The Bank has informed me that AIB is relocating operations from across Dublin to its Bankcentre in Ballsbridge in order to reduce costs. In anticipation of becoming a smaller organisation, in August 2011 AIB commenced a programme to withdraw from five leased locations and is currently adapting its Bankcentre in Ballsbridge to cater for the centralised functions.
The bank has adopted a tighter space management policy to optimise the use of its headoffices. This, too, will contribute to a more efficient and less expensive operation.
As a result of this programme, there will be an approximately 20% reduction in the space occupied by the head office functions and a consequent reduction in costs. The forecast reduction in the cost of operating premises is €60m in the 2012-2016 period and €18m per annum thereafter (2011 values).
The adaptation of the Bankcentre premises does require investment and the construction required has been procured on a competitive basis and carried out by Irish construction firms. The value of the contracts is commercially sensitive and privy to the Contractors and the Bank.