NORTHERN Ireland is likely to escape a cull by AIB which will see its workforce across the island slashed by 1,500 in the next two years.
The Dublin-based bank revealed that, amid growing economic uncertainty, its operating profits fell by around £100 million in 2019 to €1.091 billion (£950m).
Profits before tax nose-dived by 60 per cent to €499m (£433m), largely due to exceptional items including €300m (£260m) additional provisions to meet potential further liabilities arising from its involvement in the tracker mortgage controversy.
Its chief executive Colin Hunt confirmed that the bank's existing 9,520 workforce would be trimmed to 8,000 by 2022, mostly through a new negotiated voluntary severance scheme.
But it is understood it is targeted at AIB's retail staff in the Republic only, and therefore won't significantly impact on its operations in the north.
AIB is the parent company of the former First Trust Bank in the north, which it rebranded under its banner from last November.
Mr Hunt said: “The fundamentals of the group remain strong, with sustainable underlying profits and a robust capital base.
“Last year was one of progress, delivery and planning, where we improved our customer proposition and streamlined service to our 2.8 million customers whilst increasing our new lending to €12.3 billion to support economic growth.
“As we announce our new medium-term targets and embark on our next phase, I am intent on addressing legacy matters of the past so that our future,
characterised by a normalised cost base, balance sheet and capital structure, will deliver for our stakeholders and sustainably generate shareholder value.”
AIB said its non-performing loans reduced by 45 per cent over the year from €6.1 billion to €3.3 billion, which it says reflects its ongoing engagement with customers.
Meanwhile rival Bank of Ireland yesterday confirmed a suite of measures to help businesses which are impacted by the outbreak of coronavirus in the north, including the provision of emergency working capital and payment flexibility on loan facilities.
They also include the provision of trade finance and foreign currency products to support sourcing products from new suppliers internationally.
Bank of Ireland said it will be making proactive contact with businesses that may be impacted by Covid-19.
