Bank of Ireland does not feel vulnerable to takeover despite recent management upheaval, the group's governor said yesterday.

"We don't feel under threat. We feel we have to meet the competition head on," the governor of the Bank of Ireland, Mr Laurence Crowley, said at a banking conference in London.

In fact, he added, the group's strategy would provide for bolt-on acquisitions.

Bank of Ireland, which has recently overtaken rival AIB Bank as Ireland's biggest bank by market value, last week appointed its head of asset management, Mr Brian Goggin, to the position of chief executive following the sudden resignation of Mr Michael Soden last month.

Mr Soden stepped down after admitting accessing adult websites on his office computer.

It was in contravention of the company's internet code of practice.

The sudden vacancy at the top triggered speculation that the bank could attract the attention of predators. Mr Crowley said Mr Goggin, (52), a career banker who has been with the group since 1969, would be looking at the bank's future direction.

"We need to give him time to settle in ... he will obviously be reviewing the strategy," he said.

Mr Crowley said the outlook for the bank was good, with strong economies in its key Irish and British markets.

"[House prices\] are high in both UK and Ireland but I don't foresee a crash," he said, referring to fears about potential property bubbles.

He said the bank did not consider that consumer debt was too high in either economy relative to income.

On interest rates, Mr Crowley said the bank's view was for a move higher.

"We would factor in the potential for a considerable hike in interest rates," he said.

He added that an increase in rates would help the bank's margins, which have been under pressure in Ireland.

- (Reuters)