Permanent TSB is to create 180 jobs to support its growth in a number of key areas.

The positions will be at both senior and graduate level and will be focused on digital services, IT infrastructure, business banking and data analytics.

It comes as the bank begins the introduction of a range of new permanent hybrid working arrangements for half of its existing workforce.

These include the ability to work from home up to three days a week, jobs sharing and the ability to compress a five-day working week into four days while still retaining full salary.

New hubs are also to be set up in the commuter towns of Greystones, Maynooth, Dundalk and Douglas so that those in office based roles do not have to travel into cities.

The company’s headquarters in St Stephen’s Green will also see revised working arrangements put in place, with new open-plan collaboration zones to allow people in the building meet with colleagues working remotely.

The expansion of the workforce comes just six months after the bank announced a redundancy programme aimed at reducing its workforce by 300 in an effort to cut costs.

It is also currently engaged in negotiations NatWest Group over the potential purchase of a large part of the Republic of Ireland business of the departing Ulster Bank, a deal which if successful could result in some Ulster Bank staff transferring to Permanent TSB.

However, Permanent TSB is aggressively building its digital capabilities and recently announced a further investment of €50m in its technology infrastructure on top of its existing €100m programme.

The new positions will mainly support the rollout of the next phase of that digital strategy as well as its plan to grow its position in the SME lending market.

The bank said around 1,200 of its 2,400 staff have applied for permanent flexible working arrangements that are being rolled out following the Covid-19 pandemic.

"We are delighted to offer them flexibility in their working arrangements, which has been made possible by our significant ongoing investment in technology," said Ger Mitchell, Permanent TSB's Human Resources Officer.

"It is clear that this flexibility is needed and we are confident that it will result in an even better service for our customers and an enhanced work-life balance for our people."

The lender recently did not renew a lease on a building it occupied on Hatch St in Dublin city centre, because of planned staff reductions and the changeover to remote working.