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Allied Irish Banks, p.l.c. Reports Preliminary Results 31 December 2000.


Business Editors

DUBLIN, Ireland--(BUSINESS WIRE)--Feb. 21, 2000

Highlights and Chief Executive's summary

(1) Adjusted earnings per share EUR 104.0c - up 15%

Basic earnings per share EUR 89.0c

(2) Operating profit before provisions up 14%

(2) Profit before taxationE1,251m, up 10.5%

(2)E546m (44%) of profit made in Republic of Ireland,

E 705m (56%) in rest of world

AIB AIB - Abteilung Immobilien und Betrieb (German: department of real estates and enterprise)
AIB - Academy of International Business
AIB - Accident Investigation Board
AIB - Accountant in Bankruptcy (UK)
AIB - Acquisition Interface Bus
AIB - Action Item Browser
AIB - Add-In Board
AIB - Admiralty Interview Board
AIB - Air Intelligence Brief
AIB - Alabama Industries for the Blind
AIB - Allied Irish Bank
AIB - Alpha-Aminoisobutyric Acid
 Bank profit up 19%

Poland division profit up 40%

Total dividend up 15%

(1) Before goodwill amortisation and exceptional item
Exceptional Item
Charges incurred that must be noted on a company's balance sheet, in accordance with GAAP principles. Even though they are considered to be part of ordinary business charges, exceptional items must be disclosed due to their sheer size or frequency.

Notes:
Don't confuse exceptional items with extraordinary items: the latter are not part of a company's ordinary business dealings.


(2) Before exceptional item

I am pleased to report that AIB's performance in 2000 represented the ninth successive year of real profit growth. We have consistently increased shareholder value while growing the balance sheet to E 80 billion during this period. 2000 was an outstanding year with buoyant revenues, higher productivity and robust asset quality.

I want to take this opportunity to examine the factors in AIB's continuing success. We are the market-leading banking and financial services company in our home market. This position has been developed successfully while AIB has become a truly international organisation. We remain committed to this policy of portfolio diversification and the enrichment of our existing franchises.

AIB has more than five million retail, commercial and corporate customers. We believe in offering extensive choice in the ways our customers can access the group's wide range of products and services. In 2000, technology markets were volatile yet the opportunities offered by the network economy remain.

AIB's integrated multi-channel distribution strategy is proving successful - we are winning business through our on-line channels. We are also seizing the opportunities presented by the new technologies in e-enabling our internal processes to make them more efficient. The challenge is to ensure the correct balance is struck between cost-efficiency and the need to invest for the future.

Service differentiation is crucial. AIB knows this can best be achieved through the development of professional, expert and experienced staff working to a common set of values.

This is the last time I will report as AIB Group Chief Executive. The pace of change since I became CEO in 1994 has been astounding, especially in terms of technological advances and the competitiveness of our markets. Nevertheless, I am proud to say that return on equity has averaged 22.2%(3) over those seven years while compound growth in adjusted earnings per share was 17.3% and compound growth in dividend per share was 17.7%. Our success has been built on the commitment of our 31,000 employees worldwide and I want to record my gratitude to them for their hard work.

I believe AIB is well positioned for the future. I wish my successor Michael Buckley well and I have every confidence in the continuing ability of our company to deliver real shareholder value.

--Tom Mulcahy,Group Chief Executive, 21 February 2001

(3) Before exceptional items

Allied Irish Banks, p.l.c. (AIB Group) today announced its results for the year ended 31 December 2000.

The results include an exceptional charge of E 113 million in respect of the full and final settlement reached with the Irish Revenue Commissioners in relation to deposit interest retention tax ('DIRT') including interest and penalties for the period April 1986 to April 1999.

Earnings per share, excluding the exceptional item and goodwill amortisation, increased by 15% to EUR 104.0c. Profit attributable to ordinary shareholders amounted to E 762 million and basic earnings per share was EUR 89.0c.

Dividend

The Board is recommending a final dividend payable on 26 April 2001 of EUR 25.25c per share to shareholders on the company's register of members at the close of business on 2 March 2001. The final dividend, together with the interim dividend of EUR 13.50c per share, amounts to a total dividend of EUR 38.75c per share, an increase of 15% on 2000.


Financial highlights
For the year ended 31 December 2000



                                             2000    1999     1998
                                              E m     E m     E m
Results
Total operating income                      3,326(1)  2,822   2,589
Group prot before taxation                  1,251(1)  1,132   1,049
Prot attributable                             762       761     633
Prot retained                                 357       428     362


Per  E 0.32 ordinary share
Earnings - basic                             89.0c     89.5c   74.7c
Earnings - adjusted (note 13)               104.0c     90.5c   81.1c
Earnings - diluted                           88.1c     88.0c   73.7c
Dividend                                    38.75c    33.70c  28.06c
Tax credit on dividend(2)                      -        -      3.12c
Dividend cover - times                        2.3       2.6     2.7
Net assets                                    492c      424c    331c


Performance measures
Return on average total assets               1.25%(1)  1.33%   1.39%(3)
Return on average ordinary shareholders'
 equity                                      21.6%(1)  23.5%   27.3%(3)


Balance sheet
Total assets                               79,688    67,070  53,720
Shareholders' funds: equity
 interests                                  4,296     3,651   2,829
Loans etc                                  50,239    43,127  35,496
Deposits etc                               65,210    55,241  44,840


Capital ratios
Tier 1 capital                                6.3%      6.4%    7.5%
Total capital                                10.8%     11.3%   11.1%

      (1) Adjusted to exclude the impact of the deposit interest
retention tax settlement.
      (2) For dividends payable after 5 April 1999 the tax credit is
zero.
      (3) Adjusted to exclude the impact of the phased reduction in
Irish corporation tax rates on deferred tax balances.


Consolidated profit and loss account
for the year ended 31 December 2000

                                            2000     1999     1998
                                     Notes   E m     E m      E m

Interest receivable:
 Interest receivable and similar
 income arising from debt securities
 and other fixed income securities          1,140      833     772
 Other interest receivable and similar
  income                                3   3,987    3,009   3,194
  Less: interest payable                4  (3,105)  (2,072) (2,357)
       Deposit interest retention tax   5    (113)      -        -

Net interest income                         1,909    1,770   1,609
Other income                            6   1,304    1,052     980

Total operating income                      3,213    2,822   2,589
 Before exceptional item                    3,326    2,822   2,589
 Deposit interest retention tax         5    (113)      -       -
Administrative expenses:
 Staff and other administrative
  expenses                              8   1,778    1,491   1,313
 Integration costs in continuing
  businesses                                   -        -       20
                                            1,778    1,491   1,333
Depreciation and amortisation           9     171      127     109
Total operating expenses                    1,949    1,618   1,442

