GOOD growth in business and mortgage lending at National Irish Bank this year has pushed pre tax profits up 10 per cent to £21.4 million.
Announcing results for the year to end September, chief operating officer Mr Phillip Halpin confirmed the bank's continued interest in purchasing the TSB Bank. NIB's parent, National Australia Bank, has bid an estimated £120 million for the TSB.
Mr Halpin stated that NAB's group managing director, Mr Don Argus, remained in frequent contact with the Minister for Finance Mr Quinn on the matter. "Our interest is still very much alive. We'll be ready whenever it happens." The acquisition of the TSB would double the bank's share of the Republic's retail banking market, according to Mr Halpin.
The figures show that operating profits before provision for bad debts rose by 15 per cent to £23.8 million from £20.7 million in the year to the end of September. The provision for bad debts though, rose sharply on the previous year, up to £2.4 million from £1.3 million or 0.3 per cent of total customer lending. Mr Halpin said the increase reflected an unusually low bad debt provision in 1995, following record windfall recoveries of bank debts at that time.
Total lending increased by 19 per cent to £928 million over the 12 month period, according to the figures, with the bank reporting significant growth in new customers. Mr Halpin said its recently launched telephone lending service has been particularly successful in bringing in new customers.
Mortgage lending rose by 11 per cent, while loans to the business sector increased by 34 per cent, Mr Halpin said. The bank also saw strong growth in personal lending, with demand for these loans up by 18 per cent on the previous year.
On the funding side, customer deposits rose by 8 per cent to £1.01 billion while current account balances increased by 17 per cent.
Operating income rose to £63.5 million from £58.6 million in 1995. Net interest income increased by 7 per cent to £47 million while other income from banking services rose to £16.6 million from £14.9 million.
The figures show that NIB paid £8.3 million in tax, up from £8 million, with the bank benefitting from a lower tax rate due to increased activity through its company at Dublin's International financial Services Centre.
Looking to the future, Mr Halpin said NIB intended to focus on developing new services to provide greater convenience for customers. It also planned to expand" its network of branches throughout the Republic. Yesterday, NIB opened a new branch at Ballinacurra, Co Limerick, increasing its network of branches to 60.
