BANK of Ireland earnings per share will be flat at best this year, according to brokers ABN AMRO Hoare Govett, which is forecasting a 7 per cent rise in pre-tax profits to £388 million.

Tax Analyst John Hogan said the recently announced expectations. He expected that a higher tax charge this year would mean earnings would "at best" be flat.

Dr Hogan expects the tax rate to rise from 28 per cent to 33 per cent this year because of the absence of tax free profits from the US. The higher tax rate will make it difficult to maintain after tax earnings so Dr Hogan forecast a 1 per cent decline in earnings per share to 51p. Boosted by a contribution of up to 5p per share from Bristol and West, earnings per share should rise by 12 per cent in 1997/1998, he forecast. This was based on completion of the acquisition in July 1997.