6th Jul 2005 12:08
Bank of Ireland(Governor&Co)06 July 2005 Governor's Statement Annual General Court 6 July 2005 Fellow Stockholders, I would like to welcome you to the 2005 Annual General Court. Following my opening remarks, we will get to the business of the meeting. Therewill be the opportunity for questions from the floor. I have always been anxiousthat stockholders have an opportunity to raise relevant issues on matterspertaining to the performance of the business and its record in deliveringstrong returns to our stockholders. I would like to begin by summarising the main highlights of the business duringthe year to March 2005. Performance Review:As you will have seen from the Annual Report and Accounts the results for theyear to 31 March 2005 have been strong. The highlights of this performance include: •Profit before tax was up 5% to €1,333 million •Alternative EPS was up 7% to 114.2 cent •Dividend growth of 10% These results represent the 14th successive year of uninterrupted profit growthby Bank of Ireland. We had strong growth in business volumes, return on equitywas again in excess of 20% and we continue to have excellent asset quality. Strategic Transformation Programme:We conducted a strategic review of the Group during the course of the year. Thisreview confirmed our focus on our core markets in Ireland and the UK while alsopursuing growth internationally. Building on the strengths of our positions inthese markets will offer significant growth opportunities, we believe, over thecoming years. To ensure that we are in a position to capitalise on these growthopportunities and to maintain our competitiveness, the strategic review alsohighlighted the need for the Group to improve its efficiency. The change programme has our commitment to our customers at its centre. We aredetermined to differentiate our business on the basis of the quality and valueof our products and services to our customers. A key element of ourTransformation Programme is about making sure that doing business with Bank ofIreland is simpler and more straightforward than with our competitors. Even aswe become more efficient and reduce the scale of our overall workforce we areputting an additional 500 people into the front line dealing directly withcustomers. Our objective is to deliver better value, greater customersatisfaction, generate sustainable growth and, ultimately, create increasingvalue for stockholders. This Programme consists of specific efficiency initiatives in our Retailbusiness in Ireland, the streamlining of some Group support services and theconsolidation of some processing services currently dispersed throughout theGroup. Full implementation of this Programme will provide the Group with theefficiency needed to maintain our position in an increasingly competitive marketand will also provide us with the enhanced business capacity to realise ourgrowth ambitions. Following the publication of the details of the Strategic TransformationProgramme we agreed a discussion process on the staff aspects of the Programmewith the representative bodies under the independent chairmanship of Mr KieranMulvey. The Bank has now accepted the recommendations issued by Mr Mulveyarising from this process. We have been informed by the Irish Bank OfficialsAssociation (IBOA), who represent the great majority of union members in Bank ofIreland, that they are issuing a ballot to their members this week recommendingthat Mr. Mulvey's recommendations be accepted. Bank of Ireland has a strong tradition in the quality of our people who havealways shown a commitment to customer service that marks us out from ourcompetitors. I would like to thank all our staff for their contribution to thecontinuing strong performance of the Group. As we move through a period of majorchange, we are committed to managing this change to the same high standards thatwe have always demonstrated as a quality employer. Changing Regulatory Environment:Bank of Ireland supports a robust, transparent and accountable regulatoryregime. A great deal of regulatory change is currently taking place in thefinancial services industry and we are committed to playing a positive role inthe development of such change. It is important, however, that this be wellthought out, introduced after appropriate consultation and has full regard tothe costs of doing business. Culture and Values:The Bank continues to lay great emphasis on ensuring that the culture of theorganisation and its value system are aligned with our obligations to all ourstakeholders in a rapidly changing environment. Corporate Responsibility is coreto the Group. Our reputation is a critically important asset and the Bankcontinues to re-inforce this by creating an environment where only ethical andresponsible behaviour is acceptable. Changes on the Court:This is my final statement to you as Governor and as a Director of Bank ofIreland. I would like to take the opportunity to thank my colleagues on theCourt and to thank you, the stockholders, for your support for Bank of Irelandand especially for me in my period as Governor. It has been a privilege for meto serve as Governor and to have the honour to have worked with a dedicated,talented and committed team on the Court and in the management of the Group. Ibelieve the composition of the Court and the management team leaves the Groupwell positioned for future success. As you will have seen from the Annual Report and Accounts Maurice Keane retiredas a Director in February and Ray MacSharry retires today. I warmly thank themfor their great service to the Group. I am also pleased to welcome Paul Haran,former Secretary General of the Department of Enterprise, Trade and Employmentwho has joined the Court. You will have seen that Richard Burrows will succeed me as Governor at theconclusion of this meeting. At a meeting earlier today, the Court appointed MrGeorge Magan as Senior Independent Director. I know that you will join me inwishing the management, the Court and the new Governor every success in theirendeavours on behalf of the stockholders. Looking forward, the environment in which we operate continues to be positive.We have a clear strategy and we are well positioned for growth. I expect asatisfactory outcome for the year. Laurence CrowleyGovernor6th July 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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