Dauphin Deposit Corporation, the US bank which AIB plans to acquire for £840 million, has reported a 3.4 per cent rise in profits after tax to $17.2 million for the first quarter, writes Mary Canniffe.

But the underlying rise in profits was a stronger 7.8 per cent because first quarter 1996 results included securities gains of $1.1 million. When the security gains are stripped out earnings per share were 5.8 per cent higher at 55 cents.

Net interest income was 5.7 per cent higher at $47 million while fee income jumped 25.6 per cent to $25.5 million. Costs were 16 per cent higher at $47.8 million. Provisions for bad and doubtful debts were down to $1.55 million from $1.8 million.