AIB confident despite US slowdown

Despite a slowdown in the US economy, AIB said today it was confident of meeting its previous earnings forecasts.

In a trading statement the company said: "We are continuing to target low double-digit annual growth in adjusted earnings per share and expect that, at the interim stage of 2001, against a strong comparative period, EPS growth will be at the lower end of that range."

"For the full year, we expect to achieve EPS growth in line with our previous indications and consensus analysts’ forecasts."

The company said its business in Ireland is continuing to perform strongly. This year the company expects loan growth to be in the "low teens", and it believes the outlook for deposit growth is good and in line with expectations.

However, it said demand for new savings and investment products has temporarily slowed due to the recently introduced Government sponsored Special Savings Investment Accounts.

AIB said despite the US slowdown business confidence in the mid-Atlantic region, where subsidiary Allfirst operates, was holding up well.

As a result of poor growth forecasts in Poland, the company said: "We are not aggressively growing either our consumer banking or SME loan books for the present."

AIB has more branches in Poland than it has in the Republic, Northern Ireland and the UK.

Overall the company expected non-interest income to grow by 10 per cent this year.