Permanent TSB has confirmed that it will cut 280 jobs through a voluntary redundancy programme over the coming months.

Another 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 operations.

In a statement this morning, Permanent TSB said that no branches will close as a direct result of the job cuts.

The bank employs 1,800 people and has 100 branches nationwide. It has already cut 400 jobs in the last two years.

Permanent TSB also confirmed that it will raise the interest on its standard variable mortgage rate and other variable mortgage rates by 1%. The new standard variable mortgage rate will increase to 5.19%.

The increase will affect mortgage repayments from March 7. Permanent TSB says the impact of the rise on its average standard variable mortgage rate will be about €33 a month.

The bank also said it does not intend to make any further increases this year outside of any increase in ECB rates.

Ulster Bank also raises interest rates

Ulster Bank has become the second financial institution to announce an increase in mortgage interest rates.

The bank plans to raise its standard variable mortgage rate by half a percentage point to 4.35% from 1 March.

This will add about €27 a month to the repayments on a 20-year €100,000 mortgage.

Earlier, Permanent TSB confirmed that it will raise the interest on its standard variable mortgage rate and other variable mortgage rates by one percentage point.

Its standard variable mortgage rate will increase to 5.19%.