Anglo Irish Bank shares have had an outstanding year so far, up more than 53 per cent and out-performing the market by 13 per cent, so great things are expected when Anglo reports full-year results next week. Expect strong profits growth from £26 million to £29 million and earnings up from 7.5p to 8.6p.

And Anglo - traditionally a generous dividend payer - is likely to pay enough to keep its dividend yield at well over 4.5 per cent, a good deal ahead of the major banks and also Irish Permanent (against which Anglo is most often compared.)

With growing rationalisation in the financial sector - the Woodchester and New Ireland takeovers are proof of that - many in the market feel Anglo Irish could be an attractive target for one of the British or continental banks wanting an entree to the Irish market.

Even at its current level, Anglo Irish is only trading at 2.2 times its book value and on a substantial discount to the 2.6 times book value that GE Capital has paid for Woodchester and is on a broadly similar price/book ratio as the Irish Permanent.

The Permo, however, is insulated from any predator, such as its 10 per cent shareholder Abbey National, until 1999. With Woodchester and New Ireland now gone, Anglo Irish is certainly the most available entry to the Irish market. The share price does not reflect that.