Bank of Ireland Governor Richard Burrows told its Central Court today that the bank has seen a strong trading performance for the first quarter of the year. He said the bank expects to deliver low to mid-teens percentage earnings growth this year, as predicted in its recent preliminary results.
Meanwhile, the bank also defended the changes it is making to its pension scheme. A number of shareholders raised questions about the bank's move to close its existing retirement scheme to new staff members.
A significant change in how companies account for money they owe to their pension funds has prompted many corporations to rethink their retirement schemes. The latest company to do so is Bank of Ireland.
Mr Burrows told shareholders today that the bank had a pension liability of €800m.
The existing scheme meant the bank had an open liability and as a result, it has closed its existing the fund to staff members who join the bank in future.
The existing fund will be replaced by a hybrid scheme, which will reduce the risk to the company.
But one shareholder, Geraldine Langan, said at today's meeting that this was blatant discrimination. She said the new scheme would pay pensioners between one quarter and half of their salaries on retirement. The existing fund pays the equivalent of two thirds. Ms Langan, who worked with the bank for 39 years, said was appalled by the development.
Bank of Ireland shares closed up eight cent at €13.78 in Dublin.
