ICS Building Society, a Bank of Ireland subsidiary, has reported a 6.3 per cent rise in its pre-tax surplus to €48.8 million (£38.4 million) in 2000.
The society has maintained its share of the mortgage market of around 7 per cent and reported new mortgage advances of €606 million last year, an increase of 22 per cent.
ICS managing director Mr Brian Forrester said it was a very satisfactory performance in a highly competitive market. Mr Forrester said that, while there had been some softening in the market, demand for mortgages remained quite strong.
He expects the market will grow 16-17 per cent again in 2001. In the first couple of months of 2001, new mortgage drawdowns were up 22 per cent, he said.
ICS estimates the Bank of Ireland group has a 25 per cent share of the Irish mortgage market. The society does not disclose the make-up of its mortgage book, but new mortgage advances suggest it is attracting interest from first-time buyers. Net mortgage lending rose by 37 per cent to €328 million. Bad debts continue to be low, with mortgage arrears as a percentage of its mortgage book declining further from 0.23 of a percentage point to 0.18 of a percentage point last year.
Deposit growth continued to be sluggish, with the society reporting a 4 per cent increase last year to €1.8 billion. Mr Forrester said there had been some improvement in momentum in the second half of 2000 and he was confident the new Government savings scheme initiative would boost its deposit base this year.
