STAFF AT AIB can still look forward to the prospect of promotions and salary increases, despite the fact that the bank is effectively nationalised.

Reports that the bank was still hiring new staff, promoting existing workers and raising salaries – in some cases by as much as 15 per cent – were put to AIB yesterday.

A source at the bank confirmed to TheJournal.ie that AIB was continuing to employ new staff, saying that new hires were taken on when specific skills were needed.

In relation to staff promotions, the source explained that management wanted to “ensure that the bank could do business a usual”. Meanwhile, they said, salary increases at the troubled financial institution are viewed as a way of “recognising the responsibilities taken on by staff”.

Yesterday, Executive Chairman of AIB David Hodgkinson told the Taoiseach and Finance Minister that the bank would not pass the recent insterest rate cut by the European Central Bank on to its customers.

AIB said it had not passed on the past two rate increases by the ECB and, similarly, would not be passing on the cut.

Read: AIB will not pass ECB interest rate cut to customers>