National Irish Bank is to set up a leasing operation early next year as part of its drive to increase its share of the business banking market. The move will intensify competition in a market dominated by the main banks, Woodchester and Irish Permanent.

National Irish Bank (NIB), which reported a strong 19 per cent rise in pre-tax profits to £25.5 million for the year to end September, has recruited an experienced leasing executive from its sister Northern Bank to run the division. It will advertise for staff for the new operation in coming weeks.

Chief operating officer Mr Philip Halpin said NIB wanted to offer its business customers a full range of services. "We have segmented our markets and have made a big impact in the business sector. We want to add leasing to offer a full range of services and we believe it will help us to grow very significantly."

NIB is targeting indigenous smalland medium-sized firms (SMEs). It currently claims about 4 per cent of the overall business market but says it has 8 to 9 per cent of its target SME business market. Measures to increase its market share have so far included setting up five dedicated business banking centres or branches - three in Dublin and one each in Galway and Cork - and setting up teams of "mobile" bankers to call on businesses.

Another business branch is to be set up in Limerick. "Six business centres will give us the coverage we require," Mr Halpin said.

The bank plans to appoint more mobile business bankers as well as new mobile bankers to service the agri-sector. In addition it plans to introduce a number of new products including a tailored variable repayment loan.

NIB wants to double its total business lending from the current level of just under £500 million to £1 billion over three years.