Pre-tax profits at the Bank of Ireland in the six months to the end of September rose 12 per cent to €567 million (£446 million).
The figures were in line with expectations though some brokerages are now preparing to upgrade their full-year forecasts.
Dolmen Butler Briscoe has, however, advised clients to take profits, saying the shares had peaked.
Bank of Ireland shares closed 19 cents, or 2.13 per cent, higher at €9.11.
The bank announced a 28 per cent increase in the interim dividend to 9.4 per cent a share. Earnings per share rose 21 per cent to 43.3 cents.
Exceptional items included €67 million for a cost reduction programme and €35 million to settle unpaid DIRT tax.
Chief executive Mr Maurice Keane said the results showed the bank's strategies to be successful. "Our ultimate goal remains, of course, the delivery of shareholder value and in this respect the performance of Bank of Ireland compares favourably with any of our peers," he said.
Retail bank profits rose 28 per cent to €159 million, while earnings in corporate and treasury operations were 33 per cent higher at €182 million.
For the first time, more than 50 per cent of corporate and treasury profits were generated outside the Republic, largely through its operations at Dublin's International Financial Services Centre.
Asset management and private banking posted returns 23 per cent higher at €76 million.
The bank's UK building society, Bristol & West, continued to disappoint, with profits down 3 per cent at €116 million. Last year's it had been boosted by a non-recurring gain of €8 million while the subsidiary has also been investing to cut costs and expand.
It recently completed two UK acquisitions in the financial intermediary and advice sectors as part of its strategy to diversify beyond the mortgage market.
Bank of Ireland's €65 million cost reduction programme announced earlier this year aims to reduce its branch network to 250 from 312 by 2002. Over that period, up to 1,000 of the 17,000 staff are expected to accept severance packages.
