ICS pre-tax profits rise 13.6% to €128.8m

ICS Building Society, a Bank of Ireland subsidiary, reported a 13.6% annual rise in pre-tax profits to €128.8m for the year to December 31, 2006.

Over the period new loans increased 14% to €2 billion while total new advances, that included loans processed for Bank of Ireland were up 19% to €7.5bn, year on year.

Overall growth in new advances at 19% was ahead of market growth of 17% over the 12 months.

Last year’s results were delivered against a background of a very competitive market, offset by strong economic drivers as population and employment growth increased demand, according to the group.

It added that growth levels declined towards the end of 2006 as interest rates rose.

By year end the society had a 4.9% share of the Irish mortgage market in 2006, which compares to Bank of Ireland Group’s share of around 19%.

At the year end the society’s market share was 4.9% with a particularly strong last quarter, when it captured 5.2% of new mortgage lending. The society’s new mortgage lending increased by 14% from €1.7bn in 2005 to €1.96bn in 2006, he said.

When combined with Bank of Ireland the two lenders continue to have the largest share of mortgage lending in Ireland.

NCB Stockbrokers said ICS’s comments reflect the view’s expressed by Bank of Ireland in its investor day last week.

“Growth in the Irish mortgage market is clearly set to slow from the high levels achieved in 2006 as ECB rate rises impact activity,” said brokers.

Growth will stay “robust, underpinned by solid economic fundamentals with employment growth up 4.4% in the last quarter of 2006 and economic growth of 6.8% expected in 2007”.