Allfirst's income hit by fraud losses

AIB’s troubled US subsidiary Allfirst today reported adjusted net income of $55

AIB’s troubled US subsidiary Allfirst today reported adjusted net income of $55.4 million for the first quarter of 2002, compared to $53.21 million in the same period last year.

However when adjusting for the losses incurred for foreign exchange fraud losses reported earlier this year reported net income fell to $37.8 million for the quarter.

Allfirst said first quarter income was bolstered by higher loan product margins and the favourable impact of the lower interest rate environment. The net interest margin increased to 3.60 per cent, up 10 percentage points on 12 months ago.

Average loans for the first quarter of 2002 were up 6 per cent from the comparable quarter in 2001.

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Period-end core deposits were down $1 billion on the previous quarter due to Allfirst’s withdrawal from the commercial paper market.

Allfirst is due to file more detailed quarterly accounts with the SEC later today.