IIB Bank, a wholly owned subsidiary of Belgian-based KBC Group, has reported a 9 per cent increase in after-tax profit to €57.8 million for last year.

Despite the general economic slowdown, the bank said it had enjoyed a strong year for lending with volumes up by 18 per cent. Deposits increased by 19 per cent.

"During 2002, solid progress was made across all divisions," chief executive Mr Ted Marah said.

IIB said its residential mortgage division performed particularly strongly last year, capturing a 10 per cent share of the new mortgage market. Mortgage loans outstanding grew to almost €4 billion as the bank continued to expand its distribution channels.