ICS Building Society today reported a 15.4 per cent rise in its surplus to €56.3 million for the year ended December 2001.
ICS described the performance as "very satisfactory" given the highly competitive Irish mortgage market.
Referring to the outlook for 2002 ICS’s managing director Mr Joe Larkin said the continuing demand for new homes, advantageous demographics and a low interest environment will have a positive impact on ICS’s business.
He said ICS has made a strong start to the year with new mortgage applications increasing by 63 per cent compared to the same period in 2001.
ICS - which is owned by Bank of Ireland - said its mortgage book grew by 23.7 per cent to €2,084 million. And new mortgage advances increased by 16.5 per cent to €607 million.
Fees and commission receivable increased to €26.8 million - up 20.6 per cent representing the growth in fee income from processing and servicing record volumes of mortgages on behalf of its parent Bank of Ireland.
Bad debts continued to be low with arrears as a percentage of the mortgage book remaining relatively stable at 0.19 per cent compared with 0.18 per cent in 2000.
Mr Larkin added that the recent budget change to reintroduce mortgage interest relief for investment properties is also a positive influence.
"The return of the investor to the market is already stimulating increased demand from owner-occupiers in the first quarter of 2002." Mr Larkin said.
ICS said its retail chain the Mortgage Store and its mortgage website, www.themortgagestore.ie also achieved strong growth.
In 2001, ICS became the first financial institution in the world to provide customers with an online facility which enables customers to access their mortgage accounts, request account changes and to track mortgage applications.