AIB posted a 47 per cent rise in half-year profits to €1.2 billion as it reaped the benefits of buoyant lending and deposit growth in Ireland, Britain and Poland.
The half-year profits include the €132 million the bank received from the sale of Ark Life and €96 million from its sale and leaseback of its headquarters.
Net interest income amounted to €1,429 million, an increase of 16 per cent. Loans to customers increased by 12 per cent, and customer accounts increased by 10 per cent.
AIB chief executive Eugene Sheehy said the interim results reflect "buoyant well-spread growth in all our markets and the development of high quality franchises".
AIB's net interest margin fell by 18 basis points to 2.29 per cent due to loans growing more rapidly than deposits and increasing competition in the Irish market.
Banking fees and commissions increased by 5 per cent, due to increased business and transaction volumes in AIB Bank Republic of Ireland, AIB Bank UK, Poland and Corporate Banking and there was strong growth in credit card activity in Ireland, the bank said.
AIB declared an interim dividend of 25.3 cent per share, an increase of 10 per cent on the half-year ended June 30th, 2005.