Irish Life & Permanent has reported operating profits of €321m for the first half of the year, up 33% on the same period last year, despite a sharp fall in new mortgage lending. Pre-tax profits rose from €214m to €335m.
Profits at its banking business Permanent TSB rose 23% to €111m, while life assurance profits were up 45% to €194m. Sales of life and investment products grew by 66% to €594m.
The value of Permanent TSB's loan book rose by 23%, with 'very strong growth' in new mortgage lending in the UK. But new mortgage lending in Ireland was down 19% on the same period last year to €3.5 billion.
Chief executive Denis Casey said the attention focused on the housing market over the past six months had led people to under-estimate the strength and resilience of the rest of the economy.
He said IL&P had seen 'an extraordinary blossoming' of the long-term savings market, and he expected life sales to grow by more than 30% over the year. Mr Casey said operating profits should rise by 20% for the year, with 'mid to high teens' percentage growth in loans.
Pension sales rose by 67%, while sales of savings products more than doubled.
An interim dividend of 22.5 cent was declared. Shares in the company were up 69 cent to €18.25 in Dublin this evening.
