Pre-tax profits at Irish Life & Permanent's Republic of Ireland and UK businesses fell slightly to €185.8m in the first half of this year. The drop was mainly due to a once-off gain of €26m reported in the same period last year. IL&P said underlying growth was 15% when this was stripped out.
Total pre-tax profits were up 36% at €192m, when an increase in the value of investments and exceptional items were taken into account.
New residential mortgage lending in the Republic of Ireland jumped by 41%, while there was a 63% increase in individual pension sales.
Chief executive David Went described the results as 'very satisfactory', saying the company was benefiting from the strength of the Irish economy. He said the company had continued to focus on controlling costs as margins came under pressure.
Earnings per share fell from 58.2 cent to 55.8 cent and a 10% higher interim dividend has been declared.
In retail banking, Permanent TSB's total lending grew by 43% on the same period last year. Mortgage lending in the UK rose by 21%. Sales of life and pensions products through Permanent TSB were up 17%. Administrative costs at the bank were cut by 2% in the period.
On the life side, total sales were 22% ahead at €187.5m. The company said Irish sales were helped by the recovery in stock markets and the introduction of PRSA pension products.
Irish Life & Permanent also announced this morning that O2 Ireland chief executive Danuta Gray had joined its board as a non-executive director.
Shares in the company closed down 1% or 12c at €12.40 in Dublin.
