Irish Life and Permanent says that arrears in its Irish residential mortgage book continues to rise but that the rate of growth has moderated. The lender says that arrears cases over 90 days increased by 3% in both September and October compared to an average monthly increase of 8% to August. Advertisement Permanent TSB says that after a very difficult start to the year, liquidity conditions have generally improved over recent months. It said that dependence on money from the ECB has been greatly reduced and currently amounts to €7 billion, down from €12 billion from the end of June. Lending continues to be weak in Permanent TSB's main areas - home mortgages and consumer finance. Advances for the full year will be about 80% lower than in 2008, it adds. 'Overall, the bank's loan book is expected to decline modestly through 2009,' it added. However, retail deposits are expected to grow by about 20% for the year, while strong growth is also being recorded in Irish corporate deposits after the general outflow from the country of overseas funds. Life assurance sales down 35% on 2008 levels Today's trading update says that overall life assurance sales are expected to be about 35% lower on 2008 levels. IL&P says that retail investors remain cautious with a low appetite for investment products, while reduced profitability in small and medium sized businesses have contributed to lower pension volumes. The bancassurer said that while pension funds have benefited from stronger equity markets so far this year, this has been offset by the steep falls in property funds. IL&P said it expects that 2009 will see the worst of the current economic downturn in Ireland with GDP expected to fall by 7-8%. It said the economic environment has affected the group with lower new business volumes and tighter margins across all businesses and, as expected in the banking business, rising impairments in its loan book. Shares in Irish Life and Permanent were down 9% in early Dublin trade to stand at €4, down 41 cent. | 
Irish Life & Permanent ups bad debt forecasts