Anglo Irish Bank has started the year robustly and is confident of another strong performance, outgoing chairman Mr Anthony O'Brien told shareholders yesterday.

"Trading is well above the first three months of last year and is in line with our demanding targets.

It is felt that Anglo's unique relationship banking model will mitigate the worst effects of any downsides arising from the slowdown in the global economy," he told the bank's annual meeting.

The bank reported a 46 per cent rise in pre-tax profits to €194.8 million (£153.4 million) last year. Earnings per share rose by 41 per cent to 41.92 cents per share and total assets grew by €4.7 billion to €15.7 billion. A 20 per cent increase in dividend for the year to 10.44 cents per share was proposed.

Chief executive Mr Sean FitzPatrick said the bank was in line to reach its predicted growth levels in lending of 15-18 per cent.

He added that the bank had provisioning of three times non-performing loans and was setting aside 1 per cent of all new lending for general provisioning. Despite the slowdown, Mr FitzPatrick said the Irish market was still buoyant.

Earlier this week, Anglo completed a placing of the equivalent of 5 per cent of its stock. "The proceeds from this, which amounted to €64 million, will strengthen further our balance sheet and leave us well placed to capitalise on future acquisition opportunities," said Mr O'Brien.

Mr FitzPatrick said he expected the bank to make an acquisition in mainland Europe in the next nine to 15 months.

"We have nothing definite at this stage. Any acquisition won't be in excess of €150 million and it will be more than €50 million," he said after the a.g.m.

Germany, Italy, Austria, where Anglo has an existing operation, or Switzerland, where it bought the Geneva-based Banque Marcuard Cook, are the most likely locations for any private banking acquisition, he said.

Around one-third of Anglo's profits are now being generated outside of Ireland.

Mr FitzPatrick also defended directors' remuneration which he said reflected the bank's performance.

"In the bank we have a policy that rewards success," he said. "The bank has done exceptionally well over the past five years."