InterviewNational Irish Bank has apologised to customers who were victims of overcharging and who were sold unauthorised offshore investments and has pledged to fully compensate them for their loss.

The bank's chief executive, Mr Don Price, said he was confident that the bank's culture had changed and that it could rebuild public confidence in the bank. "We acknowledge that we have failed them in the past and deeply regret the problems we have caused. We apologise to everyone who has been affected."

Mr Price emphasised that the investigation related to events that happened in the past. "The investigation goes back a long time. We have literally rebuilt National Irish Bank from the ground up. It is now a very different organisation" he said yesterday. The bank estimates the total financial cost to the bank as a result of its improper activities will be more than €75 million.

It has already paid €1.9 million to customers who were overcharged on the rate of interest they paid on their borrowings and has set aside a further €10.6 million to be reimbursed to customers who are still owed refunds. It will begin to issue these refunds in September.

NIB has approved settlement offers totalling €10.8 million to be paid to investors who put funds into unauthorised offshore investments it sold. Some €8.9 million has been accepted by these customers. Overall the bank will refund €23.3 million to customers.

He added that the real cost to the bank has been the damage to its reputation over that period which had depressed its growth prospects.

Mr Price said he had "mixed emotions" about the publication of the High Court inspectors' damning report. "It is sad to see a report like this coming out but there is also relief that it is finally in the public arena" he said. "Over the past six years the culture of the bank has been transformed. Staff have been trained in business ethics. The management team has changed."

All of the 19 people who had adverse comments made against them no longer work for NIB. The board of directors has also changed.

Mr Price said that notwithstanding the sweeping changes at the organisation in response to the issues that were investigated it would take some time for the bank to regain the confidence of consumers.

The bank may yet also face a prosecution and the prospect of such a case will continue to overshadow it. Mr Price said it hoped to get some resolution about whether a prosecution would proceed in the near term but the bank would have to wait and see how this unfolded.

He said the bank had not considered taking a legal action against the individuals whom the inspectors held accountable for the various malpractices carried out during the 1980s and 1990s.

Mr Price refused to comment on whether its parent National Australia Bank would sell NIB, now that the report has been issued. "The future of the bank will be determined in Australia. We are just getting it into the best shape that we can."

The impending report had been one of the factors weighing on NAB's share price in recent weeks. The bank has also recently issued a profit warning. Yesterday the group briefed regulators in all of the markets it operates in on its findings.

"The past six years have been a testing time for the bank and our customers. However we have responded to the issues with integrity" Mr Price said. "While cooperating and working with the investigation, we introduced new systems and controls, transforming how we operate as a business."