AIB Reports Half-Year Profit of IRpd201m, Earnings Per Share Up 14%.DUBLIN Dublin, city, Republic of Ireland Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. , Ireland--(BUSINESS WIRE)--August 1, 1996--AIB Group Interim Results 1995; Earnings Per Share -- Up 14% -- Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before provisions up 12% -- Profit before taxation amounted to IRpd201m, an increase of 14% on 1995 -- Profit attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to ordinary shareholders up 15% to IR 123m -- EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. amounted to IR 18.3p, an increase of 14% -- Interim dividend of IR 5.95p, an increase of 14% on 1995 -- Return on equity strengthened to over 20% Commenting on the results, AIB AIB n abbr (BRIT) (= Accident Investigation Bureau) → oficina de investigación de accidentes AIB n abbr (Brit) (= Accident Investigation Bureau) → Group Chief Executive, Tom Mulcahy Tom Mulcahy was an Irish sportsperson who played hurling with the Cork senior inter-county team throughout the 1940s. Mulcahy first came to prominence in 1941 as a member of the Cork minor hurling team. said: "The excellent profit performance was based on a strong performance by all divisions across the principal geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge areas of the Group. Of particular note was the growth of 12% in profit before provisions, reflecting the success of our operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon in generating new business volumes and growing our revenues in very competitive markets. Our commitment to service quality is increasingly being translated into practical benefits for our growing customer base. Credit quality remained strong in the half-year and underlying costs adjusted for the impact of new activities showed only modest growth." AIB REPORTS HALF-YEAR PROFIT OF IRpd 201M, EARNINGS PER SHARE UP 14% Allied Irish Banks Allied Irish Banks, p.l.c. (AIB) (Irish: Bainc-Aontas Éireann),ISEQ: ALBK, LSE: ALBK, NYSE: AIB, FWB: AIB is a commercial bank based in Ireland not to be mistaken for Anglo Irish Bank. AIB is one of the so called Big Four commercial banks in Ireland. , p.l.c. (AIB Group) (NYSE NYSE See: New York Stock Exchange : AIB; AIBPR; FMBPR) today announced its results for the half-year ended 30 June June: see month. 1996. Group profit before taxation amounted to IRpd201.1m compared with IRpd177.1m for the half-year ended 30 June 1995, an increase of 13.6%. Profit attributable to ordinary shareholders increased by 15.3% to IRpd123.4m. Earnings per share for the half-year amounted to IR 18.3p, an increase of 13.7%. The Board has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. an interim dividend of IR 5.95p (tax credit of 21/79ths equal to IR 1.5816p), an increase of 14.4% on 1995. For US ordinary ADR ADR - Astra Digital Radio stockholders, the interim dividend is IR 35.7p (tax credit IR 9.4896p) per ADR. Capital adequacy remains strong. The tier one capital ratio amounted to 8.1% and the total capital ratio to 10.5%. The return on equity further strengthened to 20.5% and the return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). amounted to 1.07%. This media release contains a detailed commentary on group and divisional results for the half-year. -0- The Group's unaudited accounts for the half-year are included in this release. Copies of the interim report will be sent to shareholders on Tuesday Tuesday: see week. , 27 August 1996 and will also be available from that date at the company's Registered Office, Bankcentre, Ballsbridge Ballsbridge (Droichead na Dothra[1] in Irish) is a suburb of Dublin, Ireland, named for the bridge spanning the River Dodder on the south side of the city. , Dublin 4. Dividend warrants will be posted to shareholders on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , 27 September September: see month. 1996, payable on or after Monday Monday: see week. , 30 September 1996 to shareholders on the company's register at the close of business on Tuesday, 20 August 1996. The company's register of members will be closed on Wednesday Wednesday: see week. , 21 August 1996. Shareholders will be offered the opportunity to opt for new shares instead of cash in respect of the dividend payable on 30 September 1996 and offer letters will be sent to shareholders on 27 August 1996. For further information please contact: Declan Mc Sweeney Sweeney in poems by T. S. Eliot, symbolizes the sensual, brutal, and materialistic 20th-century man. [Br. Poetry, Benét, 978] See : Virility Catherine Burke The name Burke (from Irish Gaelic de Burca, of Norman origin). In English the meaning of the name Burke is "fortified hill." See also Berkley. Places Australia
