In short

A look at today's business stories in brief

Volume of international lending deals with Irish banks has fallen

The volume of international lending deals involving Irish banks has fallen sharply this year, according to new figures from Davy stockbrokers.

AIB participated in 87 market deals and provided facilities in 172 transactions so far this year, compared with 145 deals and facilities in 390 transactions in the same period last year. Bank of Ireland participated in 99 deals and provided facilities in 279 transactions, compared with 143 deals and facilities in 465 transactions last year.

"Profitability in this business ultimately hinges on containing impairment losses," said analyst Emer Lang in a report.

"In the case of both Irish banks, these have been practically non-existent in recent years but will rise as slowing economies bite."

Dragon Oil posts 34% increase in profits

Dublin-listed Dragon Oil yesterday posted a 34 per cent increase in half-year profits on the back of record crude oil prices.

The Dubai-based petroleum producer, with operations in Turkmenistan, said its net income advanced to $167 million (€113 million), or 32.3 cent a share, from $124 million, or 24.3 cent, a year earlier.

Sales rose 63 per cent to $373.5 million, while average gross production advanced 36 per cent to 38,482 barrels of oil a day, according to the firm.

Dragon booked a one-time expense of $91 million on a hedge, which capped its oil sale price at $102 a barrel. - (Bloomberg)

Trading starts in new IAWS/Hiestand firm

Trading of shares in Aryzta - the company formed from the merger of food group IAWS and Swiss rival Hiestand - began in Dublin yesterday.

Hiestand Holding shareholders approved a plan to merge with IAWS to create the world's biggest maker of frozen baked goods earlier this week. Shareholders representing 91.3 per cent of votes at a meeting were in favour of the merger, the company said.

IAWS, which already has a 64 per cent stake in Hiestand, owns 83.3 per cent of the new baker and Hiestand will have 8.7 per cent. Aryzta was the most traded stock in Dublin yesterday and closed at €38.

Fed expects easing of inflationary pressures

The fall in oil prices and the dollar's rally are "encouraging", Ben Bernanke said yesterday, suggesting the Federal Reserve thinks inflationary pressures could be starting to ease. Speaking at the Fed's retreat in Jackson Hole, Wyoming, the Fed chairman said the shift in currency and oil prices, as well as weak growth, "should lead inflation to moderate this year and next". - (Financial Times service)

Dolmen appoints director of stockbroking

Stuart Draper has been appointed director of stockbroking at Dolmen Stockbrokers. He was previously head of research at the firm for six years. Mr Draper, who qualified as a chartered accountant at KPMG, joined Dolmen as an equity analyst in 1999.