Bank of Scotland (Ireland) recorded a 16 per cent increase in pretax profits to €118 million during the first half of the year, according to new figures from the bank.

Lending at the bank increased by 32 per cent to €26.3 billion during the period, while deposits rose by 27 per cent to €9 billion. Total operating income rose by 17 per cent to €242 million.

Ireland contributed 24 per cent of pretax profits to the international business of the bank's parent, HBOS.

The bank provided the figures on its half-year performance at an information briefing for analysts on Tuesday.

Bank of Scotland (Ireland) had a cost-income ratio of 44.8 per cent during the first half of the year, according to the figures, which were published in a note from stockbroker Davy yesterday.

Its parent, HBOS, is investing heavily in Australia, continental Europe, North America and Ireland, where it is rolling out its Halifax retail network.

Bank of Scotland (Ireland) said it had opened 33 Halifax retail branches in the Republic and would open another 13 in "high footfall" locations. It expects 42 of its 46 branches to be open by December.

The bank said it had 44,000 new customers during its first 12 months of trading, with the vast majority lodging €1,500 to current accounts every month. It had expected to get 27,000 new customers.

According to the bank, it had a 24 per cent share of new credit cards issued during that time, 8 per cent of new savings and 6 per cent of new mortgages. It also had between 30 per cent and 50 per cent of the "switcher" market, according to the information provided on Tuesday.

The bank said it believed it would outperform the mortgage market this year.

It said new lending was down 20 per cent during the first half of the year. However, the bank said it expected to grow its annual stock by 14 per cent this year and by 9 per cent in 2008 through competitive pricing and aggressive marketing.