BoI sells Bristol & West branch network for £150m
Bank of Ireland has signed an agreement for the sale of its Bristol & West branch network and associated deposit base to Britannia Building Society for about £150m (€218m), the bank said today.
The sale will be effected through a business transfer scheme under the Financial Services and Markets Act 2000 and is subject to approval by the UK Courts and the Financial Services Authority.
The sale, under the terms of which Bank of Ireland will retain the Bristol & West brand and all other parts of the Bristol & West business, is expected to be sealed in the autumn.
Brian Goggin, Group Chief Executive, Bank of Ireland, said: “The disposal delivers on a key commitment set out by us last November. To sell at a good price to a quality institution, while enhancing the offering to customers and maintaining employment, is good news for everyone.”
“Our business in the UK is now focused on three key areas: the successful Bristol & West and Bank of Ireland mortgage business; our growing business banking operation; and our venture with the UK Post Office which allows us to distribute financial services products to a wide UK consumer market through Europe’s largest retail network.”
The profit on disposal of the branch network is expected to amount to approximately £90m (€131m) after tax and will be reflected in the results for the year ending March 31, 2006.
The transaction is expected to be earnings neutral from a Bank of Ireland Group perspective going forward and have a positive impact on the Group and UKFS cost/income ratios.
