Bank of Ireland this morning reported an 8 per cent rise in annual profit to €1.27 billion.
Ireland's second-largest bank said it was encouraged by growing momentum in its key markets and confident of another strong performance in the current year.
The profit before tax is in line with expectation and led to dividends of 41.4 cents per share, up 12 per cent on the previous year.
The profit figure does not include exceptional items and covers the year to end-March. Pre-exceptional earnings per share (EPS) also up eight per cent to 106.7 euro cents.
Pre-tax profits from Bank of Ireland's retail operations in Ireland rose seven per cent to €419 million, with lending volumes up 20 per cent on the back of its 28 per cent share of the buoyant mortgage market.
"I think we can say as a group we're very satisfied and very optimistic going forward," Chief Executive Michael Soden said, noting it was the bank's 13th successive year of increased profits.
Mr Soden said growing economic momentum in the bank's two key markets, Ireland and Britain, and a recovery in global equities, provided a strong basis for optimism.
Mr David Odlum, analyst at NCB said: "The bank is well positioned for growth, it's upbeat about the economy and equity markets and I think the risk in terms of the forecast numbers for March 2005 is on the upside.""
Bank of Ireland shares were up 2.4 per cent at 10.24 euros in early trade on a positive Dublin market.
Mr Soden said he was very pleased with initial indications from the bank's joint venture with Britain's Royal Mail to provide financial products via 17,000 postal outlets.
The bank began offering personal loans through the post office network in March and plans to roll out savings products, credit cards, pensions and car insurance.
The bank has also signed a deal with the Canadian post office to offer foreign exchange services for an initial 12-month period.