RNS Number:6923M
Irish Life & Permanent PLC
24 June 2003



                           Irish Life & Permanent plc

                          Pre-close Trading Statement

                                 June 24th 2003


Irish Life & Permanent plc is issuing the following trading statement ahead of
its closed period for the six months to 30 June 2003.

Overview

New business sales for the first half of the year will show contrasting outcomes
as between the banking and life sides of the business. Bank new lending is
expected to be up, strongly buoyed by the continuing strength of the residential
mortgage market. Life sales, on the other hand, will be down sharply on the
prior year reflecting principally the impact of the government sponsored SSIA
products in 2002 as well as consumer caution following the disappointing
performance, until recently, of equity markets.

A stronger than expected outcome on the banking side in the first half is
expected to offset lower earnings from life assurance activities due to reduced
life new business profits. The improved performance of equity markets in the
year to date has been positive for the in-force life business.

Sales

Banking Business

Gross new lending for Ireland and the UK is expected to be in the order of
Eur2.6 billion for the first half of 2003. New residential mortgage lending in
Ireland is expected to grow by over 30% for the first half in line with the 
market.New mortgage lending in the UK by Capital Home Loans is expected to grow
by over 50%(in #Stg). New commercial lending is expected to increase by over 20%
but consumer finance - principally motor finance - will be flat against the
first six months of 2002 which is a very satisfactory performance given the fall
in new car sales.

At this point the expectation for the overall growth in the loan book (including
securitised assets) for the full year is in the order of 15 to 17%.


Life Business

In line with the market generally overall life sales for the first half of the
year are expected to be down circa 40% on the corresponding period in 2002.

Excluding SSIAs, sales performance in the first half in Retail and Corporate
life divisions is expected to be flat half year on half year. Sales of
protection and investment bond products will be ahead of 2002 but pension sales
are slower due to changes in the tax filing dates coupled with the impact of the
introduction of PRSAs in the second quarter.

It is anticipated that sales will improve in the second half of the year,
particularly in the pensions area. At this point, sales in Ireland for the full
year are expected to be between 20 to 25% down on 2002, or 15 to 20% down
excluding the government contribution in the SSIA sales.

Earnings

Banking Business

The contribution from banking for the half-year to June 2003 is expected to be
strongly ahead of the prior year period. This is principally due to gains
arising from the repositioning of a proportion of the bank's gilt portfolio
together with good underlying growth coming through. The net interest margin for
the first half will be over 180 bps (including the gilt gains) and is expected
to fall to circa 170 bps for the full year (2002: 178bps), reflecting the full
impact of interest rate reductions.

The bank is on schedule to achieve the targeted cost synergies of Eur29m by the
end of 2003 and total bank costs for the year are expected to be below 2002
levels.


Life Business

Life earnings for the year will be principally impacted by the expected
reduction in sales reducing the new business contribution. The reduced level of
sales will impact margins adversely as the capability to absorb fixed costs is
limited in the short term. Operating costs in the life business for the full
year are expected to be flat against 2002.

Based on current sales projections the overall new business margin (for life and
investment sales) for the full year is expected to be in the range 9 to 10%
(2002: 14.6%) with an improvement in the second half over the first.

The contribution from the existing book of business will reflect a continued
out-performance against assumptions.

Reflecting movements in the markets the short-term investment fluctuations
(including the unit-linked management fee variance) are currently running
positive versus the significant negative outcome experienced in 2002.


Associated Business

Allianz -Irish Life, which carries on non-life insurance and in which the group
has a 30% interest, continues to enjoy a strong underwriting performance and the
absence of adverse investment fluctuations.


Other matters

Following receipt of regulatory approvals, and all preconditions having been
met, the disposal of Guarantee Reserve Life Insurance Company is expected to
complete on June 30th.


Contact details:

David McCarthy

Tel: +353 1 856 3050

Barry Walsh

Tel: +353 1 704 2678

                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
TSTGGGZVMDRGFZM