QUOTE AND NEWS
Wall Street Journal  Mar 5  Comment 
Allied Irish Banks, one of Ireland's largest banks and one that was rescued at huge cost during the banking crisis, posted a narrower full-year loss and said its recovery plan is still on course.
BBC News  Mar 5  Comment 
Allied Irish Bank (AIB) reports a 1.7bn euros (£1.4bn) loss for 2013, an improvement on its 2012 performance.
StreetInsider.com  Dec 17  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Management+Changes/Allied+Irish+Banks+%28AIB%29+Appoints+Mark+Bourke+as+CFO/8985872.html for the full story.
Financial Times  Aug 1  Comment 
Allied Irish Banks says its strategy to stabilise its business is working as it returns to an operating profit during the first half of the year
Mondo Visione  Jul 15  Comment 
The AIB (Association of Issuing Bodies) Board has officially accepted Powernext as a member. The AIB counts 19 European registries and has the mission of promoting a European standard for guarantees of origin (European Energy Certificate System...
Financial Times  Jul 1  Comment 
Money lent to every ‘cowboy in town’ in lead-up to Ireland’s financial crisis, recordings between bank executives at peer Anglo Irish Bank claim
Clusterstock  Apr 11  Comment 
A man suspected of creating Bitcoin has issued a denial he did so. In 2011, New Yorker contributor Joshua Davis went on the hunt for Bitcoin's inventor. He came up empty handed. But he narrowed it down to several candidates whose interests...
The Hindu Business Line  Apr 4  Comment 
The Indian Institute of Management-Bangalore (IIM-B) has announced that it will host the ‘2013 Academy of International Business (AIB) India Chapter annual conference’ from April 15 to 17.




 

Allied Irish Banks (NYSE: AIB) is the second-largest bank in Ireland by assets. The firm offers various financial services, including lending and capital markets activities. Debt contagion in Ireland has caused the bank to suffer losses in the past two fiscal years, as interest rate changes cause the bank to make less net interest income. In addition, the bank's Irish clients are failing to repay loans, as Ireland's economy is drowning in debt.

Business Overview

In the past fiscal year, Allied Irish Banks turned a loss due to debt contagion in Ireland.[1] As the debt crisis consists,[2] AIB and other Irish banks may continue to turn losses.

Trends and Forces

AIB Suffers from European Debt Contagion

AIB is directly and indirectly affected by market conditions. For example, changes in interest rates could adversely affect net interest margin — the difference between the yield the bank earns on assets and the interest rate it pays for deposits and other sources of funding — which could in turn affect earnings. Market risks include fluctuations in interest and currency exchange rates, and equity and futures prices. Such risks affect loans, deposits, securities, short-term borrowings, long-term debt, trading account assets and liabilities, and derivatives. In the past fiscal year, these risks have had a negative affect on European banks, as the PIIGS (Portugal, Ireland, Italy, Greece, and Spain) have been at risk of default.

AIB has Exposure to Lending and Credit Risks

A number of AIB's products expose it to credit risk, including loans, leases and lending commitments, derivatives, trading account assets and assets held-for-sale. As one of the Ireland’s largest lenders, AIB relies heavily on accurately predicting how well its customers will repay their loans. The corporation must constantly weigh ongoing economic factors and should they overestimate its customers' ability to repay loans, the bank's overall performance will suffer.

Competition

References

  1. AIB 2010 20-F
  2. Seeking Alpha, "The Biggest Loser in Ireland's Ongoing Debt Crisis," 12/02/2010
  3. Bloomberg, "Bank of Ireland Becomes 'Slave' to Country's Sovereign Debt Woe," 06/15/2011
  4. Retail Banker International, "Barclays overtakes RBS to rank UK no.1 by assets," 08/06/2010
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