With results for the year to end September due in a couple of weeks and a weak share price Anglo Irish Bank could well become the focus of renewed takeover speculation. While Anglo is interested in acquiring ICC Bank there may be predators waiting in the wings for Anglo.

Bank of Ireland is interested in ICC as it tries to build up the small business side of its domestic operations. Depending on the outcome of the ICC sale, Bank of Ireland could be seen as a potential bidder for Anglo.

But at a share price of 140p to a net asset value per share of 56p the bank would be a more expensive buy in net asset terms than Bank of Ireland, Irish Permanent and First Active.

Results due on November 24th should show strong profits growth particularly at the pre-tax level. The bank is aiming to double profits in five years. Analysts are forecasting pre-tax profits of around £44 million, up from £30.3 million. At the pre-tax level new domestic business lending and the translation of earnings in strong sterling into Irish pounds will boost the result.

In addition the bank will be able to add in for a full year the interest earned on capital raised in May 1997. Because the cost of this capital comes in the form of preference dividends rather than interest, this cost comes out after pre-tax earnings, helping the pre-tax figure.

Reflecting this, at the post tax level earnings growth will be slower with earnings per share expected to increase from 8.6p to 11.2p.