It was smiles all the way at Anglo Irish Bank's annual general meeting. The two hundred shareholders who attended the meeting in Dublin yesterday were a content lot and were happy to digest the bank's good news story.

1998 was Anglo Irish Bank's best ever year, according to outgoing chairman, Mr Gerard Murphy. Chairing his last annual meeting before his retirement, he told shareholders they had "every reason to be cheerful". Profits had increased, earnings per share were up and the bank's assets had expanded over the past 12 months. More importantly, the directors had decided to pay shareholders an earlier interim dividend this year, to ensure they could maximise their net earnings under current legislation.

Over the next three months Anglo Irish Bank shareholders will receive two dividend payments. Later this month they will be issued with a final dividend of 3p per share, bringing the total dividend for the 1998 to 4.85p. Overall this represents an 18 per cent increase on the previous year. In additional, the board has approved the payment of an interim dividend of 2.1p four months earlier than usual in the current financial year because of changes in the tax treatment of dividend payments.

The Minister for Finance announced in the Budget the abolition of tax credits from April 5th which are used to offset shareholder's tax liability on these earnings. By paying an early dividend, Anglo Irish Bank shareholders will be able to avoid this new arrangement. Group finance director, Mr Willie McAteer, said shareholders would get 12.5 per cent less into their hands if the interim dividend was paid after the end of the current tax year.

The chairman said the strong trend is continuing, with profits "comfortably" ahead of target across all sectors in the early months of the current financial year. "I am optimistic we will continue to build on the strong performance of 1998" Mr Murphy added.

The bank has seen a marked increase in its shareholder base with numbers rising by around 1,000 a month. In 1998, Anglo Irish Bank had 11,000 new shareholders, he said.

But there was cold comfort for the bank's hard-pressed savers with predictions that interest rates will remain low for the foreseeable future. "The only consolation is that whenever you want your money you will get it back" Mr Murphy said.

Mr Murphy, who has been with the bank for over 39 years, will be succeeded by Anglo Irish Bank's chairman designate, Mr Tony O'Brien.