Group operating profit before
 provisions                                 1,264    1,204   1,147
 Before exceptional item                    1,377    1,204   1,147
 Deposit interest retention tax         5    (113)      -       -
Provisions for bad and doubtful
 debts                                 15     133       85     126
Provisions for contingent liabilities
 and commitments                                2        2       1
Amounts (written back)/written off fixed
 asset investments                             (1)       5       7

Group operating profit - continuing
 activities                                 1,130    1,112   1,013
  Before exceptional item                   1,243    1,112   1,013
  Deposit interest retention tax        5    (113)      -       -
Income from associated undertakings             3        3       4
Profit on disposal of property                  5        2      32
Profit on disposal of business         10       -       15      -

Group profit on ordinary activities before
 taxation (carried forward)                 1,138    1,132   1,049
  Before exceptional item                   1,251    1,132   1,049
  Deposit interest retention tax        5    (113)      -       -


Consolidated profit and loss account (continued)
for the year ended 31 December 2000




                                             2000     1999    1998
                                     Notes    E m      E m     E m

Group profit on ordinary activities
 before taxation (brought forward)          1,138    1,132   1,049
Taxation on ordinary activities               318      327     315
Impact of phased reduction in Irish
 corporation tax rates on deferred
 tax balances                                  -        -       55
                                       11     318      327     370

Group profit on ordinary activities
after taxation                                820      805     679
Equity and non-equity minority interests
 in subsidiaries                       12      38       28      29
Dividends on non-equity shares                 20       16      17
                                               58       44      46

Group profit attributable to the ordinary
 shareholders of Allied Irish Banks, p.l.c.   762      761     633
Dividends on equity shares                    335      288     239
Transfer to reserves                           70       45      32
                                              405      333     271

Profit retained                               357      428     362

Earnings per E 0.32 ordinary share
 - basic                               13(a) 89.0c    89.5c   74.7c

Earnings per E 0.32 ordinary share
 - adjusted                            13(b)104.0c    90.5c   81.1c


Earnings per E 0.32 ordinary share
 - diluted                             13(c) 88.1c    88.0c   73.7c


Consolidated balance sheet
31 December 2000

                                                    2000       1999
                                           Notes     E m        E m


Assets
Cash and balances at central banks                   938      1,119
Items in course of collection                      1,116        916
Central government bills and other
 eligible bills                                      297        718
Loans and advances to banks                        4,193      3,831
Loans and advances to customers              14   45,880     39,171
Securitised assets                                   933        598
Less: non-returnable proceeds                       (767)      (473)
                                                     166        125
Debt securities                              16   18,986     15,108
Equity shares                                        412        297
Interests in associated undertakings                   8         22
Intangible fixed assets                      17      466        468
Tangible fixed assets                              1,127      1,039
Own shares                                           177        123
Other assets                                       1,708      1,071
Prepayments and accrued income                     1,835      1,195
Long-term assurance business attributable to
 shareholders                                18      238        166

                                                  77,547     65,369
Long-term assurance assets attributable to
 policyholders                               18    2,141      1,701

                                                  79,688     67,070

Liabilities
Deposits by banks                                 12,478      8,608
Customer accounts                            19   48,437     42,335
Debt securities in issue                           4,295      4,298
Other liabilities                                  3,079      2,360
Accruals and deferred income                       1,665      1,294
Provisions for liabilities and charges               155        125
Deferred taxation                                    357        242
Subordinated liabilities                           2,249      1,984
Equity and non-equity minority interests
 in subsidiaries                             20      272        227
Shareholders' funds: non-equity interests            264        245
Called up ordinary share capital                     281        277
Share premium account                              1,620      1,594
Reserves                                             401        330
Profit and loss account                            1,994      1,450
Shareholders' funds: equity interests              4,296      3,651

                                                  77,547     65,369

Long-term assurance liabilities to
 policyholders                               18    2,141      1,701

                                                  79,688     67,070


Consolidated cash flow statement
for the year ended 31 December 2000

                                            2000     1999     1998
                                             Em       Em        Em

Net cash inflow from operating
 activities                                 2,433    3,191    3,721

Dividends received from associated
 undertakings                                  -         2        3
Returns on investments and servicing of
 finance                                     (184)    (108)    (110)
Equity dividends paid                        (228)    (215)    (176)
Taxation                                     (199)    (237)    (204)
Capital expenditure                        (3,004)  (1,405)  (2,774)
Acquisitions and disposals                      2     (391)      22
Financing                                     164      640       67

(Decrease)/ increase in cash               (1,016)   1,477      549


Reconciliation of Group operating profit
 to net cash inflow from operating
 activities                                  2000     1999     1998
                                             E m       E m      E m

Group operating profit                      1,130    1,112    1,013
Increase in prepayments and
 accrued income                              (607)     (20)    (279)
Increase in accruals and
 deferred income                              355      351       41
Provisions for bad and doubtful debts         133       85      126
Provisions for contingent liabilities
 and commitments                                2        2        1
Amounts (written back)/written off
 fixed asset investments                       (1)       5        7
Increase in other provisions                   11        1        -
Depreciation and amortisation                 171      127      109
Amortisation of own shares                      1        -        -
Profit on disposal of business                  -       15        -
Interest on subordinated liabilities          155       95       82
Profit on disposal of debt securities
 and equity shares                            (23)     (31)     (79)
Averaged gains on debt securities
 held for hedging purposes                    (16)     (18)     (15)
Profit on disposal of associated
 undertakings                                  (5)      (3)     (14)
Amortisation of (discounts)/premiums on debt
 securities held as financial fixed assets     (2)      13      (15)
Increase in long-term assurance business      (72)     (47)     (33)

Net cash inflow from trading activities     1,232    1,687      944

Net increase in deposits by banks           3,621      479    2,602
Net increase in customer accounts           4,854    2,545    2,977
Net increase in loans and advances to
 customers                                 (5,812)  (5,398)  (4,111)
Net (increase)/decrease in loans and
 advances to banks                         (1,015)   2,748      698
Decrease/(increase) in central government
 bills                                        445     (414)     (44)
Net (increase)/decrease in debt securities and
 equity shares held for trading purposes     (710)    (542)     379
Net (increase)/decrease in items in course
 of collection                               (160)     192     (175)
Net (decrease)/increase in debt securities
 in issue                                    (266)   1,912       37
Net increase in notes in circulation           23       16        4
(Increase)/decrease in other assets          (595)    (289)     333
Increase in other liabilities                 674      126      127
Effect of exchange translation and
 other adjustments                            142      129      (50)

                                            1,201    1,504    2,777

Net cash inflow from operating
 activities                                 2,433    3,191    3,721





Statement of total recognised gains and losses


                                             2000     1999     1998
                                              E m      E m     E m

Group profit attributable to the
 ordinary shareholders                        762      761      633
Unrealised surplus on revaluation of
 property                                       -        -      141
Currency translation differences on
 foreign currency net investments             113      281      (60)

Total recognised gains relating to the year   875    1,042      714



Reconciliation of movements in shareholders' funds:
equity interests

                                             2000     1999     1998
                                              E m     E m       E m

Group profit attributable to the
 ordinary shareholders                        762      761      633
Dividends on equity shares                    335      288      239

                                              427      473      394
Unrealised surplus on revaluation
 of property                                    -        -      141
Other recognised gains/(losses) relating
 to the year                                  113      281      (60)
New ordinary share capital subscribed          27       28       26
Goodwill written back                           -        1        -
Ordinary shares issued in lieu of cash
 dividend                                      78       39       29

Net addition to shareholders' funds: equity
 interests                                    645      822      530
Opening shareholders' funds: equity
 interests                                  3,651    2,829    2,299

Closing shareholders' funds: equity
 interests                                  4,296    3,651    2,829


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.

