The sluggish performance of financial markets in the first half of the year has dented profits at Irish Life & Permanent. The banking and insurance group today reported half-year profits of euro 116 million, down from euro 132.1 last year.
However IL&P said that within its core Irish market all businesses units performed well and achieved strong new business growth.
Commenting on the results Mr David Went, group chief executive said "In the first half of the year Irish Life & Permanent delivered a very solid performance following on from the extremely strong out-turn achieved in 2000."
Mr Went noted that underlying product earnings increased by 13 per cent which he described as a "very satisfactory outcome."
Group operating profit, which includes investment earnings was euro 127.3 million compared to euro 146 million in 2000, reflecting the downturn in investment markets in the first half of the year and the impact of exceptional experience variances in 2000.
IL&P’s life business in Ireland reported a 23 per cent rise in new business to worth euro 173 million.
The company said that the level of growth in the Irish economy in the first half of the year has moderated, the Irish financial services marketplace continues to be strong and the fundamentals for our business remain very positive.
"The strong trading performance experienced in the first half of the year is continuing and we remain very positive with regard to the outcome for the full year." a company statement said.