Government levy hits first half year profits

FIRST ACTIVE, which is to pay shareholders a lump sum bonanza of €160 million today, warned yesterday first half profits would be hit by the Government levy imposed on financial institutions in last year’s Budget.

In its pre-close trading statement for the six months ended 30 June 2003, First Active, a major player in the mortgage market, said before tax profits for the half year are likely to be in the “high single-digit percentages” understood to mean between 7% and 9% by the markets, compared to the first half of 2002.

Last year profit growth at the pre tax level of up 26% and the current guide for the first half suggest the figure overall this year will be down significantly .