AIB increases pre-tax profit to almost €1.3bn

Allied Irish Banks (AIB), the Dublin-based bank, increased its pre-tax profit by 31% to almost €1.3bn (£1.1bn) in the first six months of 2024.

However, profit at its UK business fell by 17% from £107m to £89m mainly due to increased costs for bad loans.

The bank’s chief executive, Colin Hunt, said that overall it had been a ‘very strong financial performance.’

AIB’s main rival, Bank of Ireland, reported similar profits earlier this week.

The two banks have been boosted by the performance of the Irish economy which saw strong domestic growth last year.

Mr Hunt said: "We remain optimistic about the opportunities that lie ahead over the remainder of this year and into 2025, bolstered by Ireland’s economic resilience."

AIB said it now expects customer loans to grow by 4% this year which compares to previous guidance of 2%.

The bank said it will also continue to buy back shares from the Irish government as it continues on a path to fully private ownership.

It had to be bailed out by the government during the 2008 financial crisis and the state still has a 25% stake.

AIB also benefits from a relatively uncompetitive retail banking market which is dominated by it and Bank of Ireland.

However, the market is set to become more competitive with the Spanish lender Bankinter intending to expand its operations in the country and Revolut planning to offer mortgage lending next year.