First Active said that it is expecting to see 20% growth in its operating profits, before tax, for 2002.
In a trading statement this morning, the lender said that while the first half of the year was boosted by the Government's Special Savings Scheme, general conditions in the savings and investment markets have been difficult because of low interest rates and weak stock markets.
First Active said that the Irish economy had remained relatively strong in 2002, albeit with a growth rate significantly lower than experienced in recent years. It said that the mortgage market continues to be strongly underpinned and has show significant growth in the current year.
With regard to lending, First Active said it had experienced a very robust performance through its branch network with expected growth close to 40% in gross new advances this year. Loan book growth is expected to be in the low double-digit percentages for the year, which the bank described as 'a highly satisfactory outcome'.
First Active said that cost control remains a key priority for the bank and it anticipates that costs for the year will rise by no more than the level of general inflation.
