NIB sale may lead to hundreds of job cuts

THE Irish Bank Officials Association (IBOA) has written to various banks concerned that hundreds of jobs may be under threat if they buy National Irish Bank (NIB).

IBOA was spurred into action following reports that National Australia Bank (NAB) is to sell National Irish Bank in the Irish Republic and Northern Bank.

Up to 3,000 jobs are involved with 2,000 in the North and 900 approximately in the South.

Reports that NAB is to sell off its Irish operations and hold on to its British subsidiaries, Clydesdale and Yorkshire suggests a major change of attitude down under.

Recently appointed chief executive of NAB John Stewart has suggested the businesses might do better if developed as a going concern under NAB ownership.

Mr Stewart is a former head of the bank’s European operations and saw the link with the Eurozone as strategically important to the group. With eight relatively new directors appointed to the bank Mr Stewart’s commitment to the northern hemisphere looks to be slipping.

Outside investors have also expressed concern at NAB’s ability to pull value out of the Irish operations and they have questioned the parent bank’s ability to develop a coherent strategy for its European operations.

An information memorandum on the sale will be issued to potential buyers later this month by Lazard, the investment bank advising NAB.

Any decision to sell would depend on the level of interest and the amount on offer to buy the two banks.

IBOA general secretary, Larry Broderick, has expressed serious concern at the potential risk to Irish jobs, pay and working conditions under any new regime if a sale goes ahead.

Irish Life & Permanent (IL&P) and Halifax Bank of Scotland (HBOS) have already been written to by the IBOA because they seem the front runners to buy NIB.

Meetings have been requested with the chief executives of all of the institutions who may or may not become the new owners of the two NAB subsidiaries.

Outside the main urban areas considerable overlap exists between Permanent TSB and NIB.