National Australia Bank, National Irish Bank's parent, remains strongly interested in acquiring TSB Bank, according to National Irish Bank (NIB) chairman Mr Alex Spain. "We will be an active participant in whatever process emerges for the sale of TSB," Mr Spain said. Without any acquisition NIB, which has about 3 per cent of the Irish banking market, wants to increase its share to 6 to 10 per cent over the next three years.

Though chief executive Mr Grahame Savage described this target as "ambitious", he said the bank has "active and vigorous policies for organic growth".

In recent years NIB has not expanded as rapidly as it might have because of the TSB bid, but its distribution strategy can be implemented very quickly, he said. NAB's subsidiary in Northern Ireland, Northern Bank, has about 40 per cent of its market and the group sees expansion in the Republic as `the biggest opportunity in Ireland, Mr Savage said. Mr Halpin said NIB's integrated distribution strategy involved increasing its branch network from the current 60 and introducing more facilities for customers.

National Australia Bank yesterday announced a 5.8 per cent rise in operating profits to Aus$2,223 million (£934 million) for the year to end September.