Anglo Irish Bank's half year profits up 35%

Anglo Irish Bank posted a 35 per cent increase in half-year pretax profit today thanks to a booming economy that is driving strong…

Anglo Irish Bank posted a 35 per cent increase in half-year pretax profit today thanks to a booming economy that is driving strong lending growth.

Pretax profit for the six months to the end of March came in at the top end of analysts' expectations at €375 million.

Earnings per share were in line with expectations at 41.9 cents, up 30 per cent compared with the same period a year ago. The pace of earnings per share growth is slightly slower than the rise in pretax profit due to a January share placing.

Work in progress (WIP) - an indicator of the next period's volume and a key measure of the group's prospects - was higher than expected at 7.1 billion euros. Analysts had put the figure at around €6.6 billion.

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"Momentum in our business is strong and your board is confident of the Bank's prospects for the remainder of the year," the group said in a statement.

Commenting on the results, David Drumm, group chief executive, said:  "This has been an outstanding first half performance by the Bank with record earnings and growth in lending.

"All divisions delivered increased revenues contributing to a 35 per cent rise in pre-tax profits to €375 million. Importantly, asset quality remains excellent."

He added "The strength of our franchise, our robust balance sheet and continued investment in the Bank's people and infrastructure provide a tremendous platform to capitalise on the significant growth opportunities in each of our markets."