OUTGOING BANK of Ireland chief executive Brian Goggin acknowledged yesterday that it had been particularly difficult leading the institution through a time of “great turbulence”.
He took over in another era, June 2004, when banking was enjoying a boom funded by lending to consumers, housebuyers and property investors.
Despite the good times, it was not long before he met his first challenge. This came from the division he had managed before becoming chief executive, Bank of Ireland Asset Management (BIAM). The business was a jewel in the bank’s crown and managed investments for large pension funds. But in 2004 it lost four key staff. Towards the end of the year, some of its bigger international clients left as well. Australian Construction and Building Industry Super, which had €160 million under BIAM’s management, was one of the first, and a range of US funds soon followed suit.
In 2005, the bank clashed with the unions as it negotiated a restructuring that involved 2,100 job cuts. The same year, it sold its underperforming British business, Bristol West, for €150 million. It kept a presence in Britain and Mr Goggin oversaw the launch of a venture with the UK post office.
Also in 2005, it joined rivals in launching 100 per cent mortgages for first-time buyers. The following year, it sold 90 per cent of its stockbroking firm, Davy, to management and staff there for €316 million.
Throughout this period, the bank raised several billion euro through bond issues, including asset-backed instruments, and invested in property.
Mr Goggin has spent all his working life at Bank of Ireland. He joined in 1969, and by 1982 was managing its corporate banking arm.
From there he worked through its mortgage, retail and treasury divisions. In 2000, he was elevated to its board, known as the “court of directors”. Three years later he became chief executive of the asset management business.
When he steps down, he will have spent five years as chief executive. Yesterday, the 59-year-old said he was proud of his 40-year career at the bank.
