Belfast benefits from Abbey's operations review

Abbey National, Britain's second biggest mortgage lender, announced that it is to invest in its facility in Belfast as part of its wide-ranging review of operations.

Abbey National is also involved in retail, commercial, and wholesale banking; financial planning; and wealth management.

It also sells life insurance and pension products through subsidiaries Scottish Mutual Assurance and Abbey National Life.

The group has some 750 branches throughout the UK and has operations in France and Italy as well.

The Northern Ireland office has been chosen as one of five locations where the company will centre its back office operations, almost 700 staff are employed in Belfast, primarily in customer service and IT.

Abbey plans to invest UK£25m (€36.25m) in five chosen sites over the next three years. The other sites are Bradford, Glasgow, Milton Keynes and Sheffield.

The bank also said that it plans to move 900 jobs from Edinburgh to Glasgow and move 400 jobs in England to India.

Unions in Scotland have claimed the company was preparing to cut 700 jobs there, but the mortgage lender said they will be offered "enhanced packages" to encourage them to relocate or commute to Glasgow, and also have the option of redundancy.

Abbey said that it was not closing any components of its UK life, investment and protection businesses - Scottish Provident - which employs 220 in Ireland, Scottish Mutual, and Abbey National Life.