BoI half-year profits rise 7% to 640m

BANK OF IRELAND, the country's second largest bank, made a profit of 24.69 million a week for the first half of 2003.

Reporting a 7% rise in profits for the first-half of the year last night, the bank predicted a satisfactory outcome for the full year.

The bank said profit before tax and exceptional items for the half year to September 30 rose to 642 million, from 602 million last year.

The results, due to be released today, were in line with expectations. Analysts had expected first-half profits to come in between 633m and 655m.

"Due to an administrative error the Bank of Ireland interim results announcement was inadvertently released to certain external parties after the close of trading on the Dublin and London Exchanges," the bank said in a statement last night.

After the error was discovered the bank has authorised the stock exchange to release the announcement in order to avoid any risk of a false market in the stock.

"We view the immediate future with optimism. The economic backdrop in our principal markets is positive," Bank of Ireland said in a statement issued last night after an error.

"We have made encouraging progress in pursuit of each of our key strategic goals by achieving good organic growth while maintaining excellent credit quality, delivering on our cost/income targets, optimising capital returns and completing a number of important strategic initiatives," said group chief executive Michael Soden.

"The group is in excellent shape with significant prospects for continuing profit growth. "The result reflects a robust performance by both the domestic and international businesses, with good organic growth, while maintaining excellent credit quality and tight control of costs," he said.

Adjusted earnings per share rose 6% to 52.7 cents and the bank proposed an interim dividend of 14.8 cents, up 12% on last year.

On the Irish stock exchange the bank's shares closed up 8 cents at 10.71 last night, valuing the bank at 10.5 billion.

Goodbody Stockbroker's, in their most recent analysis, retained their "add" recommendation and a price target of 11.70 for the shares. "The model remains solid if unexciting," they said. Dolmen Butler Briscoe head of research Stuart Draper said the shares are under valued and feels their is a 15% upside to the stock.

Bank of Ireland said commission and fee income rose 10% to 552 million. Administrative expenses declined 2.7% to 710 million. Net interest income gained 0.4% to 852 million.