THE great Scottish threat to the hegemony of AIB and Bank of Ireland is taking its time to materialise.

All mouth and nae troosers? Bank of Scotland Ireland (BoSI) loudly boasts about being number two in the business banking market, yet its commercial loan book is half the size of those enjoyed by AIB and Bank of Ireland, while Anglo Irish’s book is 50-60% bigger. All about definitions, perhaps.

Meanwhile, the BoSI’s share of new residential mortgages, at 6%, is not going to give the country’s big three lenders, Bank of Ireland, AIB and Permanent TSB, any sleepless nights. Likewise, neither is BoSI boss Mark Duffy’s rebadged Shop Electric network striking the fear of God into his rivals.

The fact of the matter is that AIB earned more money in Britain in the first half of this year than Halifax Bank of Scotland earned in Ireland. BoSI should stop fannying about, buy Irish Life & Permanent, and let Duffy make a real fist of attacking the market here.

Royal Bank of Scotland (RBS) is a very different fish. RBS’s man in this parish, Cormac McCarthy, has kicked over a few traces with First Active’s 100% mortgage. He is also planning a €50m revamp of his branch network to brush up its image. Slowly and steadily, he is making his mark.

McCarthy is more low-key than his rival at BoSI. While RBS does not break out its Republic of Ireland results there is no doubt that McCarthy is infinitely more powerful in this market. Ulster’s name on the ticket backing Sean Dunne’s €260m play for the Jurys Doyle Ballsbridge site is a big statement of intent in the commercial market.

Ryanair tactic

The Ryanair chief, Michael O’Leary, has earned all the plaudits for taking the huge surge in oil prices on the chin.

A 112% increase in his airline’s fuel bill is no joke and it certainly throws a dollop of perspective on the expected halving of profits at Aer Lingus this year. BA’s short-haul fuel surcharge is €12, while BMI charges €9.

Ryanair’s “not now, not ever” policy will serve to widen the gap with its British rivals on fares.

Aer Lingus, however, is wedded to its low-fare model and has been forced to grin and bear it.

Ryanair is cushioning higher fuel costs with far lower depreciation charges and aircraft maintenance charges thanks to its fleet deal with Boeing. Productivity shaved 4% off unit labour costs and its airport charges were lower, based on cut-price deals at new airports.

In total, O’Leary took 9.6% out of Ryanair’s non-fuel operating costs last year.