ACC profits increase by 80%

Profits almost doubled at ACCBank last year as the bank's repositioning in the business lending market paid off.

ACC, which has been owned by Dutch bank Rabobank since 2002, said yesterday that it made pre-tax profits of €65.3 million in the year to December 31st.

This compared to €35.9 million in 2003, marking an increase of more than 80 per cent.

Operating profits before provisions swelled by 44 per cent to €62 million over the same period, with much of the growth coming from loans to the burgeoning services sector.

The bank's loan book grew to €6.1 billion over the year, up 39 per cent from €4.4 billion in the previous year.

An informal breakdown of ACC's new lending business in 2004 showed strong expansion in the construction, healthcare, leisure and retail sectors.

Colm Darling, ACC's chief executive, said operations had been boosted by the bank's move away from the consumer market towards business and agri-business customers.

"With the support of our parent, Rabobank, we look forward to contributing strongly to the development of the group's business in Ireland," he said.