Bank of Scotland's Irish operations have reported pre-tax profits of 19 million euro for the year to the end of February, an increase of 48%.
The Irish division acquired ICC Bank earlier this year and says the merger of the two banks is moving to an advanced stage.
Earlier its parent announced details of a £28bn sterling plan to merge with Halifax to form the UK's fifth largest bank.
2,000 jobs will be cut at the merged group which marks another round of consolidation in the UK's increasingly competitive banking sector.
The deal is effectively a takeover of Bank of Scotland by Halifax, which will hold 63% of the combined group.
Bank of Scotland needed a partner after failing since last year to buy National Westminster Bank Plc or to merge with the Abbey National.
