Bank of Ireland made a pre-tax profit before exceptional items of €642 million in the six months to the end of September.
The figure - which was released to the market by accident last night - excludes a one-off gain of €33 million from the sale of the bank's share in a fund administration joint venture with State Street. When this and other exceptional items are taken into account, the pre-tax profit figure is boosted to €670 million.
The €642 million pre-exceptional outturn represents an increase of 7 per cent over the equivalent figure for last year. Earnings per share were 54.3 cents, compared to 46.8 cents. When calculated by the "alternative" method - which excludes goodwill amortisation and exceptional items - earnings were 52.7 cents versus 49.9 cents last time. A dividend of 14.8 cents was declared, compared to 13.2 cents.
No comment was being offered on the figures last night, beyond what was contained in the statement released through the stock exchange after what Bank of Ireland described as the inadvertent release of the results "to certain external parties after the close of trading on the Dublin and London Exchanges".
The bank also trades in New York and the shares closed up $1.40 at $50.67 in the US last night.
The results show the Republic remains the engine of the bank, with profits of €463 million on turnover of €1.35 billion. This compares with profits of €174 million on its UK operations, with turnover slightly more than €1 billion.
The bank described the performance of its retail operation in the Republic as "very satisfactory". Profits in this division grew from €189 million to €194 million. Mortgage demand remained strong, with new business volumes increasing by 32 per cent.
"The bank's share of new business was well ahead of last year and its share of the national mortgage book continues to increase," said the statement.
The provision for bad and doubtful debts at the operations in the Republic increases from €26 million to €27 million.
Referring to its retail operations in the Republic, the bank said "the momentum in business volumes is strong and, given a continuation of the trend, the outlook for the rest of the year is very positive".
The recovery in world equity markets resulted in a 30 per cent increase in profits at the life assurance division to €73 million, while profits were up slightly to €199 million in the wholesale financial services division. The bad debt provision for this division rose from €13 million to €18 million. The increase relates to "some specific provisions and higher general provisioning for the international book".
Attention is expected to focus today on what the bank's chief executive, Mr Michael Soden, has to say on the performance of the bank's British financial services division, which is seen as a key element of future growth following the signing of a joint venture with the UK Post Office to distribute investment products.
The overall performance of the division in the first half was described as strong, with profits rising from €166 million to €180 million. Personal lending and business banking were "robust" while consumer banking - which includes the Bristol & West branch network - continues "to be impacted by low levels of investor confidence".
This part of the UK operation is currently undergoing a fundamental reorganisation.
Asset management - which includes Bank of Ireland Asset Management - reported profits of €58 million, compared to €56 million in the first six months of 2002.
Total operating income was €1.46 billion, compared to €1.45 billion in the first half of 2002. Operating expenses fell from €814 million to €794 million.
Despite the increases in the bad debt provision for the Republic and the wholesale business, the overall provision fell from €56 million to €46 million, due to a cut in the UK provision.
