24th Mar 2005 07:00
Bank of Ireland(Governor&Co)24 March 2005 ICS Building Society Summary Results For the Year Ended 31st December 2004 ICS Building Society Reports a Pre-Tax Profit Increase of 14.8% and a Strong Start to the Mortgage Market in 2005 ICS Building Society, part of the Bank of Ireland Group, today (Thursday, 24thMarch) announced that it processed in excess of €5 billion in new mortgageadvances (for ICS and Bank of Ireland) during 2004, resulting in an increase inpre-tax profits of 14.8% to €91.7m for the year ended 31st December 2004. Thisis in addition to announcing an improvement in the cost to income ratio of 2.3%.Financial Highlights 2004 2004 2003 % change •m •mSurplus Before Tax 91.7 79.9 +14.8Surplus After Tax 80.6 70.2 +14.8New Advances 1,410 1,169 +20.6Mortgage Balances 4,254 3,429 +24.1Deposits 2,867 2,581 +11.1Total Assets 5,728 4,656 +23.0 ICS Building Society's Managing Director, Mr. Joe Larkin, said: "The outlook forthe mortgage market remains very positive and demand so far in 2005 has exceededexpectations. In the first two months of 2005, mortgage applications receivedwere up over 20% compared to the same period last year. " "The housing market is very close to achieving supply / demand equilibrium inmost locations, and we are still experiencing record activity in the market.This can be attributed to sustained economic growth, high employment levels andcontinuing low interest rates. I believe that although Irish property isexpensive, it is still affordable. Furthermore, confidence in the propertymarket continues to be very strong due, obviously, to past performance but alsoto a positive outlook. The anticipated level of house building predicted for2005, which is to be welcomed, should result in a further stabilisation of theprice of new houses." There has been a lot of comment on interest rates and how the ECB Repo ratemight move upwards before the end of the year. If rates do increase, they arenot likely to do so in any dramatic way. Our estimate of a 0.5% increase inrates before the end of 2005 would have little impact on mortgage applications.I believe that we are close to the bottom of the interest rate cycle and nowmight be a good time for certain customers to fix." said Joe Larkin. The principal features of the 2004 results for ICS are: • New mortgage advances up 20.6% to €1,410m • Mortgage Book up 24.1% to €4,254m • Net mortgage lending up 13.5% to €825m • Deposit book up 11% to €2,867m • Fees and commission receivable up 29.5% to €51.8m (This represents the growth in fee income from processing and servicing recordvolumes of mortgages on behalf of Bank of Ireland Group.) • Liquidity ratio 27.0%. • Cost/income ratio improved by 2.3% to 22.8% • Arrears as a percentage of the mortgage book down 3 basis points to 0.11% Referring to factors behind ICS Building Society's success, Joe Larkin said:"Our relentless focus on quality service and excellent product offerings,continue to support the Society's success. I am very pleased to announce thatthe Society has again won the Best Service Award for the residential mortgagesector 2004, awarded annually by IMAF, the Independent Mortgage Advisers'Federation. This is the fourth out of five years in which the Society has wonthis prestigious award." The Society's retail chain, The Mortgage Store, also recorded a strong year. "Weare now doing significant mortgage business online and have increased the numberof customers coming through this channel by 172% in the last year. We alsolaunched an On-line Mortgage Manager facility which allows both new and existingcustomers manage their mortgage via the internet." Joe Larkin added. ENDS FOR FURTHER INFORMATION: - Joe Larkin, Managing Director, ICS Building SocietyTel:(01) 6113502- Anne Mathews, Group Corporate Communications, Bank of Ireland. Tel:(01)6043836 ICS Building Society Summary of Results 2004 Financial Highlights 2004 2003 % •m •m Increase (+) Decrease (-)Surplus Before Tax 91.7 79.9 +14.8%Surplus After Tax 80.6 70.2 +14.8%New Advances 1,410 1,169 +20.6%Mortgage Balances 4,254 3,429 +24.1%Net Mortgage Lending 825 727 +13.5%Total Assets 5,728 4,656 +23.0%Deposit Balances 2,867 2,581 +11.1%Net Interest Income 75.3 72.8 +3.4%Fees and Commissions Receivable 51.8 40.0 +29.5%Fees and Commissions Payable 7.0 5.2 +34.6%Operating Expenses 22.9 22.5 +1.8%Cost Income Ratio 22.8% 25.1% -2.3% This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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