Anglo Irish Bank is actively pursuing acquisitions in the UK, Ireland and Europe following a strong set of results in 1999 when the bank grew pre-tax profit by 56 per cent to over £70 million.

Speaking after the bank's annual general meeting in Dublin yesterday, Mr Sean FitzPatrick, chief executive, said the bank would focus on acquiring enterprises within Anglo Irish Bank's core business sector in the UK and Ireland. Additionally the bank will be examining further European acquisitions, which would spread geographical risk and develop fee income. France, Spain and Germany are the prime target areas for expansion which will build on Anglo Irish Bank's presence in Austria, said Mr FitzPatrick.

He said the board had considered acquiring Ulster Bank's investment management arm but this did not fit Anglo Irish Bank's strategy. "UBIM is very institutionally focused while we aim to develop our private clients. We aren't going to go for it," said Mr FitzPatrick.

He said there were few threats posed by competition on the horizon for Anglo Irish Bank. Neither Northern Rock nor Bank of Scotland were competing in their core business sector and Anglo Irish faced competition from banks who have been here for 25 years, he added.

The company results presented yesterday to a packed hall of shareholders show Anglo Irish Bank grew pre-tax profits to over £70 million. Earnings per share were up 46 per cent in 1999 and the total dividend increased by 17.5 per cent per share, roughly six times the measure of inflation.

Gross assets increased by £1.8 billion to £6.2 billion and Tier 1 capital increased by 80 per cent. The return on shareholders' funds reached 27 per cent in 1999.

Mr FitzPatrick confirmed applications for a licence to offer insurance had been lodged with both the Department of Enterprise, Trade and Employment and the Central Bank. He said he expected these licences to be issued shortly.

Responding to a question from the floor Mr Tony O'Brien, chairman, said the move was nothing more than an expansion of the bank's product range. "If we don't provide it we run the risk of losing customers," he added.

Mr O'Brien, said the good set of results delivered yesterday reflected the successful strategy to focus lending in Ireland and the UK where there is considerable opportunity to build market share. However, he said the treasury and funding base will be spread over a wider geographic region.

He said: "An integral part of our plan is also to develop our fee income from private banking, corporate foreign exchange, trade finance, our banking operation in Austria and our representative operation in the US."

He said the increasing consolidation in the financial services industry was enhancing Anglo Irish Bank's opportunities as a niche player. "Every time you open the papers you hear of mergers and consolidations. We do not see this as a threat but very much an opportunity for us."