Ireland's largest bank has reported pre-tax profits of €1.3bn for the first six months of this year.
The figure is up 8% on the same period last year.
AIB says its Irish operations generated more than €500m in profit, an 18% increase on the first six months of 2006.
Elsewhere, it is forecasting economic growth of 3% next year, as well as a slight rise in unemployment to just over 5%.