Commentary on results

Exceptional item

The exceptional item refers to a payment made on 3 October 2000 of E113million to the Irish revenue Commissioners in full and final settlement of deposit interest retention tax (DIRT), including interest and penalties for the period April 1986 to April 1999. Although AIB believes that it had an agreement with the revenue Commissioners in 1991 in relation to DIRT, the Board considered that concluding this settlement was in the best interests of shareholders, customers and staff.


Summary profit and loss account

                            Year  Excep-       Year    Year         %
                            2000  tional       2000    1999    Change
                              as    item     before              excl.
                        reported        exceptional        exceptional
                             E m     E m       E m     E m

Net interest income        1,909     113     2,022    1,770        14
Other income               1,304      -      1,304    1,052        24
Total operating income     3,213     113     3,326    2,822        18

Staff costs                1,144      -      1,144      970        18
Other costs                  634      -        634      521        22
Depreciation and
 amortisation                171      -        171      127        35

Total operating expenses   1,949      -      1,949    1,618        20

Group operating profit
 before provisions         1,264     113     1,377    1,204        14
Provisions for bad and
 doubtful debts              133      -        133       85        57
Other provisions               1      -          1        7         -
Total provisions             134      -        134       92        46
Group operating profit -
 continuing activities     1,130     113     1,243  1,112          12
Income from associated
 undertakings                  3      -          3        3         -
Profit on disposal of
 property                      5      -          5        2         -
Profit on disposal of
 business                      -       -         -       15         -
Group profit on ordinary
 activities before
 taxation                  1,138     113     1,251    1,132      10.5


The current year includes Bank Zachodni ('BZ BZ - 3-Quinuclidinyl Benzilate
BZ - Battle Zone
BZ - Beach Zone
BZ - Belize
BZ - Below Zone
BZ - Benzene
BZ - Benzilic Acid
BZ - Benzodiazepine (class of sedative drugs)
BZ - Berliner Zeitung (German: Berlin Times)
BZ - Bionicle Zone
BZ - Blizzard
BZ - Blutzucker (German: Blood Sugar)
BZ - Bolzano - Bozen (Trentino Alto Adige, Italy)
BZ - Boyzone
BZ - Branch on Zero (IBM)
BZ - Bravo Zulu (term for Good Job/Well Done)
') in which AIB took a majority shareholding on 16 September 1999. The 1999 accounts include BZ for the period from 16 September 1999 to 31 December 1999.

The following commentary on results excludes the impact of the exceptional item.

Group operating profit before provisions - up 14% to add E1,377 million for the year to December 2000. The second half-year profit of E 705 million was 5% higher than the first half-year.

Group operating profit - continuing activities was up 12% on 1999. Group profit on ordinary activities before tax amounted to E 1,251 million and adjusted earnings per share excluding goodwill amortisation (E 26 million) and the exceptional item increased by 15% to EUR 104.0c per share. Basic earnings per share was EUR 89.0c per share. The second half-year profit on ordinary activities before taxation of E 642 million was up 5% on the first half-year.

Commentary on results

The following commentary on the profit and loss account and balance sheet headings is based on underlying percentage growth adjusting for the impact of currency movements and excluding BZ in both years.

Net interest income

Net interest income at E 2,022 million increased by 4% compared with 1999. Loans to customers and customer accounts increased by 13% and 8% respectively since December 1999.

Loans to customers and customer accounts (excluding money market funds and currency factors)


                                               Loans to      Customer
                                               Customers     Accounts
%   change December 2000 v December 1999      % change       % change

Republic of Ireland                              19(1)         14

Northern Ireland                                 16             9
Britain                                          20            -6(2)
USA                                               3             3
Poland                                            9            16

AIB Group                                        13             8


(1)The Republic of Ireland loan growth was 21% adjusting for the securitisation of certain loans

(2)The reduction of 6% in Britain customer accounts was due to the movement of some large deposits from customer accounts to money market funds. Branch customer accounts in Britain were up 23%. The divisional commentary contains additional comments on the key business trends in relation to loans to customers and customer accounts

Net interest margin (incl. BZ)

Half-Year  Half-Year   Basis                 Year    Year   Basis
Dec 2000   June 2000   Points                2000    1999   Points
   %         %         Change                 %        %    Change

2.76       2.73           +3    Domestic     2.75    2.97    -22
3.08       3.40          -32    Foreign      3.23    3.54    -31
2.94       3.10          -16    Total        3.02    3.27    -25


Average interest earning assets (incl. BZ)

Half-Year   Half-Year                        Year        Year
Dec 2000   June 2000    Change               2000        1999   Change
  E m         E m         %                  E m         E m      %

31,420      28,201       11     Domestic    29,819      25,611   16
38,824      35,572        9     Foreign     37,207      28,502   31
70,244      63,773       10     Total       67,026      54,113   24


The net interest margin was 3.02%, a decrease of 25 basis points on 1999. The decrease mainly occurred in AIB Bank and Allfirst, both operating in very competitive markets. The domestic margin stabilised in the second half reflecting stabilising product margins in the Republic of Ireland where strong second half growth in customer accounts outpaced the growth in loans in AIB Bank. The second half reduction in the foreign margin was due to a lower Treasury margin and a modest reduction in Allfirst and Poland margins.

Net interest income of E1,037 million for the half-year to December 2000 was up 3% on the half-year to June 2000.

