AIB expects growth in earnings in the high teens for 2006, according to a trading statement issued this morning.
The targeted growth excludes the sale of Bankcentre in Ballsbridge, Dublin, and the Ark Life deal with Aviva.
Last year, Aviva, Britain's biggest insurer, reached a joint venture agreement with AIB, which saw it acquire a 75 per cent share of Ark Life, AIB's life assurance unit.
In its statement the bank said retail and commercial banking in the Republic is "performing strongly".
"A higher interest rate environment is expected to temper rather than materially reduce customer demand and we are now targeting loans to increase this year by around 25 per cent, higher than previously guided in February," it added.
It said it expected growth in customer deposits to be around 15 per cent.
