Gender pay gaps widen at AIB and Bank of Ireland but narrows at PTSB

Permanent TSB has recently rebranded as PTSB.

Sarah Collins

Lender PTSB is the only one of the three main Irish retail banks that has seen its gender pay gap narrow on last year.

The difference between average male and female hourly pay across PTSB was 16.3pc, down from 17.5pc last year.

It means for every €1 men earned, women earned €0.84, on average. It is the lowest gap of the three main retail banks.

Bank of Ireland and AIB saw their pay gaps widen very slightly compared to 2022, when reporting requirements kicked in.

Both lenders had chosen to report voluntarily in the years leading up to the new gender pay legislation, and both had seen their pay gaps shrink year on year.

Reports published in the last week show that AIB’s average pay gap was 18.9pc, up very slightly on last year’s figure of 18.4pc.

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AIB said it was largely down to “the impact of the transfer of employees associated with our key strategic initiatives”.

Around 250 Ulster Bank staff were due to transfer to AIB in July last year, after a June cut-off date for the 2022 report. Ulster Bank, which has since exited the Irish market, had a pay gap last year of 26pc in favour of men.

Bank of Ireland, meanwhile, saw its pay gap increase by a similar amount to 21pc, from 20.5pc last year. That means for every €1 a man earns at the bank, a woman earns €0.79.

The increase is partly explained by the departure of former CEO Francesca McDonagh, who left in late summer last year, after the cut-off date for the 2022 report. She made close to €1m in 2021.

Bank of Ireland also saw “an increase in part-time male colleagues in senior roles” this year, the pay gap report said.

Financial firms tend to have amongst the highest pay gaps in the economy due to fewer women at senior level.

Of the companies that have reported so far — firms have until December 31 to file — Davy stockbrokers has the largest gap at 40.1pc, though that is a decrease of more than seven points on last year.

Davy was acquired by Bank of Ireland last June, but is not included in Bank of Ireland’s pay gap report.

Insurers FBD, Laya Healthcare, Vhi and AIG all posted pay gaps above 20pc this year, but only AIG saw that number widen on last year.

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