There could be more job cuts coming at National Irish Bank

National Irish Bank has previously made assurances that further job cuts won't be necessary. However, with loan impairments continuing to increase and a new €270m cost-cutting programme across its parent company Danske Bank, it seems likely that more redundancies could be on the horizon.

NIB's reported its Q3 results today and said that loan impairment charges came in at €632m for first nine months of this year, which is an increase from the €504m during the same period in 2010. Profit before impairment charges was €32m, down 11% on last year, but the bank slipped €600m into the red once these were taken into account.

Back in 2009, NIB cut 150 jobs and closed 21 branches, but has since reiterated its commitment to Ireland and suggested further job cuts wouldn't be necessary.

It has, however, continued to keep a firm grip on costs, having reduced them by €17m (or 19%) to €71m over the last year. However, its cost-income ratio remains stubbornly high, at 69%, despite a reduction of 2% over the last 12 months.

Therefore, employees in Ireland should be mindful of today's Q3 results released by NIB's parent company, Danske Bank.

The bank has cut 2,000 jobs across the group since 2008, but is planning to reduce headcount by the same figure again over the course of 2012-14. It's trying to reduce its expenses by 10% over the next three years, or around DKK2bn (€270m).

The aim is to avoid compulsory redundancies and rely on attrition and retirements over this period. Nonetheless, despite a relatively upbeat tone from NIB, employees in Ireland should remain wary of the potential for more job cuts.

Danske Bank said that "the Irish economy will continue to face structural challenges, and because of the economic climate, the level of future impairment charges is uncertain."