The EBS Building Society has reported a strong set of results for 2001, with pre-tax profits up 19% to €37.6m, based on record levels of new business in both residential mortgages and savings. This compares with a rise of 8% in the previous year.
A statement said this was achieved in 'market conditions far more demanding than those generally forecast at the start of the year'.
Chief executive Ted McGovern told OnBusiness that while business had slowed sharply after September 11, EBS had been surprised by the spurt in home loans business in January and February of this year, with approvals up 21%. This was prompted by the Budget changes for investors, and the re-entry of first-time buyers into the market.
But Mr McGovern said it was too early to say if this trend would continue. He also said that he did not anticipate much change in interest rates for the rest of the year, though there were some expectations of a quarter-point rise in rates in the second quarter.
The society made a record level of gross home loan advances in 2001 - up 8.5% to €1.3 billion - while total lending reached €1.5 billion. Net home loan lending was €723m.
The society said that inflows to personal savings products almost trebled during the year to €421m, largely driven by the turbulence in the equity markets.
Mr McGovern said that the EBS home loans market share was now just under 14%. EBS had a strong 28% growth in mortgage business through its direct sales channel EBS Direct. Loan balances at the year end were €5.7 billion, up 17.6%.
The chief executive also told OnBusiness that EBS was examining strategic proposals to grow the society.
