Financial Highlights 1996 Earnings Per Share Up 12.3%

Business Wire, Feb 10, 1997

DUBLIN--(BUSINESS WIRE)--Feb. 11, 1997--

-- Profit before taxation amounted to IRpd 421m, an increase of 13%

on 1995.

-- Profit attributable to ordinary shareholders up 13.5% to IRpd 260m.

-- EPS amounted to IRpd 38.4p, an increase of 12.3%.

-- Second interim dividend of IRpd 9.05p, resulting in a total

dividend of IRpd 15p, an increase of 16% on 1995.

Return on equity strengthened to over 21%.

Commenting on the results, AIB Group Chief Executive, Tom Mulcahy said:

"The growth of 13% in pre-tax and attributable profits reflects a strong performance across all divisions and geographical areas of the Group in very competitive markets. Our continued focus on improving customer service and offering new products to meet our customers' needs is resulting in significant growth in business volumes. Group lendings increased by 15%, and deposits by 10%. Non-interest income was buoyant with growth of 18%, Ark Life profit increased by over 60% to IRpd 20m and the contribution from asset management also increased very substantially. Credit quality ratios strengthened further and underlying costs increased by just over 2%.

Our return on equity at 21.3% demonstrates our efficient management of the Group's capital to provide both real and sustainable growth in returns to shareholders".

AIB REPORTS 1996 PROFIT OF IRpd 421M, EARNINGS PER SHARE UP 12.3%

Allied Irish Banks, p.l.c. (AIB Group) today announced its results for the year ended 31 December 1996.

Group profit before taxation amounted to IRpd 420.8m compared with IRpd 372.6m for the year ended 31 December 1995, an increase of 12.9%.

Profit attributable to ordinary shareholders increased by 13.5% to IRpd 259.5m. Earnings per share for the year amounted to IRpd 38.4p, an increase of 12.3%.

The Board has declared a second interim dividend payable on 27 March 1997, to shareholders on the company's register of members at the close of business on 21 February 1997; no final dividend is being recommended. The second interim dividend amounts to IRpd 9.05p (tax credit IRpd 2.4057p) which together with the interim dividend of IR pd 5.95p (tax credit IRpd 1.5816p) paid on 30 September 1996 amounts to a total net dividend of IRpd 15p (tax credit IRpd 3.9873p) an increase of 16.3% on 1995. Shareholders will be offered the opportunity to opt for new shares instead of cash in respect of the dividend payable on 27 March 1997 and offer letters will be sent to shareholders on 26 February 1997.

Capital adequacy remains strong. The tier one capital ratio amounted to 7.8% and the total capital ratio to 11.6%. The ordinary equity to assets ratio was 4.9%.

The return on equity further increased to 21.3% and the return on assets amounted to 1.09%.

This media release contains a detailed commentary on Group and divisional results for the year.

Annual General Meeting

The company's Annual General Meeting will be held at Bankcentre, Ballsbridge, Dublin 4 at 12 noon on Wednesday 21 May 1997. -0-