AIB actually added staff last year

AIB has published its annual report for 2008, and (as you would expect) it makes for pretty grim reading. However, at the end of last year at least, it had refrained from making any deep staff cuts.

The number of people employed by AIB actually rose in 2008 - from 25,898 in 2007 to 25,919 at the end of last year.

However, this isn't the entire story. Within Ireland, the capital markets division of the bank fared relatively well, with operating profit before provisions 52% up on last year.

But while its treasury division within capital markets made a €213m profit, the rest of the department did pretty badly. Investment banking profits slid by 72% year-on year, while corporate banking fell by 13%.

Perhaps not surprisingly, staff costs reduced by 18% in this division - which was down to reduced bonuses and other cost-cutting measures, rather than redundancies.

That's not to say it hasn't been swinging the axe to some extent. Total staff costs in Ireland were down by of 11%, which AIB says is "on the back of reduced staff numbers and variable compensation" though it didn't give specific numbers.

Similarly, in the UK staff costs reduced by nearly €60m due to "operational efficiencies and some reduced headcount".

So, how come staff numbers were slightly up on 2007? Look no further than its foray into Central and Eastern Europe, where it opened 85 branches in 2008.

Employee costs were up 16%, due to "increased staff numbers and higher salaries".