ICC Bank, the State-controlled bank which is expected to be sold by the end of the year, has announced a 25 per cent rise in pre-tax profit from £9,023,000 (€11.5 million) to £11,273,000 (€14.3 million) in the six months ended April 6th 1999. The Government is to get a higher payout with a rise in the dividend payment from £1,021,000 to £1,293,000. Managing director, Mr Michael Quinn, said the results were "very satisfactory and help reinforce our position as the leading specialist business bank in Ireland". The group's core business "performed well" which is reflected in the 28 per cent rise in advances to £1.6 billion.

Total income grew from £65.57 million to £68.8 million. Net interest income went up from £17.3 million to £19.5 million while other interest income rose from £4.0 million to £6.4 million. Bad debt provisions went up from £1.5 million to £2.3 million. However, the percentage of non-performing loans to total loans has fallen from 1.1 per cent to 0.9 per cent, continuing the healthy trend. Mr Quinn said the bank was experiencing a steady growth across all areas of activity. "The introduction of our new invoice discounting service has proven to be a very successful addition to the bank's working capital product range. Our international trade services and leasing operations continue to show satisfactory growth."

The bank, he added, "remains focused on our customers needs while maintaining control on administration costs". This is reflected in the rise in pre-tax margins from 13.8 per cent to 16.4 per cent.

Despite the higher profitability, earnings per share fell from 28.0p to 22.7p. This is attributed to an increase in the share capital.

Mr Quinn noted ICC had raised £70 million as part of a new private equity fund and already £12.7 million of this has been committed to specific investments. The bank now has £180 million in investments and funds available. The bank is at the preparation stage to sell the State's shareholding following the appointment of two sets of advisers. This stage is "nearing completion" said Mr Quinn. While a number of financial institutions have declared an interest in buying the bank, no discussions have yet taken place. However, discussions are expected after ICC Bank invites prospective purchasers to make offers. The bank is expected to fetch between £250 million and £300 million.