Commentary on results

Other income

Other income increased by 14% to E1,304 million. This represented 39% of total income compared with 37% in 1999.
- Contribution of life assurance company up 48%

- Investment banking fees down 8% or up 33% excluding 1999 privatisation
revenues

- Banking fees and commissions up 14%

- Asset management fees up 11%



                                    Year         Year    Underlying
                                    2000         1999     % Change
Other income                         E m          E m    2000 v 1999

Dividend income                        6            2             -
Banking fees and commissions         807          643            14
Asset management fees                187          152            11
Investment banking fees              107          114            -8
Fees and commissions receivable    1,101          909            11
Less: fees and commissions payable  (108)         (93)           -8
Dealing profits                      103           74            33
Contribution of life assurance
 company                              95           64            48
Other                                107           96            -2
Other operating income
 (see note 7 of this release)        202         160             17

Total other income                 1,304       1,052             14


Banking fees and commissions increased reflecting higher business volumes with strong growth in branch banking, corporate banking, credit card and finance and leasing revenues. Asset management fees were up due to good business growth in Ireland and Britain coupled with higher trust and investment advisory fees in Allfirst. Excluding fees received in 1999 in relation to a major privatisation in the Irish market, investment banking fees were up 33% mainly due to a strong performance from stockbroking, corporate finance and international financial services activities.

Dealing profits were up 33% with buoyant revenues in foreign exchange trading activities. Ark Life reported significant profit growth reflecting strong sales of investment products, substantial growth in new regular pensions and the benefit of lower corporation tax rates.

Other income increased by 13% to E 693 million in the half-year to December 2000 reflecting a strong performance in all divisions with particularly strong growth in Ark Life and good growth in asset management fees and banking fees and commissions. Other income as a percentage of total operating income was 40% in the second half-year.

Total operating expenses

Operating expenses at E 1,949 million were up 7% compared with
1999.

                                      Year         Year    Underlying
                                      2000         1999      % Change
Operating expenses                     E m          E m   2000 v 1999

Staff costs                           1,144         970         6
Other costs                             634         521         9
Depreciation and amortisation           171         127         9

Total operating expenses              1,949       1,618         7


The Group's tangible cost income ratio, excluding goodwill amortisation, at 58% was slightly higher than 1999. The increase in operating expenses was mainly attributable to increased business activity, technology and e-business expenditure, and branch network expansion in Poland. Arising from the implementation of a new accounting standard, the depreciation charge for freehold and long leasehold property increased by E 9 million. Higher salary costs and some once-off expenses relating to research and development work on a standalone internet bank in Ireland contributed to the cost increase. Following a review of our e-business strategy in Ireland, AIB will focus on developing and expanding 24hour-online, our existing online service, as the core internet offering for the Irish personal market and will not proceed with the development of a standalone internet bank at this time. Investment in e-business in the US and Poland continues and the Group remains committed to an integrated multi-channel distribution strategy.

Commentary on results

Operating expenses were up 8% in the half-year to December 2000 compared with the half-year to June 2000. The increase was mainly due to wage cost pressures in Ireland, branch and ATM network expansion in Poland and technology and e-business expenditure across the Group.

Asset quality

The provision for bad and doubtful debts in 2000 was E133 million compared with an adjusted E101 million in 1999, excluding write-backs in 1999 of E16 million relating to Latin American provisions. The charge for the year represented 0.30% of average loans compared with an adjusted 0.28% charge in 1999.

In Ireland asset quality remained strong. The AIB Bank Republic of Ireland specific charge was 0.16% of average loans with the level of non-performing loans at a historically low level as a percentage of loans. Reflecting the slowdown in the economy, non-performing loans in the USA increased, however coverage is still strong at 205%. The provision for bad and doubtful debts reduced following a significant improvement in the maritime portfolio more than offsetting higher commercial loan provisions. Allfirst's provisions as a percentage of loans amounted to 1.4% at 31 December 2000, a level of provisioning in line with its peer group banks. The vast majority of Allfirst's provisions are in non-specific categories.

Capital Markets showed a reduction particularly in non-credit related provisions with coverage remaining strong at 262%. In Poland, asset quality in WBK WBK - Welcome Back, Kotter (70s US TV Show)
WBK - Word Backup (Microsoft Word file extension)
 continued to improve with non-performing loans as a percentage of total loans amounting to 7.6%, significantly lower than the industry average. In BZ, non-performing loans increased to 30.7% as a percentage of total loans at 31 December 2000. The completion of the fair value exercise resulted in the reclassification of some loans to non-performing and also generated additional fair value provisions of E38 million. AIB is involved in an intensive workout of this portfolio with Group resources actively participating.

Group non-performing loans as a percentage of total loans amounted to 1.9% or 1.0% excluding BZ.

The Group increased its level of non-specific provisions in 2000. Coverage for non-performing loans remained strong at 100% (135% excluding BZ).

Taxation

The taxation charge was E 318 million compared with E 327 million in 1999. The adjusted effective tax rate for the year was 26.3% down from 28.9% in 1999. The reduction was mainly due to the decrease in the standard rate of Irish corporation tax from 28% in 1999 to 24% in 2000 and a lower effective tax rate in Allfirst. The effective tax rate is also influenced by the geographic and business mix of profits.

Euro

AIB has made a significant investment in the preparations for the introduction of euro notes and coins in 2002. Expenditure to date on EMU preparations and the introduction of the euro has been E16 million relating to systems development, communications and education programmes. We estimate that further expenditure of E 40 million will be required to cover a range of incremental costs and complete systems and other changes required for the introduction of euro notes and coins in 2002.

Return on equity and return on assets

The return on equity, excluding the exceptional item, amounted to 21.6% continuing the trend of returns in excess of 20% with an average return of 23.5% over the last five years. The return on equity was 23.5% in 1999. The return on assets was 1.25% and the return on risk weighted assets, a measure of the efficient use of capital, was 1.65%. The equity base has increased by 18% since December 1999 due principally to profit retentions and translation of foreign currency reserves.

Balance sheet

Total assets have increased by E13 billion to E 80 billion at 31 December 2000, an increase of 15% on an underlying basis since December 1999 while loans to customers increased by 13% and customer accounts by 8%. The US dollar and the Polish zloty both strengthened by 8% against the euro while sterling weakened marginally resulting in reported balance sheet growth of 19%.

Commentary on results

Assets under management/administration and custody

Assets under management in the Group increased to E40 billion at 31 December 2000 from E 39 billion at 31 December 1999 reflecting growth in new business partly offset by a decline in stock market values. Assets under administration and custody increased from E 152 billion at 31 December 1999 to E 214 billion at 31 December 2000. This strong growth of 41% reflects the success of the AIB joint venture with the Bank of New York which was established in 1997.

Capital ratios

The Group's capital ratios remained strong with the Tier 1 ratio at 6.3% and the total capital ratio at 10.8%. Tier 1 capital increased by E 646 million to E 3.8 billion reflecting retained profit for the year of E 357 million and the impact of stronger US$ and Polish zloty exchange rates. Tier 2 capital increased by E 375 million since December 1999 reflecting the issue of E 149 million in subordinated debt by the parent company as well as currency movements. In line with the growth in the balance sheet, risk weighted assets increased by 22% to E 60 billion, 18% excluding currency factors. On 5 February 2001 AIB issued E 500 million of 7.5 per cent Step-up Callable Perpetual Reserve Capital Instruments which on a proforma basis increases the Tier 1 ratio to 7.2%.

