QUOTE AND NEWS
newratings.com  Dec 2  Comment 
DUBLIN (dpa-AFX) - Allied Irish Banks plc (ALBK.L, AIBYY.PK) announced the Group had a strong year-to-date performance with growth in Net Interest Income and underlying profitability. Net Interest Margin increased 8bps to 2.16% by the end of...
Flightglobal  Aug 3  Comment 
The long-awaited report on the 3 June 2012 crash of a Dana Air Boeing MD-83 on final approach to Lagos airport has been further delayed, according to Nigeria s Accident Investigation Bureau. This is to enable the investigator to take account of...
newratings.com  Jul 28  Comment 
DUBLIN (dpa-AFX) - Allied Irish Banks Plc (AIBYY.PK, ALBK.L) reported that its first-half pre-tax profit was 1.02 billion euros, down 18 percent from 1.24 billion euros a year ago. Profit for the period attributable to owners of the parent...
Reuters  Jun 30  Comment 
Ireland could review its plans to sell a 25 percent stake in Allied Irish Banks early next year if circumstances change, finance minister Michael Noonan said on Thursday.
The Economic Times  Jun 23  Comment 
The senior foreign-exchange trader at Allied Irish Banks Plc in Dublin will be glued to his screens through dawn as U.K. voters decide whether to stay in the European Union.
Banking Business Review  Jun 8  Comment 
Skyhigh Networks has announced its successful deployment at Allied Irish Bank (AIB), giving the bank even greater ability to monitor and secure cloud adoption across its IT estate.
newratings.com  May 24  Comment 
DUBLIN (dpa-AFX) - Allied Irish Banks Plc (ALBK.L, AIBYY.PK) reported that its Net Interest Margin or NIM positive momentum continues at 2.09%, up 12bps from 1.97% in full year December 2015. New lending drawdowns increased by 17% as leading...
The Hindu Business Line  Mar 16  Comment 
The kings of edgy comedy plan to produce feature films by year-end




 

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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