Lloyds Banking Group's Irish unit to close

An Irish division of Lloyds Banking Group will be wound down by the end of the year.

Bank of Scotland (Ireland), which traded as Halifax in the Republic of Ireland, is one of the biggest casualties of the recession after laying off 750 workers this year.

Management announced plans in February to close all its 44 Halifax branches after only four years trading.

In a statement, the Lloyds Banking Group said there was little opportunity for BoSI to enjoy scalable growth and business would be transferred to Bank of Scotland.

The balance sheet and loan book will be effectively placed on bank books outside Ireland.

It is understood 830 staff are still employed by BoSI, of which most will be transferred to an independent company to oversee administration of its remaining Irish business.

Lloyds said: "This will aid the efficient rundown of the existing lending portfolio."

It said its other business operations in the Irish Republic, an insurance operation in Shannon, and the Halifax branch network and customer service centre in Northern Ireland were unaffected.

The bank said it was committed to working with employees carefully and sensitively as the wind-down takes hold.

BoSI said: "All employees were briefed by management this morning. The union, Unite, has been briefed and BoSI has commenced a process of consultation. These proposals will directly impact a number of roles. However, the group expects to minimise this impact with redeployment."

BoSI has staff in its St Stephen's Green head office in Dublin and in regional offices in Belfast, Cork, Galway, Limerick and Waterford.