Group Controller Media Relations Manager AIB Group, AIB Group, Bankcentre, Bankcentre, Ballsbridge, Ballsbridge, Dublin 4. Dublin 4. 353-1-6600311 ext. 14954 353-1-6600311 ext. 13894 Clyde Clyde, principal river of SW Scotland, 106 mi (171 km) long, rising in the Southern Uplands and flowing generally NW through Glasgow to the Firth of Clyde. It drains c.1,480 sq mi (3,830 sq km). Walton, C. Walton & Company, 122 East 42nd Street, Suite 3902 New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of NY 10168 212-661-1620 -0-
Financial highlights (unaudited)
for the half-year ended 30 June 1996
Half- Half- Year
year year 31
30 June 30 June December
1996 1995 1995
IRpdm IRpdm IRpdm
Results
Total operating income 629.5 585.7 1,197.7
Group profit before taxation 201.1 177.1 372.6
Profit attributable 123.4 107.0 228.7
Profit retained 76.9 69.2 135.3
Per IR 25p ordinary share
Earnings 18.3p 16.1p 34.2p
Dividend 5.95p 5.20p 12.90p
Tax credit on dividend 1.58p 1.55p 3.85p
Net assets 184p 174p 172p
Performance measures
Return on average total assets 1.07% 1.06% 1.09%
Return on average ordinary
shareholders' equity 20.5% 18.9% 19.4%
Balance sheet
Total assets 25,844 21,813 23,873
Shareholders' funds: equity
interests 1,246 1,165 1,157
Deposits etc 21,981 18,496 20,393
Loans etc 16,579 14,848 15,579
Capital ratios
Ordinary shareholders' equity to assets 4.8% 5.3% 4.8%
Tier 1 capital 8.1% 8.9% 8.1%
Total capital 10.5% 11.2% 10.9%
The accounting policies as set out on pages 24 to 28 of the Annual
Report and Accounts for the year ended 31 December 1995 are unchanged.
-0-
Chairman's statement
AIB Group turned in an excellent profit performance in the first
half of 1996 - a result made especially welcome by a pattern of
strong volume growth across all divisions.
Profit attributable to ordinary shareholders for the six months
ended on 30 June 1996 was IRpd123.4m - an increase of 15.3% on
the same period last year.
The Board has declared an interim dividend of IR 5.95p per share
- up 14% on the 1995 first half. The dividend will be posted on
Friday, 27 September 1996 to shareholders on the register of
members at close of business on Tuesday, 20 August 1996. The tax
credit is IR 1.5816p.
Return on equity strengthened to more than 20% and the return on
assets increased to 1.07%. Our capital ratios remain strong.
To afford maximum flexibility in the management of our capital
resources, it is intended to seek shareholder approval at next
year's Annual General Meeting for the company to purchase its own
shares - if the Board was of the view that this course of action
would be in the best interests of shareholders.
Highlights of the Group's performance include vigorous loan
growth, better than expected sales of long-term savings products
and a strong performance from our treasury operation. The
performance of each division is covered in greater length in the
commentary on results which starts on page 9 of this report.
Developments
A key development in the half-year was the agreement to increase
the Group's shareholding in Wielkopolski Bank Kredytowy S.A.
(WBK) in Poland to 36.3%. WBK had total assets at 30 June 1996 of
the equivalent of IRpd1.1 billion. The Group received dividend
income in this half-year from WBK - following our increased
investment, we now will account for WBK as an associated company.
Also in Eastern Europe, AIB beat intense competition to become
the first Western bank to twin with a counterpart in Bulgaria.
The arrangement with United Bulgarian Bank in Sofia comes as
consultancy projects with Lietuvos Taupomasis Bankas in Lithuania
and Bank Saint-Petersburg in Russia continue to develop.
We also signed a IRpd50m global loan agreement with the European
Investment Bank and started to give subsidised loans to customers
in the border counties of the Republic and Northern Ireland.
Other notable events in the half-year include AIB's IRpd3m pledge
to a new venture capital fund in conjunction with the Irish
Government agency Forbairt. This aims to bridge the equity gap
experienced by new businesses and supports our position as
Ireland's leading business bank.
