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| Governor and Company of the Bank of Ireland | |
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| Type | Public company |
| Founded | Dublin, Ireland (1783) |
| Headquarters | Dublin, Ireland |
| Key people | Brian Goggin, CEO |
| Industry | Finance |
| Products | Banking products |
| Revenue |  €3.677 billion (2006) |
| Operating income | €1.599 billion (2006) |
| Net income | €1.292 billion (2006) |
| Employees | 12,000 (2005) |
| Website | bankofireland.com |
The Bank of Ireland (Irish: Banc na hÉireann) ISEQ: BKIR_p LSE: BKIR NYSE: IRE, officially known as the Governor and Company of the Bank of Ireland is a commercial bank operation in Ireland, which is one of the 'Big Four' in both parts of the island. Historically the premier banking organisation in Ireland, today Bank of Ireland is number two to Allied Irish Banks. The Bank occupies a unique position in Irish banking history. At the core of the modern-day group is the old Bank of Ireland, the ancient institution established by royal charter in 1783. The Bank of Ireland should not be confused with the Central Bank of Ireland, as it is a commercial bank and not the Irish central bank.
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History
Bank of Ireland is the oldest bank in Ireland. The bank was formed by an Act of the Irish Parliament in 1782 to support public and commercial finances in Ireland. From the beginning, it was connected closely with the leading banking family in Dublin, the Huguenot la Touche family. A member of that family - David la Touche - was the first Governor.
Role as government banker
The Bank of Ireland is not, and was never, the Irish central bank. However, as well as being a commercial bank - a deposit-taker and a credit institution - it performed many central bank functions, much like the earlier-established Bank of Scotland and Bank of England. Bank of Ireland operated the Exchequer Account and during the nineteenth century acted as something of a banker of last resort. Even the titles of the chairman of the board of directors (the Governor) and the title of the board itself (the Court of Directors) suggest a central bank status. From the foundation of the Irish Free State in 1922 until December 31 1971, the Bank of Ireland was the banker of the Irish Government, but was not the central bank. This function was fulfilled by the Currency Commission, which was later superseded by the Central Bank of Ireland in 1943. In 1958, the Bank took over the Hibernian Bank Limited and in 1965 the National Bank of Ireland Limited, and rebranded them as Bank of Ireland. In 1956 the Bank was authorised to operate the Prize Bond scheme, and continued to do so until 1989. On 20 March 2005, Bank of Ireland announced 2,000 job cuts in a move to reduce its cost base, this coming despite profits in excess of €1 billion for that financial year.
Headquarters
The headquarters of the bank until the 1970s was the impressive Bank of Ireland building on College Green, Dublin. This building was originally designed by Edward Lovett Pearce in 1729 to host the Irish Parliament, and it was the world's first purpose-built two-chamber parliament building. A little known fact is that when the headquarters was built, it caused the world price of copper to rise - such was the usage in the building. Following the Act of Union 1800, it was purchased by the Bank of Ireland in 1803. Although the bank's modern headquarters is now a modern building in Baggot Street, Dublin, the old Bank of Ireland building continues today as a working branch of the bank. Today, visitors can still view the impressive Irish House of Lords chamber within the old headquarters building. The modern Irish Parliament is now housed in Leinster House in Dublin.
Recent history
- 1995
- 19 December: Bank of Ireland merge First New Hampshire Bank with Royal Bank of Scotland's Citizens Financial Group
- 1996
- 16 April: Bank of Ireland buys the Bristol and West building society for €882m, which keeps its own brand.
- 1999
- 22 May: It is announced Alliance & Leicester is in merger talks with the Bank of Ireland.
- 17 June: It is announced that merger talks with Alliance & Leicester have been called off.
- 2000
- 31 July: It is announced that Bank of Ireland is to acquire Chase de Vere.
- 2002
- 17 May: Bank of Ireland acquires Iridian, the US investment manager, which doubles the size of its asset management business.
- 2005
- 21 September: Bank of Ireland completes the sale of the Bristol and West branch and Direct Savings (Contact Centre) to Britannia Building Society. This is the first re - mutualisation of a former Mutual company. Britannia promises that there will be no compulsory redundancies.
