AIB rules out branch closures
Allied Irish Banks today ruled out shutting down branches to cut costs like other rivals, it emerged today.
Competitor Bank of Ireland announced in March that it would be closing 10 of its 290 branches in a plan to cut 2,100 jobs by 2009.
But AIB, which today posted €851m pre-tax profits for the first half of 2005, said margins were healthy and it remained committed to its network.
“We have a very strong commitment to the branch network,” said AIB chief executive Eugene Sheehy.
“Our objective is to provide as many outlets to serve our customers’ needs as possible going forward,” he added.
Mr Sheehy explained that the bank was currently investing in a new department, staffed by 207 employees, to provide support to the network.
The newly-appointed chief executive also ruled out offering 100% or higher mortgages, similar to new entrants into the mortgage lending sector.
He explained that the AIB’s mortgage lending business was up 29% for the first six months of 2005.
“We want to be the mortgage provider of choice to our customers.
“As of now, we don’t feel a need to enter into the 100% mortgage business.”
AIB’s €851m pre-tax profits compared with €706m for the same period last year.
Profits at AIB’s banking business in the Republic of Ireland were up 17% to €406m and by 13% to €156m in Britain and Northern Ireland.
“We’re performing well in all our markets,” Mr Sheehy told RTÉ Radio.