On the technological front, the New Branch Banking System, which
delivers improved service to customers including same day value
for AIB cheques, is being installed in our branch network. Early
results are encouraging and we believe the system will greatly
enhance our service. Elsewhere, business customers can now
perform banking transactions by PC by using AIB's Electronic
Business Banking software while the AIB Internet site at
http://www.aib.ie has also been extended and improved.
Another pleasing development was the decision by Standard &
Poor's to upgrade the Group's long-term debt and counterparty
ratings.
During the half-year, the Group also launched a major programme
in the Republic aimed at increasing staff flexibility - through
career breaks and personalised hours. AIB Choices is in its early
stages but should provide flexible working options to staff, help
the Group contain costs and allow experienced employees to be
retained in key roles.
The future
Prospects for the rest of the year remain good. The growth in our
domestic economy has slowed slightly but the economy is still
predicted to show a real GDP increase of 6% over the year. This
would mean Ireland would retain its position as the country with
the fastest growing economy in the OECD area. With inflation
predicted to average 1.8% for 1996, we expect continuing strong
loan demand although at a lower level than the first half.
As the months go by, it seems more likely that Ireland will be on
track to meet the criteria for entry into European Monetary
Union, though control over inflation and public spending will
need to be maintained.
Good performances in all our geographic markets combined to
produce record profits in the first half of 1996. With a
favourable economic background in Ireland, the UK and the USA,
underlying business trends continue to be positive. We are
confident that our profit performance in the rest of 1996 will
exceed that achieved in the second half of 1995.
I have decided to retire from the Board on 31 December 1996 in
order to reduce my business commitments and workload. I am very
pleased that the Board has chosen Mr. Lochlann Quinn to be my
successor as Chairman with effect from 1 January 1997. It has
been a privilege to serve as a Director of the Bank since May
1984 and as Chairman since July 1993.
James P Culliton
Chairman
Bankcentre
Ballsbridge
Dublin 4
31 July 1996
We welcome your views on this interim report or on the 1995
annual report. Please write to Group Publications, Freepost, AIB
Bankcentre, Dublin. Your comments will help us ensure that we
continue to tailor these publications to the needs of shareholders.
-0-
Consolidated profit and loss account (unaudited)
for the half-year ended 30 June 1996
Half- Half- Year
year year 31
30 June 30 June December
1996 1995 1995
Notes IRpdm IRpdm IRpdm
Interest receivable:
Interest receivable and similar
income arising from debt
securities and other fixed
income securities 207.1 171.3 368.1
Other interest receivable and
similar income 2 688.1 651.1 1,346.9
Less: interest payable 3 (486.5) (431.2) (918.6)
Net interest income 408.7 391.2 796.4
Other income 4 220.8 194.5 401.3
Total operating income 629.5 585.7 1,197.7
Total operating expenses 5 404.9 384.9 774.3
Group operating profit before
provisions 224.6 200.8 423.4
Provisions for bad and
doubtful debts 25.0 25.6 52.5
Provisions for contingent
liabilities and commitments (0.5) (0.8) (0.6)
Amounts written off fixed asset
investments 0.2 0.2 1.4
24.7 25.0 53.3
Group operating profit 199.9 175.8 370.1
Income from associated undertakings 1.2 1.3 2.5
Group profit on ordinary
activities before taxation 201.1 177.1 372.6
Taxation on Group profit on
ordinary activities 6 67.4 60.7 125.0
Group profit on ordinary
activities after taxation 133.7 116.4 247.6
Equity and non-equity minority
interests in subsidiaries 4.5 4.0 8.0
Dividends on non-equity shares 5.8 5.4 10.9
10.3 9.4 18.9
Group profit attributable to the
ordinary shareholders of
Allied Irish Banks, p.l.c. 123.4 107.0 228.7
Dividends on equity shares 40.3 34.8 86.7
Transfer to reserves 6.2 3.0 6.7
46.5 37.8 93.4
