AIB expects firsts half dip
Allied Irish Banks expects first half earnings to fall by 6% but its is leaving its full year guidance of single digit earnings growth unchanged.
"In the first half of 2008 we expect earnings per share to be down relative to the first half of 2007 by c. 6% due to two main factors; first, the exceptional level of bad debt recoveries in H1 2007 will not recur and second, the global market dislocation and its negative effects did not begin until the second half of last year," it said.
AIB added its loan growth will slow to 10% from 23% last year, but costs reductions will mean
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income grows at a faster rate than costs, the trading statement said.
Asset quality remains good, AIB said, adding it expects bad debts this year would rise to about 0.2% of average lending from 0.09% in 2007.
