Report and Accountsfor the year ended 31 March 2000
unts for the year end
ed 31 M
Bank of Ire cover 2000 25/5/00 10:26 am Page 1
Court of Directors 2
Governors Statement 4
Group Chief Executives Operating and Financial Review 8
Five Year Summary 25
Report of Directors 29
Corporate Governance Statement 33
Remuneration Report 36
Statement of Directors Responsibilities 41
Auditors Report 42
Group Profit and Loss Account 44
Group Balance Sheet 46
Other Primary Statements 49
Group Cash Flow Statement 50
Notes to the Accounts 51
Average Balance Sheet 105
Group Profit and Loss Account (, IR, US$, STG) 107
Group Balance Sheet (, IR, US$, STG) 108
Stockholder Information 109
Principal Business Units and Addresses 112
The Court(L to R)
Anthony D Barry +#Deputy Governor
Appointed to the Court in 1993. Appointed DeputyGovernor in October 1997 and senior independentdirector in November 1998. Former Chief Executiveand former Chairman of CRH plc. A Director ofGreencore Group plc, DCC plc and Ivernia West plc.
Paul M DAlton *Group Chief Financial Officer
Joined the Bank in 1991 as Group Chief FinancialOfficer. Appointed to the Court in January 2000.Formerly Chief Executive Finance, Aer LingusGroup plc. A Fellow of the Institute of CharteredAccountants in Ireland.
Maurice A Keane *Group Chief Executive
Joined the Bank in 1958. Appointed an AssistantGeneral Manager in 1973 and General ManagerFinancial Control in 1978. Appointed to the Court asa Managing Director in 1983. Appointed DeputyGroup Chief Executive in March 1991 and GroupChief Executive in February 1998. Director of Bristol& West plc.
Roy E Bailie, OBEAppointed to the Court in 1999. Chairman of W&GBaird Holdings Ltd and of the Northern IrelandTourist Board. A Director of the Bank of England andUTV plc and formerly a member of the NorthernIreland Advisory Board of the Bank of Ireland.
E Patrick Galvin + #Appointed to the Court in 1994. Former Chairmanand Chief Executive of Waterford Crystal Ltd. ADirector of Gallaher (Dublin) Ltd, Greencore Groupplc and Irish Shell Ltd. Chairman of the Board ofGovernors of The National College of Ireland.
Patrick J A MolloyAppointed to the Court in 1983 as an ExecutiveDirector. Group Chief Executive from 1991 until heretired from that position in January 1998,remaining as a Non-Executive Director. Chairman ofCRH plc, Bristol & West plc and Enterprise Ireland. A Director of eircom plc and Kingspan Group plc.
Raymond Mac Sharry #Appointed to the Court in 1993. A former EUCommissioner for Agriculture, Chairman of eircomplc, Green Property plc, London City Airport Ltd andCoillte Teoranta. A Director of Jefferson SmurfitGroup plc and Ryanair Holdings plc.
Howard E Kilroy ##Governor
Appointed to the Court in 1991 and Governorfollowing the 1991 Annual General Court. Retires asGovernor and as a Director of the Bank followingthe 2000 Annual General Court. Former Presidentand Chief Operations Director of Jefferson SmurfitGroup plc. A Director of the Jefferson SmurfitGroup plc and CRH plc.
Mary P Redmond +Appointed to the Court in 1994. A solicitorspecialising in labour law. In her professionalcapacity as a solicitor acts for the Group in relationto aspects of labour law. A Director of JeffersonSmurfit Group plc, Campbell Bewley Group Ltd andfounder of the Irish Hospice Foundation.
Laurence G CrowleyGovernor Designate
Appointed to the Court in 1990 and DeputyGovernor from 1995 to 1997. Will become Governorfollowing the 2000 Annual General Court. Chairmanof PJ Carroll and Co. Ltd, a Director of ElanCorporation plc, J Rothschild InternationalAssurance plc and a number of other companies.Executive Chairman of the Michael SmurfitGraduate School of Business at University College,Dublin.
Denis OBrienAppointed to the Court in April 2000. Chairman ofESAT Telecom Group plc. A Director of Oakhill plcand a number of other companies.
