New B of I chief restructures bank into euro, sterling zones

Incoming Bank of Ireland chief executive Mr Michael Soden has begun to put his stamp on the bank, announcing the restructuring of some of its business operations. The main change is that the bank will separate its retail businesses into euro and sterling zones.

This will involve the creation of a new unit, Financial Services UK, which will include Bristol & West and retail banking in Northern Ireland. This will be managed by Bristol & West chief executive, Mr Jeff Warren.

Mr Brian Goggin, chief executive of the bank's corporate and treasury business, will take on additional responsibilities. He currently manages the bank's corporate banking, treasury and international banking, Davy Stockbrokers, IBI Corporate Finance and First Rate Enterprise. Under the new structure, his role will also include the management of Bank of Ireland's private banking and all group credit and market risk management operations as part of a new wholesale financial services division.

The asset management and investment business of Bank of Ireland Asset Management, which is headed by Mr Willie Cotter, is unaffected under the restructuring.

Mr Roy Keenan, managing director of Bank of Ireland Insurance and Investment, will move to the newly created office of group chief executive. He will be a member of the senior executive group, which also includes group chief financial officer, Mr John O'Donovan, and group chief information officer, Mr Cyril Dunne.

This office will focus on strategic and corporate development functions and will incorporate human resources and the bank's corporate affairs division.

Other senior management changes announced see Mr Brian Forrester, managing director of The Mortgage Business, moving to Bank of Ireland insurance and investment. Mr Joe Larkin, retail transformation director, moves to Mr Forrester's former job at the Mortgage Business.

Mr Paddy Murphy, retail banking director, will retire. He will be replaced by Mr Cathal Muckian. Mr Muckian's position as director of direct channels will be taken over by Mr Patrick Waldron, currently retail sales and marketing director.

Mr Soden, who takes over from Mr Maurice Keane in March, said the changes reflected the profile of the bank. "While retail banking remains an important core activity for the group, a significant and growing proportion of profits is generated by non-banking activities in international capital markets," he said yesterday.