National Irish Bank restructures, confirms commitment to Ireland
7th December, 2009
Against the backdrop of continuing recession and sweeping changes to the financial services landscape in Ireland, National Irish Bank (NIB) today announced plans to restructure its branch network over the next 18 months, entailing 150 voluntary staff redundancies.
Announcing the move, NIB Chief Executive Andrew Healy also reaffirmed the continued commitment of the Bank’s parent, Danske Bank Group, to the Irish market.
“Customers can be reassured by the fact that National Irish Bank is part of Danske Bank, a strong, well capitalised European banking group that remains ambitious for its Irish business and has a long term commitment to the Irish market. We will continue to service and support our customers,” Healy said.
As part of one of the leading financial institutions in Northern Europe, NIB’s business and personal customers will continue to be fully covered under the Danish Government’s Bank Guarantee Scheme. NIB will continue to use its competitive advantages in technology, coupled with Danske Bank’s European banking expertise, to benefit Irish customers.
Healy described the restructuring move as a prudent one in the economic downturn. The Bank was one of the first to recognise the true scale of losses facing banks operating in Ireland and this latest proactive decision signals its resolve to continue fulfilling the banking needs of its extensive Irish customer base, he said.
“The banking sector in Ireland is on life support. Banks have to react by reducing costs and amending their business models. We are taking these actions to ensure we have a long-term future, a healthy future.”
Key changes:
- 25 of the Bank’s 58 branches will be closed and merged into neighbouring branches.
- Staff numbers will fall by 150 through a voluntary severance scheme. Two-thirds of reductions will come from the branch network and the remainder from across the Bank.
The restructuring programme will begin in 2010 and will be completed during 2011 on a phased basis. The Bank is working with the IBOA and other staff representative bodies regarding the changes and details of the scheme.
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Note to Editors:
- The voluntary severance scheme offers staff 6 weeks salary per year of service and is capped at 2 years’ salary.
- Danske Bank Group is the largest bank in Denmark and a leading financial institution in Northern Europe. The group currently holds a long term rating of A+ from Standard & Poor’s, an Aa3 rating from Moodys and an A+ rating from Fitch ratings. National Irish Bank also holds these strong ratings.
- National Irish Bank is a branch of Danske Bank Group and, as such, has direct access to Danske’s liquidity and funding.
- Danske Bank Group is covered by the Danish Government Bank Guarantee Scheme, which was announced in October 2008. National Irish Bank’s personal and business customers are fully protected under this scheme.
For further information contact:
Caroline Douglas, Communications Manager. Tel: 01 484 2183, Mob: 086 – 207 5826
Simon Fullam, Media Relations Advisor. Tel: 01 484 2179, Mob: 086 – 855 9718
Donnchadh O’Leary, Edelman Corporate Communications. Tel: 01 678 9333, Mob: 087 – 282 0436