Irish Nationwide's eventual demutualisation will benefit the EBS building society when it happens, the institution's chairman told members yesterday.

Speaking at the EBS annual general meeting in Dublin's Burlington Hotel yesterday, chairman Brian Joyce said that the Oireachtas would this year pass the legislation necessary to allow Irish Nationwide to demutualise.

"We believe that by the end of the year, we will be the only financial services mutual left in the country," Mr Joyce told the meeting.

He predicted that it would leave the EBS in a strong position, as mutuals are recognised as more competitive. "Demutualisation restricts competition," he said.

The EBS has always said that it is opposed to demutualisation, and Mr Joyce reiterated its commitment to maintaining this status into the future.

"We are still totally committed to mutuality," he stressed.

He argued that, in many cases, farmers who sold their shares when agricultural co-operatives began to float ultimately "paid for it many times over".

Earlier in the meeting, Mr Joyce said the building society expected to continue to perform well this year.

"We have made a good start to 2006 and we do hope that this will be a successful year for the society," he said.

Last year, the society paid a €22.5 million mutuality dividend to its members, an increase of 10 per cent.

New loans to customers grew 22 per cent to €3.8 billion, and the total loan book grew 20 per cent to €12.2 billion.

Its net interest margin fell to 0.8 per cent from 0.96 per cent. Pretax earnings grew 9 per cent to €53.8 million.

Credit agencies Moodys and Fitch both upgraded the society's rating to A2 and A+ respectively.

There were no changes to the board.