Irish Life & Permanent is on course to meet its targets for the full year, it said in a scheduled trading update today.
IL&P said in March, when it posted a forecast-beating rise in 2004 earnings, it expected to post double-digit growth again this year thanks to the buoyant economy.
"The environment in which the group is operating continues to be positive as the Irish economy is performing exceptionally well, with rapid employment growth and strong domestic demand," it said today.
IL&P posted a 10 per cent rise in pretax contribution - profit before short-term investment fluctuations and other charges or credits - to €400.2 million in the year to the end of December 2004.
Group finance director Peter Fitzpatrick said in March the group would probably achieve similar growth this year.
"Whether we see that being at 10 or 15 (percent) very much depends on sales growth," he said.
New lending growth in IL&P's bank business was robust -- driven by residential mortgage loans.
“Gross new lending for the group in the first half of the year is expected to show low double-digit growth with the total loan book growth exceeding 20 percent year on year,” it said.
Life sales in Ireland, excluding investment sales by fund management, should also show low-teens growth at the half year.
“We expect to report very strong growth in our new business earnings for the first half with margins exceeding our full year target range of 15 percent,” IL&P added.
“The main drivers behind this performance are the increase in sales together with a more favourable product mix and an improved margin on new protection/risk business."