Profit retained 76.9 69.2 135.3
Earnings per IR 25p ordinary share 18.3p 16.1p 34.2p
-0-
Consolidated balance sheet (unaudited)
30 June 1996
31
30 June 30 June December
1996 1995 1995
Notes IRpdm IRpdm IRpdm
Assets
Cash and balances at central banks 178.1 170.8 256.2
Items in course of collection 596.0 489.2 507.5
Central government bills and other
eligible bills 30.8 41.4 20.5
Loans and advances to banks 2,678.0 2,279.4 2,220.0
Loans and advances to customers 8 13,856.6 12,530.2 13,318.6
Securitised assets 350.2 144.7 143.4
Less: non-returnable proceeds (306.1) (106.5) (103.1)
44.1 38.2 40.3
Debt securities 12 6,529.8 4,737.3 5,863.0
Equity shares 69.7 85.9 82.1
Interests in associated
undertakings 58.0 18.3 15.6
Tangible fixed assets 442.3 442.6 449.5
Other assets 387.9 338.7 262.9
Deferred taxation 33.4 50.3 43.4
Prepayments and accrued income 506.8 322.4 431.0
Long-term assurance business
attributable to shareholders 13 45.1 34.6 38.6
25,456.6 21,579.3 23,549.2
Long-term assurance assets
attributable to policyholders 13 387.6 233.4 323.6
25,844.2 21,812.7 23,872.8
Liabilities
Deposits by banks 3,419.6 1,947.2 2,377.6
Customer accounts 14 17,406.6 15,551.3 16,625.3
Debt securities in issue 1,154.8 998.0 1,390.5
Other liabilities 1,130.3 991.9 952.8
Accruals and deferred income 461.3 314.9 416.8
Provisions for liabilities and
charges 19.5 19.5 15.5
Subordinated liabilities 407.5 395.3 405.1
Equity and non-equity minority
interests in subsidiaries 100.9 90.8 99.8
Shareholders' funds: non-equity
interests 109.8 105.7 108.8
Called up ordinary share capital 169.4 167.6 168.2
Share premium account 407.6 399.8 399.8
Reserves 60.6 51.1 54.3
Profit and loss account 608.7 546.2 534.7
Shareholders' funds: equity
interests 1,246.3 1,164.7 1,157.0
25,456.6 21,579.3 23,549.2
Long-term assurance liabilities
to policyholders 13 387.6 233.4 323.6
25,844.2 21,812.7 23,872.8
-0-
Statement of total recognised gains and losses (unaudited)
Half- Half- Year
year year 31
30 June 30 June December
1996 1995 1995
IRpdm IRpdm IRpdm
Group profit attributable to the
ordinary shareholders 123.4 107.0 228.7
Currency translation differences on
foreign currency net investments 3.3 (34.9) (27.2)
Total recognised gains relating to
the period 126.7 72.1 201.5
Reconciliation of movements in shareholders' funds: equity interests
Half- Half- Year
year year 31
30 June 30 June December
1996 1995 1995
IRpdm IRpdm IRpdm
Group profit attributable to the
ordinary shareholders 123.4 107.0 228.7
Dividends on equity shares (40.3) (34.8) (86.7)
83.1 72.2 142.0
Other recognised gains/(losses)
relating to the period 3.3 (34.9) (27.2)
New ordinary share capital
subscribed 8.5 8.5 9.6
Ordinary shares issued in lieu of
cash dividend 6.7 5.7 11.4
Goodwill (written off)/written back
during the period (12.3) 0.1 (91.9)
Net addition to shareholders' funds:
equity interests 89.3 51.6 43.9
Opening shareholders' funds:
equity interests 1,157.0 1,113.1 1,113.1
Closing shareholders' funds: equity
interests 1,246.3 1,164.7 1,157.0
Note of historical cost profits and losses
Reported profits on ordinary activities before taxation would not
be materially different if presented on an unmodified historical
cost basis.
-0-
Commentary on results
Overview
AIB Group has recorded a strong profit performance for the half-
year ended 30 June 1996. Profit before taxation of IRpd201.1m was
13.6% ahead of the corresponding period last year with the operating
profit before provisions, at IRpd224.6m, up 11.9%. The profit
increase was spread over all operating markets with a vibrant economy
in the Republic of Ireland giving rise to strong customer demand for
products and services, with Northern Ireland and Britain benefiting
from an improved business environment and with the USA experiencing
higher fee income levels.
Profit after taxation increased by 14.9% to IRpd133.7m while
attributable profit of IRpd123.4m was higher by 15.3%. Earnings per
share grew by 13.7% to IR 18.3p and return on equity strengthened to
20.5%.
Net interest income
Net interest income at IRpd408.7m was up by 4.5% on 1995 and was
higher in all divisions.
