Irish Life & Permanent today said group pre-tax operating profit growth was 20 per cent for the full year.
In a trading statement, it said the economic context remained positive and that its banking business was seeing record volume growth in a buoyant market.
"This performance together with a strong treasury result is expected to deliver significant operating profit growth - well ahead of previous guidance - in the bank for the year," the statement says.
According to the statement the group's life and pensions' arm was performing "exceptionally well" with maturing SSIA accounts providing a boost to retail life sales.
The IL&P statement said life sales in Ireland are expected to grow almost 30 per cent. It adds that institutional inflows into its fund management business should reach €1.9 billion, up from €1.3 billion in 2005.
"'Operating profit for the year is expected comfortably exceed previous guidance," the bank said.
Gross new banking lending will grow by roughly 30 per cent this year. According to IL&P, it expects open over 80,000 new current accounts this year.