B&W Branch network sale

21 Sep 2005 09:19

Bank of Ireland(Governor&Co)21 September 2005 Bank of Ireland Governor & Co21 September 2005 Bristol & West branch network sale completed Bank of Ireland today announces, that following UK High Court approval, the saleof its Bristol & West branch network and associated deposit book to BritanniaBuilding Society has been completed for a price of £150m (c. €218m). Details ofthe transaction were previously announced on 24 May 2005. The profit on disposal of the branch network is expected to amount toapproximately £120 million (c. €175 million) after tax and will be reflected inthe Interim Results for the half year ending 30 September 2005. The transactionis expected to be earnings neutral from a Bank of Ireland Group perspectivegoing forward and have a positive impact on the Group cost/income ratio. Bank of Ireland has retained the Bristol & West mortgage business which willremain one of Bank of Ireland's three strategic priorities for growth in the UK. Brian Goggin, Group Chief Executive, Bank of Ireland, said:"I am delighted the sale of the branch network and associated deposit book hasnow been completed. This deal has realised good value for Bank of Irelandshareholders, and is also a very positive outcome for our customers and ouremployees. The sale delivers on our stated strategy. Bank of Ireland remainscommitted to the UK market, which accounts for a significant element of theGroup's interests, and will remain a core market for the Group." Roy Keenan, Chief Executive of Bank of Ireland UK Financial Services added:"The UK Division is now focused on growing our three key areas of operation: thesuccessful Bristol & West and Bank of Ireland Mortgage business; our growingBusiness Banking operation; and the Post Office Financial Services operation inthe UK, which gives us access to Europe's largest financial retail network." Contacts: Bank of Ireland Dan Loughrey, Head of Group Corporate CommunicationsPh. +353 1 604 3838 Geraldine Deighan, Head of Group Investor RelationsPh. +353 1 604 3501 Powerscourt. Rory Godson/ Victoria BroughPh. +44 207 236 561 This information is provided by RNS The company news service from the London Stock Exchange