Bank of Ireland says momentum across the group remains strong and it expects to deliver an 'excellent' financial performance for the year to March 31.
In a trading statement today it said it expected to deliver profit and cost growth of around 12% and 5% respectively, and Annual Premium Equivalent (APE) sales growth at its life division of around 25%.
However, it noted increased competition in the Irish market and a slowdown in residential property growth as a result of interest rates rises.
The group said it expected to deliver savings ahead of its target of €75m.
Bank of Ireland expects underlying earnings per share to be in line with the current market consensus of 144.4 cent, excluding the impact of non-core items. This compares with an underlying EPS of 118.5 cent for the previous year.
The bank said that although performance at its retail division remain strong, growth in the residential property market has slowed somewhat in early 2007 as a result of rising interest rates.
It said business banking has performed well with strong lending volume growth expected.
'We expect capital markets to deliver a very strong performance with corporate banking a major driver of growth as our international expansion continues', it said.
Brian Goggin, CEO, said: 'Our growth strategies are driving strong performance across the Group. We continue to beat the objectives of our efficiency programme. We remain confident of delivering an excellent performance for the year.'
The bank completed the sale of its 90.4% stake in Davy in October. BoI will announce annual results at the end of May.
Bank of Ireland shares closed down 45 cent at €16.70 in Dublin.
