Shareholder concerns about Irish Life & Permanent's poor share price dominated the company's a.g.m yesterday as board members struggled to convey their upbeat message of steady growth and increased returns.
Mr Conor McCarthy and Mr John Bourke, the two outgoing chairmen of Irish Life & Permanent, faced down some aggressive questioning on the company's share value, which has fallen since the merger last year. One shareholder said Mr Bourke's upbeat presentation of the company's performance made to shareholders at this year's a.g.m "just glossed over the matter". He said the company couldn't be as upbeat and confident - due to the current share price.
Mr McCarthy said the board's job was to grow the company and eventually this would be reflected in the share price.
Speaking after the a.g.m., Mr David Went, chief executive of Irish Life & Permanent, said he shared shareholders' concerns as he had invested some £300,000 of his own money in the company in the past year.
He said the reasons for the low stock price were complex but if the board managed the company well then ultimately the market would recognise this. Asked about possible acquisition targets, including TSB, Mr Went, said company strategy was not based on acquisition.
Mr Went said further consolidation was inevitable. But Ireland is down the pecking order and European banks would concentrate their efforts on the continent and the UK in the short-term, he added.
On the Irish economy, Mr, Went said inflation was a worry but there were a number of solutions which could resolve this fairly easily. He said reports in the British media that the Republic was heading for boom bust were "mistaken".
He said rising interest rates would not affect Irish Life & Permanent's business "that much" as tax changes introduced in the last Budget had increased the public's take-home pay and would compensate for these.
Mr Went said business was good and the mortgage side of the business was strong. He expected the company's life pensions and investment products to double over the next three years.
