AIB said today that its business performed well in the first quarter with strong loan growth at home and abroad.
Shareholders at the bank's AGM in Dublin today were told that earnings per share to be in a 135 to 137 cent range based on new IFRS accounting rules.
"The prospects remain bright for AIB," chairman Dermot Gleeson told shareholders.
The chairman's statement contained no surprises but did assure the market that profit forecasts are on track.
AIB shares drifted 1.85 per cent lower at €15.95 today, in line with similar falls in the other leading Irish financial stocks.
"There were no surprises, it was an upbeat, encouraging statement," said analyst Scott Rankin at Davy Stockbrokers. "We are about two cents above the top end of the range for guidance, and we are quite happy to be there. We believe the strength in the Irish economy is going to probably generate stronger earnings momentum than people anticipate."
AIB said it continued to enjoy excellent loan growth in Ireland, UK and international corporate banking, and expected another year of strong deposit growth. Faster loan than deposit growth has put pressure on the bank's margins.
AIB posted a forecast-beating rise in full-year earnings in February and said profits in 2005 were also likely to be better than the market had been expecting.