The full B of I statement: Commenting on the termination of talks with Alliance & Leicester, Maurice Keane, B of I group chief executive, said:

"Despite our conviction that the proposed merger represented a very good strategic opportunity for the Bank, we were unable to agree arrangements which were fully acceptable to both parties. In the absence of such clear agreement, we could not be confident that the merger would deliver its full potential benefits.

"Bank of Ireland is pursuing a range of further options which will support the growth of the business and the rate of return on stockholders' funds. The Group is trading very successfully, is strongly capitalised and has excellent future prospects. I am confident that our growth strategies will be realised.

"We wish Alliance and Leicester well in whatever course they now pursue and we will not be issuing any further comment regarding our discussions with them."