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IL&P Group Holdings (283)

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Friday 04 February, 2011

IL&P Group Holdings

Bank restructuring and mortga

RNS Number : 6986A
Irish Life & Permanent Grp HldgsPLC
04 February 2011

Statement by Irish Life & Permanent Group Holdings plc


Friday 4th February 2011

Bank restructuring programme and mortgage rate increase

Restructuring Programme

The Group's banking operation, permanent tsb, has announced plans to reduce its permanent employee numbers by approximately 280 through a voluntary led redundancy programme over the coming months. In addition, up to 100 people will be redeployed from their current positions in branches or head office to work in new positions in the bank's online and telephone banking operation [Open 24]. The bank which currently employs 1,850 people has already cut 400 jobs in the past two years.  No branches will close as a direct result of this programme which will see an increased use of automation throughout the bank.

The cost of the redundancy programme and associated initiatives is expected to be circa €45m with a payback period of 1.5 years.


Standard Variable mortgage rate increase

The bank announced its intention to raise the interest rate on its Standard Variable Mortgage Rate (SVR) and other variable rate mortgages by 1%.  The new SVR rate will be 5.19% [was 4.19%]. Customer mortgage repayments will increase from March 7th.  The impact of this rate increase on the average Standard Variable mortgage will be approximately €33 per month. 

The bank has confirmed that it does not intend to make any further increase to its SVR this year outside of any increase in ECB rates.



Contact details

Barry Walsh, Head of Investor Relations

Tel: +353 1 704 2678


Orla Brannigan, Investor Relations    

Tel: +353 1 704 1345 


Ray Gordon, Gordon MRM

Tel: +353 1 665 0450


This information is provided by RNS
The company news service from the London Stock Exchange

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