A smaller player in the Irish banking sector, Anglo Irish Bank, is expected to perform ahead of expectations this year. Davy Stockbrokers has upgraded its earnings forecasts for the bank on the back of its €38 million (£30 million) acquisition of Smurfit Paribas. The deal will be modestly earning enhancing for the bank with Davy estimating it will add 4 cents to earnings in the year to September 1999 and 7 cents in 2000. It has also revised its pre-tax profits forecasts to €69 million (£54 million) in 1999 and €66 million (£52 million) in 2000. With two thirds of its assets in Ireland, Davy states that Anglo Irish Bank continues to offer a unique exposure for investors to the middle market segment of Europe's fastest growing economy. Based on its revised forecasts, the brokers suggest the shares are trading at a significant discount to the rest of the sector and are strongly recommended for investors.