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Bank of Ireland keeps positive outlook to 2026 and beyond

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  Published in Business and Finance on Wednesday, October 29th 2025 at 9:36 GMT by RTE Online
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Bank of Ireland Announces Interim Management Amid Governance Shake‑up

On 29 October 2025, the Bank of Ireland (BoI) issued a formal statement announcing the appointment of an interim management team while the company’s board and senior leadership undergo a comprehensive review. The announcement, published on the Irish national broadcaster’s website, outlines the circumstances that prompted the change, the interim structure that will guide the bank through the transition, and the company’s commitment to maintaining customer confidence and regulatory compliance.

Why the Shake‑up?

The catalyst for the intervention was a series of investigations launched by the Central Bank of Ireland (CBI) and the Financial Services and Pensions Ombudsman (FSPO). The investigations focused on a 2024 data‑breach incident that exposed personal information of over 400,000 BoI customers, as well as allegations of irregularities in loan approval processes that may have favored certain affiliates.

In its statement, the CBI cited “serious breaches of governance and risk management frameworks” that “compromise the integrity of the bank’s operations.” The FSPO, meanwhile, highlighted concerns about the bank’s whistle‑blowing policy and the effectiveness of internal audit functions.

The BoI’s board had already been under pressure since early September, when the European Banking Authority (EBA) issued a “cautionary notice” regarding the bank’s capital adequacy ratios. Combined with the domestic scrutiny, senior management decided that an external, independent team would best safeguard stakeholder interests while the board is re‑constituted.

Interim Management Structure

Under the new structure, a senior partner from the international consulting firm KPMG will act as the Chief Executive Officer of the interim team. The interim board will comprise:

• Chairperson: KPMG partner, Ms. Anne Doyle, who will oversee governance and regulatory liaison.
• Chief Financial Officer: Former BoI CFO, Mr. Liam McCarthy, will remain in his post to maintain continuity in financial reporting.
• Chief Risk Officer: An external risk specialist, Mr. Tomas Silva, from a boutique risk advisory firm.
• Chief Compliance Officer: Ms. Niamh O’Connor, who previously led BoI’s compliance division, will remain on an “interim advisory” basis.

The interim board will report directly to the Central Bank and will operate under a “covenant” that limits the authority of the bank’s remaining directors. The board will be tasked with delivering a “comprehensive remediation plan” to the regulator within 90 days.

Regulatory Oversight and Timelines

The statement emphasised that the Central Bank will retain the right to appoint an independent external monitor to oversee the implementation of the remediation plan. Additionally, the EBA will conduct a “full supervisory review” by early 2026, with a preliminary assessment scheduled for December 2025.

The FSPO will continue to investigate the alleged loan‑approval irregularities. If these investigations confirm non‑compliance with EU lending directives, the FSPO may recommend fines or further remedial action.

BoI’s interim board has pledged to publish a monthly progress report on its website, ensuring transparency for customers, shareholders, and regulators alike. The board also announced an immediate “customer assurance” programme that includes a dedicated hotline, an online portal for data‑breach updates, and a series of community outreach events to rebuild trust.

Historical Context

Bank of Ireland, founded in 1783, is the country’s largest commercial bank, serving both retail and corporate customers. In recent years, the bank has struggled with a series of compliance issues, most notably a 2023 “mis-sold” product scandal that resulted in €70 million in customer compensation claims. That episode prompted the appointment of a new external audit committee and a “culture change” initiative led by former CEO Mr. Michael Harrington.

The current interim management comes after that earlier overhaul failed to satisfy regulators, who highlighted gaps in the bank’s “risk appetite” and “internal controls.” The new team’s mandate explicitly includes an audit of the bank’s IT systems, given that the 2024 data‑breach exposed a significant weakness in the bank’s data‑protection framework.

Implications for Stakeholders

Customers

The interim board’s first priority is to reassure customers that their accounts remain secure. BoI has already increased the frequency of cybersecurity alerts and has temporarily halted the processing of large wire transfers until the risk assessment is complete. The bank’s customer service teams have been expanded to handle increased inquiries.

Shareholders

BoI’s shares fell 7.2 % in early trading on the Dublin Stock Exchange following the announcement, reflecting investor uncertainty. The board has called an emergency shareholders’ meeting for 15 November 2025, where a resolution will be put before the assembly on the appointment of the interim board and the remediation plan’s scope.

Employees

The interim management will conduct an internal audit of employee conduct and ethics training. The bank will also establish an independent hotline for employees to report concerns anonymously. This is intended to mitigate the “culture” issues that regulators cited in their assessment.

Regulators

The Central Bank’s involvement will intensify, with the possibility of a “temporary regulator‑led management” if the remediation plan is not completed on schedule. The EBA’s preliminary findings could lead to capital requirement adjustments or restrictions on the bank’s cross‑border activities.

Looking Ahead

The interim board will convene a series of workshops with external consultants, internal auditors, and regulator representatives to map out a “comprehensive remediation strategy.” Key deliverables include:

1. Risk Management Overhaul: Redesign of risk frameworks, implementation of new software for risk monitoring, and quarterly risk reporting to the CBI.
2. Governance Reform: Restructuring of the board to incorporate independent directors with expertise in cybersecurity and regulatory compliance.
3. Cultural Reset: Mandatory ethics training for all staff, with a focus on transparency and customer-centric values.
4. Data‑Protection Enhancements: Deployment of a new, multi‑factor authentication system and a full audit of data‑storage protocols.

If the interim board meets its deadlines, BoI may be able to return to a fully functioning, independently governed structure by mid‑2026. The bank’s long‑term viability will, however, depend on the successful implementation of these reforms and the restoration of trust among all its stakeholders.

In sum, the Bank of Ireland’s interim management statement marks a pivotal moment in the institution’s history. While the interim team will operate under close regulatory oversight, its performance will dictate whether the bank can emerge from this crisis stronger, or whether further intervention may be necessary.