Bank of Ireland confirms 2,100 job cuts

Bank of Ireland today confirmed that 2,100 jobs are to be cut as part of a radical cost-cutting plan across the group.

A net number of 10 branches will close.

"Insofar as possible, the redundancies will be voluntary," said group chief executive Brian Goggin today, adding that efforts would be made to redeploy staff but that a number of involuntary redundancies could not be ruled out.

The bank employs some 12,000 people in the Republic and 6,000 in the UK.

Bank of Ireland has set its sights on an annual reduction in costs of €120m to be achieved in the next four years. This will consist of €30m savings in 2005/06, increasing to €75m in 2006/07 and to €105m in 2007/08, resulting in an annual reduction in costs of €120m in 2008/09.

The job cuts are part of this programme.

In a statement to the Stock Exchange today, the bank added: "This programme will consist of specific efficiency initiatives in our retail business in Ireland, the streamlining of some group support services and the consolidation of some processing activities currently dispersed throughout the group."

Some €40m will be invested in technology and automation as part of the restructuring programme.

Bank of Ireland also said today that it expected alternative earnings per share to grow by about 7% for the year to March 2005 or by about 9% excluding the impact of the group's investment in the UK post office financial services.

Retail in the Republic expects to report profit before tax growing by about 17% for the year. This is driven largely by a 23% growth in lending volumes with mortgage lending up by 26% and business banking lending up around 22% while resources growth of around 12% is expected to be achieved.

UK financial services is expected to achieve growth of about 2% in profit before tax on a constant currency basis. This includes a release from NDSP of £10m (€14.4m), and the negative impact of mortgage back book re-pricing. Mortgage lending growth of 9% and business lending growth of 18% is expected.