Cash flow

As reflected in the consolidated cash flow statement, there was a net decrease in cash of E 1,016 million during the year ended 31 December 2000. Net cash inflow from operating activities was E 2,433 million, of which E 1,232 million arose from trading activities. This cash inflow was offset by outflows of E 199 million for taxation, equity dividends of E 228 million and capital expenditure of E 3,004 million, consisting mainly of net increases in debt and equity securities of E 2,830 million and expenditure on property and equipment of E 237 million. Financing, primarily the issue of subordinated debt, generated a net cash inflow of E164 million.

Outlook

AIB continues to perform strongly and is confidently looking forward to meeting its objective of low double-digit earnings growth in 2001 and into the medium term.

Divisional commentary

On a divisional basis profit is measured in euro and consequently includes the impact of currency movements.

AIB Bank Retail and commercial banking operations in Republic of Ireland, Northern Ireland, Britain, Channel Islands and Isle of Man; AIB Finance and Leasing; Card Services; and AIB's life and pensions subsidiary Ark Life Assurance Company.

AIB Bank profit increased to E 696 million - a 19% increase over the same period last year, reflecting a strong performance in all key business units. The profit increase of 19% reflects a strong performance in the Republic of Ireland, Northern Ireland and Britain, with profit growth in the high teens in all three areas. The divisional cost income ratio, despite an underlying increase of 10% in costs, further improved from 53.5% to 52.1% reflecting high levels of productivity.



                                            Year     Year  %  change
                                            2000     1999  2000 v 1999
AIB Bank profit and loss account            E m       E m

Net interest income                        1,056      932      13

Other income                                 508      422      20

Total operating income                     1,564    1,354      16
Total operating expenses                     816      724      13

Operating profit before provisions           748      630      19
Provisions                                    56       45      25

Operating profit - continuing activities     692      585      18
Profit on disposal of property                 4        2       -

Profit on ordinary activities
 before taxation                             696      587      19


Banking operations in the Republic of Ireland experienced strong growth in business volumes reflecting the strength of the domestic economy, the power of the AIB franchise and favourable demographics with increasing disposable income creating higher demand for financial services. Loans increased by 22% with growth well spread across all economic sectors and customer accounts were up 17% since December 1999 with particularly strong growth in the second half-year. Lower margins partly offset the favourable impact of volume growth. There was good demand for Home Mortgage lending, up 26% since December 1999 despite competition from new entrants to the market.

The growth in business activity levels coupled with wage cost pressures in Ireland has resulted in higher costs, however the ongoing commitment to productivity has maintained the cost income ratio at 52% in 2000. The strength of the Irish economy and the underlying demographics underpin the growth prospects going forward.

Ark Life reported substantial growth in profit of 48% to E95 million for the year to December 2000. The increased profit was driven by record new business volumes and the benefit of lower corporation tax rates. Single premium product sales were very strong at E 547 million, up 35% on 1999. New regular premium business amounted to E 103 million, an increase of 21% including particularly strong growth of 55% in new regular pensions. The new pension legislation in Ireland has greatly enhanced the attractiveness of retirement provision, especially for the self employed and proprietary directors. Annual Premium Equivalent (APE) sales were up 25% to E 158 million.

First Trust Bank had a very strong performance reflecting higher volumes and strong growth in other income with foreign exchange income and branch commissions in particular, well ahead of 1999. An improved cost income ratio of 51% down from 54% in 1999 reflected improved efficiency with only a modest increase in costs since 1999. Loans increased by 16% and customer accounts were up 9% since December 1999.

In Britain, business activity was buoyant in an economy where inflation was less than 3%. Business volumes increased and the cost income ratio reduced to 52% from 57% in 1999 with costs remaining at the same level in 2000. Progress has been made in changing the profile of the business including a higher level of business with medium sized firms and expansion in the professional sector. There was good growth in commercial loans, home mortgages, current accounts and term deposits. Branch loan and deposit volumes increased by 15% and 23% respectively.

Divisional Commentary

USA includes Allfirst's banking operations in Maryland, Pennsylvania, Virginia, Washington DC, and AIB's own brand retail and corporate operations in New York, Philadelphia, Los Angeles, Chicago and San Francisco.

USA profit was E 337 million, up 10% on the year to December 1999 profit of E 307m.

                                          Year     Year    %  change
                                          2000     1999    2000 v 1999
USA profit and loss account                E m      E m

Net interest income                        537      506         6
Other income                               381      296        29

Total operating income                     918      802        15

Total operating expenses                   543      463        17

Operating profit before provisions         375      339        11
Provisions                                  38       33        18

Operating profit - continuing activities   337      306        10
Income from associated undertakings          -        1         -

Profit on ordinary activities before
 taxation                                  337      307        10


Allfirst has separately reported in US dollars growth of 7% in net income to common shareholders in 2000 on a US GAAP(1)basis. On a Group basis in line with Irish GAAP, profit after tax was down 2% on 1999. Net interest income reduced due to more reliance on wholesale funding, lower treasury profit and competitive pressures on product margins. Underlying revenue highlights included strong growth of 16% in electronic banking income, 12% in corporate deposit service charges, higher joint venture and trust revenues and an 8% increase in commercial loan balances since December 1999. A decline in retail lending reduced overall growth in loans to 2%.

Continued cost containment was reflected in a modest underlying increase of 1%. Provisions for bad and doubtful debts decreased due to the significant improvement in the foreign maritime portfolio.

AIB's operations produced a strong performance with a good increase in operating profit before provisions. An investment program is underway which includes plans to increase the number of representative offices and `e-enable' the business to further develop the national franchise in the charity and church sectors commonly known as the not-for-profit sector. The Chicago office opened in 2000 and the San Francisco office opened in early 2001 in addition to the established offices in New York, Philadelphia and Los Angeles. Loans increased by 20% since December 1999 and there was a 34% increase in other income.

(1)United States Generally Accepted Accounting Principles

Divisional commentary

Capital Markets Corporate Banking, Investment Banking and Treasury & International

Capital Markets profit at E156 million was up 3%. Capital Markets had a very successful year. Excluding fees received in 1999 in relation to a major privatisation in the Irish market, profit growth was in excess of 20%. There has been substantial growth in recent years in corporate banking, asset management, IFSC IFSC - International Fuzzy Systems Conference
IFSC - Irish Financial Services Centre
 services and corporate treasury activities. This has resulted in the position where the vast majority of revenues are derived from customer services and a reduced proportion obtained from proprietary activities.

