IIB Bank has reported after-tax profits of €137m for 2007, an increase of 10% on the previous year. Overall, loans and advances to customers grew by 11% in 2007.
Chief executive Ted Marah said growth in the small and medium-sized business sector was particularly strong at 20%.
The bank said the Irish residential market was undergoing 'a significant adjustment', adding that it expected mortgage activity to remain 'muted' this year.
Residential mortgage lending grew by 14%, a slowdown from the 24% growth in 2006. IIB is owned by Belgian bank KBC.
