruments(4)		EUR (121.8c)
less profit on disposal/development of property(5)		EUR (0.9c)
adjust for hedge volatility(6)		EUR 1.5c
Adjusted basic loss per share		EUR (164.4c)

 

Balance sheet funding

Customer funding 49% of our balance sheet requirement

Loan deposit ratio at 156%, up from 140% at 31 December 2008

Capital ratios	30/06/09
Core tier 1 ratio	8.5%
Tier 1 ratio	7.8%
Total capital ratio	10.7%

 

(1) The percentage changes are on an underlying basis excluding the impact of exchange rate movements on the translation of foreign locations’ profit, the impact of interest rate hedge volatility (hedging ineffectiveness and derivative volatility), the element of the pre-tax gain (€ 623 million) recorded in the income statement on redemption of subordinated liabilities completed in June 2009, and excluding profit on disposal of AIB’s merchant acquiring businesses in 2008.

(2) Operating profit before provisions.

(3) 48.3% before benefit of the gain on redemption of subordinated liabilities. Including this gain the cost income ratio was 37.5%.

(4) Gain on redemption of subordinated liabilities and other capital instruments as part of the capital exchange offering completed in June 2009.

(5) Saleof 7 branches in the Republic of Ireland (€ 7 million after taxation) and construction contract income (€ 1 million after taxation).

(6) The impact of hedge volatility (hedging ineffectiveness and derivative volatility) was a decrease of € 12 million to profit before taxation in the half-year to June 2009 (€ 13 million after taxation) and a decrease of € 35 million to profit before taxation in the halfyear to June 2008 (€ 31 million after taxation).

 

Allied Irish Banks, p.l.c.

Dividend

No interim dividend will be paid.

 

For further information please contact:

John O'Donnell
Group Finance Director
Bankcentre
Ballsbridge
Dublin 4
Tel: +353-1-6600311 Ext 14412

or

Alan Kelly
General Manager, Group Finance
AIB Group
Bankcentre
Ballsbridge
Dublin 4
Tel: +353-1-6600311 Ext 12162

or

Catherine Burke
Head of Group Corporate Relations
AIB Group
Bankcentre
Ballsbridge
Dublin 4
Tel: +353-1-6600311 Ext 13894

 

To view the full media release click here

Back To Top