First Active shareholders have complained to the board about the share price's poor performance and dismal returns for savers, at its annual meeting.
Most of the 300 shareholders at the meeting in Dublin yesterday were elderly and had share price appreciation and interest rates close to their hearts.
Up to 170,000 members of the former First National Building Society qualified for about £1,000 free shares when it floated on the Irish stock market last October. The shares began trading at £2.25 (€2.86) each and rose to highs of £3.70 (€4.70) but have fallen lately and now hover around £3 (€3.8).
One shareholder asked why First Active's shares had depreciated at a time when AIB, Bank of Ireland and Anglo Irish Bank shares were performing strongly.
"Does it reflect a lack of confidence by the investment institutions in First Active?" he asked.
First Active's group chief executive, Mr John Smyth, strongly rejected this suggestion, insisting there was strong support for the shares.
"There are a number of factors influencing the share price. Firstly, there is very little liquidity as shareholders are giving us a strong vote of confidence in that they don't want to sell their shares. Meanwhile, middle market capitalised stocks have not been growing at the same rate as others listed on the stock exchanges and this is something we don't have any control over," he told the meeting.
Ultimately, the share price will be driven by the future growth in First Active, he said.
Ms Monica Ann Dunne, president of the National Association of Pensioners, urged the bank to be "generous" to its older shareholders and customers.
"Many of our 60,000 members have helped to build up the building societies. I invite you to make some financial gesture towards the older people of Ireland."
In answer to other questions, the chairman said £10.6 million of First Active free shares remained unclaimed. Former First National members have three years to claim their entitlement, as the shares will then be cancelled.
Shareholders will also receive loyalty shares over the next few years. First Active will issue 23 shares to each shareholder in October and a further 22 in October 2000, chairman Prof Michael MacCormac said.
The meeting was his last as chairman. Prof MacCormac retired yesterday, having served in that position since 1990, and will be replaced by the vice-chairman, Mr John Callaghan.
Prof MacCormac said he was proud of the company's developments. "I'd like to claim credit for all the exciting things that have happened in our economy over the last eight years or so, but I suppose that would be stretching it a little. I will say, however, that I am proud of the fact that all the changes and developments have been achieved on a basis of consensus and mutual trust."
