Depfa Bank predicts profits to rise 8%

German's Depfa Bank, which has a base in Dublin, said today that profits this year will rise more than 8% after an increase in net interest income drove fourth-quarter earnings higher than analysts had forecast.

The bank said in a statement to the Frankfurt stock exchange today that profits for 2003 were €370m and that this figure will increase to more than €400m this year.

The bank said that Q4 profits in 2003 were €101m compared to €70m last year in the same period.

Total revenue for the year came to €637m, up 56% on the 2002 figure.

Depfa said it is committed to maintaining a net return on equity at 20% for the coming years.

The bank, which is registered in Ireland for tax purposes, organises public sector bonds, raises money for infrastructure projects in Europe, the United States and Asia, and offers investment banking advice to public bodies.

It is the second biggest provider of public finance in Europe.