Anglo Irish Bank posted a 33 per cent increase in annual pre tax profits today and raised its dividend by 50 per cent as it gave an upbeat outlook on growth for this year.
The bank which specialises in business lending reported full year pre tax profits of euro346.5 million. Basic earnings per share rose by 34 per cent to 78.03 cent. Total assets increased by 31 per cent to euro25.5 billion and the bank's loan book grew by euro4.6 billion or 34 per cent to €18.1 billion.
Anglo's chief executive Mr Seán FitzPatrick, said the exceptional results were accomplished against the backdrop of moderate economic growth in the bank's key markets.
Mr Fitzpatrick said this year's loan growth was the strongest in the history of the group. Despite the sharp rise in lending asset quality remains robust, Mr Fitzpatrick said and so the bank is unlikely to raise its bad debt provision though this is under constant review.
Today's results are likely to trigger another wave of earnings upgrades from banking analysts of what has become a star performer on the ISEQ. Brokers were cheered by Mr Fitzpatrick's comments on the bank's bad debt provision which is now higher €50 million than the historical level of one per cent of all loans.
Mr John Kelly of NCB stockbrokers noted the positive sentiment of the bank's outlook statement and estimated earning growth could be in the region of 24 per cent in 2004, which Mr Kelly said would put Anglo among one of the fastest growing banks in Europe.
The bank raised its dividend by 50 per cent in what it said was a sign of its confidence in future growth. The higher dividend also sets to establish a platform for what the bank called "a progressive dividend policy in the future."