AIB's Polish operation, Bank Zachodni WBK, has delivered a better-than-expected Q3 performance, more than doubling profits.

The bank announced a net profit of 96 million zlotys, compared to a consensus forecast of 86 million, and up from 37 million in the third quarter of last year.

Analysts said the bank's performance benefited from a strengthening Polish economy, a more favourable interest-rate environment and tight cost-control.

The strong performance prompted WBK to raise its outlook for the full year. "There's a good chance we will be higher than 400 million zlotys," chief executive Mr Jacek Ksen said. WBK had previously indicated it would earn about 375 million zlotys.

The Polish operation accounted for around 6 per cent of AIB's pre-tax profits at the half-year stage and the good third-quarter figures augur well for AIB.

"This appears to suggest that Poland remains on track to deliver a very strong performance for AIB relative to its poor out-turn in 2003," Merrion Stockbrokers said.