Bank of Ireland has pleased investors by signalling a strong full-year performance following good growth across all of its divisions.
In a statement issued to the stock markets yesterday, chief executive Mr Michael Soden said the bank expected to report its 13th consecutive year of profit growth in May.
"We believe we are well positioned to harness the positive business trends we see in our main markets and to continue to grow profits in the future," he said.
The statement, issued ahead of its close period, said it expected to report mid to high single digit percentage growth in profit, before exceptional items and taxation, and in earnings per share for the year to the end of March 2004.
The bank said the outturn reflected a strong performance at its domestic and international businesses and that the continued upturn in world equity markets had a positive influence on its asset management and pensions operations.
The upbeat statement was well received by investors and triggered a surge in its share price. Bank of Ireland shares ended almost 3 per cent higher at €10.59 in Dublin, up 29 cent yesterday.
Bank of Ireland said its net interest income would be broadly in line with the previous year and when the effect of the strengthening euro was excluded, that it would rise by a mid single digit percentage.
The bank's lending activities have been underpinned by good demand in Ireland and the UK, it said.
In the Republic, the bank's retail operations continued to yield good growth in profits while asset quality remained high, according to the statement.
Lending volumes at this division are expected to increase by a high teens percentage with mortgage lending showing a very strong high-20s percentage growth with other lending up by more than 10 per cent.
In the UK, its financial services division is on track to report a high single digit percentage increase in profit.
Lending there is expected to increase by a low teen percentage reflecting growth in the residential and business loans.
Its asset management businesses are expected to grow by a low teen percentage and profit before tax should grow by a low double digit percentage over the same period last year. The statement said new business levels remain satisfactory.
During the year the bank continued its share buy-back programme. Since February 2003 it has purchased 48.4 million units of stock at a cost of €510 million.
