BANK of Ireland's latest results contain no surprises. They are in line with market expectations and show steady growth in all areas of business, as well as continuing pressure on interest margins.

Adjustments to computer systems to cope with the millennium bug in the year 2000 will cost the bank an estimated £20 million - £10 million this year and £10 million next year.

Adjustments for European Monetary Union will cost about £20 million over about three years, peaking at £6 million to £7 million in 1998/99. This will make it difficult to keep the cost/income ratio below the target maximum of 60 per cent.

As these changes are taking place, the organisation faces the retirement at the end of this year of its chief executive, Mr Pat Molloy, who has overseen the turnaround in the bank's fortunes in recent years.

Mr Molloy has repositioned the group in the US and Britain. In the US, the First New Hampshire operation has been merged with the larger Citizens Financial Group to give Bank of Ireland a 23.5 per cent share of the enlarged and growing entity. In Britain, the bank is acquiring the Bristol & West Building Society for £600 million sterling.

The changeover will be helped by a clearly set out growth strategy. Bank of Ireland wants to be a broadly based player in the domestic market, offering a comprehensive range of services and products, and a specialist operator in niche markets outside Ireland.

In the Irish market that means adding new products and services and new delivery systems. Outside Ireland, the bank will concentrate on four areas:

. strategic alliances to meet specific objectives - such as the alliance between Bank of Ireland Securities Services and State Street Bank and Trust in the US;

. expanding its asset management business;

. supporting the growth of the Bristol & West Building Society in Britain;

. and supporting the expansion of Citizens Bank in the US where it has a 23.5 per cent stake.

Bank of Ireland is expected to expand the Bristol & West operation, which will contribute to profits this year, through acquisitions and organic growth in an improving British mortgage market. An increased non designated specific provision fund will provide a cushion if the economic climate deteriorates.

Overall, the bank's agenda over the next year will be to manage change, internally and externally.