Bank of Scotland (Ireland) has reported pre-tax profits of €118m for the first half of this year, up 14% compared with a year earlier.
Loans to customers grew by 23%, while deposits were 10% ahead. Net interest income climbed by 23% to €224m. Mortgage lending was flat but the bank said it had outperformed the overall market and increased its share to 7.7%.
The bank said house price growth had slowed but there were signs of renewed activity in the mortgage market now that uncertainty over stamp duty had ended.
Operating costs increased by 24% as the bank continued to expand its branch network, opening a further seven outlets in the six months. Impaired loans were slightly lower at 1.82% of the total loan book.
Meanwhile parent company HBOS, the UK's biggest lender, beat forecasts despite its share of the new mortgage market falling by more than half.
HBOS posted a 13% increase in underlying profits to £2.96 billion but said its share of the new mortgage market fell from 17% to 8% in the first half of the year.
The problems for the bank came after uncompetitive rates for existing customers on fixed deals hit its position in the new mortgage market. The fall in retail banking profits - down 8% to £1.04 billion - was offset by gains from the bank's corporate, insurance and international banking operations.
