Anglo Irish Bank shareholders are the happiest investors in town. They are delighted with their dividends, some are still wondering what makes this bank so successful and none seems to mind paying chief executive, Mr Sean FitzPatrick, more than €4 million over the past two years to run the business.

It is extremely rare to find up to 200 small shareholders heaping praise on the beaming executives and directors of a financial institution. There was much spontaneous applause and even a few harsh words for the Minister for Finance, Mr McCreevy, for having the audacity to impose a levy on the sector, which would shave up to €16 million off Anglo's profits over the next three years.

The bank's chairman, Mr Peter Murray, opened the meeting by reminding shareholders that 2002 was the 17th consecutive year of record profits, which has resulted in compound annual growth in pre-tax profits of 47 per cent over the past five years.

Mr Gerry O'Reilly asked him to explain just what the key to Anglo's success was.

"It comes down to customer service and reacting speedily to their needs. That is what attracts customers to use our bank. There is no other magic to it. We are a lean, mean machine," Mr Murray said.

The bank's profits rose by 34 per cent to €261.3 million and shareholders will receive a 22.5 per cent increase in their dividend payment equal to 8.33 cents per share.

Mr Denis O'Callaghan said, while he was overwhelmed by the bank's performance, the rise in the dividend, healthy and all as it was, was not as robust as it could be. "I think you could have gone a bit further," he said.

Mr Hugh Sheridan made a timely intervention on the impending bank levy. Just as his fellow shareholders rubbed their hands in anticipation of the attractive dividend payment, he explained that the levy was simply the Government's way of transferring some of the bank's huge profits to the less fortunate.

And there was nothing to suggest that shareholders would have anything to worry about in the near future. Anglo Irish remains confident that it can deliver a strong performance this year and in 2004.

Over the past 12 months, the bank's share price has increased by 60 per cent to €6.80, making it one of the top-performing stocks in Ireland and the rest of Europe. If everything goes according to plan, shareholders will be equally effusive again next year.