Bank of Scotland (Ireland) is examining a number of possible bolt-on acquisitions and the introduction of new products including life assurance this year, according to chief executive Mr Mark Duffy.

Reporting an annualised 19 per cent rise in pre-tax profits to €53.4 million (£42 million) for the 10 months to end-December 2001 for the merged BOSI and ICC Bank, he said funds would be available from its parent, HBOS, for any suitable expansion plan.

HBOS, which comprises Bank of Scotland and the former Halifax building society, yesterday surprised the market with a £1.37 billion sterling (€2.25 billion) share placing involving some 150 million new shares to fund further expansion by the group. The fund-raising would mean there was money available for growth in the Irish market, Mr Duffy said.

HBOS yesterday reported profits before tax and exceptional items of £3 billion sterling for the year to end-December. Aiming for 20 per cent profit growth this year, BOSI would build on the strong brand position established in the Irish market through its telephone-based competitive home loan business, he said. In addition, BOSI was examining any possible opportunities for the bank in the Irish market including "any possible fall-out from the AIB situation", he said. "We would be interested in bolt-on acquisitions in the asset finance, invoice discounting and working capital areas. We are not going to rest on our laurels," he said.

The latest results show an underlying 17 per cent year-on-year rise in total income when ICC is included. The bad debt charge of €15 million consisted of a €9.5 million general provision and a €5.5 million specific provision. While the overall provision was 8 per cent lower on an annualised basis, the ICC general provision was increased in line with HBOS policy, according to finance director Mr Harry Slowey.