SDLP Economy Spokesperson Sinéad McLaughlin has said that Bank of Ireland need to urgently clarify how they will protect customers and employees from the impact of their decision to close 15 branches across the North.
She has been engaged over recent months in an extensive engagement exercise to ensure that Bank of Ireland re-commits to banking in the North.
Bank of Ireland has announced it will close more than half of its 28 branches currently operating here.
UPDATE AT 10 AM: Strand Road branch to close, BoI have announced.
It is also closing its branches in Limavady and Strabane.
Said the Foyle MLA: ““Bank of Ireland’s review of its operations in Northern Ireland has caused anxiety for staff and personal and business customers.
“I am deeply concerned at the implications of the decision to cut back its branch network which will have a devasting impact for staff, customers and also the high streets where these operate.
“I am calling on Bank of Ireland to urgently clarify its future plans for Northern Ireland, making clear how it will demonstrate its continued commitment and support for customers, employees and the communities where they operate.
“Bank of Ireland is one of the largest, and therefore one of the most important, banks operating in the North. Had it closed its operations it would have had a serious and damaging impact on banking competition in Northern Ireland.
“With the decision of Ulster Bank to withdraw from banking in the South, only Bank of Ireland and AIB are committed to continued retail banking in both the South and the North.
“Given the increasing importance of all-island trade following Brexit, the withdrawal of the Bank of Ireland from the North would have been particularly regrettable.
“It is important that those businesses and individuals trading in both regions continue to have a choice between banks offering all-island facilities.
“Unlike Ulster Bank, which declined to meet with me during its recent operational review, Bank of Ireland did engage with me during its review of operations.
“I met with Bank of Ireland management, virtually, during the review so that I could make representations for it to continue trading in the North.
“I also wrote to the Competition and Markets Authority, the Bank of England, the Prudential Regulation Authority, the Financial Conduct Authority and the Central Bank of Ireland to urge them to use their influence to pressure the Bank of Ireland to maintain its operations in Northern Ireland.
“I also met with the Financial Services Union, to assure them of my support in their efforts to protect employees’ jobs and the branch network.”
The BoI closure plans 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 the UK, and is one of the ‘big four’ banks in the North of Ireland.
Chief Executive Francesca McDonagh said the bank’s UK head office will also relocate from London to Belfast.
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.
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.
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 “insulted” 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 customers 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 the North.
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 business in the Republic over the next few years.
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