AIB subsidiary may close banks

AIB'S First Trust Bank in Northern Ireland is carrying out a review of its branch network which could lead to the closure of …

AIB'S First Trust Bank in Northern Ireland is carrying out a review of its branch network which could lead to the closure of a number of smaller outlets, according to industry sources.

The bank is understood to be reviewing the position of a number of branches in close proximity where multiple branch operations could be merged to create one new outlet.

A spokesman for First Trust Bank said there was "no overall target for reductions" but according to industry sources up to six branches are specifically under review.

First Trust has 70 outlets in Northern Ireland, including three in-store banks in Sainsbury supermarkets. The group, which was formed in 1993 by the merger of Allied Irish Bank and Trustee Savings Bank in the North, employs approximately 1,500 people.

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The First Trust spokesman confirmed the bank was examining its current structure in the North. He said the bank planned to invest a minimum of £10 million sterling in its branch network in Northern Ireland over the next two or three years.

"The branches will continue to be the primary delivery channel into the future, complemented by the new delivery channels demanded by customers such as phone and Internet banking," added the spokesman.

Mr Larry Broderick, general secretary of the Irish Bank Officials' Association, said the trade union, which represents 90 per cent of First Trust employees, had held talks with the bank over the last few weeks.

"The bank has indicated to us that the review will affect a small number of locations and that all staff concerned will be relocated or transferred and that there will be no redundancies," Mr Broderick said.

Francess McDonnell

Francess McDonnell

Francess McDonnell is a contributor to The Irish Times specialising in business