Bank of Ireland has announced it will close 15 branches in Northern Ireland, which is more than half of its 28 branches currently operating in NI.
It is part of a wider cost cutting exercise which will shut over 100 branches across the island of Ireland.
The Dublin-based bank operates across the Republic of Ireland and the UK, and is one of NI's 'big four' banks.
Chief Executive Francesca McDonagh said the bank's UK head office will also relocate from London to Belfast.
'No compulsory redundancies'
The bank has been reviewing its Northern Ireland operations and there had been speculation that it could withdraw from the market.
That has not happened, but Ms McDonagh said the Northern Ireland business will undergo "a material restructure".
The company will identify the branches earmarked for closure later on Monday, but has given a commitment that it will retain at least one branch in each county.
The closures will affect the roles of about 120 staff in Northern Ireland but "no compulsory redundancies are involved," according to Ian McLaughlin, Chief Executive of Bank of Ireland UK.
He told the BBC's Good Morning Ulster programme that the bank would work to identify staff who could be redeployed to other roles within the company, as an alternative to redundancy.
Mr McLaughlin also said it will be 12 weeks before any of the closures begin and the bank will be contacting customers individually to notify them about the changes.
Pandemic impact
Aside from closing 15 branches, the restructuring of its Northern Ireland business will include simplifying its range of products with a greater focus on car finance and mortgages.
The bank will also continue with its strategy of withdrawing from less profitable lending across the UK.
It said this would mean its UK loan book shrinking by about 10% during 2021.
The bank's UK division made a loss of £15m in 2020, compared to a profit of £152m in 2019.
The loss was due to impairment charges - money which must be set aside to cover loans which may not be repaid in full.
All banks have seen increased impairment charges due to the economic impact of the pandemic.
'Eye-watering numbers'
The bank as a whole showed an annual loss of €760m (£657m), again due to impairment charges.
"We've announced some rather eye-watering numbers this morning, like most banks," Mr McLaughlin told Good Morning Ulster.
"It's been a really tough time and anyone who tells you differently isn't really paying attention, but we've got a really solid business here," he insisted.
Mr McLaughlin added that the relocation of the bank's UK office to Belfast was "really good news and a sign of our commitment to Northern Ireland".
He said the branch closures were in response to changes in customer behaviour over the last four years.
He argued that as the popularity of digital services like online shopping had increased, banks could not be "insulated" from the switch to digital.
"Our customers are using our branches less and less and we've reached a bit of a tipping point," Mr McLaughlin said.
"Our cash usage and customer visits in the closing branches is down 70% since 2017 and commensurately our digital banking up 50% over the same period so we need to adapt and we need to change."
Bank of Ireland had already closed several branches over the last decade.
In 2011, it had 44 branches in Northern Ireland.
In August last year, the bank said it was aiming to cut 1,400 jobs from its UK and Ireland operations.
Last week, Ulster Bank confirmed it would close its Republic of Ireland business over the next few years.
https://news.google.com/__i/rss/rd/articles/CBMiN2h0dHBzOi8vd3d3LmJiYy5jby51ay9uZXdzL3VrLW5vcnRoZXJuLWlyZWxhbmQtNTYyMzM1MzHSATtodHRwczovL3d3dy5iYmMuY28udWsvbmV3cy9hbXAvdWstbm9ydGhlcm4taXJlbGFuZC01NjIzMzUzMQ?oc=5
2021-03-01 08:54:38Z
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