                                            Year    Year    %  change
                                            2000    1999   2000 v 1999
Capital Markets profit and loss account      E m     E m

Net interest income                          127     141       -10
Other income                                 304     270        13

Total operating income                       431     411         5

Total operating expenses                     260     239         9

Operating profit before
 provisions                                  171     172        -1
Provisions                                    18      23       -20

Operating profit - continuing activities     153     149         2
Income from associated undertakings            3       2         -

Profit on ordinary activities before
 taxation                                    156     151         3


Corporate Banking had a record year, reporting substantial growth in profits, with other income up 52%. Loans were up 25% since December 1999 with all areas of the business performing very well. The domestic business continued to pursue its strategy of providing innovative financing solutions and consulting services to its customers. The special finance unit which focuses on project and acquisition finance had a superb year and the international business conducted from the IFSC produced a strong performance.

The business in Britain produced a very strong performance in only its third year of operation and won many arranging and underwriting mandates. AIB Corporate Banking established a presence in New York during 2000 and plans to develop a lending business in structured corporate credit. AIB became one of the first European banks to enter the fund management business for corporate debt and bonds by launching E 350 million Collateralised Debt Obligation (CDO) in January 2001.

Investment Banking produced a strong performance in all major business units. Asset Management business had a good performance with strong profit growth driven by new business mandates. Higher profit was achieved in the UK, where fees were earned from new investment trusts launched in 1999 and 2000.

Profit from Custodial, Trustee and Funds Administration businesses was substantially higher due to significant growth in new business volumes, underpinning our presence as a major provider of funds administration and trustee services in the IFSC.

Goodbody Stockbrokers, Corporate Finance and International Financial Services Centre operations performed very well. Goodbody benefited from its involvement in a number of Initial Public Offerings and private placements and was the leading equity fundraiser in Ireland for the technology sector in 2000.

Treasury & International reported profits were lower than 1999 due to a lower performance from interest rate management and trading activities, particularly in the second half-year. Treasury customer business had a very good year with strong growth particularly in commercial foreign exchange in Corporate and Commercial Treasury and a strong performance in International Business Services activities.

Divisional commentary

Poland Wielkopolski Bank Kredytowy S.A., in which AIB has a 60.1% shareholding, together with its subsidiaries and associates, and Bank Zachodni S.A., in which AIB has an 83.0% shareholding, together with its subsidiaries and associates.

Poland contributed E 88 million in 2000, a 40% increase on the profit of E 63 million in 1999. A majority shareholding in BZ was acquired in September 1999.

                                            Year    Year    %  change
                                            2000    1999   2000 v 1999
Poland profit and loss account              E m     E m

Net interest income                         252     139         81
Other income                                153      87         75

Total operating income                      405     226         79

Total operating expenses                    295     154         91

Operating profit before provisions          110      72         52
Provisions                                   23       9        146

Operating profit - continuing activities     87      63         38
Profit on disposal of property                1       -          -

Profit on ordinary activities before
 taxation                                    88      63         40


The above profit and loss account includes BZ for the full year in 2000 and for the period from 16 September to 31 December in 1999.

WBK achieved record profit with growth of 15% in 2000, or 31% excluding the impact of equity investment disposals in 1999. The strong results reflect increased business volumes, wider deposit margins and good growth in fee income. Loans increased by 16% and customer accounts were up 21% since December 1999.

There was significant growth of 24% in other income, excluding the impact of equity investment disposals in 1999, illustrating the growing revenue potential of our Polish franchises. Key highlights of the performance included a 128% increase in card fees, growth of 46% in foreign exchange profits and a 16% increase in current account fees and branch commissions. Costs increased as a result of expansion and development of the branch and ATM networks and technology enhancements. WBK expanded its franchise with 28 new outlets and 44 new ATMs.

BZ full year accounts were included for the first time in 2000. Significant progress is being achieved in transferring AIB's business and lending processes to BZ. The analysis and assessment of credit quality for fair value purposes at BZ was completed in 2000 resulting in additional fair value provisions of E 38 million. Loan volumes were up 1% while deposit volumes increased by 10% since December 1999. As part of its development programme BZ opened 16 new outlets and installed 29 new ATMs since December 1999.

AIB invested a further PLN 200 million in BZ during the year, increasing the Group's shareholding to 83%.

AIB, in conjunction with BZ and WBK, has initiated a change management process that includes a project to implement a new centralised branch banking system common to both Polish banks with rollout scheduled for the third quarter of 2001. On 10 October 2000 AIB announced the proposed merger of WBK and BZ. The proposal was ratified by the shareholders of both banks at an extraordinary general meeting on 20 December 2000. The merger is planned to take effect in June 2001 and it is proposed that the new entity will adopt the name Bank Zachodni WBK (`BZWBK'). The merger will create Poland's fifth largest bank and presents AIB Poland with the opportunity to achieve synergies while expanding and developing the branch and electronic networks.

Divisional commentary

Group includes interest income earned on capital not allocated to divisions, the funding cost of the BZ acquisition and central services costs.

                                                Year         Year
                                                2000         1999
Group profit and loss account                    E m          E m

Net interest income                              50           52
Other income                                    (42)         (23)

Total operating income                             8          29
Total operating expenses                          35          38

Operating profit before provisions               (27)         (9)
Provisions                                        (1)        (18)

Operating profit - continuing activities         (26)          9
Profit on disposal of business                     -          15

Profit on ordinary activities before
 taxation                                        (26)         24


Group reported a loss of E26 million in 2000, compared with a profit of E24 million in 1999. This decrease was primarily due to provision write-backs of E16 million in 1999 relating to Latin American provisions no longer required, hedging costs in relation to the translation of our foreign currency profits and the funding cost of the BZ acquisition. The 1999 profit included a gain of E15 million from the sale of AIB's private banking and treasury operations located in Singapore to Keppel TatLee Bank.

Notes

1 Accounting policies and presentation of financial information

There are no changes to the accounting policies as set out on pages 37 to 39 of the Annual Report and Accounts for the year ended 31 December 1999. During the year the Group implemented Financial Reporting Standard 15 - Tangible Fixed Assets (`FRS15') and Financial Reporting Standard 16 - Current Tax (`FRS 16'). Previously, freehold and long leasehold properties were not depreciated. In accordance with FRS 15, freehold and long leasehold properties are now depreciated. The effect of implementing FRS 15 on the current results is E 9 million. The effect of the implementation of FRS 16 is that of additional disclosures in relation to current tax.

The currency used in these accounts is the euro which is denoted by 'EUR' or the symbol E.

