Bank of Ireland is by most measures an extremely well- -run business. As its chief executive, Brian Goggin, pointed out yesterday, the bank is heading into its 14th consecutive year of increased profits.
Its management has trod a careful path and, with the exception of the circumstances surrounding the departure of its previous chief executive, has avoided the sort of controversy which has tarnished the reputation of its principal rival, AIB.
It would be reasonable to assume that the massive cost- cutting exercise on which it now plans to embark - which will involve the loss of some 2,100 jobs - is both necessary and appropriate. Well-run companies do not embark on such projects without good reason.
That said, it seems callous, if not brutal, to shed something close to 12 per cent of your workforce at a time when profits are climbing and the main economies in which you operate - the Republic and the UK - are experiencing strong growth. By doing so, the bank has left itself open to accusations of corporate greed such as those levelled against it yesterday by the Irish Bank Officials' Association (IBOA) and others.
The bank has not helped its cause by adopting what appears to be an unnecessarily confrontational approach, particularly in its refusal to rule out compulsory redundancies. The IBOA has responded by striking a similarly uncompromising stance. But, as both sides know, such extreme positions are commonplace in the opening stages of what promises to be a protracted bout of negotiations.
What jars most about the plan outlined yesterday is that it is manifestly about preserving the high profit margins currently enjoyed by the business rather than seeking to grow the business through offering a better deal to customers. The thrust of the announcement seems to be about offering much the same products at much the same price, but cutting the cost of doing so.
Fundamentally, Bank of Ireland is defending the extremely lucrative franchise that it enjoys through its co-dominance of the Irish market with AIB.
This long-standing state of affairs - which cannot be said to operate in the interest of consumers - is now threatened on a number of fronts. Danske Bank's acquisition of National Irish Bank and Northern Bank, together with Bank of Scotland's more recent acquisition of the ESB's retail division, promises significant competition.
A number of other players in the market, notably Ulsterbank and Permanent TSB, have also upped their game in terms of competition. Bank of Ireland cannot be faulted for responding to this threat from its current position of strength rather than waiting until it has no choice, even if there are no direct benefits for its customers.
Ultimately it is more competition in the banking sector that will deliver better value for customers, and in that context the positive message emerging yesterday is that Bank of Ireland clearly believes that real competition is on the way.