Allied Irish Banks said today that despite the deteriorating economic environment, earnings should meet market forecasts for this year.
In a trading statement issued this afternoon, AIB said business volume has weakened from a particularly robust year in 2000 and the trend is likely to continue into at least the first half of 2002.
"Looking to next year, while the economic outlook is uncertain at this stage, the underlying strength of our franchises is such that we also expect to achieve single digit EPS growth," the bank said in a statement.
In Ireland, volumes in the second half have been subdued with commercial customers adopting a cautious approach to investment and new projects, the bank said.
AIB said its mortgage business has experienced particularly strong performance without any relaxation of credit criteria.
"Margins continue to be broadly stable across all divisions and the likely attrition of about 0.15 per cent, due to some changes in our business mix, is in line with previous indications" it added.
The bank said that while asset quality has been affected by the September 11th attacks, it is confident its own quality control policies should prove resilient.
Costs are expected to grow by 11 per cent due to the exceptional adjustments for euro conversion and salary adjustments in Ireland the group said.