Irish Life & Permanent, Ireland's third-biggest bank posted a 34 per cent drop in yearly earnings as it absorbed the cost of exiting US operations and investing in its domestic business.
The group said operating earnings for 2001 fell to #8364;191.2 million from #8364;288.8 million a year earlier. Total profit after one-off items dropped to #8364;49.6 million from #8364;284.2 million, while operating earnings per share dropped to 67.2 cents from 99.8 cents.
IL&P’s chief executive Mr David Went said "Our results are impacted in particular by the cost of exiting the US annuity market...and also by the investment which we have made in our Irish operations -- particularly the creation of the new retail bank Permanent TSB."
"We have consistently made clear our desire to unwind our interests in underperforming overseas operations, while at the same time investing significantly in our position in the Irish market," Mr Went added.
Mr Went said when exit costs and the impact of weak equity markets on investment returns were stripped out, the results showed an excellent performance in its core Irish businesses.
Underlying product earnings in core life assurance and banking activities increased 18 per cent at #8364;239.8 million in 2001.
Mr Went said IL&P anticipated a satisfactory performance in 2002 when more traditional levels of profit will not be impacted by exceptional costs .
He said the group would be undertaking a second #8364;150 million share buyback which would not be replaced by debt capital. Together with a first buyback programme, recently completely, this will reduce the group's issued share capital by around 10 per cent over two years.