Irish Permanent shareholders will benefit from the cancellation of some 6.8 million shares worth £42.7 million. The shares have been cancelled because members of the former building society failed to claim the free shares they were entitled to under the 1994 flotation. Existing Irish Permanent shareholders will gain because the bank's earnings per share and net asset value will rise. Higher earnings and net asset figures will make the Irish Permanent shares more attractive to investors, and could push the share price higher.

Following the cancellation of the 6.8 million shares, the total number of Irish Permanent shares in issue is 93.8 million. If the full number of free shares had been claimed, some 10.6 million shares would have been issued.

Because earnings per share - profits per share generated for shareholders - is based on the number of shares in issue, this measure of earnings will rise. Based on current market forecasts for the year to end-1997, earnings per share should rise by just under 3p to just under 40p.

Net asset value per share - the value of assets per share backing the business - should rise to just under 289p, a gain of just under 20p. Irish Permanent members had more than three years from June 1994 to September 1997 to claim their free share entitlement. Most got 300 free shares worth £540. That block of shares was worth £1,884 at yesterday's closing price.