AIB has reported net profit of €765m for 2022, an increase 19% year-on-year, as customers numbers top three million.
Net interest income of €2,160m represented a 20% increase on the previous year following a "strong fourth quarter" that saw the bank twice raise fixed mortgage rates.,
Net interest margin improved from 1.59% to 1.74% for the full year and was 2.18% in Q4.
Total income increased 21% year-on-year to €2.9 billion, helped by a 25% increase in other income.
Net lending grew by 22% to €12.6bn, in part due to a surge in the second half of the year when the value of new lending was 33% greater than during the first six months of the year.
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Green lending rose 65% to €3.3bn and now makes up 26% of new lending. AIB now has a 32.2% share of the Irish mortgage market. Gross loans increased 5% to €61.2bn in part due to the transfer of €2.1bn in Ulster Bank loans to the bank.
For the year, AIB paid a net impairment charge of €7m after receiving a €309m writeback in H1 and paying out €316m in H2. Non-performing loans fell 31% to €2.2bn, and bad loans now make up 3.5% of its loan book.
Costs increased 8% to €1.66bn, and 5% on an underlying basis, with a cost income ratio of 57% down from 64% in 2021. Staff numbers also rose 8% following arrivals from Ulster Bank.
There was also a 10% increase in customer deposits to €102.4bn as 450,000 new accounts were opened with the bank, a 76% increase year-on-year.
In addition to an ordinary cash dividend of €166m or 6.2 cent per share, AIB is also effecting a share buyback of €215m.
"2022 was an eventful year as the impact of the Covid-19 pandemic receded, geopolitical uncertainty increased and cost of living pressures emerged amid rising interest rates," said Colin Hunt, CEO of AIB.
"Despite high levels of volatility in the global environment, the Irish economy performed well and remains on track to record further growth in 2023.
"Having announced our medium-term targets in December 2022 and with a strong start to 2023, we are well on track to generate shareholder value and deliver sustainable returns in the interests of all our stakeholders," he added.
(Pic: Leah Farrell/RollingNews.ie)
