Allied Irish Banks (AIB) reported steady first-half profits, lower bad loans and higher lending and capital on Friday as it continues to recover a decade after the country’s banking crash.
“The financial results for the first half of the year were very good and towards the upper end of expectations. They confirm that AIB continues to deliver against the financial commitments made during last year's IPO process,” AIB chief executive Bernard Byrne said in a statement.
The government sold a 29 per cent stake in the bank last year in Europe’s largest initial public offering (IPO).
It reported a pre-tax profit of 762 million euros versus 761 million a year earlier.
Non-performing exposures (NPEs) fell to 7.5 billion euros from 9.2 billions euros three months earlier, boosted by the sale of a 1.1 billion euro portfolio of bad loans in May. In 2013, its stock of NPEs stood at 31 billion euros.
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Irish banks are under pressure from the European Central Bank to reduce bad loans which ballooned after Ireland’s property crash. AIB’s accounted for 12 per cent of its loan book at the end of June.
Helped by the best performing economy in the euro zone for the fifth successive year, its new term lending rise by 15 per cent to 5 billion euros.
Tier one capital ratio rose to 17.6 per cent from 17.1 percent at the end of March, well above its medium term target of 13 per cent.
Its share of the fast recovering Irish mortgage market stood at 32 per cent in the first half, slipping from 33 per cent a year earlier.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Anxiety and work stress major factors
Anxiety, work stress and social isolation are all factors in the recogised rise in mental health problems.
A study UAE Ministry of Health researchers published in the summer also cited struggles with weight and illnesses as major contributors.
Its authors analysed a dozen separate UAE studies between 2007 and 2017. Prevalence was often higher in university students, women and in people on low incomes.
One showed 28 per cent of female students at a Dubai university reported symptoms linked to depression. Another in Al Ain found 22.2 per cent of students had depressive symptoms - five times the global average.
It said the country has made strides to address mental health problems but said: “Our review highlights the overall prevalence of depressive symptoms and depression, which may long have been overlooked."
Prof Samir Al Adawi, of the department of behavioural medicine at Sultan Qaboos University in Oman, who was not involved in the study but is a recognised expert in the Gulf, said how mental health is discussed varies significantly between cultures and nationalities.
“The problem we have in the Gulf is the cross-cultural differences and how people articulate emotional distress," said Prof Al Adawi.
“Someone will say that I have physical complaints rather than emotional complaints. This is the major problem with any discussion around depression."
Daniel Bardsley
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