Announcing strong annual results, Irish Nationwide Building Society said today it will be marketed to potential buyers in the next few months.
Last summer the Building Societies (Amendment) Bill was passed through the Dáil which allows INBS to shed its mutual status and the sale of it to a private buyer.
Last year its gross lending rose by 38% to €4.96 billion, which chief executive Michael Fingleton said was earned despite unrelenting competition in the financial services sector.'
This brought the value of the society's loan book 37% higher to €10.41billion. In 2006 the 133 year old building society lent €5 billion.
Pre-tax profits rose 34% to €237m, and the society's total assets rose 33% to €14.62 billion.
Irish Nationwide said its cost-income ratio of 14.58% 'continues to be the lowest of any financial institution in the country and a new low for the society.'
Managing Director Michael Fingleton said that last year's results are by far the strongest since the formation of the Society in 1873.
'In a year which may well be the last reporting year as a building society, it is appropriate that the Society should present such an outstanding set of results', he said.
In relation to Demutualisation, he said that 'despite relentless opposition from some of our members and other vested interests' the legislation formally become law in August.
'In September the Board of the Society decided to await the publication of the 2006 audited accounts before formally going to the market'.
He said that vendors due diligence will be completed in the coming weeks.
'We will then be in a position over the coming months to market the Society and to effect a trade sale to another institution', he said.
On the housing market he said he expects the number of completions to fall to 80,000 this year from 92,000 in 2006.
He said a slowdown has occurred, and the extent and effect of it is not yet clear, but that more people seem to be postponing a purchase which is reflected in higher rents, which have increased 10% overall.
He said the price of houses is not expected to increase in real terms during 2007 and this may be no bad outcome.
'Caution will be the predominant sentiment in the Irish market from a supply point of view until the pattern of demand is established and that may not be clear until the elections are well out of the way probably in the Autumn', he said.
He said that commercial and retail property continues to be strong, especially in Dublin.
The society also lends a very significant part of its funds in the, mainly in residential property markets although it has diversified lending into other areas of the commercial and retail markets, including leisure.
He said housing demand in the UK, particularly in the south east continues to remain strong, with supply shortage expected for the next number of years in the absence of the Government not zoning more land
He said that commercial and retail yields continues to fall in the UK, and demand for well located property is at a premium.
He said the society has developed a very strong niche market particularly in the UK and we will continue to build on our success there in the coming years
