Despite suffering a $750 million loss due to the foreign exchange fraud in the United States AIB is still likely to post a profit of around €400 million for 2001.
Preliminary investigations indicate the suspected fraud amounts to $750 million or 60 per cent of AIB’s earnings.
The consequences of these losses for AIB Group's 2001 earnings is a once off reduction of €596 million after tax.
However this estimate depends on treasury activities not being curtailed while risk systems are reviewed and also the bank not losing lines of business with customers.
AIB added the loss will not have an impact on its dividend policy.
AIB’s chief executive Mr Michael Buckley said that despite the loss AIB was a well capitalised institution with over €6 billion in capital reserves to support its business.
The Allfirst Financial unit employed two foreign exchange traders in Baltimore and about 25 people in its entire US treasury operations.
The bank also said that experienced senior AIB Treasury personnel have travelled to Baltimore and have now taken over day to day responsibility for Allfirst Treasury.