Publications
Partners
Dublin - State-owned Allied Irish Banks (AIB) returned to a quarterly operating profit after provisions for the first time since its 2010 bailout, hitting a landmark many analysts had expected later this year.
It follows Bank of Ireland, the country's only lender to escape nationalisation, which in March said it had returned to profit in the first two months of the year.
Loans
AIB last year made its first operating profit excluding provisions for impaired loans and said it expected to post a profit including provisions by the end of 2014.
The bank did not disclose its first-quarter operating profit, but said performance was moderately ahead of expectations both in terms of income generation and provisions. It is due to publish a profit figure for the six months ending June.
The bank said profit was driven by a significant reduction in impairment charges, without elaborating.
Its net interest margin - an important measure for a bank that reflects the difference in the rates at which it lends to borrowers and pays out to depositors - was 1.57% in the first quarter, excluding fees it pays the government for a deposit guarantee scheme, compared to 1.37% three months earlier.
Debt
AIB still trails Bank of Ireland, which reported a net interest margin of 2.05% in the first quarter.
The bank has shut branches and is cutting almost a fifth of its staff in an effort to return to profit during this year.
