Bank of Ireland governor, Mr Laurence Crowley, has firmly dismissed any speculation that the appointment of National Australia Bank's second most senior executive as the Irish bank's next chief executive signals a link-up between the two institutions.

Answering shareholder questions at the bank's annual general meeting yesterday, Mr Crowley said there was no correlation between the arrival of Mr Michael Soden at Bank of Ireland and any relationship with NAB. "Mr Soden was selected for his business skills and qualities and there is no other distinction to be drawn from his appointment," he said. Mr Soden will arrive in September and succeed Mr Maurice Keane in February.

Shareholder Mr Niall Murphy dubbed the incoming chief executive the "Wizard of Oz", saying he would be more than happy to go Waltzing Matilda with the "Ozzies" if the price was right.

Mr Crowley said the bank was paying close attention to international trends in banking and financial services and their potential impact on the group. It is particularly watching consolidation in the US and Europe and will continue to strengthen its businesses through all means available, he added.

"We are particularly interested in the potential of specialisation and disaggregation, nowadays increasingly utilised by better banks worldwide."

Meanwhile, the governor said the bank is performing strongly this year and expects to deliver earnings growth in line with market expectations.

The emotive issue of branch closures was raised by one shareholder, who asked how small businesses will fare in terms of making cash and coin transactions where branches have been replaced with cash machines.

Bank of Ireland has plans to close 60 of its more than 300 branches over the next couple of years. Some 19 have already been shut and closures have been concentrated so far in urban areas. Mr Crowley said the closures were being made with reluctance and only where there has been intense consultation with customers.