                                                                  2000

                       AIB Bank   USA    Capital  Poland  Group  Total
                       division division Markets division
                                         division



2 Segmental information   E m      E m      E m      E m    E m   E m

Operations by business segments(1)
Net interest income before
 exceptional item         1,056     537     127      252   50   2,022
Other income                508     381     304      153  (42)  1,304

Total operating income before
 exceptional item         1,564     918     431      405    8   3,326
Total operating expenses    816     543     260      295   35   1,949
Provisions                   56      38      18       23   (1)    134

Group operating profit before
    exceptional item        692     337     153       87  (26)  1,243
Income from associated
 undertakings                 -       -       3        -    -       3
Profit on disposals           4       -       -        1    -       5

Group profit on ordinary
 activities before
 exceptional item           696     337     156       88  (26)  1,251

Deposit interest retention tax                                   (113)
Group profit on ordinary
 activities before taxation                                     1,138

Balance sheet
Total loans              23,112  12,995  10,386    3,645  101  50,239
Total deposits           25,019  15,941  19,271    4,897   82  65,210
Total assets             29,607  20,458  23,218    6,054  351  79,688
Total risk weighted
 assets                  21,133  20,318  14,837    3,655  279  60,222
Net assets                1,508   1,449   1,058      261   20   4,296

    Notes
                                                                1999
                       AIB Bank  USA     Capital  Poland Group  Total
                       division division Markets division
                                        division
2 Segmental information
(continued)                E m     E m       E m     E m   E m    E m

Operations by business segments(1)

Net interest income         932     506     141      139   52   1,770
Other income                422     296     270       87  (23)  1,052

Total operating income    1,354     802     411      226   29   2,822
Total operating expenses    724     463     239      154   38   1,618
Provisions                   45      33      23        9  (18)     92

Group operating profit      585     306     149       63    9   1,112
Income from associated
 undertakings                 -       1       2        -    -       3
Profit on disposals           2       -       -        -   15      17

Group profit on ordinary
 activities
 before taxation            587     307     151       63   24   1,132

Balance sheet
Total loans              19,306  11,769   9,013    2,754  285  43,127
Total deposits           21,956  14,357  14,758    3,993  177  55,241
Total assets             25,008  17,834  18,675    4,990  563  67,070
Total risk weighted
 assets                  17,919  16,898  11,375    2,838  245  49,275
Net assets                1,328   1,252     843      210   18   3,651



                                                                1998
                       AIB Bank     USA  Capital Poland  Group Total
                       division division Markets division
                                        division
                            E m     E m     E m     E m   E m    E m

Operations by business segments(1)
Net interest income         844     490     116       95   64   1,609
Other income                385     334     213       62  (14)    980

Total operating income    1,229     824     329      157   50   2,589
Total operating expenses    656     492     186       95   13   1,442
Provisions                   68      32      27       13   (6)    134

Group operating profit      505     300     116       49   43   1,013
Income from associated
 undertakings                 -       2       2        -    -       4
Profit on disposals          32       -       -        -    -      32

Group profit on ordinary activities
 before taxation            537     302     118       49   43   1,049

Balance sheet
Total loans              15,132   9,928   9,262    1,069  105  35,496
Total deposits           19,091  13,296  10,748    1,750  (45) 44,840
Total assets             19,417  15,596  16,496    2,068  143  53,720
Total risk weighted
 assets                  14,005  13,940   9,961    1,188   19  39,113
Net assets                1,013   1,008     721       86    1   2,829

(1)  The business segment information is based on management accounts
     information. 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, the funding cost of the Bank Zachodni acquisition
     and central services costs are reported in Group.


    Notes:

                                                                2000
                    Republic of  United  United   Poland Rest   Total
                        Ireland  States Kingdom            of
                                   of                     the
                                America                 world

2 Segmental information
 (continued)               E m    E m     E m      E m    E m    E m

Operations by geographical segments(2)
Net interest income before
 exceptional item           791     568     392      269    2   2,022
Other income                570     336     243      151    4   1,304

Total operating income before
 exceptional item         1,361     904     635      420    6   3,326
Total operating expenses    770     557     327      292    3   1,949
Provisions                   51      38      23       23   (1)    134

Group operating profit before
 exceptional item           540     309     285      105    4   1,243
Income from associated
 undertakings                 3       -       -        -    -       3
Profit on disposals           3       -       1        1    -       5

Group profit on ordinary
 activities before
 exceptional item           546     309     286      106    4   1,251


Deposit interest retention tax                                   (113)
Group profit on ordinary activities
 before taxation                                                1,138

Balance sheet
Total loans              24,027  13,018   9,545    3,645    4  50,239
Total deposits           29,055  17,585  13,672    4,897    1  65,210
Total assets             37,502  19,716  16,162    6,060  248  79,688
Net assets                1,746   1,477     794      261   18   4,296


                                                                1999
                    Republic of  United  United   Poland Rest  Total
                        Ireland  States Kingdom            of
                                     of                   the
                                America                 world
                           E m      E m     E m     E m    E m   E m

Operations by geographical segments(2)
Net interest income         754     514     350      149    3   1,770
Other income                483     299     182       86    2   1,052

Total operating income    1,237     813     532      235    5   2,822
Total operating expenses    690     473     291      154   10   1,618
Provisions                   48      22      10        9    3      92

Group operating profit      499     318     231       72   (8)  1,112
Income from associated
 undertakings                 2       1       -        -    -       3
Profit on disposals          16       -       1        -    -      17

Group profit on ordinary
 activities
 before taxation            517     319     232       72   (8)  1,132

Balance sheet
Total loans              20,511  11,797   8,061    2,751    7  43,127
Total deposits           25,056  15,410  10,787    3,988    -  55,241
Total assets             30,970  18,137  12,721    5,000  242  67,070
Net assets                1,491   1,264     668      210   18   3,651


    Notes

                                                                 1998
                    Republic of  United  United   Poland Rest    Total
                        Ireland  States Kingdom            of
                                     of                   the
                                America                 world

2 Segmental information
 (continued)                E m     E m     E m     E m   E m   E m

Operations by geographical segments(2)
Net interest income         684     507     311      107    -  1,609
Other income                404     331     166       63   16    980

Total operating income    1,088     838     477      170   16  2,589
Total operating expenses    581     502     255       94   10  1,442
Provisions                   53      33      20       13   15    134

Group operating profit      454     303     202       63   (9) 1,013
Income from associated
 undertakings                 2       2       -        -    -      4
Profit on disposals          30       -       2        -    -     32

Group profit on ordinary
 activities
 before taxation            486     305     204       63   (9) 1,049


Balance sheet
Total loans              18,044  10,020   6,186    1,070  176  35,496
Total deposits           20,620  13,833   8,562    1,750   75  44,840
Total assets             25,872  15,928   9,663    2,069  188  53,720
Net assets                1,242   1,015     471       87   14   2,829


(2)The geographical distribution of profit before taxation is based primarily on the location of the office recording the transaction.

