AIB Preliminary Results 2009

[Dreaded_Estate]

Link

Profitability(1)
Operating profit before provisions of € 2,962 million
- Underlying operating profit before provisions of € 2,339 million, down 7%
Loss for the period € 2,334 million
AIB Bank ROI loss of € 3,594 million; operating profit before provisions, down 25%
Capital Markets profit of € 531 million down 7%; operating profit before provisions, up 23%
AIB Bank UK loss of £ 15 million; operating profit before provisions, up 4%
Poland profit of Pln 854 million down 8%; operating profit before provisions, up 6%(2)
M&T US$ contribution down 56%; impairment charge of € 200 million taken against investment

Efficiency
Costs reduction of 15%; 8% lower excluding retirement benefits amendment
Income/cost growth rate gap +4%(3)
Cost income ratio down to 44.8%(4) (39.0% headline) from 46.5% in 2008

Asset quality
Criticised loans at 29.4% of total loans
Impaired loans at 13.5% of total loans
Provision charge of € 5.35 billion or 4.05% of average customer loans

Earnings per share(5)
Basic loss per share

EUR (215.2c)

less gain on redemption of capital instruments

EUR (130.2c)

less profit on disposal/development of property

EUR (2.0c)

adjust for interest rate hedge volatility

EUR 3.0c

Adjusted basic loss per share

EUR (344.4c)


Balance sheet funding
Customer funding 51% of our balance sheet requirement
Loan deposit ratio of 146%, 156% at 30 June 2009, 140% at 31 December 2008


Capital ratios

31/12/09
Equity core tier 1 ratio(6)

5.0%
Core tier 1 ratio

7.9%
Tier 1 ratio

7.2%
Total capital ratio

10.2%



(1)The percentage changes are compared to 2008 and are on an underlying basis excluding the impact of exchange rate movements on the translation of foreign locations’ profit, the impact of interest rate hedge volatility and the element of the gain (€ 623 million) recorded in the income statement on redemption of subordinated liabilities completed in June 2009.
(2)CEE division operating profit before provisions was up 17%. In addition to the 6% increase in Poland operating profit before provisions, AmCredit made a loss before provisions of € 24 million in 2008 (including a € 15 million goodwill impairment charge) and
nil operating profit before provisions in 2009.
(3)Income/cost growth rate gap +4% excluding the € 623 million gain on redemption of subordinated liabilities or -3% excluding the retirement benefits amendment. See note 10 of this release.
(4)44.8% before the gain on redemption of subordinated liabilities or 48.5% excluding this gain and the gain from the retirement benefits amendment. Including these gains the headline cost income ratio was 39.0%.
(5)See page 5 for further details on earnings per share.
(6)Core tier 1 ratio excluding the € 3.5 billion of core tier 1 capital from the Irish Government.

[Cassandra Syndrome]

First news I seen this morning. My heart bleeds for them. Why is it always the good that suffers? Can we not chip in and help them someway?.....

[hammer]

Fantastic news.

Underlying profit nearly €3,000m

Cost / Income ratio reduced. More to come.

No taxation charge for a few years

NAMA will also give it funds of €15 billion or so.

Time to buy

[Digout]

Can we not chip in and help them someway?.....

We already have, and soon we will do some more.

This business needs to raise more capital than it currently worth. On the Dragons Den they boot people out that come in looking for more money than a business is worth.

[porkchop]

On the Dragons Den they boot people out that come in looking for more money than a business is worth.

Have you seen how they laugh at people with insane business plans?

[Cassandra Syndrome]

Seeing that we are going to own them, can we call them in to our office and grill them for these results. Maybe we should start cutting the ECB overdraft so the they can consolidate.

[Digout]

Seeing that we are going to own them.

We should fire the management team, we wont though.