Irish Life and Permanent said it had extended more than €4 billion in mortgage lending in the first six months of this year, compared with €2.5 billion over the same period last year.
In a trading statement this morning, the lender said gross new lending for the first six months of 2006 was expected to be more than 50 per cent higher than the first half of 2005.
The bank reported strong trading in the first six months and said it was on course to meet its full year targets.
IL&P said its life operation had also seen very strong trading. The life sales margin for the first six months is expected to be slightly ahead of the upper end of its guidance of 19 to 20 per cent.
"The strength of the economy in general and the labour and the housing markets in particular are positive for both our banking and life businesses, as is the impact of maturing SSIA funds," the company said.
"We are optimistic for the outcome for the year as a whole but would expect some slowdown in the rate of growth in the second half of the year, given the exceptionally strong comparative performance in the second half of 2005," it said.
At 11.30am, Irish Life and Permanent shares were down 15 cent to €18.10 in Dublin.