AIB Group enjoyed a billion pound swing from crushing losses back into healthy profit in the first half of this year as its chief executive admitted “the fundamentals of our business remain strong”.
The Dublin-headquartered bank posted a pre-tax profit of €291 million (£248m) from January to June, which compared to a €909m (£774m) loss in the same period of 2020.
And its UK division - which includes its Northern Ireland operations (previously trading as First Trust Bank) - reported a pre-tax profit of £47m.
But that comes as AIB presses ahead with plans to more than halve its branch network in the north.
It said last month that it is closing eight of its current estate of 15 branches in November, with the doors shutting for good in Omagh, Coleraine, Lisburn, Lurgan, Kilkeel, Newcastle, Bangor and Glengormley.
AIB Group chief executive Colin Hunt told shareholders yesterday: “Reflecting the improving economic environment, I am pleased to report a return to profitability for the first half of 2021, with the fundamentals of our business remaining strong, underpinned by our solid balance sheet and robust capital base.
“These results, coupled with our strong customer franchise and digital leadership, position us well for the future, as we continue to tightly manage costs and execute our strategy at pace.”
He added: “While remaining alert to the economic uncertainties, I look forward to the remainder of 2021 and beyond with confidence, focused on our newly revised medium-term targets, united by our purpose and continuing to support our customers and the communities that we serve.”
But those healthy figures will reinforce calls by finance unions to reverse the closures programme in Northern Ireland (AIB is also withdrawing from small business lending in Britain to focus on larger business customers).
The Financial Services Union (FSU) has previously branded AIB's closures decision as ‘a scandalous dereliction of its societal role’.
FSU general secretary John O’Connell told MLAs at Stormont last month: “Banks are using statistics drawn from a period of societal lockdown which cannot and should not be relied on to judge future customer behaviour.
“If we continue to allow the banks to lead that change, we will end up without a banking infrastructure that will serve all people in our society.
“Banks must desist from destroying the branch network and pause any branch closures until a full debate can happen on the future of banking.”
