Ulster Bank has reported slower growth in 2002 with profits up 7 per cent to €388 million, but its parent, Royal Bank of Scotland, dismissed speculation about plans to sell its Irish interests.
The bank, which employs more than 4,000 in the Republic and North of Ireland, has also sharply refuted staff complaints following a radical restructuring.
Yesterday Ulster Bank chief executive, Mr Martin Wilson, said he did not believe that the difficulties claimed by some staff members would deteriorate into strike action, as has been threatened.
"You would get the impression that we are trying to drive people to early graves. People in Ulster Bank are well paid.
"I am not saying that they are not under a level of stress but if you benchmark the bank against others in the financial services industry we reward staff at or above those levels."
He added that it was "inexplicable" why these issues were being debated in public.
Earlier this week, 1,500 Ulster Bank staff in the Republic said they were considering taking strike action in protest at the bank's failure to honour agreements related to the restructuring.
Royal Bank of Scotland recorded a 12 per cent increase in profits to £6.5 million (€9.54 million) and chief executive Mr Fred Goodwin ruled out any sale of Ulster Bank.
The group has been talking to CIC Credit Mutuel, a French stockbrokerage about the sale of its NBC Stockbrokers in Dublin.
Mr Wilson refused to comment on these discussions but confirmed that the bank was continuing to review its group treasury business, which is also based in Dublin and employs 250 staff.
He said there were no imminent plans to relocate it to London.
In 2002 Ulster reported an 8 per cent rise in its total income to €827 million. Its provisions sharply increased from €24 million to €35 million depressing its overall contribution to the Royal Bank group.
Mr Wilson said that business had been stronger in the second half of last year and that it did not have any particular concerns about possible credit problems in its loan book.
Last year Ulster Bank advanced total loans of €14 million, the bulk of which were to the small business sector. Its customer deposits increased to €13.5 million from €11.8 million and were helped by the Government-backed Special Savings Incentive Account scheme.
Following the restructuring, which focused on reducing the number of processing functions in the branch structure, its cost-to-income ratio declined further falling from 49.5 per cent to 48.8 per cent.
Mr Wilson said the bank hoped to make further progress on costs this year and was discussing options with staff.
Royal Bank became the UK's second-biggest when it swallowed NatWest in 2000. Its chairman, Sir George Mathewson, said the bank had performed well in a challenging year and indicated that it was on the look-out for further acquisitions.
