AIB, as usual, did nothing to frighten the markets with its interim figures this week, although there were some raised eyebrows over the group's decision to trim bad debt coverage just as the economy retreats from the euphoria of recent years. As expected, Ireland produced the bulk of profit growth with overseas operations showing a slowdown.

Davy believes the bank will face a challenge in meeting its target of double-digit growth in the medium term in the face of a global economic slowdown but the broker says it will not be making any significant adjustment to its full-year forecasts for the group.