Dublin-based Depfa Bank said today net profit rose 11 per cent in the second quarter of the year on the back of better lending and securities trading.
The German lender to governments said today that net profit of €140 million beat the average €133 million that analysts had expected.
Depfa said the result placed it on track to hit its goal for a 2006 net profit of between €500 million and €625 million.
Depfa said it had reached just above the middle of its annual profit target in the first six months - a return on equity of between 20 and 25 per cent.
Earlier this year, Depfa backed away from a previous target, warning that it would need very good earnings from buying and selling securities to hit a net profit of €600 million.
Depfa said net interest income rose by almost 15 per cent to €110 million, while profit from trading securities swung to a positive €41 million after a loss of €181 million in the year-ago quarter.
Income from fees and commissions more than doubled to €12 million .
Depfa, based in Dublin for tax reasons, lends to governments for budget financing and public infrastructure projects and also carries out investment banking for public authorities.
Depfa's shares have climbed almost 10 per cent since the start of the year, while the banking index has risen just over 6 per cent.