ICS building society increased pre-tax profits 15.6 per cent to €65.1 million last year, the annual general meeting heard yesterday. The society's market share climbed 8.3 per cent from 7.8 per cent for 2001.

Growth was highest in new mortgage lending, up 53.5 per cent to €931 million.

The deposit book rose 11 per cent. Cost to income ratio improved 2.7 per cent to 28 per cent.

Chairman Mr Patrick McDowell said low interest rates were good news for lenders but offered investors a modest return.

"The continuing. . . environment has made it very difficult for investors to achieve significant returns on their savings. This is particularly true for those whose needs dictate that they have access to their savings on demand," he said.

"ICS has put a lot of effort into developing savings and investment product lines that provide an alternative for those who can sacrifice the convenience of demand products in order to obtain higher interest rates.

"While we will continue to focus on providing savers and investors with best possible value, it is difficult to see any short-term improvement for Irish savers and investors."

The success of the society's Mortgage Store division had helped boost home loans, Mr McDowell added.

The meeting approved the appointment of PricewaterhouseCoopers as auditors to the society.

Mr John Collins, Mr Joe Larkin and Mr Anthony Moroney were re-elected to the board. A proposal to increase remuneration for non-executive directors to €90,000 from €87,500 was passed.