The Group's net interest margin continued to trend downwards. At
3.54%, it was 21 basis points lower than the figure recorded in the
second half of 1995. The margin on our core banking business in the
Republic of Ireland, while lower, was in line with expectations and
is showing signs of stabilising. The decline in overall Group net
interest margin was due principally to the impact of holding a higher
proportion of treasury assets, as a result of favourable yield curve
conditions, and lower deposit margins. The overall lending margin in
the Republic of Ireland was broadly stable in the half-year.
Since 31 December 1995, total loans to customers have grown by
5.2%. On a geographic basis, loans in the Republic of Ireland were
up by 10.1%, in Northern Ireland by 6.3% and in Britain by 5.1%. In
the USA, underlying growth was 2.9% excluding the impact of
securitisation.
The Group's total deposit volumes grew by 3.4% since 31 December
1995. Deposits were up 3.6% in the Republic and in Britain strong
growth of 6.3% was achieved.
Other income
Other income at IRpd220.8m showed good growth of 13.5% on 1995,
particularly as we have had no general increase in fees and charges
in the Republic of Ireland since December 1992. All divisions
performed well and in particular AIB Bank where Ark Life's sales of
new long-term savings products greatly exceeded expectations and USA
where emphasis on retail banking and trust activities in FMB resulted
in higher fee income. In addition the total figure was boosted by
the inclusion of John Govett Group for the first time.
Operating expenses
Total operating expenses increased by 5.2%. Excluding the impact
of the Govett acquisition and new business initiatives, underlying
costs increased by 2% approximately. The cost/income ratio improved
to 64.3%.
Asset quality
Asset quality remained high with non-performing loans declining
to 2.2% from 2.4% at 31 December 1995. The charge for bad and
doubtful debts, as a percentage of average loans, was 0.4%. Total
provisions for bad and doubtful debts at 30 June 1996 stood at
IRpd290.6m, which represented cover of 94% of non-performing loans.
Taxation
The tax charge was IRpd67.4m, an increase of IRpd6.7m (11.0%)
over the charge of IRpd60.7m for the first half of 1995.
The effective tax rate reduced to 33.5% compared to an effective
rate of 34.3% for the corresponding period in 1995. This improvement
reflects both a proportionately higher level of income subject to tax
at a rate below the standard rate and a full six month effect of the
reduction in the rate of Irish Corporation Tax to 38% (reduced with
effect from 1 April 1995).
Half-year Half-year
30 June 30 June
1996 1995
Performance by division IRpdm IRpdm
AIB Bank 102.2 90.6
USA 56.9 49.7
Capital Markets 34.9 28.8
Group(a) 7.1 8.0
201.1 177.1
(a) The presentation of divisional profits has been adjusted with
Group separately disclosed. Group includes interest income earned
on capital not allocated to divisions and central services costs.
AIB Bank
AIB Bank enjoyed strong profit growth, increasing by 12.8% from
IRpd90.6m in 1995 to IRpd102.2m in the six month period. Robust
loan demand, higher levels of income from Ark Life and a significant
increase in profit in First Trust Bank were the key features of this
performance.
Net interest income was higher, with the impact of a fall in the
division's net interest margin, caused by competitive pressures on
all fronts and a lower interest rate environment in the Republic of
Ireland, being more than compensated by good growth in volumes.
Branch lendings in the Republic of Ireland and Northern Ireland were
particularly strong, leasing and home loan volumes were also buoyant
in the Republic of Ireland, while in Britain good growth in deposit
volumes was a key feature of performance. Improved economic
conditions also contributed to higher transaction volumes across all
businesses, resulting in increased levels of fee income and
commissions. Of particular note was the income earned on the sale of
a new range of long-term savings products, PIPs and PEPs, which were
launched by Ark Life in January 1996.
USA
USA division reported a 14.5% increase in profit to IRpd56.9m.
The rise in profit was underpinned by a good increase in fee income.
Higher levels of mortgage banking and trust income and corporate
and retail deposit service charges were the key factors in the 8.9%
increase in FMB's other income. Underlying loan growth in FMB at
June 1996 was 3.8% up on December 1995 when adjusted for the
securitisation in April 1996 of an additional US $335m of credit card
receivables. Asset quality remains very strong with non-performing
loans of US $32.5m covered 506% by total provisions.
AIB New York recorded a strong rise in profits with a good
operating performance also boosted by recoveries of bad debts.
