AIB Announce Pre-Tax Profits of €1.7 Billion
AIB announced annual pre-tax profits of €1.7 Billion and proposed a dividend of €250 million on Thursday. In a statement, AIB said that the profits were driven by strong sustainable business performance, net credit provision writebacks of €294million and one-off benefits including the Visa Europe transaction.
“2016 has been another milestone year for AIB Group,” AIB CEO Bernard Byrne said. “Our strong financial performance and robust capital base support our proposed dividend of €250m to ordinary shareholders. This reflects our sustainable profitability, strong capital generation and focus on delivering for shareholders and customers. We returned a further €1.8 billion to the State during the year, which together with the proposed dividend, brings to €6.8 billion the amount AIB will have paid in capital, dividends, fees, coupons and levies. The bank is now ready for an IPO, when market conditions permit and the Minister decides. With a market leading franchise, strong customer focus and investment in digital, AIB Group is well placed to continue to support our customers and the growing Irish economy.”
Other financial highlights from the report include:
- A 28bps increase in net interest margin (NIM) to 2.25% from 1.97%; continued expansion with
the spread widening between yields on assets and liabilities and redemption of legacy
- Cost income ratio of 52% with operating expenses increased by 7% in line with expectations
to €1.4 billion; and AIB’s €870m strategic investment programme, commenced in 2015, continuing
to deliver efficiencies, improved customer satisfaction and capacity for growth
- €12.9 billionn in new lending approvals to customers; €8.7 billion of drawdowns; 16% increase in new
lending in Ireland
- Impaired loans reduced to €9.1 billion, down c. €4bn since December 2015 and c. €20bn since
- Robust capital base with transitional common equity tier 1 (CET 1) ratio of 19% and fully loaded
CET1 ratio of 15.3% well in excess of the 2017 SREP transitional CET 1 requirement of 9%
- €1.8bn Contingent Capital Notes (CoCo) repaid to the State in July 2016. Total payments of c.
€6.8bn to the State including the €250m proposed dividend payment