Irish Life & Permanent reported a 9 per cent rise in operating pre tax earnings of €420 million thanks to strong performances in its life assurance and pensions division and a lower-than predicted tax charge.
IL&P indicated in its outlook statement that "the broader economy continues to provide a perfect environment for our businesses and we're confident of posting another successful performance in the current year".
The life and pensions business enjoyed a stellar year with operating profits rose by 16 per cent to €222 million driven by a 62 per cent increase in new business profits to €94 million.
Banking profits were ahead by 6 percent to €148 million from €139 million in 2004.
The Irish mortgage market continued to be extremely buoyant in 2005. Total gross new mortgages issued were €6.3 billion, a 28 percent increase on the €5 billion issued in 2004. Irish residential mortgage balances outstanding increased by 22 per cent to €17.8 billion compared to €14.6 billion in 2004.
IL&P's chief executive David Went was pleased with what was a strong performance across all the group's key business units.
"The life business is now leading the market in terms of distribution reach, efficiency and innovation. The banking business posted a very strong lending figure for the year while also successfully establishing itself as the destination of choice for switching current account customers," Mr Went said.
"The broader economy continues to provide a perfect environment for our businesses and we're confident of posting another successful performance in the current year," he added.