ICS profits increase by 22%

THE ICS Building Society saw profits rise by almost a quarter last year.

The society, owned by Bank of Ireland, generated a profit before tax of €113.4 million up from €91.2m in 2004.

The increase came as new mortgage lending rose by 22% to €1.7 billion. That figure was slightly behind the 27% rise in the overall Irish private sector credit market last year.

ICS managing director Joe Larkin said the society performed strongly in a very competitive market.

“We continue to deliver strong customer service and innovative products that meet the needs of each market segment that we serve,” he said.

In 2005 overall mortgage balances at the ICS increased by 22% to €5.3 billion, while deposit balances increased 14% to €3.3 million.

Mr Larkin added that even with interest rates rising by 0.5% since December and a further 0.75% hike expected in the company months, he believed that strong economic forces of employment and population growth would offset higher interest rates.

The society’s cost/income ration fell by 3% over the year to 20.3%.