Depfa Bank has forecast a rise in 2004 net profits after it posted a 57 per cent increase in earnings to beat market expectations.
The Dublin-based German public sector finance bank, which provides financing for public projects such as roads and hospitals, said its net profit last year rose to €370 million from €285 million a year earlier, beating analysts' forecasts.
Depfa also said it expected its return-on-equity, an indicator of how effectively shareholders' capital is being employed, of more that 20 per cent this year after 29.4 per cent in 2002 - even on the back of its expanding capital base.
The bank, registered in Ireland for tax purposes, organises public sector bonds, raises money for infrastructure projects in Europe, the United States and Asia, and offers investment banking advice to public bodies.
Its total revenues rose 56 per cent from 2002 to €637 million, and it said its main revenue component, net interest income, rose 30 per cent to €370 million.
Net commission income nearly tripled to €89 million.