First Active, the restructured mortgage lender, has posted a 60 per cent increase in interim pre-tax profits to #23.5 million (£18.5 million).
The figures vindicate the decision last year to withdraw from the UK market and concentrate on reducing the Irish cost base, according to Mr Cormac McCarthy, the group chief executive.
Income in the six months to June was #59.5 million, compared to #55.5 million in the same period last year. Income from the core mortgage and savings business grew by 20 per cent to #50.1 million despite a closure of one-third of the bank's branches. First Active has also dramatically reduced the number of its agents and reduced the fees it pays brokers.
Income from the UK business, which has been hived off into a joint venture with Britannia, was down from #4.2 million to #4 million on a like-for-like basis.
Non-interest income - including fees and commissions - fell from #9.6 million to #5.4 million, reflecting a reorganisation of the treasury department and the decision to withdraw from the credit card and current account business.
First Active's treasury department no longer engages in trading on its own book and has been refocused on activities aimed at protecting the group's margins, according to Mr Michael Torpey, the finance director.
The group sees the area of fees and commissions on savings and investment products as one that can deliver growth, according to Mr McCarthy. The market welcomed the figures, which are the first produced entirely under Mr McCarthy's stewardship, and First Active shares rose 15 cents to #3.20 before closing at #3.05.