You are currently viewing AIB Posts Profit of €2 billion with 83% Leap in Income from Spiralling Interest Rates
Citation: Image used for information purpose only. Picture Credit:

AIB Posts Profit of €2 billion with 83% Leap in Income from Spiralling Interest Rates

AIB, an Irish bank, has revealed plans to distribute €1.7 billion to its shareholders following the announcement of a post-tax profit exceeding €2 billion.

AIB released its annual financial report for 2023 today, hailing it as a “milestone year.” The Irish bank announced plans to distribute €1.7 billion to shareholders following a post-tax profit surpassing €2 billion. This increase in profitability was driven by a significant rise in net interest income, soaring from just over €2 billion in 2022 to €3.8 billion in 2023, marking an 83% surge. This surge was attributed to the altered interest rate environment and increased average customer loan volumes. AIB’s customer base expanded to 3.3 million in 2023, up from 2.8 million in 2020. During this period, AIB acquired €6.8 billion worth of loan books from Ulster Bank, with an additional €1 billion expected this year.

CEO Colin Hunt described the 2023 results as a “remarkably robust financial performance.” He emphasized the Group’s return to majority private ownership during the year and expressed the intention to further return capital to the State through proposed distributions of approximately €1.3 billion, including a directed share buyback of €1 billion currently under discussion.

The bank noted a 10% increase in operating costs to €1.8 billion, attributing this rise to factors such as wage and general inflation, provisions for limited variable remuneration in 2024, and increased costs associated with servicing an expanded Group and customer base.