Irish Nationwide building society has reported growth in profits in 2001 but declined yesterday to release details of its accounts or to provide a breakdown of the figures issued in advance of their distribution to members next week.
Irish Nationwide said that profits rose by 19 per cent from €67 million to €77 million in the 12 months to the end of December, 2001. Its performance in 2000 was enhanced by a €31 million gain on commercial property investments.
In a commentary accompanying the selected headline figures released in a press release, managing director, Mr Michael Fingleton, said that an increasing proportion of the society's profits were now being generated from the commercial side. The society has faced intense competition in recent years in its core savings and lending business.
Mr Fingleton was not available to discuss the society's performance yesterday. Its spokesman, Mr James Morrissey of the Fleishman-Hillard Saunders public relations firm, said Irish Nationwide would release its accounts to the society's members next week and would not make them available to the media before then.
He warned that the figures should not be prejudged and added: "Be very careful what you write." The Central Bank of Ireland, which regulates the Irish financial services sector, met with Irish Nationwide on Monday to discuss its accounts. A spokesman confirmed it had been provided with a summary of the figures and received a "verbal review" of its performance last year.
The society is required to lodge its full accounts with the Central Bank 21 days before its annual general meeting. The accounts for the last financial year will be available for public inspection at the Central Bank from April 3rd, ahead of its a.g.m. on April 23rd.
Rival building society, EBS, provides a profit and loss account and balance sheet when announcing results so that performance can be fully assessed.
According to Irish Nationwide's press release, its loan book increased by 20 per cent to €3.2 billion in 2001. Customer deposits were up 14 per cent to €2.1 billion. Its reserves increased by 22 per cent to €361 million.
Like other financial institutions, Irish Nationwide reported continuing strong demand for mortgages from first-time buyers and investors.
"The effect of Bacon Three under the Planning and Development Act 2000 is beginning to kick in with the two-year limitation on planning permissions causing concerns on the supply of ready-to-build land. This will have to be addressed sooner rather than later if the supply of affordable housing is to be available to meet the demand. If it is not, then there will be a real danger of house prices increasing again for reasons related simply to supply and demand," Mr Fingleton said.
Mr Fingleton has consistently refused to disclose his remuneration terms. According to the society's 2000 annual report, directors shared €1.12 million. At that stage, Irish Nationwide had two executive directors, Mr Fingleton and company secretary Mr Stan Purcell. Mr Fingleton is understood to have received the bulk of that payment.
