CURRENT ACCOUNT: First Active has impressed the markets with indications that the former building society would deliver profit growth at or slightly above market expectations for 2002. The bank has been completely restructured. It has focused on reducing its cost base and providing a more streamlined range of products and its latest trading statement appears to show the benefits of this approach.

First Active is signalling good prospects for the group in 2003 but will be disappointed at the Government decision to impose a levy on all financial institutions based on their retail deposit base.

First Active is now totally reliant on the Irish market for its business. In September it left the British market, selling its interest in Brittanic Money, and now finds itself at a greater disadvantage to its rivals in the domestic market as a result of the Government levy introduced by Charlie McCreevy in the Budget.

Financial institutions are still trying to work out the financial implications, with the Government suggesting the levy will raise €300 million from the sector over the next three years.

Whatever the cost, First Active's trading statement shows it is at least in better shape to meet this and other challenges ahead.