National Irish Bank today reported a 27 per cent rise in pre-tax profits for 2006 on the back increased lending volumes especially in the residential mortgage sector.
The bank said profits for the 12 months were €38.1million before tax, goodwill and integration costs were taken into account.
NIB said profit amounted to €3.5 million after the goodwill and migration costs associated with the investment in the bank's relaunch and the completion of its migration to the Danske Bank Group technology platform.
The bank said new lending volumes were strong, with the overall loan book increasing by 51 per cent to €6.9 billion.
Personal lending increased by 52 per cent year on year with mortgage volumes increasing by 54 per cent, assisted by the launch of the bank's new Loan to Value (LTV) mortgage in October.
NIB said over €500 million of mortgage applications were processed within the first 8 weeks of the launch which represented 20 per cent of the bank's end of year mortgage book.
Customer deposits were €2.9 billion, increasing at an underlying rate of 27 per cent with very strong retention of maturing SSIA funds, NIB said.
National Irish Bank chief executive Andrew Healy said: "The success of the LTV Mortgage demonstrates that the Irish consumer is prepared to switch banks, recognising the long term value."
Mr Healy said: "With business lending growing in excess of 50 per cent year on year, twice the market average, the Bank is well placed to increase its market share in this sector."
"National Irish Bank has won a number of high profile corporate clients who are attracted, in particular, to the benefits of the Bank's Cash Management and Business eBanking services," he added.