But it wasn't so rosy on UK turf…
Dublin-based bank Allied Irish Banks (AIB) has announced a significant 31% rise in its pre-tax profit, reaching almost €1.3 billion (£1.1 billion) for the first half of 2024. According to BBC News, this notable increase comes amid the robust performance of the Irish economy and solid domestic growth in the previous year.
Despite the overall positive financial results, AIB’s UK operations saw a decline in profit by 17%, dropping from £107 million to £89 million. The reduction was attributed to increased costs associated with bad loans.
Colin Hunt, AIB’s chief executive, emphasised the bank’s strong performance and future prospects, noting AIB had a “very strong financial performance” and that they were confident about being able to leverage Ireland’s economic strength. “We remain optimistic about the opportunities that lie ahead over the remainder of this year and into 2025, bolstered by Ireland’s economic resilience,” he said.
AIB’s main competitor, Bank of Ireland, also reported similar profits earlier this week, reflecting the favourable economic conditions in Ireland. BBC News noted that both banks have benefited from the country’s economic growth and a relatively uncompetitive retail banking market. This market is primarily dominated by AIB and Bank of Ireland.
Looking ahead, AIB has revised its customer loan growth expectations to 4% for the year, up from a previous estimate of 2%. The bank also indicated continuing its efforts to move towards full private ownership, including plans to repurchase shares from the Irish government. The government still holds a 25% stake in AIB following a bailout during the 2008 financial crisis.
The Irish banking market is poised to become more competitive. Spanish lender Bankinter is planning to expand its operations in the country, and Revolut has announced plans to offer mortgage lending next year.
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