FIRST quarter profits after tax at the AIB owned First Maryland Bancorp in the US rose by 13 per cent to $34.1 million (£22 million).

Profits we're boosted by the sale of an unquoted investment, strong growth in fee income and growth in commercial lending. But provisions against losses on credit card business depressed the results.

Non interest income rose by 23 per cent to $61.3 million. Fee income - which grew strongly - includes service charges on deposit accounts, surcharges on the use of ATMs and trust and investment advisory fees.

Income from service charges on deposit accounts rose by 16 per cent to $21.8 million, while trust and advisory fees increased by 23 per cent to $8.4 million.

Other income of $16.1 million, up from $9.8 million, included the profit on the sale of an investment not quoted on the market. On the non interest income side, provisions against possible losses on credit card business meant that income from credit cards fell from $4 million to $2 million.

Interest and dividend income rose by just 0.9 per cent to $184.6 million. Net interest income was 4.5 per cent higher, at $104.4 million. Costs rose by 3.2 per cent to $102.5 million. Total lending increased by 9 per cent to $6.627 billion. Deposits were 9.7 per cent higher at $7.645 billion.

The first quarter profits were down on the $36 million earned in the final quarter of 1996.

AIB's £840 million bid for the Harrisburg based Dauphin Deposit Corporation is to be considered by Dauphin shareholders next month.