Irish Nationwide has reported a 20% increase in pre-tax profits from €97m to €117m for 2003. Its loan book now stands at €4.248 billion, an increase of 20% on the previous year.
The building society said it advanced €1.791 billion during 2003 compared to €1.042 billion in 2002, an increase of 72%.
It said its reserves increased by 21.5% from €438m to €532m, while its cost income ratio stands at 21.4%, a new low for the society.
'It is particularly satisfying that in achieving this strong growth the Society significantly increased its profitability to record levels,' commented Michael Fingleton, Irish Nationwide's Managing Director.
'It should be noted that an increasing proportion of the Society's profits are now being generated from the commercial side of its business which continues to grow in line with the society's diversification policy,' he added.
Commenting on the housing market, Mr Fingleton said that there has been a strong start to the residential property market in 2004 with early indications of another record year of supply to meet the strong continuing demand.
Mr Fingleton predicted that a new turf war will begin this year in the deposit market as each institution seeks to build up their deposit base. 'You can expect better and better rates to be offered to depositors as the competition intensifies,' he predicts.
He said the society waits for the publication of new legislation on demutualisation with interest.
