Profits up 14% at ICS

Bank of Ireland-owned mortgage lender ICS Building Society made pre-tax profits of €128.8 million last year, a 14 per cent increase on 2005.

New lending at ICS increased 14 per cent to €2 billion in 2006, out of total new lending of €7.5 billion at both Bank of Ireland and ICS, which was up 19 per cent.

Mortgage balances at ICS now stand at €6.2 billion, up 20 per cent last year, out of a total mortgage book of €24.4 billion at the Bank of Ireland group. ICS processes mortgages on behalf of the group.

The group mortgage balances increased at a rate of 16 per cent year-on-year, which was below average market growth of 25.5 per cent. But the 19 per cent increase in new lending at the group was ahead of the 17 per cent market growth in new lending last year.

ICS managing director Joe Larkin said its performance was achieved against a backdrop of increased competition, but that the market was underpinned by strong economic drivers, with population growth and employment levels fuelling demand.

But he said growth levels slowed down toward the end of the year as the rising European Central Bank rates affected market activity.

ICS Building Society's deposit book increased almost 18 per cent to €3.8 billion.

Analysts at Goodbody Stockbrokers said the deposit numbers were quite strong.