First Active has reported pre-tax profits of €33.9m for the first half of the year, an increase of 11.5% on the same period last year.
Irish profits rose by 36% to €29.5m, though UK profits were lower after the disposal of First Active's interest in Britannic Money last December. Earnings per share were up 7% to 19.5 cent, while a 14% higher interim dividend of six cent has been declared.
Chief executive Cormac McCarthy said the company's focus on the Irish mortgage and savings markets had generated healthy revenue growth across the business. He added that the momentum from the first half had carried on into the second half.
New lending grew by 36% on the same period last year to just over €1 billion, with residential mortgage lending 34% higher at €787m. First Active's new current account mortgage product has accounted for 20% of residential loan applications since its launch.
Income from the sale of investment products fell because of the strong SSIA sales in the period last year. Net interest income jumped by 21% to €67.6m, while other income was up 13%. The group paid €2m as a result of the levy on financial institutions introduced in the Budget.
First Active also said it had decided to replace its 15-year-old retail banking system, which will involve spending of €15m over the next two years.
Shares in First Active were down 14 cent to €4.50 in Dublin this afternoon.
