AIB's Polish subsidiary Bank Zachodni WBK has reported a 53.2 per cent rise in pretax profits to 366.4 million zloty (€97.12 million) in the first three months of 2007.

The bank, in which AIB has a 70.5 per cent stake, took the benefit of loan growth and increasing interest income to deliver a 24 per cent rise in income to 688.7 million zloty and a 48.6 per cent rise in post-tax profits to 260.6 million zloty.

"In terms of AIB, the bank's Polish activities contribute 9 per cent of operating profits. So BZ WBK's better-than-expected first quarter figures are set to result in modest upgrades to our AIB Group forecasts (circa 1-2 per cent)," said NCB Stockbrokers.

"Although BZ WBK's results statement does not contain an outlook statement, the bank is set to deliver a strong performance in 2007." Net loans and advances were 28.7 per cent higher with net interest income up 20 per cent to 290 million zloty.