AIB announced this morning €1bn profit before tax for the first half of 2016. Profit was driven by a strong business performance, net credit provision writebacks of €211m and one-off benefits including the Visa Europe transaction.
Davy Stockbrokers commenting on the AIB announcement said “AIB's H1 2016 profit before tax of €1,017m is in line with expectations, bolstered by a €272m VISA gain and €214m of net write-backs. The year-on-year reduction from €1,235m in H1 2015 reflects lower net write-backs (€214m vs. €543m), lower other income (€295m vs. €409m) and higher costs (€725m vs. €648m due to regulatory costs and investment spend).”
AIB also announced a payment of €1.8 billion to the State to repay the Contingent Capital Notes (CoCos) that matured on July 28th.
The AIB update also points out their market leading position in the mortgages sector with a 34% share of new lending drawdowns in the first 3 months of 2016.
AIB boast of over 1 million active online users on their online portals, with 578,000 mobile users.
Seventy-six percent of AIB personal loans applications are now through their digital channels.
Bernard Byrne, AIB CEO, commenting on the results said, “These results reflect the underlying strength of the financial performance of AIB and our robust capital position which allows us to continue to support the economies in which we operate and to facilitate the further payment of €1.8 billion to the State.”
Source: www.businessworld.ie
