Irish Life & Permanent intends to buy back some of its shares in an effort to reduce its high level of capital. The company has said the share buy-back programme will be implemented on a rolling basis up to a total of €150 million (£118.9 million). The move should help to enhance earnings for shareholders and the group will be hoping it will provide some support to the struggling share price.

Analysts were slightly surprised by the announcement yesterday and are expected to revise their forecasts for the group. The shares closed up 10 cents at €9.70 yesterday on the back of the results.

Irish Life & Permanent together with other Irish financial stocks are continuing to struggle on the stock market amid fears about the outlook for the Irish economy and the switch of funds into technology, media and telecommunications stocks. Mr Went said the share buy-back will go ahead regardless of whether it is successful in its bid for TSB Bank. The group has announced an interim dividend of 11.1 cents per share for shareholders, up 10 per cent on last year.