IIB profits rise 25% as lending soars to €16bn

IIB Bank’s 30-year streak of growing profits continued in 2006 with earnings up by a quarter.

The bank’s annual report for 2006, released yesterday, shows profits after tax of €125 million, an increase of 25% and marks 32 years of growth. At operating level, profits were up from €110m in 2005 to €139m.

Lending was also up by 25% to €16 billion, while assets were up by 24% to €22bn.

Lending by the bank to business customers rose by 30% and mortgage advances were up by 24%. The value of IIB’s mortgage book stood at €11bn at the end of 2006.

“Strong growth in 2006 was experienced across all of the bank’s activities, which spanned both the business and personal markets,” chief executive Ted Marah said.

“In personal lending, one of our key areas is the home loans sector, which resulted in growth in lending volumes of 24%. Our business customer base nationally has also experienced significant activity where loan volumes grew by almost 30% with strong gains across the healthcare, hospitality, retail and service sectors.”

It is also involved in lending for major public infrastructure projects, including a 32 megawatt wind farm in Dublin and financing the planned new courts complex in Dublin.

Mr Marah said the bank is predicting a softening in house prices this year, after growing by 12% in 2006, but said it expects a transition towards balance between demand and supply.

IIB said its owner, European banking giant KBC, pumped €197m in new capital into the bank.

IIB paid out a dividend of €94m to KBC in 2006, according to the report.