Pretax profits for IFG group static at €9.9m

PRETAX PROFITS at financial services group IFG remained flat at €9.9 million in the first six months of 2008, as weak sterling wiped out underlying growth of 12 per cent and declining volumes saw operating profits for its Irish mortgage business slip by 53.9 per cent.

Revenue at the group, which provides independent financial advisory and fund management services in Ireland and Britain as well as international and trustee corporate services, fell by 5.7 per cent to €58 million from €61.5 million in 2007.

Overall, revenue in the group's financial services business dropped 13 per cent to €38 million, while operating profit fell by 20 per cent to €4.6 million.

IFG's trustee and corporate services business, however, which now represents about 50 per cent of the group's profits, performed strongly, increasing operating profits by 29 per cent to €5.6 million. Acquisitions, including that of Gestinor, which the group bought in 2007, accounted for 10 per cent of this growth.

The group's Irish operations reported a 35 per cent dip in operating profit to € 2 million, as the mortgage and title insurance business declined by 53.9 per cent to €1.1 million.

The group is predicting a fall in volume of at least 40 per cent in prime lending and an even steeper decline of 60 per cent in remortgaging over the course of 2008. "We expect the Irish mortgage business to do around €800-€900 million of lending this year, versus €1.4 billion for the full year last year," said IFG chief executive Mark Bourke.

Looking ahead to the year end, Mr Bourke sees continued growth on the pensions and investments side in Ireland and overall expects a "second half like the first half".