Irish Permanent is the State's largest mortgage provider and has benefitted significantly from the surge in Irish property prices.

In August the company surprised analysts when it announced pre-tax profits for the first six months of £31.3 million, an increase of 20.5 per cent.

Chief Executive Mr Roy Douglas signalled he expected further growth in profits in the second six months of the year.

During the first six months of this year the company managed to increased its share of the booming mortgage market, to about 21 per cent. In July the company processed its highest ever level of mortgage applications.

Mr Douglas believes the demographics of the Irish economy and the large number of younger people who will be forming households in the years ahead, will underpin sustained demand for housing for the next five years at least.

About 90 per cent of the company's business is in the domestic market, with the remainder in the UK and the Isle of Man.

As well as mortgage lending, the company is involved in the sale of life products and car finance.

In 1997 Irish Permanent made pre-tax profits of £55 million, an increase of 13.2 per cent over the previous year.

Irish Permanent was the first Irish institution to take advantage of legislation allowing mutual societies to convert to limited companies. It floated in 1994 and now has some 140,00 shareholders, many of them small investors and a market capitalisation of around £800 million.

The company's three senior executives, Mr Douglas, finance director Mr Peter Fitzpatrick, and Guinness & Mahon managing director Mr Peter Ledbetter, received options allowing them acquire shares at 180p over a three-year period.

Underpinned by a 10 per cent shareholding purchased by Abbey National, the share price has risen from 180p to over 1000p. The current price is just over 900p.