Staff at PTSB have just days to make up their minds on whether to put themselves forward for a voluntary redundancy scheme, as deadline for applications closes on Friday.
While the Financial Services Union (FSU) estimated last month that the lender plans to cull about 500 positions, PTSB has dismissed this figure, saying it is “without foundation”.
PTSB’s executive team is expected to take a number of weeks following the deadline for the receipt of applications to determine how many staff it plans to let go, according to sources. It is likely to be well into February before individuals learn whether their application has been approved.
The terms on offer are in line with PTSB’s long-standing policy. Staff can opt for four week’s basic salary for each year worked, plus statutory redundancy entitlements of two weeks; five weeks’ salary per year of service, inclusive of statutory entitlements; or 20 weeks’ salary, plus statutory entitlements.
Payments are capped at the lesser of 2½ years’ salary or €300,000.
PTSB’s workforce has grown by 850 to about 3,240 full-time equivalents over the past four years after taking on hundreds of Ulster Bank staff and retaining others hired on temporary contracts to deal with a growth in customers.
However, its costs base is out of kilter with those of its two larger rivals. PTSB’s total income per employee stood at about €219,000 in 2023, according to calculations based on the bank’s average staff numbers. Bank of Ireland’s ratio was almost €420,000 and AIB’s nearly €465,000.
The average among western European banks was just shy of €400,000, according to US management consulting firm Kearney.
PTSB’s running expenses equated to 66 per cent of income in 2024, well above the 39 per cent and 42 per cent posted by AIB and Bank of Ireland, respectively.
While PTSB previously targeted a ratio of 55 per cent in 2025, it backed away from that early last year and set a target of 60 per cent for 2026.
But with the European Central Bank cutting rates more quickly than expected – unveiling a fourth quarter of a percentage point reduction since June on Thursday and setting the scene for more reductions next year – that revised target was also looking optimistic without cost-cutting actions, according to analysts.
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