AIB is Ireland's biggest bank, with assets of more than €79.7 billion (£62.8 million). Later this month, it had been expected to report pre-tax profits of €1.4 billion for last year. Those profits will now be reduced dramatically by the $750 million (€864 million) fraud. After tax, the bank will show a 60 per cent drop in profits to €997 million.
In 2000, AIB group earned around 55 per cent of its profits in its Irish banking operations. Its capital markets division, which includes its Irish treasury operations and Goodbody Stockbrokers, brought in 12 per cent. Allfirst and its other US operations contributed close 26 per cent, while its business in Poland added a further 7 per cent.
The group employs more than 31,000 people worldwide. It employs 9,000 in the Republic at more than 250 outlets. It employs a further 3,000 in Northern Ireland at its First Trust bank and has 30 branches in the UK. It expanded into the US in 1988, buying First Maryland Bank and expanding further in the region. The US operations now trade as Allfirst.
The bank also owns the fifth largest bank in Poland, the recently merged WBK BZ Bank.
It recently announced that more than 2,150 employees at the Polish bank would lose their jobs by 2003, following the introduction of new computer systems. Profits from Poland were expected to be weak in 2001, and substantial provisions have been made for bad debts.
Allied Irish Banks was formed in 1966, through the merger of the Provincial Bank, founded in 1825, the Royal Bank, established 11 years later, and the Munster and Leinster, which was formed in 1885.
