Despite reporting bumper profits of €1.05 billion (£826 million) for 1998, ABN-AMRO has announced a slight paring back in its forecasts for AIB. It has shaved its 1999 earnings per share forecast for the State's largest bank by 0.4 cents to 88.7 cents and has cut its 2000 e.p.s. forecast by 0.8 cents to 99.8 cents.

"This is the first results announcement for many years in which AIB did not report numbers well in excess of analysts' expectations," says ABN-AMRO analyst Mr Eamonn Hughes.

However, the broker is maintaining its "buy" recommendation on the bank, pointing out that earnings growth remains strong and valuations are comfortable compared to AIB's European and British peers.