Banking services
Republic of Ireland
The Group provides a broad range of financial services in Ireland to the personal, commercial, industrial and agricultural sectors. These include checking and deposit services, overdrafts, term loans, mortgages, international asset financing, leasing, instalment credit, debt financing, foreign exchange facilities, interest and exchange rate hedging instruments, executor, trustee, stockbroking, life assurance and investment fund management, fund administration and custodial services and financial advisory services, including mergers and acquisitions and underwriting. With the acquisition of New Ireland Assurance in December 1997 the Group has access to additional distribution channels and products for its life assurance and pensions business. The group provides services in multiple currencies, but primarily in the Euro. The Bank operates telephone and online banking services for its customers under the name 365 phone and 365 online respectively. The telephone banking service was launched in 1996 and was formerly known as Banking 365. The online banking service followed in 1997 and was initially known as Banking 365 online. It also offers the Laser payment system. The Group markets and sells its products on a domestic basis through the most extensive nationwide distribution network in Ireland and its direct telephone banking service. The Group has built a market share among credit institutions in Ireland of over 20% of resources and loans outstanding.
International Operations
Although the bank is headquartered in Dublin, it has operations throughout the Republic of Ireland and the United Kingdom, particularly Northern Ireland, where it prints its own banknotes in Pounds Sterling (see section on banknotes below). In Great Britain, the bank expanded largely through the takeover of the Bristol and West Building Society in 1996. On 21 September 2005 the Bristol and West retail and contact centre network was sold to Britannia Building Society. Bank of Ireland has still retained the right to use the Bristol & West name to sell Mortgages. Bank of Ireland also provides financial services for the British Post Office throughout the UK. Operations in the rest of the world are primarily undertaken by Bank of Ireland Asset Management who provide fund management services to institutions and pension funds in Germany, Australia, Canada, Japan and the United States.
Banknotes
- See also: Banknotes of Northern Ireland and Banknotes of the pound sterling
Although the Bank of Ireland is not a central bank, it does have Sterling note-issuing rights in the United Kingdom. While Bank of Ireland is headquartered in Dublin, in the Irish Republic, it has operations in Northern Ireland, where it retains the legal right (dating from before the partition of Ireland) to print its own banknotes. These are pound sterling notes and equal in value to Bank of England notes, and should not be confused with banknotes of the former Irish pound. All Bank of Ireland notes feature the Queen's University of Belfast on the obverse. The principal difference between the denominations is their colour and size.
The Bank of Ireland does not issue banknotes in the Irish Republic; until the Republic joined the Euro, the only note-issuing bank there was the Central Bank of Ireland.
Controversies
Michael Soden
Michael Soden abruptly quit as group chief executive on May 29 2004 when it was discovered that adult material that contravened company policy was found on his Bank PC.[1] Soden issued a personal statement explaining that the high standards of integrity and behaviour in an environment of accountability, transparency and openness, which he espoused, would cause embarrassment to the Bank.[2]
DIRT Controversy
An IR£30.5 million tax arrears liability was settled by Bank of Ireland in July 2000. The Bank told the Oireachtas Public Accounts Committee Inquiry that its liability was in the region of £1.5 million. The settlement figure was 'dictated' by the Revenue Commissioners following an audit by the Commissioners[3]. It was in Bank of Ireland that some of the most celebrated of the "celebrated cases" of non-compliance and bogus non-resident accounts have to date been discovered and disclosed. Thurles, Boyle, Roscrea (1990), Miltown Malbay (1991), Dundalk (1989/90), Killester (1992), Tullamore (1993), Mullingar (1996), Castlecomer, Clonmel, Ballybricken, Ballinasloe, Skibbereen (1988), Dungarvan and, disclosed to the Oireachtas Public Accounts Sub-Committee, Ballaghaderren (1998) and Ballygar (1999). The Public Accounts Sub-Committee Inquiry concluded that "the most senior executives in the Bank of Ireland did seek to set an ethical tone for the bank and unsuccessfully sought Revenue Commissioners assistance to promote an industry-wide Code of Practice[4].
Sports sponsorship
Bank of Ireland is the sponsor for the All Ireland Gaelic Football championship. Bank of Ireland is a major sponsor of rugby union in Ireland, being the shirt sponsor of Ulster Rugby and Leinster Rugby - two of the three biggest teams - as well as Connacht Rugby.
References
- ^ "Bank of Ireland chief quits over PC porn", The Register, 2004-06-01. Retrieved on 2006-08-15.
- ^ "Personal statement by Michael D. Soden Group Chief Executive Bank of Ireland", Michael D. Soden, 2004-05-29.
- ^ "Revenue set to claw back bonanza in unpaid taxes", The Irish Times, 2000-07-06.
- ^ "Public Accounts Committee Parliamentary Inquiry into DIRT", 1999-09-27.
See also
External links
- Official Republic of Ireland Site
- Official Northern Ireland Site
- Official Great Britain Site
- The Bank of Ireland's position on IBAN calculators
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