EVERY effort must be made to repair the current breakdown in the peace process, according to the Ulster Bank chairman, Sir George Quigley.

Business must demonstrate to politicians how things can be achieved through enterprise, he said. Business people can help to achieve peace in Northern Ireland by constantly stressing to politicians the importance of working out solutions to problems in a pragmatic way, he said.

Tourism is the area which will suffer most and there is a significant risk to inwards investment. But he warned that the full potential of the whole island can never be realised without peace and political stability.

Ulster expects lending growth to slow this year and competition to intensify, particularly in the mortgage markets.

Ulster is understood to be close to completing an agreement to rent a 25,000 square foot building in Georges Dock in the International Financial Services Centre in Dublin from the Custom House Docks Authority. NCB Stockbrokers firm is expected to be moved to the building which is due to be finished by the end of the year.

While the banks increase in costs in 1995 reflects its development stage and an investment in its future, cutting unnecessary costs and maximising operational efficiency will be important for future profit growth. The acquisition of TSB Bank would be a significant boost for Ulster in terms of market penetration and potential to boost income.