AIB makes it 17 profits in a row

ANGLO IRISH Banks, the best-performing bank stock in Europe over the past year, has provided fresh evidence of its abilities with strong interim figures and an ebullient message on future growth.

The Dublin-based group specialises in lending to small businesses and professionals in Ireland and almost 40% of its loans are derived from Britain, primarily in the investment property sector.

In the six months to 31 March, pre-tax profits rose 27% to e115.2m (£72m) and earnings put on 20% to 24.7 cents. The interim dividend has been lifted by 17% to 4.2 cents.

'We're a niche bank. We're very focused and I am confident we are going to achieve our aims over the next three years,' said chief executive Sean Fitzpatrick.

The bank achieved its 17th consecutive set of record interim profits against a backdrop of uncertainty following the 11 September terrorist attacks. 'Despite this, we continued to expand the loan book in both Ireland and the UK, taking increased market share without in any way diminishing asset quality or diluting margins,' said chairman Peter Murray.

Around 40% of Anglo Irish shareholders are British institutions and the bank believes more than 50% of its loans could derive from this country in the next five years.