Mr. Jeremy Masding:

It would be inappropriate for me to comment on the pricing decisions of competitors, but we keep our rates under consistent review. As I would not wish to insult the Deputy with a bland answer, I will build on that comment. I note some facts for the Deputy. Our blended cost of funds is 178 basis points. If one looks at Bank of Ireland's which I noted from the transcript of last week's meeting, it is 115 basis points. By definition, we need to work towards a lower cost of funds, but that will take us time. The Deputy will understand we still have to work through legacy issues. At one stage, we had a loan to deposit ratio of 241%. The Deputy will understand it will take us time to bring the cost of funds down. The cost of funds is the first thing to which I point. Of course, the cost of funds does not include the cost of running the bank, the cost of risk or the cost of capital, all of which we must cover to make the bank viable and profitable.

The last thing I would say about a blended rate across the group is that our NIM is 88 basis points. Therefore, we still have a significant mountain to climb. I am absolutely conscious that we must be competitive which I hope has been a hallmark of the team. As the Deputy rightly said, it was reflected in our early decision to reduce our variable rates unilaterally when I first started and we were a significant outlier. We will continue to monitor rates closely and do what we can to reduce our cost of funds, increase our net interest margin and run an efficient business. If am able to do this, we will ultimately be able to reduce our variable rates, where possible. I cannot give the Deputy any guarantee as to when that will happen.