First Trust Bank will invest £10 million sterling (€16 million) in its branch network and develop a £3 million flagship outlet in Belfast city centre.

The AIB subsidiary will refurbish some existing branches and close others.

Mr Kieran Bennett, First Trust's head of retail banking, said the new investment programme should not be interpreted as branch closure exercise.

"This programme of investment, which from time to time will involve further branch re-organisation, reflects our ongoing and strong commitment to maintaining a branch network which we perceive as being at the heart of our business," Mr Bennett said.

"We have already invested £2 million this year in our network and we see this as an important part of our revenue strategy in Northern Ireland," he said.

The bank has recruited an additional 100 people in the North was currently recruiting at a number of branches.

Mr Bennett said the financial services sector in Northern Ireland was more competitive than in the Republic but that First Trust had succeeded in developing its market share in the last year.

"We are putting the infrastructure in place to meet the needs of our customers, whether it is internet, telephone or relationship banking."