UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the date of 27 April 2005
ALLIED IRISH BANKS, public limited company
Bankcentre, Ballsbridge, Dublin 4, Republic of Ireland
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F..X... Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No ..X...
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
EMBARGO 11:00 27 APRIL 2005
Allied Irish Banks, p.l.c.
Annual General Meeting
("AIB") (NYSE:AIB) Address by AIB Group Chairman Dermot Gleeson to AIB Annual
General Meeting held on 27 April, 2005.
CHECK AGAINST DELIVERY
AIB Performance
I would like to start by commenting on AIB's performance in 2004.
First we achieved excellent financial results - our total shareholder return was
26 per cent - well ahead of our peer group. Our success is reflected in the
increase in our dividend, which has gone up by over 50 per cent since the year
2000.
We had strong income growth of 11 per cent and costs grew by 7 per cent. Loan
volumes were up by 28 per cent while deposits grew by 14 per cent.
Regulatory Investigations
In the Annual Report I set out the position about regulatory investigations last
year in relation to foreign exchange charges and other issues. As shareholders
will be aware, I also appeared with Michael Buckley before the Finance and
Public Services Committee of the Oireachtas last October and explained fully the
circumstances in relation to these matters. There is little I can add to what I
have said before on these issues other than to apologise again - to you our
shareholders - for our failings and to reiterate the Board's and management's
determination to do our business in an efficient, compliant and ethical manner.
Bank Profits
The banks are the nervous system of the economy. A growing economy needs
profitable banks. People who criticise our profits frequently have a poor
understanding, sometimes no understanding at all, of what our profits are used
for. As you will see from our summary report, the great bulk of profits - over
90% of our profits - go in one of 3 directions.
A third of our profits go to paying dividends to our shareholders, 88,000 of
them world-wide, whose funds support the business - they get a yield of about
4%. Another third of our profits are kept, retained to grow the business - in
2004 about half a billion Euro, enough capital to support about
EUR 6 billion in new lending. And about a quarter of our profits are paid in
taxes.
Beneficiaries of AIB's Success
It may not be generally appreciated that a great number of people in this
country and abroad benefit from the success of AIB.
We have about 13,000 employees in the Republic of Ireland and a further 2,000
pensioners in addition to almost 57,000 shareholders resident here - in total
almost 1 in 50 in the population and more if you take account of people's
families.
On top of this there are over almost half a million members (473,000) of private
sector pension funds in this country - the vast majority of whom have a strong
interest in the continued success of successful Irish companies like AIB.
Last year we bought over EUR 300 million worth of goods and services from over
5,500 businesses in the Republic.
Meetings With Investors
Since being appointed Chairman I have written to our largest investors and
offered to meet them. This is in line with the recommendations by Sir Derek
Higgs in his review of corporate governance that the Chairman ensures effective
communication with shareholders and ensures that the Board develops an
understanding of the views of major investors. My meetings complement the very
effective and extensive investor relations programme conducted by Executive
management. Shareholders will be interested to note that the views conveyed to
me indicate a high level of satisfaction with corporate governance in AIB and in
the performance of the company.
Group Chief Executive
I want to acknowledge the contribution of Michael Buckley to AIB during his term
of office as Chief Executive. He has dealt superbly with some major challenges.
His contribution to the strategic direction of the Bank has been vital to the
great success we have achieved and is clearly evident from the outstanding
results achieved in 2004.
As you know the Board has appointed Eugene Sheehy as Chief Executive-Designate.
We had to choose from a very high quality field of both internal and external
candidates and I am confident that Eugene will lead AIB to even greater success
in the years ahead.
Business Momentum
Our business has performed very well in the first quarter. We continue to enjoy
excellent loan growth in our Republic of Ireland, United Kingdom and
International Corporate Banking activities. We also expect another year of
strong deposit growth. Asset quality is at historically high levels.
2004 was a challenging and at times a difficult year.
But the prospects remain bright for AIB and we continue to expect earnings per
share in 2005 to be in a 135 - 137c range under the new International Accounting
Standards.
-ENDS-
For further information please contact:
Alan Kelly Catherine Burke
Head of Capital & Group Investor Relations Head of Corporate Relations
AIB Group AIB Group
Bankcentre Bankcentre
Ballsbridge Ballsbridge
Dublin 4 Dublin 4
Tel: +353-1-6600311 ext. 12162 Tel: +353-1-6600311 ext. 13894
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorised.
ALLIED IRISH BANKS, p.l.c.
(Registrant)
Date 27 April 2005 By: ___________________
Gary Kennedy
Group Director, Finance,
Risk and Enterprise
Technology
Allied Irish Banks, p.l.c.