Irish Life and Permanent said today that its full year earnings would show good underlying growth. But the bank, the third largest in Ireland, warned that its earnings would be negatively impacted by the movement in investment markets.
IL&P said this would be reflected mainly through a negative unit-linked fees variance of between 25 million to 30 million euros and through its interest in the non-life business of Allianz-Irish Life, where the result is expected to be negative.
Volumes in the life business in Ireland have been strong, the company said in its trading statement today. Good, but moderating growth has also been evident in banking assets.
During the year the Group acquired TSB and the integration process between it and Irish Permanent has begun. This is set to continue into next year when the first significant cost savings will be recorded.
Agreement has also been reached for the sale of the Industrial Branch business to Royal Liver Assurance of the UK. This deal is expected to be completed in the first half of next year.
The company also said the disposal of two of its US businesses, already announced, would result in an 80 million euro exceptional loss. It said efforts to sell its remaining US operation, Guarantee Reserve, were continuing but had been made more difficult by the economic weakness in the US.
Shares in the company closed 38 cents lower at 11.52 in Dublin.
