Stronger growth in mortgage lending contributed to a 15.5 per cent rise in pre-tax profits to £36.6 million (€46.5 million) at First Active last year. The former building society, which floated on the stock market last October, said it expected to increase its share of the mortgage market this year and was keeping its eyes open for acquisitions.

After tax, First Active showed a 16 per cent increase in profits to £27.8 million. The year-end result was boosted by stronger residential lending in the second half of 1998 following a repositioning of its key products. New lending increased by 34 per cent to £893 million last year. Of this, £548 million was in the Republic with a further £345 million in the UK. The group's bad debt provisions increased significantly, rising from £1.1 million in 1997 to £4 million last year.