The merged businesses of Irish Life and Irish Permanent delivered strong results in 1999, showing an 18 per cent rise in pre-tax profits to #311.1 million (£245 million). Announcing the results yesterday, Irish Life & Permanent group chief executive, Mr David Went, said the group was now in an exceptionally strong position and that current year trading remains buoyant.
The figures reflect the first year's trading at the enlarged life assurance and mortgage company and are broadly in line with market expectations.
Shareholders will receive a final dividend of 25 cents per share on the back of this performance. Earnings per share rose by 19.4 per cent to 87.3 cents.
The full-year performance benefited from certain exceptional contributions, primarily the #130.9 million realised through the sale of Irish Life Finance and its stake in the Hungarian K&H Bank to Irish Intercontinental Bank last year.
A #16.7 million cost for the completion of the merger of the two companies is also included in last year's accounts.
After tax and exceptional items, the group showed a 20.5 per cent rise in profits from #244.3 million to #294.4 million.
Some 81 per cent of group profits are generated in the Republic, with 10 per cent coming from Britain and 9 per cent from the US.
Profits from its banking business were substantially lower last year, falling from #74.8 million to #52.1 million, due to higher costs and increased provision for bad debts.
Sales of banking and insurance products surged ahead by 40 per cent from #161.7 million to #227 million. New lending increased by 51 per cent to #2.85 billion. Irish Permanent is the Republic's biggest mortgage lender, with an estimated market share of around 23 per cent. Profits from life assurance business were marginally weaker, coming in at #158.9 million, compared with #156.7 million in 1998. These were affected by a #7.8 million charge which largely relates to the integration costs of the merger. Sales of total life and pensions sales increased by 34 per cent to #303.8 million, with new business up 90 per cent to #30.7 million.
In Britain, Irish Life & Permanent's life subsidiary, City of Westminster, returned operating profits of £11.4 million sterling, up from £5.3 million in the previous year. In the US, earnings at its life company, Interstate, were slower, at $25 million, compared with $26.5 million in 1998. Shareholders' funds increased by 15.3 per cent to #1.9 billion, while group total assets rose by 20.1 per cent to #27 billion. Funds under management grew from #14.6 billion to #17.9 billion, up 22.1 per cent.