Brian J Goggin *Chief Executive Corporate & Treasury
Joined the Bank in 1969. Served in a variety ofsenior management positions in the United States,Britain and Ireland. He has been in his currentposition since 1996. Appointed to the Court inJanuary 2000.
Margaret Downes ++Appointed to the Court in 1986 and DeputyGovernor from 1993 to 1995. A past president of the Institute of Chartered Accountants in Irelandand The Federation of European Accountants.Chairman of BUPA Ireland Ltd and Gallaher (Dublin)Ltd, a Director of Ardagh plc, BUPA in the UK and anumber of other companies.
Richard BurrowsAppointed to the Court in March 2000. Chairmanand Chief Executive of Irish Distillers Group Ltd andcurrently President of the Irish Business andEmployers Confederation (IBEC).
Lord Armstrong of Ilminster, GCB CVO +Appointed to the Court in 1997. Chairman of 3iBioscience Investment Trust plc. A Director of TheBristol & West Building Society (now Bristol & Westplc) from 1988 until his retirement in December1997 and its Chairman from 1993 to December 1997and a director of a number of other companies.
* Executive Director++ Chairman of the Group Audit Committee+ Member of the Group Audit Committee## Chairman of the Group Remuneration
and the Group Nominations Committees
# Member of the Group Remuneration and the Group Nominations Committees
Howard E KilroyGovernor
Bank of Ireland
Stockholders of the Bank may take
considerable satisfaction from the
performance of the business as we enter
the new millennium. For the seventh
successive year, Return on Equity (ROE)
has exceeded 20% and the average ROE
during the past five years has been in
excess of 24%.
The financial services sector, both in
Ireland and elsewhere, has seen
unprecedented change, significantly
intensified competition from new entrants
and through new channels, major shifts in
the margin potential of segments of the
business and sea changes in the macro
economic environment, especially in the
new low interest regime within the
Eurozone. Some observers have been
pessimistic about the effects of these
changes on banks and this has impacted
adversely on stock valuations. Bank of
Ireland has successfully met and
surmounted these challenges and,
I believe, will continue to do so.
In the final analysis, the key measure of
the success of any business will be found
in the returns it achieves for its owners,
the stockholders. The Directors and
Management of Bank of Ireland are clear
in their focus on Stockholder value, which
we measure not only in terms of point in
time dividend payments and stock
valuation but also in the sustainability of
the business going forward. Through a
focus on competitive products and
customer value, the Group has
demonstrated that its extensive customer
base is a powerful source of profit growth
and that, despite the growing intensity of
competition, it can recruit new customers
and grow market share.
The pace of change which staff have
experienced and facilitated, and which
is now a constant in the financial
services sector, has not diminished the
sense of tradition and shared values
which shape the character of the
organisation and influence its actions.
5Report and Accounts 2000
6 Bank of Ireland
TRANSFORMATION FOR GROWTH
Throughout the past decade, the Group has been engaged in
continuous adaptation to new market forces, including the
influence of e-commerce. In the immediate future, the pace of
transformation will accelerate as we implement the Groups
growth strategies in the areas of network configuration, new
delivery channels, streamlined management and administration
systems and cost management.
We have been acutely conscious of the growing role of the
Internet as a critical channel for bank products and services. Our
experience of this new technology has been very satisfactory and
customers have responded positively to the e-commerce
channels and payment systems which we have already provided.
The pace of customer migration to electronic banking has been
such that there is now a clear rationale for a fundamental review
of the entire delivery system. The Group has undertaken such a
review and has begun implementation of a strategy which will see
considerable further investment in e-commerce and supporting IT
infrastructure. This will be balanced by some reduction in the
physical infrastructure, although we see a continuing pivotal role
for the branch network in the delivery of the more complex
The Group has given a clear commitment to achieve optimum
cost efficiency levels in all of its operations and specific
programmes towards the achievement of this goal are underway
in a number of business units. Announcements have already
been made concerning the amalgamation of businesses in Great
Britain and Northern Ireland and the integration of International
Banking and Treasury. Re-organisation of the