AIB has today released its latest half-yearly Financial Results for 2017. The bank achieved a Profit Before Tax (PBT) of €761 million in the first half of this year. This comprises €814 million of operating profit, compared to €729 million in the half-year to June 2016, excluding exceptional items, driven by an increase in income levels while costs remained stable.
AIB recorded a Net Interest Margin (NIM) of 2.54%, an increase of 48bps on the same period last year. Operating income, at €1,529 million and costs at €693 million are both trending favourably to expectations, with operating income up €289 million on prior year and costs broadly in line with prior year.
The bank recorded strong new lending, approving c. €7 billion across the Group, with actual customer drawdowns at €4.3 billion, up from €3.8 billion in the same period of 2016. New personal lending was up 31% and business and corporate lending was slightly ahead on the same period last year. AIB's mortgage drawdowns increased by 41% year on year.
AIB's impaired loan balances of €7.8 billion have reduced by €1.3 billion since 31 December 2016 and by €21.1 billion since year end 2013. The impaired loan balances are €4.3 billion net of specific provision cover of 45%.
The first half of 2017 concluded with the successful sale, by the Government, of their first material stake in AIB. This was a landmark event for the bank and paves the way for the full recovery of the investment made by the State as the bank returns, over time, to full private ownership.
The shares commenced trading on the main listing of the Dublin and London stock exchanges on 27 June. The sale generated c. €3.4 billion for the State, reducing its shareholding to c. 71% and bringing the total cash received by the State, since the bailout, to c. €10.2 billion.
Commenting on today's results, Chief Executive Officer, Bernard Byrne said, "The successful relisting of the Company on the Dublin and London Stock Exchanges, supported by a strong underlying financial performance and the reinstatement of an ordinary dividend were the highlights from a very positive first half of 2017."
Source: www.businessworld.ie
