Bank has Scots rich pickings in its sights

Published on Wednesday 25 February 2004 00:00

ALLIED Irish Banks, the largest company in Ireland, is to target wealthy individuals in Scotland by expanding its private banking operations.

The news came as AIB reported a 23.8 per cent fall in full-year earnings, but chief executive Michael Buckley described the bank’s underlying performance as strong and said he was "very confident" for the year ahead.

The Dublin-based group reported total operating income of just over 2.1 billion for 2003, down from 2.6bn for the previous year, but underlying earnings per share rose three per cent after stripping out factors such as restructuring costs related to the merger of its United States division, Allfirst, with New York-based M&T and an Irish government tax levy.

Chief financial officer Declan McSweeney said: "In Britain, our profit growth was 15 per cent. We’re predominantly a business bank in Britain."

Aidan McKeon, managing director of the bank’s UK operations, added: "We have two offices in Scotland, in Edinburgh and Glasgow, and this business is doing very well, with great momentum.

"We’ll be increasing our focus on the higher end of the personal market. During the year we opened up private banking in Manchester and Belfast, and you’ll see more emerging in Scotland in the coming year."

Mr Buckley said currency translation factors, which lopped four per cent off 2003’s earnings, would have a negative impact of around three per cent this year.

He said rises of 14 per cent and 15 per cent respectively in Irish and British profits had been driven mainly by loan growth.