Irish Life and Permanent grew its core banking and life insurance businesses in the first half of 2004, auguring well for the full year, the firm said today.
Ireland's largest life insurer said life sales grew 22 per cent in the six months to June - beating company guidance given in June of a rise in sales between 18 and 20 per cent.
The pre tax contribution from Irish Life's core Irish and British operations - profit before short-term investment fluctuations and other charges or credits - slipped by just over 1 per cent to €185.8 million from €188 million a year earlier.
Five analysts surveyed by Reuters this week put the expected fall at between 3 and 7 per cent. The decline was mainly due to a one-off, €26 million gain on banking securities last year. Without this, underlying pre tax contribution grew 15 per cent.
Irish Life, facing pressure on its margins, said it expected to cut costs for the full year to 2001 levels.
Group finance director Mr Peter Fitzpatrick said the group aimed to cut its cost-to-income ratio to 50 per cent in the next three years from over 60 per cent currently.