Shares in the bank were up over 4% following the release of the results.

Speaking to reporters after the release of the results, Mr O’Grady said the bank does not have a “headcount target” but given the inflationary environment “we’ve got to deliver efficiency savings and certainly target a more leaner organisation”.

In its outlook to 2027, Mr O’Grady said that they expect their cost base to average out at €2bn a year over the next three years.

“I do expect our FT levels to be lower in three years than they are today. It's less about a headcount target, but FT levels will be lower,” Mr O’Grady said, adding that the reduction could be on “iterative” basis as new technology and efficiency are deployed.

Restructuring costs

The bank currently employs around 11,000 people.

Bank of Ireland said they are expecting to incur a restructuring charge of between €110m and €125m over the next three years some of which could go towards redundancy packages.

Mr O’Grady said “part” of the restructuring costs “will be a level of redundancy”.

"Not so much a very structured bank wide scheme, but certainly where it's appropriate to deploy it, we will,” he said.

On top of this, Mr O’Grady said much of the bank’s cost base is driven by third party suppliers which they will also seek to “consolidate” over the coming years as they look for further efficiencies.

He added that these moves are “very much about future proofing Bank of Ireland into the longer term”.

When asked about whether the reduction in full time  employment will result in branch closures, Mr O’Grady said that Bank of Ireland currently has 182 branches across the country and “that's about the right size for us”, adding that he doesn’t expect major changes to its branch footprint.

According to the bank’s results for 2024, the value of its loan book grew by €3.2bn to €82.6bn driven by a €2.1bn increase in mortgages as well as €800m in small and medium sized enterprise as well as corporate lending.

Its business income rose 4% to €764m while income from fees was up 6% and assets under management rose 19% to €54.9bn.

Operating expenses stood at €1.97bn "in line with guidance", the company said.

The bank said that total shareholder distribution for the year stood at €1.22bn — up 6% compared to 2023. This was divided between a dividend of 63c per share, amounting to €630m, and €590m in share buybacks.

In its guidance for this year, Bank of Ireland said it expects net interest income to be greater than €3.25bn with business income to be 5% higher than 2024.

However, expenses are also expected to be 3% higher with stable levies and regulatory charges expected.