Allied Irish Banks, p.l.c. Interim Results 30 June 2000

Business Wire,  August 2, 2000  

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There was a 10% increase in Home Mortgage lending since December 1999. This business performance demonstrates our ability to compete successfully with new entrants to the market. Prudent criteria for loan approval continue to be applied, the average loan to value ratio for new business nationally was 55% while in Dublin the ratio was 51% in the half-year to June 2000.

AIB Finance & Leasing experienced very strong customer demand with loan growth of 20%. Key sectors performed well with significant growth in motor, commercial vehicles and equipment finance. Lending margins were lower in a most competitive market.

Card Services performed strongly, benefiting from increased cardholder spending and good growth in domestic and international merchant acquiring income. Cardholder balances increased by 3% since December 1999.

Ark Life reported profit growth of 32% to EUR 42 million for the half-year to June 2000. There was significant growth in single premium products with sales of EUR 284 million, up 68% on the half-year to June 1999. New regular premium business amounted to EUR 57 million, an increase of 19% including growth of 79% in new regular pension business. Annual Premium Equivalent (APE) sales rose by 31% to EUR 86 million. First Trust Bank profit increased by 15% reflecting strong growth in other income with foreign exchange income in particular well ahead of 1999. A modest increase in costs was reflected in an improved cost income ratio of 53% down from 55% in 1999. Loans increased by 9% and customer

accounts were up 7% since December 1999.

In Britain, there was good profit growth of 20% reflecting strong volume growth, a good fee income performance and the cost income ratio reducing to 57% from 60% in 1999. There was good growth in commercial loans, home mortgages, current accounts and term deposits. Branch loan and deposit volumes increased by 7% and 9% respectively.

USA includes Allfirst's banking operations in Maryland, Pennsylvania, Virginia, Washington DC, and the newly titled Allied Irish America which comprises banking operations in New York, Philadelphia, Los Angeles and Chicago.

USA profit was EUR 164 million, up 15% on the half-year to June 1999 profit of EUR 142 million.