IRISH Intercontinental Bank (IIB) is looking for further growth this year following 8 per cent rise in net profit to £15.9 million in 1995. While the bank is entering 1996 with some concern about overheating in credit expansion, it has a "strong pipeline of transactions" which should lead to "further lending growth potential", chairman Mr Paddy McEvoy said yesterday as he unveiled last year's results.

It has had a very good start to the year and is ahead of target. There will be a major development in its IFSC operations where its international lending activities grew strongly during 1995. KB Financial Services (Ireland) will now be the centre for all the project finance, and aerospace and shipping finance, for the Kredietbank Group, its 75 per cent Belgian parent company, he said.

IIB has already purchased now premises in the IFSC where its existing IFSC operations will be located. It will open a New York office shortly, while a further office will be operated in Hong Kong by the end of the year. Other offices are planned, said chief executive Mr Ted Marah.

The bank now manages assets of £6.88 billion compared with £6.2 billion in 1994. The bulk of these are in international lending.

Mr McEvoy said the past year had been "extremely satisfactory" in all areas of its business. He singled out three areas the IFSC operations the increase in the corporate business market and the growing residential mortgage business through the joint ventures with Irish Life, which owns the other 25 per cent of IIB.

Total advances grew by 8 per cent from £1.09 billion to £1.18 billion while deposits grew at the faster rate of 13 per cent from £1.43 billion to £1.62 billion. This resulted in a fall in the advance/deposit ratio from 76 per cent to 73 per cent, leading to an increase of almost £100 million in its liquidity. Like other banks, IIB is exceptionally liquid.

Mr McEvoy said the bank enhanced its role as one of the primary sources of funding for large corporate and asset financing requirements. Increased competition on margins was counter balanced by the growth in its share of large financing projects, he said.

IIB's joint ventures with Irish Life advanced over £100 million in home loans. The bank reckons it has 10 per cent of the building societies home loan market and 6 per cent of the total market.

IIB will pay out 55 per cent of its net profit to its two shareholders. On this basis, Irish Life will receive close to £2.2 million.

Mr McEvoy said it would be "inappropriate to comment" on yesterday's Irish Times report that the syndicate of banks, led by IIB, had agreed a restructuring deal with Power Corporation. Asked about the £3.2 million which Butlers Engineering, in receivership, owes IIB, he expressed confidence that the bank had made adequate provision against this as it had recognised a problem over two years ago. The bank is hopeful it will receive something back.

In line with the bank's policy, Mr McEvoy would not discuss its bad debts or the extent of non performing loans other than to say its experience had been good.