Financial services group IFG has reported pre-tax profits of €4.4m for the six months to the end of June, down from €4.9m the same time last year. Operating profits amounted to €5.6m compared with €7.1m the same time last year.
IFG said it has performed to expectations in the first half of the year. 'This reflects an improvement in the underlying performance of the business when adjustment is made for certain non-recurring trading profits in the first half of 2004,' the company said.
Renewal income credited - a key measurement of the future of the company - was €13.7m, up 14% on the 2004 figure of €12m. Renewal income includes insurance renewals, trustee fees, actuarial feeds and fund management fees which recur over a long time.
IFG said that the profits from the three core activities of scale - International Trustee and Corporate Services, Accuris and Pensioneer Trustee and Mortgage and Title Insurance - amounted to €6.4m, up from €5.9m the same time last year.
The International Trustee and Corporate Services division continues to deliver across all business lines, the company said. It exceeded corresponding 2004 profits by 7% and IFG said this must be viewed in the context of a first half in the previous year which was unexpectedly good.
UK Actuarial and Pensioneer Trustee was marginally up on the prior period and has recovered from a poor second half in 2004, with the Manchester business stabilising.
The UK fee based IFA business remains firm, but the company added that the traditional IFA operation generally remains weak. IFG is undertaking a view of the business structure of the division.
The Mortgage Intermediary business in Ireland continues to deliver in prime lending with cheques issued to clients of the group amounting to €644m, up 28% on the same time last year. The Title Insurance business is now delivering on the group's second half investment in 2004, with requests for insurance up by 37%.
IFG said there was a broadly good performance from the remaining Irish Financial Services business which has been adversely affected by poor performance from our Investment Management and Policy Trading units.
'The business continues to narrow towards a set of core competencies which the board believes will deliver growth,' the company said in its results statement. 'The group remains focused on debt reduction and remain confident of achieving expectations for the full year,' it added.
IFG shares closed up three cent at €1.35 in Dublin.
