Irish Life & Permanent has reported pre-tax profits of €261.8m for last year, nearly €30m lower than in 2002. The fall was mainly due to a €50m loss on the sale of its last remaining US business Guarantee Reserve Life.
But profits at the group's core operations in the Republic and the UK rose by 4% to €363.7m. Earnings per share were 97.2 cent while a 7.4% higher total dividend of 51 cent has been declared.
Profits at Permanent TSB grew by 32% to €128.8m, driven by the continuing surge in mortgage lending - up 30% to €3.8 billion. Total loans increased 33% to €6 billion. But the fall in euro zone interest rates has hit margins.
IL&P says the integration of TSB is now complete, with cost savings of €29m. Chief executive David Went told RTE radio that the group was looking at more cost savings in Permanent TSB, including automating branches and more advanced ATM machines. He said this would lead to fewer staff, but added that any such changes would be done on a voluntary basis.
In the life business, IL&P said there was a strong recovery in the second half of the year after a difficult first half. Overall sales rose slightly to €319.7m, but this excludes €101.7m of SSIA sales in 2002.
The group says the outlook for its banking business remains favourable, with demographic trends supporting further mortgage growth and a continuing market recovery helping the life business.
The company's shares closed eight cent higher at €13.41 in Dublin this evening.
