IIB Bank increased its profits by 25 per cent in 2006 and reported €125 million in operating profit.
Loans paid out by the financial institution rose to €16 billion, with mortgages totalling €11 billion for the year, a 24 per cent rise on 2005. Despite the easing in inflation within the property market, the bank is still expecting "modest" gains during the year.
"It appears the Irish housing market is now in the process of a long-anticipated transition towards balance between demand and supply," chief executive Ted Marah said.
"The broad outlook for the Irish economy remains favourable, and property demand is likely to be supported by maturing SSIAs, a strong increase in net income and budget measures which will limit the impact of higher borrowing costs. As a result, there is scope for modest gains in house prices in the coming year," he said.
The bank's business lending is targeted at small to medium-sized enterprises, and during 2006, this sector increased business volumes by close to 30 per cent.
