IIB Bank has reported a 12 per cent increase in after-tax profits to €53.2 million. The results for the year to December 31st, 2001, represent a return on equity of 21 per cent.

In its residential mortgage business, the bank estimated it has a 10 per cent market share of annual new lending, a similar estimate to that made when last year's results were announced. The bank said it had recorded solid performances across the range of areas in which it operated.

Mr Ted Marah, chief executive, said 2001 was the bank's 29th straight year of profitability.

"The increase in profitability underlines the strength of our operations and it also suggests an encouraging resilience in the markets in which we operate in spite of the many threats to the global economy in the past year."

"All divisions performed exceptionally well," he said. The bank maintained its position in the larger property and corporate sectors.

"During the year we also extended our reach in the corporate sector by bringing our business banking products to the SME market."

During the year, the bank opened regional offices in Cork and Galway. It said it had experienced an increased interest by investors in Irish residential property since the budget, as well as continuing interest by Irish investors in the UK residential market.

The private banking element of its business also had a successful year, the bank said, with keen customer interest in areas such as private equity placement and property investment.

It said its associate company, KBC Finance Ireland, continued to build on its growth across its two core business units: aerospace and project finance.

In 2001, the associated company arranged and syndicated $3 billion (€3.4 billion) of project finance transactions. "IIB Bank and KBC Finance Ireland expect to be centrally involved in emerging Irish infrastructure projects under the Public Private Partnership initiative."