IIB profits rise by 24% to €71.7m

IIB Bank has recorded another rise in annual profits with earnings up 24% in 2003 to €71.7 million.

The bank, owned by Belgian financial services firm KBC, said profits were ahead across all its business areas with growth in its mortgage, corporate lending and treasury activities.

IIB chief executive Ted Marah said yesterday that IIB had seen its mortgage advances grow by some 41%, or €1.9bn, in 2003 and increase its share of the market.

He said that the bank had seen strong demand for mortgage from first-time buyers and investors in 2003 continuing into the early months of this year.

But Mr Marah cautioned homeowners expecting to see the value of their property soar again this year, warning that house price inflation will be mid single digit range.

IIB said total advances last year were up 26% to €7.1 billion, while customer deposits were ahead by 19% at €9.33bn.

Mr Marah said the bank had seen particularly strong activity in the corporate side of the business and was involved in most large scale financing issues.

He said that IIB was also looking to get more involved in providing finance for Public Private Partnership projects and had arranged $1bn worth of loans for international projects last year.

IIB also looking to expand this business in Ireland have been lead arranger of finance for the Dundalk and Fermoy bypass.

He added that the bank would look at acquisitions if they came along, including picking up a retail branch network.

It also announced the appointment of Patrick Mullarkey as a non-executive director who is a former secretary-general of the Department of Finance and a former Central Bank board member.