Equity slump to hit IL&P earnings

EARNINGS for Irish Life & Permanent are expected to be severely dented by the falling equity markets when, next month, the bank announces results for the year to the end of December.

Dolmen Securities analyst Stuart Draper, who predicts a dividend yield of 5.5%, profit before tax of €366m, and a price earnings ratio of 8.6 times earnings for 2003, said the current guidance given by the company is to expect 10% growth in underlying Irish and British operating earnings.

“Adjusting the 2001 actual Irish and UK operating earnings of €220.8m for the unit linked management fee variance of €29.5m and also for Church & General’s equity portfolio negative variance of €8.1m gives last year’s underlying Irish and UK operating earnings of €258.4m.