Irish Life & Permanent group today reported a 12 per cent rise in pre-tax operating profits at €529 million last year, compared with €529 million in 2006 during a period described by the bank as very challenging times.
The company said core operating profits for the company's life and banking operations was €565 million, some 19 per cent higher than the €476 million recorded in 2006.
Irish Life & Permanent has increased its 2008 operating profit guidance at the upper end of the previous guidance and marginally ahead of 2007.
The company declared a final dividend of €52.5 cents per share against 47.9 cents the previous year, taking the total dividend for the year to €75 euro cents, up 10 per cent over the previous year.
The company said EPS on continuing operations rose to 168 cents for the year to December 31st, 2007, against 135 cents the previous year.
Denis Casey, Group Chief Executive, said that each of the business units had performed well in 2007.
Looking forward, Mr Casey said that while this year would be challenging, the company was guiding an improved outcome at this stage.
"In our pre-close period trading statement in December, we guided that the outcome for group earnings in 2008 could be in the range of flat or slightly ahead on the 2007 result to high single digit negative depending on which of the alternative credit market scenarios prevailed in 2008.
"Revisiting that guidance two months on, and taking into account the current market conditions and the actions which we have already taken, we are now guiding an improved outcome with group operating profit for 2008 at the upper end of that range and ahead of 2007," he said.
Mr Casey also said that the Group was "well positioned in terms of our funding and self-sufficient in terms of our capital requirements in 2008."
He also said he expects the ECB to reduce interest rates this year [by 50bps] and Mr Casey believes that this move, coupled with a reduced supply of new houses should stem the fall in house prices.