Anglo Irish Bank has reported a strong half-year performance and is confident good growth will continue in 2001 despite slower growth in the Irish economy and concerns about foot-and-mouth disease.
The bank reported a 48 per cent rise in pre-tax profit to €90.5 million (£71.27 million) from €61 million driven by growth in lending, deposits and fee income. Announcing the interim results yesterday, Anglo Irish Bank chief executive, Mr Sean FitzPatrick, said he was confident it could achieve another strong performance in the second half of this year.
"Looking further ahead I am confident the banks' earnings per share will continue to grow at a stronger pace than our peers," he said.
Anglo Irish Bank shares gained 15 cents to €3.75 following the results. Shareholders will be paid a dividend of 3.6 cents per share, a 16 per cent increase on last year's interim dividend. Earnings per share rose 51 per cent to 20.3 cents.
The bank has not had any adverse affects to the restrictions imposed in the wake of the foot-and-mouth disease. Some 11 per cent of Anglo Irish Bank's loan book is to the Irish leisure and entertainment industry. It has been reviewing these loans to determine whether customers were being affected by the restrictions and said none had missed a single repayment and this is expected to continue.
Its clients are reporting good business from Irish and British visitors, with a fall-off in bookings from the US. The bank does not lend to the high technology sector and said it had extremely generous provisions to guard against any potential problems that may arise.
The bank's total assets grew by 22 per cent to €13.4 billion in the six months to the end of March last. Deposits were 23 per cent higher at €12.1 billion with lending up 21 per cent to €10 billion.
The Irish market generated 65 per cent (€59.2 million) of the bank's profits compared with €40.9 million in the previous six months. Profits in Britain were also higher at €22.2 million from €15 million, with income from its operations in the US and Europe contributing €9.1 million.
Mr FitzPatrick said it would consider acquisitions as opportunities arose.