Capital Markets
A strong increase was recorded in the profit of Capital Markets
division which at IRpd34.9m was up 21.2% on the same period in 1995.
Treasury & International achieved a significant rise in interest
income as it was positioned to benefit from steeper yield curves in
our major currencies.
Investment Banking profits were also up on 1995 levels, mainly in
AIB Investment Services, driven by strong equity markets during the
period, and the inclusion for the first time of profits from John
Govett Group. John Govett Group has traded well during the period
and its profit performance is well ahead of 1995. In Corporate
Banking good growth in loans and deposits were the key features of
performance in a highly competitive market.
Capital Adequacy
AIB Group's capital ratios remained strong with the Tier 1 ratio
at 8.1% and the equity to assets ratio at 4.8% at 30 June 1996. The
total capital ratio was 10.5%.
Notes to the accounts
1 Accounting policies
The accounting policies as set out on pages 24 to 28 of the
Annual Report and Accounts for the year ended 31 December 1995
are unchanged.
-0-
Half- Half- Year
year year 31
30 June 30 June December
1996 1995 1995
2 Other interest receivable and IRpdm IRpdm IRpdm
similar income
Interest on loans and advances to
banks 68.2 63.3 136.0
Interest on loans and advances to
customers 590.1 562.3 1,158.2
Income from leasing and hire
purchase contracts 29.8 25.5 52.7
688.1 651.1 1,346.9
-0-
Half- Half- Year
year year 31
30 June 30 June December
1996 1995 1995
3 Interest payable IRpdm IRpdm IRpdm
Interest on deposits by banks and
customer accounts 436.0 388.4 826.5
Interest on debt securities in
issue 35.6 27.6 61.4
Interest on subordinated liabilities 14.9 15.2 30.7
486.5 431.2 918.6
Included in interest on subordinated liabilities, for the half-year
ended 30 June 1995 and the year ended 31 December 1995, is an
amount of IRpd0.4m relating to the profit on the redemption of US
$15.0m of the US $400m Undated Variable Rate Notes. No redemptions
took place during the half-year ended 30 June 1996.
-0-
Half- Half- Year
year year 31
30 June 30 June December
1996 1995 1995
4 Other income IRpdm IRpdm IRpdm
Dividend income 1.3 0.7 0.9
Fees and commissions receivable 187.1 163.7 335.7
Less: fees and commissions payable (16.2) (11.2) (29.0)
Dealing profits 13.2 16.9 36.8
Other operating income 35.4 24.4 56.9
220.8 194.5 401.3
-0-
Half- Half- Year
year year 31
30 June 30 June December
1996 1995 1995
5 Total operating expenses IRpdm IRpdm IRpdm
Staff costs 251.3 237.0 474.1
Other administrative expenses 125.0 120.7 246.8
Depreciation 28.6 27.2 53.4
404.9 384.9 774.3
-0-
Half- Half- Year
year year 31
30 June 30 June December
1996 1995 1995
6 Taxation IRpdm IRpdm IRpdm
Allied Irish Banks, p.l.c. and
subsidiaries
Corporation tax and Bank Levy in
Republic of Ireland 25.5 27.7 57.5
Foreign tax 27.1 21.2 45.8
Stamp duty on section 84 interest 0.5 0.6 1.2
53.1 49.5 104.5
Deferred taxation 14.0 10.8 19.7
67.1 60.3 124.2
Associated undertakings 0.3 0.4 0.8
67.4 60.7 125.0
Effective tax rate 33.5% 34.3% 33.5%
-0-
Profit before taxation Total assets
Half- Half-
year year Year
30 30 31 30 30 31
June June Dec. June June Dec.
1996 1995 1995 1996 1995 1995
7 Segmental information IRpdm IRpdm IRpdm IRpdm IRpdm IRpdm
Business segments (1)
AIB Bank division 102.2 90.6 191.4 10,976 9,534 10,000
USA division 56.9 49.7 100.9 6,459 6,237 6,807
Capital Markets division 34.9 28.8 58.1 8,182 5,858 6,843
Group 7.1 8.0 22.2 227 184 223
201.1 177.1 372.6 25,844 21,813 23,873
(1) Income on capital is allocated to the divisions on the basis of the capital required to support the level of risk weighted assets. Interest income earned on capital not allocated to divisions offset by central services expenses is reported in Group. This represents a |
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