Bank of Ireland posted a 5 per cent rise in pretax profits today to €1.33 billion in line with forecasts.
It said a strong economic performance in its main Irish and British markets gave it optimism for the coming year.
Assets under management in Bank of Ireland Asset Management, which has suffered sharp outflows following a weak investment performance in one of its US products, fell by €10.6 billion to €46.9 billion in the year, as the bank had forecast.
Chief executive Brian Goggin said he expected the asset management unit's profit performance to worsen next year since most of the fund outflows happened towards the end of the financial year just ended and a recovery was likely to take two to three years.
The bank said strong consumer spending, the buoyant jobs market and low interest rates would drive profit growth in Ireland as the economy continues to outperform.
Bank of Ireland's cost/income ratio for the year of 53.9 per cent was slightly lower than the corresponding year.
The bank said it has made significant progress in streamlining its UK business. During the year the bank sold financial-advice business Chase de Vere and said it has received a number of expressions of interest for mortgage lender Bristol and West.
The bank will pay a total dividend of 45.6 cent for the year - an increase of 10 per cent on last year.