Pre-tax profits at AIB's US subsidiary, First Maryland Bancorp, fell by 25 per cent to $63.5 million (£42.05 million) for the three months to the end of September. But the underlying result was a 12 per cent rise in pre-tax profits when a $28 million once-off gain on the sale of credit card loans in the corresponding previous period was excluded.

Despite a fall in interest earnings, underlying profits increased largely because of an 11 per cent reduction in non-interest costs and lower loan loss provisions. Underlying profits after tax were 11 per cent higher at $40.1 million. While there was good growth in lending, the lower interest earnings in the latest quarter reflected the sale of the credit card and mortgage origination businesses. Net interest income for the quarter was down 6.6 per cent to $132.6 million with interest income 10 per cent lower at $267.4 million.

But interest payments 4.7 per cent lower at $134.8 million. In a competitive market there was pressure on net interest margins which fell to 3.71 per cent from 3.86 per cent. A reduced provision for loan losses - down to $2.8 million from $7.4 million - helped the income figures for the quarter. Non-interest income was down by an underlying 8.2 per cent to $83.8 million when the once-off income from the credit card loan sale was excluded from the income of the previous period. This reflects the sale of its mortgages businesses.

Income from service charges on deposits accounts was static at $26.4 million while trust and investment advisory fees increased to $18 million from $14.3 million. Non-interest income included a $1 million gain on the sale of securities, compared with a loss of $230,000 in the previous period. Costs were 11 per cent lower at $150 million with salaries and personnel costs down to $77 million from $89 million.