Danske Bank expects to be left with approximately 70 staff and a business generating annual revenues of about €50 million a year when the wind-down of its retail and business banking operations in Ireland is completed over the next two years, country manager Terry Browne has said.
Danske announced on October 31st that it plans to concentrate on corporate and institutional business here with turnover of €350 million-plus, effectively the top 50 corporates in Ireland and foreign multinationals.
Danske’s operation in Ireland has cost its parent about €3 billion since the economy collapsed in 2008. Mr Browne’s figures mean the bank will employ just 20 per cent of its current staff numbers at the end of the process.
Facility for credit unions
It will remain a clearing bank and
will provide payment capabilities for credit unions across the country.
Danske has also advised on debt raising – advising the National Treasury Management Agency on its bond issuance this year – and it has worked on recent capital raisings by Bord Gáis, ESB, CRH and Bank of Ireland.
However, the Danish bank has advised current account customers that these facilities will be withdrawn in the first half of 2014. All deposits are to be repaid to customers.
Personal and business loans have been placed into a non-core unit, to be worked out over two years. Mortgages and long-term business loans will either be off-loaded to a third party or refinanced by customers. Personal loans, which typically involve shorter repayment periods, will be allowed to run off.
Mr Browne said that 150 of its 350 staff are at “risk of redundancy”. Another 130 will work out its non-core assets over the next two years. That leaves about 70 who have a “long-term future in the bank”, he added.
Mr Browne said the corporate and institutional business will be part of a group structure and is “seen as a good franchise” by its Danish parent.
“It’ll be a nice, niche offering that we have here now . . . and we are very optimistic about this side of the business,” said Mr Browne.
