Strong residential lending growth contributed to a 24 per cent rise in profits to €71.7 million at IIB bank in 2003.
Announcing its annual results today the bank said it had secured new business worth €1.9 billion, which saw its mortgage book grow to €5 billion.
The bank claimed that the supply and demand imbalance lessened somewhat in 2003 with 69,000 housing completions, but it admitted that demand continues at high levels.
Mr Edward Marah, IIB chief executive, said the bank was "highly competitive" in the financial services market.
"The robustness of our business model and the quality of service we provide to our customers is attested to by the growth of the bank during 2003 - a continuous growth record now stretching back thirty-one years," he said.
IIB Bank reported particularly strong activity in financing companies delisting from the Stock Exchange and in leverage acquisition transactions. The bank said it was involved at senior arranger or financing level in most large transactions in 2003.
According to the bank its Treasury and Capital Markets arm saw strong performance in difficult market conditions.
Increased profits came from strong growth in customer numbers and the introduction of new foreign exchange and interest rate structured products.
IIB Bank is a wholly owned subsidiary of KBC Bank and Insurance Group of Belgium.