Assets by segment

The fungible nature of liabilities within the banking industry inevitably leads to allocations of liabilities to segments, some of which are necessarily subjective. Accordingly, the directors believe that the analysis of total assets is more meaningful than the analysis of net assets.

                                               2000    1999     1998
3 Other interest receivable and similar
 income                                        E m      E m     E m

Interest on loans and advances to banks        238      157     487
Interest on loans and advances to customers  3,544    2,683   2,559
Income from leasing and hire purchase
 contracts                                     205      169     148

                                             3,987    3,009   3,194



                                               2000    1999     1998
4 Interest payable                             E m      E m     E m

Interest on deposits by banks and customer
 accounts                                    2,701    1,818    2,159
Interest on debt securities in issue           249      159      116
Interest on subordinated liabilities           155       95       82

                                             3,105    2,072    2,357


5 Deposit interest retention tax (`DIRT')

On 3 October 2000, AIB announced that it had reached a full and final settlement with the Irish Revenue Commissioners of IR(pound)90.04m (E 114.33m) in relation to DIRT, interest and penalties in Ireland for the period April 1986 to April 1999. The settlement included IR(pound)1.08m (E 1.37m) paid in prior years. Although AIB believe that it had an agreement with the Revenue Commisioners in 1991 in relation to DIRT, the Board considered that concluding this settlement was in the best interests of shareholders, customers and staff. As a result an exceptional charge of IR(pound)88.96m (E 112.96m) has been reflected in the accounts for the year ended 31 December 2000.

Notes

22 Group financial information for US investors

Adjustments to financial statements

The Group financial statements conform with accounting principles generally accepted in Ireland. The following tables provide the significant adjustments to the consolidated net income (Group profit attributable to the stockholders of AIB) and consolidated ordinary stockholders' equity, total assets and total liabilities, which would be required if accounting principles generally accepted in the United States (US GAAP) had been applied instead of those generally accepted in Ireland (IR GAAP).

                                             Year ended December 31
Consolidated net income                    2000       1999     1998
                                    (millions except per share amounts)


Net income (Group profit attributable
 to the stockholders of AIB)
 as in the consolidated profit
 and loss account                         E 762       E761      E633
Adjustments in respect of:
 Depreciation of freehold and long
  leasehold property                          -         (5)       (4)
 Long-term assurance policies               (70)       (43)      (50)
 Goodwill                                   (78)       (73)      (61)
 Premium on core deposit intangibles         (9)       (11)      (14)
 Profit on disposal of US credit card
  business                                    -          -        53
 Pension cost                               122         97        47
 Preference dividends                        20         16        17
 Securities held for hedging purposes       (25)        34        (5)
 Derivatives hedging available-for-sale
  securities                                 (9)         -         -
 Internal derivative trades                  (6)        (3)        -
 Post-retirement benefits                    (1)        (1)       (1)
 Internal use computer software              11          -         -
 Deferred tax effect of the above
  adjustments                                (5)       (22)      (13)
 Impact of phased reduction in Irish
  corporation tax rates                       -        (55)       55

Net income in accordance with US GAAP      E712       E695      E657

Net income applicable to ordinary
 stockholders of AIB in accordance
 with US GAAP                              E692       E680      E640

Equivalent to                          US $ 644

Income per American Depositary Share
 (ADS (1)) in accordance with US GAAP     E1.62      E1.60     E1.51

Equivalent to                         US $ 1.50
Year end exchange rateE/US $               0.9305

     (1) An American Depositary Share represents two ordinary shares of
E0.32 each.

    Notes


22 Group financial information for US investors (continued)
Adjustments to financial statements (continued)
Consolidated ordinary stockholders' equity       2000          1999
                                   (millions except per share amounts)

Ordinary stockholders' equity as in the
 consolidated balance sheet                    E4,296        E3,651
Revaluation of property                          (210)         (211)
Depreciation of freehold and long leasehold
 property                                         (27)          (27)
Goodwill                                        1,097         1,074
Core deposit intangibles                           26            33
Dividends payable on ordinary shares              221           188
Preference dividend declared                        -            (1)
Long-term assurance policies                     (150)          (97)
Unrealised (losses)/gains not yet recognised on:
 Available-for-sale debt securities                16          (208)
 Available-for-sale equity securities              (6)           10
 Derivatives hedging available-for-sale
  securities                                      (63)          (17)
Securities held for hedging purposes               26            51
Internal derivative trades                        (10)           (3)
Pension cost                                      256           138
Post-retirement benefits                           (5)           (4)
Internal use computer software                     11             -
Own shares                                       (177)         (123)
Deferred tax effect of the above
 adjustments                                      (64)           11

Ordinary stockholders' equity in accordance
 with US GAAP                                  E5,237       E 4,465
Equivalent to                              US $ 4,873
Ordinary stockholders' equity per ADS
 in accordance with US GAAP                    E11.99        E10.38

Equivalent to                              US $ 11.16
Ordinary stockholders' equity per ADS
 in accordance with IR GAAP                     E9.84         E8.49
Equivalent to                               US $ 9.15

Consolidated total assets                    2000           1999
                                              (millions)
Total assets as in the consolidated
 balance sheet                             E79,688          E67,070
Revaluation of property                       (210)            (211)

Depreciation of freehold and long
 leasehold property                            (27)             (27)
Goodwill                                     1,097            1,074
Core deposit intangibles                        26               33
Available-for-sale debt securities              16             (208)
Available-for-sale equity securities            (6)              10
Derivatives hedging available-for-sale
 securities                                    (63)             (17)
Internal derivative trades                     (10)              (3)
Internal use computer software                  11                -
Own shares                                    (177)            (123)
Long-term assurance policies                  (150)             (97)
Long-term assurance assets attributable to
 policyholders                              (2,141)          (1,701)
Securitised assets                              (3)              (1)
Acceptances                                    147              143

Total assets in accordance
 with US GAAP                              E78,198          E65,942
Equivalent to                          US $ 72,763


This results announcement and a detailed informative presentation can be viewed on our internet site at www.aibgroup.com/investorrelations/home
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
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AIB Group Reports 1998 Profit Of IR -pound- 826m / EUR1,049m up 42%.
Allied Irish Banks Addresses New York Society of Security Analysts.
Bullish on Europe.(foreign stocks recommended by investment adviser)(Brief Article)
JHP finances 405 Park Avenue.(JHP Realty Advisors closes loan on Manahattan office building)(Brief Article)(Statistical Data Included)
Allfirst Reports Net Income of $184.4 million for 2000.
IRISH TWISTS.(Declan McGonagle and the Irish Museum of Modern Art)
Orders issued under Bank Holding Company Act. (Legal Developments).(Allied Irish Banks P.L.C. to acquire share of M&T's subsidiary banks)
Index of orders issued or actions taken by the board of governors of the federal reserve system--(January 1, 2003-March 31, 2003). (Legal...

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