Statement by Bank of Ireland on Retail Banking Review publication

Bank of Ireland Group has today welcomed the publication of the Retail Banking Review and the announcement that a number of crisis-era restrictions related to remuneration are being lifted in respect of the Group. These restrictions being lifted include a pay cap and a blanket prohibition on variable pay.

Patrick Kennedy, Chairman of Bank of Ireland Group, said:

“We welcome today’s announcement which follows Bank of Ireland’s return to full private ownership in September. The restrictions being lifted today were put in place during the financial crisis. We will always be grateful for the support we received, which should never have been required, and we made it a top priority to repay the taxpayer in full as quickly as we could.

“These changes are important for two reasons. Firstly, they will help us compete on a more level playing field, with both banking and non-banking employers, to attract and retain talent in our business.

“Secondly, reintroducing an element of variable pay will allow us to better link remuneration to the achievement of our long term strategic and commercial goals, and delivery for our customers.”

In respect of the full report of the Retail Banking Review, Bank of Ireland will be carefully examining all of the recommendations published today. The Bank will also continue to engage with all stakeholders on the development of the banking sector, which is a very significant employer and provider of lending to consumers, businesses and corporates.

Notes to Editors:

• A number of crisis-era restrictions are being lifted from Bank of Ireland including a blanket prohibition on certain performance-related pay and benefits and the pay cap;
• These restrictions are not replicated in any market where the Group does business, creating an uneven playing field with other corporates – both banking and non-banking, at home and abroad – with which the Group competes;
• Since the restrictions were put in place, the European Banking Authority (EBA) has introduced remuneration guidelines which apply to banks across the Eurozone, and which place considerable emphasis on good risk management and sustainability;
• In September 2022 the Minister for Finance announced that the State had completed the sale of its remaining shareholding in Bank of Ireland, making it the first Irish bank to return to full private ownership;
• Bank of Ireland is the only Irish bank to fully repay the Irish taxpayer, returning almost €6.7 billion to the State from its original €4.7 billion investment.