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Basic earnings per share EUR 114.0c less profit on disposal of business(1) EUR (12.0c) less profit on disposal/development of property(2) EUR (0.6c) adjust for hedge volatility(3) EUR 3.5c Adjusted basic earnings per share EUR 104.9c down 4%(4)
Divisional profit performance(5) - AIB Bank ROI down 5% - Capital Markets down 8% - AIB Bank UK up 1% - Poland up 4% - M&T contribution down 11%
Income/cost gap +5% Cost income ratio down 2.0% to 49.2% Bad debt provision charge of 0.21% Return on equity 21.9% Tier 1 capital ratio 7.7% Interim dividend of EUR 30.6c, up 10%
AIB Group Chief Executive Eugene Sheehy said: 'The €1.28 billion profit before taxation reported by AIB for the first half of 2008 represents a well balanced operating performance across our domestic and international businesses. This performance was achieved despite the adverse effect of slowing economies and difficult market conditions. It reflects the commitment of our people, deep customer relationships across geographically diverse franchises and a resilient risk management framework. All of this enables us to continue to operate effectively in the current challenging environment'.
(1)Profit on disposal of 50.1% of AIB Card Acquiring (€106 million after taxation). Following this transaction, a merchant acquiring joint venture was formed with First Data Corporation. (2)Construction contract income (€ 5 million after taxation). (3)The impact of hedge volatility (hedging ineffectiveness and derivative volatility) was a decrease of € 35 million to profit before taxation for the half-year to June 2008 (€31 million after taxation). (4)A 4% decrease compared with EUR 108.8c for the half-year to June 2007 (see note 15). (5)The percentage changes are on an underlying basis excluding the impact of exchange rate movements on the translation of foreign locations' profit and excluding profit on disposal of AIB Card Acquiring.
Dividend The Board has declared an interim dividend of EUR 30.6c per share, an increase of 10% on the half-year ended 30 June 2007. The dividend will be paid on 26 September 2008 to shareholders on the Company's register of members at the close of business on 8 August 2008.
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, certain statements with regard to management objectives, trends in results of operations, margins, risk management, competition and the impact of changes in 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, business strategy, projected costs, capital position, 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 additional factors that could cause actual results and developments to differ materially from those expressed or implied. These factors include, but are not limited to, 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. The Group 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.
