Irish Life & Permanent posted half-year results in line with expectations today and said the strong interim performance and continued momentum in the business put it on track for good growth for the full year.
Irish Life and Permanent chief executive David Went
"Overall, the strong first half and the continued momentum with the business leaves us well placed for a successful full-year outcome," chief executive David Went said in a statement. New lending in the period rose 13 per cent to €4.2 billion, while life and investment sales increased 33 per cent to €260 million . Net interest income in the banking business grew by 8 per cent.
The group reported strong growth in new business earnings in its life business - up 61 per cent to €45 million on an embedded value basis - following a jump in sales and the sale of higher-value equity type products.
"In the latter part of the year we would expect to maybe see a bit of a quietening down in the corporate business side, so we wouldn't expect to see just quite as strong growth as 61 per cent for the year," group finance director Peter Fitzpatrick said. "But something in the 40 to 50 per cent growth area, that's very achievable," he said in an interview.
In the life business overall, Mr Fitzpatrick said the second half may perform more strongly than the first, "bringing us maybe into double-digit growth for the year overall".
Pretax operating profit in the group's insurance and investment business grew by 7 per cent to €109 million in the six months to end-June, while banking profit grew by almost 2 per cent to €66 million.
"On the banking side of the business ... 2 per cent growth in the first half of the year is going to translate certainly into mid-single-digits for the year overall," he added.