Bank of Ireland must find it difficult to know how to keep everyone happy. This week it produced results showing a 12 per cent increase in profit in the first half and a generous 28 per cent increase in dividend. All this at a time when it took a €35 million (£27.56 million) hit to settle its liabilities for DIRT evasion and €67 million in restructuring costs.

Instinctively, the market reacted by pushing the shares ahead 19 cents or more than 2 per cent.

But when analysts had time to look at the figures, the response was less clearcut. Certainly, it seems likely that full-year forecasts will be upgraded.

At the same time, several analysts downgraded the stock. Dolmen Butler Briscoe urged clients to take profits while Commerzbank adjusted its rating to accumulate from buy.

The bank's continuing reliance on the domestic market concerns market watchers.

Another is the continuing failure of its overseas operation to deliver. Already, Bank of Ireland has retreated from the US; now its British subsidiary, Bristol & West, is failing to provide a boost, with profits there falling 3 per cent in the period.

While Ireland continues to bask in the warm glow of table-topping growth, the bank's concentration on the home market will yield results, but what happens when times get tougher?

Dominic Coyle is at dcoyle@irish-times.ie