The insurgent set off the explosion as policemen were queueing at the bank to collect their salaries on the last working day of the month, police said.
A woman and a man were killed, according to police Major Salam Hama Zangana and another officer. The pair gave differing tolls of the wounded, however, of 73 and 58.
Most of the wounded were policemen, but bank employees and civilians were also hurt.
"Al-Qaeda is trying to send a message that they are there," said Kirkuk provincial police chief Major General Jamal Taher Bakr. "They are trying to ignite sectarianism between Kirkuk`s communities."
An AFP correspondent at the scene said the blast caused massive damage to the bank and surrounding buildings. Several police vehicles were set on fire, and access to the bank was blocked.
Parliament speaker Osama al-Nujaifi said provincial security forces were responsible for a "dangerous violation of security" and called for a full investigation into the attack.
Iraq`s northern Kurdish region wants to incorporate Kirkuk province, which is ethnically mixed and rich in energy, into its three-province autonomous area, a move strongly opposed by the authorities in Baghdad.
Violence is down nationwide since its peak in 2006 and 2007, but attacks remain common. A total of 239 people were killed in violence in Iraq in August, according to official figures. (*)
Editor: Kunto Wibisono
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