Despite a slower residential mortgage market, Irish Life & Permanent, says it expects double digit percentage growth in the bank's overall loan book this year.
Speaking at the group's annual meeting in Dublin today, chairperson Gillian Bowler said the continuing slowdown in the residential market reflects rising interest rates and the uncertainty over stamp duty, but that the market will recover once this is sorted out.
'In our view a speedy resolution of the stamp duty issue - which looks likely following next week's election - will see a recovery in new mortgage lending as the underlying level of demand remains strong', she said.
She said that depending on the timing and extent of the rebound, the group expects the bank's loan book to grow by 'mid to high teens percent' this year.
CEO David Went formally today stepped down as CEO, as previously announced, at the AGM, after leading the company for a decade.
The chief executive of Permanent TSB, Denis Casey, will take over from Mr Went as group chief executive.
For the year to date the group said that life sales, particularly in pensions and lump sum investments, are very strong and Irish Life Investment Managers continues to win new contracts.
It said Permanent TSB was attracting customers opening 1,250 new accounts every week.
'Against this backdrop we are satisfied that we can deliver the targeted low to mid -teens growth in pre-tax operating profit in our core business for 2007', Ms Bowler said.
Irish Life & Permanent shares were up 63 cent at €20.05 in Dublin this evening. This was a jump of over 3%.
