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(Alliance News) - AIB Group PLC on Thursday said it returned to profit in the first quarter of 2021 and expects a "strong recovery" as the economy re-opens and vaccine roll-outs progress.
The Dublin-based lender said trading has been in line with expectations and it is confident of achieving its full-year guidance.
The results for the year's first three months represent a dramatic improvement after AIB suffered a full-year pretax loss of EUR931 million for 2020.
Total income for the quarter fell by 4%, with net interest income decreasing by 13% and other income up 36%.
A net credit impairment charge of EUR50 million was seen in the quarter, but AIB commented that with "positive trends emerging and the return to a more normalised credit environment", it expected the full-year cost of risk to be at or below guidance.
AIB said its fully loaded CET1 ratio improved by 0.2 percentage point to 15.8%, well ahead of its 14% target.
Performing loans totalled EUR55.3 billion, up by EUR200 million since the end of December, while new lending was reduced by 7% to EUR2.3 billion. Customer deposits rose by 3% since the end of 2020 to EUR84.5 billion.
"As our industry undergoes significant change, our strategic clarity gives us confidence that our strong balance sheet, digital capability, distribution and franchise will enable us to grow, serving our customers and the communities in which we operate," said Chief Executive Colin Hunt.
"As previously announced, we are progressing a number of acquisition opportunities to complement our existing strong customer propositions.
"As Ireland emerges from lockdown and the vaccine roll-out continues, we are confident about the outlook and our ability to generate sustainable shareholder returns and meet our medium-term targets by 2023."
AIB shares were quoted at 214.20 pence, down 0.4%, in London on Thursday morning.
By Will Paige; willpaige@alliancenews.com
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