STRONG markets in Ireland and Britain should lead to further profit growth at Anglo Irish Bank this year, according to chief executive, Mr Sean FitzPatrick.
Anglo reported a 32 per cent rise in pre tax profits to £11.2 million for the six months to end March. Earnings per share rose by 31 per cent to 3.44p.
Shareholders will benefit with a 10.3 per cent rise in the interim dividend payment to 1.5p per share. Dividend cover has risen to 2.3 times earnings from 1.7 per cents at the end of September 1995.
With the target of covering dividend from earnings twice now achieved, Mr FitzPatrick said the board would "look positively" on a further increase in the payment to shareholders at year end.
Anglo's 31 per cent rise in earnings per share reflected the effective use of capital built up through rights issues in 1994, he said.
"We have been concentrating on building balance sheet strength. Now we are concentrating on earnings growth. We could double the size of the bank without recourse to shareholders. These results are very repeatable, very sustainable, there are no windfall gains," he said.
With a total capital ratio of 15 per cent and a Tier One ratio of 8 per cent, Anglo has the capital in place to support further growth. As well as organic growth, Anglo continues to target acquisitions of loan portfolios and deposit bases in Ireland and in Britain, according Mr FitzPatrick.
But no acquisition is imminent. Anglo spent £200 million on acquisitions over the past 12 months. "If the right thing comes up we could spend another £200 million over the next two years, but it is difficult to get the right fit," he said. Other plans include the development of its treasury business and further diversification of its sources of funds.
Anglo maintained its rate of profits growth in the latest periods following a 32 per cent rise in pretax profits to £19 million for the year to end September 1995. The Irish operation accounted for almost £9 million of the latest profits with the British operations chipping in £2.5 million.
Lending rose by 29 per cent to £1.29 billion. The £294 million growth in loans was boosted by £66 million sterling Allied Dunbar loan book acquired in December.
Anglo's other recent acquisition - the Dublin based private bank Anbacher helped to boost lending, adding £80 million, and deposits. At £1.27 billion customer deposits were 25 per cent higher than at end March 1995, with Ansbacher adding £140 million of the £251 million increase.
The bank's net interest margins were unchanged at 3 per cent in the Irish market and 2.6 per cent in Britain. Net interest income was 20 per cent higher at £20.6 million with non interest income up 54 per cent to £6 million boosted by dealing profits of £0.6 million and fee income.
Total income was 26 per cent higher at £26.6 million while total expenses rose by 22 per cent to £15.4 million with administrative expenses up 33 per cent to £11.4 million.
Despite retained profits of £5.3 million for the half year, share holders funds fell to £112 million from £115 million at end September 1995, reflecting a goodwill write off of £8.8 million on acquisitions.
