SOURCE: Allied Irish Banks, p.l.c.

March 02, 2009 02:08 ET

Allied Irish Banks, p.l.c. 2008 Preliminary Results

DUBLIN, IRELAND--(Marketwire - March 2, 2009) -


("AIB") [NYSE:AIB]

KEY INFORMATION - AIB GROUP ANNUAL RESULTS 2008

Profitability(1)

Operating profit before provisions of EUR 2,711 million, up 18%

Profit for the period EUR 885 million

AIB Bank ROI loss of EUR 52 million in 2008; operating profit(2) in line with 2007

Capital Markets profit up 13%; operating profit(2) up 52%

AIB Bank UK profit down 61%; operating profit(2) in line with 2007

Poland profit down 9%; operating profit(2) up 25%

M&T US$ contribution down 17%

Efficiency
Income/cost growth rate gap +11%
Cost income ratio down 5.3% from 51.8% to 46.5%

Asset quality
Impaired loans at 2.3% of customer loans
Criticised loans at 11.7% of customer loans
Provision charge at 1.37% of average loans
IBNR provisions: 0.73% of average loans


+-------------------------------------------------------------------+
| Earnings per share                         |         |            |
|--------------------------------------------+---------+------------|
| Basic earnings per share                   | EUR EUR | 82.9c      |
| less profit on disposal of businesses(3)   | EUR EUR | (12.0c)    |
| less profit on disposal/development of     |         | (1.4c)     |
| property(4) adjust for hedge volatility(5) |         | (3.0c)     |
|--------------------------------------------+---------+------------|
| Adjusted basic earnings per share          | EUR     | 66.5c down |
|                                            |         | 68%(6)     |
+-------------------------------------------------------------------+


Balance sheet funding

Customer funding 54% of our balance sheet requirement, up from 48% at 31 December 2007

Loan deposit ratio at 140%, down from 157% at 31 December 2007


+----------------------------------------------+
|                     |          | Proforma(7) |
|---------------------+----------+-------------|
| Capital ratios      | 31/12/08 |    31/12/08 |
|---------------------+----------+-------------|
| Core tier 1 ratio   |     5.8% |        8.4% |
|---------------------+----------+-------------|
| Tier 1 ratio        |     7.4% |       10.0% |
|---------------------+----------+-------------|
| Total capital ratio |    10.5% |       13.1% |
+----------------------------------------------+


(1) The percentage changes compared with 2007 are on an underlying
basis excluding the impact of exchange rate movements on the
translation of foreign locations' profit, the impact of interest rate
hedge volatility (hedging ineffectiveness and derivative volatility)
and profit on disposal of AIB's merchant acquiring businesses.
(2) Operating profit before provisions.
(3) Profit on disposal of 50.1% of AIB's merchant acquiring
businesses (EUR  106 million after taxation). Arising from this
transaction, a merchant acquiring joint venture was formed with First
Data Corporation.
(4) Construction contract income (EUR   11 million after taxation) and
sale of 2 branches in the Republic of Ireland (EUR  1 million after
taxation).
(5) The impact of interest rate hedge volatility (hedging
ineffectiveness and derivative volatility) was an increase of EUR   27
million to profit before taxation in the year to December 2008 (EUR  26
million after taxation).
(6) A 68% decrease compared with EUR 205.9c for the year to December
2007 (see note 15).
(7) Includes the EUR   3.5 billion of core tier 1 capital from the Irish
Government as announced on 11 February 2009, subject to shareholder,
regulatory and EU state aid approval.

Allied Irish Banks, p.l.c.

Dividend

No final dividend will be paid. The interim dividend, paid on 26 September 2008, was EUR 30.6c per share.

For further information please contact:

+-------------------------------------------------------------------+
| John O'Donnell | Alan Kelly       | Catherine Burke               |
|----------------+------------------+-------------------------------|
| Group Finance  | General Manager, | Head of Group Corporate       |
| Director       | Group Finance    | Relations                     |
|----------------+------------------+-------------------------------|
| Bankcentre     | Bankcentre       | Bankcentre                    |
|----------------+------------------+-------------------------------|
| Dublin         | Dublin           | Dublin                        |
|----------------+------------------+-------------------------------|
| 353-1-660-0311 | 353-1-660-0311   | 353-1-660-0311                |
|----------------+------------------+-------------------------------|
| Ext. 14412     | Ext. 12162       | Ext. 13894                    |
+-------------------------------------------------------------------+


This results announcement and a detailed informative presentation can be viewed on our internet site at www.aibgroup.com/investorrelations

Forward-looking statements

This document contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations and business of the Group and certain of the plans and objectives of the Group. In particular, among other statements, certain statements in the Management Report, with regard to management objectives, trends in results of operations, margins, risk management, competition and the impact of changes in International Financial Reporting Standards are forward-looking in nature. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'aim', 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', or other words of similar meaning. Examples of forward-looking statements include among others, statements regarding the Group's future financial position, income growth, loan losses, business strategy, projected costs, capital ratios, estimates of capital expenditures, and plans and objectives for future operations. Because such statements are inherently subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking information. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, the effects of continued volatility in credit markets, the effects of changes in valuation of credit market exposures, changes in valuation of issued notes, changes in economic conditions globally and in the regions in which the Group conducts its business, changes in fiscal or other policies adopted by various governments and regulatory authorities, the effects of competition in the geographic and business areas in which the Group conducts its operations, the ability to increase market share and control expenses, the effects of changes in taxation or accounting standards and practices, acquisitions, future exchange and interest rates and the success of the Group in managing these events. Any forward-looking statements made by or on behalf of the Group speak only as of the date they are made.

AIB cautions that the foregoing list of important factors is not exhaustive. Investors and others should carefully consider the foregoing factors and other uncertainties and events when making an investment decision based on any forward looking statement. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this report may not occur. The Group does not undertake to release publicly any revision to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date hereof.

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

Copyright © Hugin AS 2009. All rights reserved.

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