AIB has said it is aggressively targeting measures to reduce the group's costs.

This comes as the Irish Bank Officials' Association rejected the latest cost-cutting proposals from the bank's management.

AIB Group's chairman said the bank's board has been working "extensively" in recent months on its strategy for the future of the bank, and details of this will be announced next month.

Speaking at its AGM, Chairman David Hodgkinson said that along with its severance programme and initiatives on pay and benefits, the group is also looking at reducing the cost of external resources, its branch network and technology.

The bank is looking for 2,500 redundancies and for staff to take a pay freeze until the end of 2014.

The IBOA met bank management this morning, and said it cannot accept AIB's proposals to close its defined benefit pension scheme and cut other benefits.

It said that over three years the staff had already made sacrifices.