AIB Group PLC - Dublin-based bank - Reports surging interim profit as it benefits from net credit impairment writeback. Pretax profit in the half-year to June 30 grows 84% to €537 million from €291 million a year ago. Posts net credit impairment writeback of €309 million, tripled from €103 million.

Net interest income grows 2% to €895 million from €881 million due to lower funding costs. ‘We now expect net interest income to increase by around 10% in 2022 compared to 2021,’ AIB adds.

Regarding its outlook, bank says: ‘The main risks to the economic outlook during the reporting period are ’stagflation’ in the group’s main markets, geopolitical developments associated with the war in Ukraine and the spread of new vaccine-resistant strains of the Covid-19 virus.’ Staflation means high price inflation at a time of slow economic grow.

Current stock price: 185.30 pence, up 0.9% on Friday

12-month change: up 2.4%

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