The CEO of Permanent TSB Mr. Jeremy Masding has told the Oireachtas Joint Committee on Finance that the bank is preparing to significantly reduce branch numbers as well as staff numbers. Details of the cost cutting drive are expected to be announced next week.

Reports in some media estimate that the bank could close one-in-five of its 92 branches nationwide.

Separately, in a further drive to increase the profitability of the bank, it has published lower rates it will begin paying on a broad range of deposit accounts, including those it took over from the former Irish Nationwide Building Society.

Permanent TSB is the latest in a strong of banks that have either hinted or announced plans to close branches as a way of returning it to profitability. National Irish Bank recently announced that it would be closing the majority of its national branch network. AIB is also reported to be at an advanced stage of branch closures, a move which would follow a similar decision on branches in the UK.