The ongoing weakness in investment markets and the once off charges associated with the purchase of TSB bank will hit profits at IL&P, the bank warned today in its latest trading update.
The group said that while earnings for the year will show good underlying growth they will be negatively impacted by the movement in markets which has hits its investment division. Fee income is likely to be between €: 25 and 30 million lower than forecast.
It added volumes in the life business in Ireland have been strong and there has been good, but moderating, growth in banking assets. Asset quality also remains very strong.
Falling interest rates and the adoption of a more conservative treasury policy have o caused margins to trend downward and this will continue into 2002.