Irish Life & Permanent has beat market expectations reporting operating profits of €321 million for the first half of the year despite a sharp fall in new mortgage lending.
The company profits are up 33 per cent on the same period last year and it has raised its outlook for the full-year as it pointed to a strong Irish economy.
Profits at its banking business Permanent TSB rose 23 per cent to €111 million, while life assurance profits were up 45 per cent to €194 million.
Sales of life and investment products grew by 66 per cent to €594 million.
The value of Permanent TSB's loan book rose by 23 per cent to €111 million, with 'very strong growth' in new mortgage lending in the UK. But new mortgage lending in Ireland was down 19 per cent on the same period last year to €3.5 billion.
The company expected full-year operating growth to exceed 20 per cent, an upgrade from a June trading statement in which it raised its forecast for full-year percentage growth to high teens from low-to-mid teens.
"We are very confident about the outlook for the group through the remainder of the year," group chief executive Denis Casey said.
Shares in IL&P have been hit hard in recent months with global stock market weakness and a slowing domestic property market but Mr Casey said commentators and analysts had under-estimated the strength and resilience of the rest of the economy.
The market for life and pensions had "never been better" he said, adding the group's lending performance had been very strong despite the subdued Irish
Pension sales rose by 67 per cent, while sales of savings products more than doubled.
"The economy remains strong, there is exceptional growth in the life and pensions market and Permanent TSB is performing well," Mr Casey said.
He said IL&P had seen 'an extraordinary blossoming' of the long-term savings market, and he expected life sales to grow by more than 30 per cent over the year.
An interim dividend of 22.5 cent was declared.
Additional reporting; Reuters