Bank of Ireland focused on cost-cutting

A brief, and rather bleak, interim statement by Bank of Ireland suggests that recruitment is unlikely pick up any time soon as it remains firmly focused on cutting costs.

The bank says that it continues to see pressures on its margins, which could weaken its ability to cushion any loan impairments. These impairment charges are estimated at €6bn, which are in line with its previous forecasts.

On the consumer side, the BoI says it is battling with increased competition, which has meant its customer deposits are "marginally lower compared to 31 March 2009". Staff numbers in its Republic of Ireland retail division were down 6% year-on-year.

It also moved over 2,300 staff from retail banking across to its group manufacturing arm.

The result of all this, perhaps not surprisingly, is that it's scaling back:

"Ongoing strong cost discipline across the Group and the benefits of down sizing initiatives implemented in the prior financial year continue to deliver cost savings."

Key to these savings is keeping tabs on staff costs. BoI said in May that although employee numbers were down by a relatively paltry 5%, it had frozen hiring and was not replacing departing staff members.

Bonuses were also either completed cancelled or substantially reduced.