Published Saturday, 21 May 2011
Three masked men threw the device - which was contained in a hold-all - into the Shipquay Street premises at around 12am, warning customers and staff it would explode in an hour.
The bomb detonated at around 1.20pm in the Diamond area of the city, but police had already evacuated the scene around the Santander branch. No-one was hurt in the blast and there are no reports of any damage.
A number of other security alerts were also reported, including one in Newmarket Street, but police found nothing untoward.
"I am in no doubt that the device that exploded was set to injure or maim innocent members of the public," Chief Inspector Jon Burrows said.
"It is due to the efficient evacuations set in place in the surrounding areas that no-one came to any harm. I would like to express my thanks to the people of Derry for their patience while we attend to the security operations of today."
Mr Burrows added that the incident has been costly to the city's people and traders, with "hundreds of thousands of pounds" worth of business lost on the busiest shopping day of the week.
There will be anger that an apparent dissident terrorist attack has taken place in broad daylight in the city centre and on the busiest shopping day of the week.
UTV reporter Gareth Wilkinson
The city was brought to a standstill as cordons were placed around Shipquay Street, and the Richmond Centre, Millennium Forum, Newmarket Street and Orchard Street were all closed.
A number of organised events, including a children's cancer charity fundraiser, were also spoiled.
The bombing has been widely condemned. First Minister Peter Robinson called it an attempt to murder shoppers.
"This bomb was deliberately placed in one of the busiest areas of the city and was designed to murder innocent people as they shopped on a Saturday afternoon," Mr Robinson said.
"The perpetrators of this disgusting attack have no regard for human life. Indeed if it were not for the vigilance of the security forces we could have been faced with a far greater tragedy this afternoon."
Deputy First Minister Martin McGuinness said: "This afternoon's attack in the centre of Derry was carried out by people who have no mandate from anyone.
"They need to realise that such an attack only hardens our resolve to ensure that peace survives and continues to flourish. The people of Derry have worked hard to build a city that is peaceful and inclusive. Their hard work will not be undone by today's mindless act."
Secretary of State Owen Paterson asked: "What is the mentality of people who will put a bomb in the middle of a busy town when good ordinary people are going about their business? What on earth do these tiny number of unrepresented people think they can achieve?"
Justice Minister David Ford said: "This bomb was left in the centre of a shopping area on a Saturday afternoon as people were going about their normal business. It is an attack on the local community and I condemn it wholeheartedly."
All roads except for Butcher Street have now been reopened.
The PSNI has launched a full investigation into the attack. Anyone with information has been asked to bring it forward to local detectives.