FINANCIAL SERVICES group IFG posted an increase of 23 per cent in adjusted half-year pretax profits to €11.6 million due to growth in its international unit.

The company made an adjusted operating profit (before exceptional items, amortisation of intangible assets and share-based payment) of €12.6 million, up 20 per cent on last year.

Despite revenues falling by almost 10 per cent to €49 million, the company benefited from the performance of its UK pension trustee division and gains from sales-related services in Ireland.

The half-year results beat expectations, sending shares 11 cent higher, or 8.6 per cent, to €1.45.

Operating profit rose 32 per cent to €7.4 million in the international business, which accounts for 60 per cent of overall profits.

The company’s UK trustee business, which administers tailored personal pension plans, generated operating profits of €2 million, a rise of 25 per cent on last year.

IFG was boosted by a one-off gain of €2 million through cost reductions using new technology on broker sales of life, pensions and general insurance products.

Chief executive Mark Bourke said that the core of the business – recurring fee-based income – has “held up well”. He said that half the growth in the international business related to acquisitions.

He said he was “still comfortable” with the forecast of adjusted earnings per share (EPS) of 18 cent to 20 cent for the full year.

Adjusted EPS for the half-year totalled 12.04 cent, down from 12.80 cent on last year, which represents a 9 per cent gain, excluding foreign currency rates.

IFG’s interim dividend remained unchanged at 1.27 cent.

Stephen Lyons at Davy stockbrokers noted: “This business has resilient defensive qualities, demonstrated by organic underlying growth of circa 6 per cent.”

The Irish mortgage market has fallen by 83 per cent from €36 billion in 2007 to an estimated €6 billion this year, IFG said.