First Active has announced its half yearly results to the end of June with the bank's pre-tax profit surging by 56% to 23.5 million euro.
Underlying profits at the bank were also up 37% as the benefits of its restructuring programme announced last year started to have effect. Earnings per share came in a 12.8 euro cents - a rise of 60%. An interim dividend of 4.5 cents was declared - an increase of 13%.
The restructuring measures include centralising four Dublin operations under one roof at Leopardstown, Co Dublin. The bank also revamped its branch and broker channels, initiated a share buy-back and formed a partnership with UK financial services firm Britannic.
First Active's Irish operations generated profits of 16 million euro, up from 8.2 million, before deducting 2.1 million for once-off restructuring costs, in the first six months of 2000.
In a statement this morning, the bank said this improvement reflected the full impact of the restructuring of its operations here, which was completed last year. First Active said that when it had planned the restructuring, it had estimated it would result in annual cost savings of 13 million euro - these savings are now being achieved.
With new lending of 767 million euro, total Irish customer loans and advances under management grew to 5.5 billion euro, an increase of 8% on the position last December.
553 million euro of this new lending was in residential advances. The bank's residential mortgage offering and pricing was repositioned during the first half of the year and a number of new products, including the Utopia mortgage product, was introduced.
New commercial advances were 187 million euro, an increase of 10% over H1 2000. The commercial loan book now stands at 701.1 million euro or 12.7% of total Irish customer loans and advances.
First Active said its Special Savings and Investment Accounts, launched in April, have been well received.
Commenting on today's results, First Active's chief executive Cormac McCarthy, said the bank was now well positioned to deliver further on the progress it has made and will continue to provide additional value and service to its customers.
'The first six months of 2001 shows a strong business performance, with the benefits of our restructuring programme in 2000 flowing through. Senior management has been further strengthened and First Active has demonstrated its capability to operate successfully in a very competitive marketplace,' he said.
First Active shares closed up ten cents at 3.15 euro in Dublin.
