Bank of Scotland Ireland (BOSI) is to relocate its €2 billion Irish home-loan operation to Dublin in the first phase of its move into retail banking in this State.
Currently, the bank's home-loan business is run by parent company Bank of Scotland, but today BOSI said processing of property loans will be moved to a new centre in Dublin by July.
Once its move is complete the bank intends broadening the range of home loans on offer to target the first-time buyers' market and the buy-to-let market for investors.
Moving its loan operation is the first step in becoming a fully integrated retail bank, according to a BOSI statement.
In that statement, Mr Mark Duffy, chief executive of BOSI, said: "We have consistently said that we would expand into retail banking and offer a full range of banking products when the conditions were right.
"With the bank's recent application to the Irish Money Transmission System, the anticipated introduction of a Revised Code of Practice to facilitate easier switching and the success of our original home loan offering, these conditions are now right."
BOSI anticipates handling home loan business worth €800 million this year, accounting for about 7 per cent of the market. The Bank hopes to increase this share to 15 per cent in coming years.
More than 700 people are employed by the bank in offices in Dublin, Cork, Limerick, Galway, Waterford and Belfast.
Initially the relocation is expected to see that workforce rise by 40 jobs. The bank predicts this could rise to 150 as the retail division expands.