Irish Life & Permanent has said its earnings for this year will be in line with expectations, boosted by strong lending growth.
In a trading statement, the company said total lending would grow by more than 20%, boosted by residential mortgage lending in the Irish market. IL&P said growth in this area accelerated in the second half of the year and new lending was expected to hit €6 billion, up from €4.9 billion in 2004.
The company also said it expected to have opened 60,000 new current accounts this year, with balances up by more than 20%. Permanent TSB has been targeting customers of other banks by offering free current account banking.
On the life business, IL&P said sales would show growth in the 'high teens', with strong pensions and savings sales. The company added that life earnings would grow by more than 40% on the back of the strong sales and an improvement in margins.
'A strong economy and, in particular, a buoyant labour market, allied to the opportunities which will be provided by the maturity of SSIA accounts, provide a very positive backdrop for both our banking and life businesses going into 2006.' the company concluded.
Shares in Irish Life and Permanent closed down 28 cent at €16.42 in Dublin.
