Bank of Ireland pleased the markets by delivering on aggressive profit growth targets and seems happy to stick with its winning strategy for now.
Chief executive Mr Maurice Keane expects economic growth to slow in the Republic but insists the bank is well positioned to continue to deliver good growth for shareholders.
Mr Keane, who is due to retire next year, said the bank's growth strategies had consistently delivered strong performance and it had shown itself to be adept at achieving growth in a radically changing environment.
Under Mr Keane's stewardship, Bank of Ireland will continue to diversify its earnings to reduce its reliance on interest rate-based activity and to grow each of its businesses while keeping costs low. The bank is preparing to appoint Mr Keane's successor, with shareholders expected to be informed at its annual general meeting in June.
The court of directors has been considering contenders from outside of the bank as well as from its own senior management team.
The markets will closely examine that announcement to determine the future shape of the bank. An internal candidate is likely to stick with the current formula while an external appointment could mark a radical departure going forward.
Mr Keane played down speculation about possible mergers and further consolidation in the Irish market arising from the intense activity among the UK financial institutions. The bank is focused on further acquisitions, which will give it further exposure to fee-earning investment type business but, is also being increasingly squeezed in terms of scale by the latest spate of consolidation.
Analysts believe that, as options for mergers dwindle in the British market, institutions such as National Australia Bank, which owns National Irish Bank, could look at a takeover of Bank of Ireland or AIB to enhance its European presence.
Mr Keane's successor will have to consider the impact of this trend for consolidation and to identify domestic or foreign acquisitions to underpin its future success.
