AIB’s net interest and other income continue to grow ‘strongly’

Bank’s level of impaired loans has declined since the end of June

AIB confirmed earlier this month that it plans to set up a holding company at the top of its corporate structure. Photograph: Cyril Byrne

AIB confirmed earlier this month that it plans to set up a holding company at the top of its corporate structure. Photograph: Cyril Byrne

 

AIB said in documents published on Tuesday that its net interest and other income have continued to grow, while its level of impaired loans has declined, since the end of June.

The comments were contained in a prospectus relating to its planned creation of a holding company to comply with incoming European rules designed to limit taxpayer bailouts and risks to depositors in the event of a future crisis.

Since the end of June, AIB has delivered a “continued strong performance in net interest income, other income and costs,” AIB said. “Net interest margin continues to benefit from stable asset yields and lower funding costs.”

The bank added that it has “maintained momentum in its loan book with new lending contributing to growth in earning loans and the reduction in impaired loans continuing as planned since June 30th, 2017”.

Protection

AIB confirmed earlier this month that it plans to set up a holding company at the top of its corporate structure. This company will issue junior and senior debt in future that would be eligible to be “bailed in” in the event of a future crisis, while deposits would be held in an operating company below the holding company – giving them greater protection.

Equity investors, including the State, which continues to hold 71 per cent of AIB, will hold shares in the holding company.

A shareholder meeting will be held on the reorganisation on November 3rd. Investors in the existing publicly-quoted company will see their investment transferred to the new holding company as part of the overhaul. The new stock will start trading on December 11th.