Ulster bank jobs to be cut in shake-up

ULSTER Bank is facing a major shake-up across its Irish operations.

Up to 200 jobs at the bank, which is owned by the Royal Bank of Scotland (RBOS), will either go or else be transferred to Scotland as the group streamlines its information technology services.

IBOA, the bankers' trade union, said it was "surprised, shocked and disappointed" by the news.

Another 50 jobs in the finance sector are also facing the axe, many at account level. Overall the transfers and job losses will be done voluntarily, the IBOA said following a private briefing with Ulster Bank.

The bank insists that reorganisation will be jobs neutral, with jobs being created as well as lost.

Ulster Bank's chief executive, Cormac McCarthy, believes the changes overall are "extremely positive" for the Irish banking sector and for the consumer.

RBOS is the fifth largest bank in the world and the second largest in Europe.

In an Irish context it ranks third after AIB and Bank of Ireland.

Mr McCarthy who took over as boss of Ulster Bank, after last October's buy-out of First Active, where he had been very successful, believes the future for the group is extremely positive.

The changes announced include a new mortgage centre for Dublin and will boost the financial services group's overall Irish presence. The group is confident that it can increase its market share in Ireland.

Mr McCarthy referred to the switcher mortgage, where it carries the cost of the transfer of about €1,000, as proving very successful for Ulster.

He said that it shows the group is not just capable of shaking up a moribund Irish banking sector, but putting its money where its mouth is. Ulster and First Active combined are well ahead of the rest of the market at present, with the group's current account mortgage doing extremely well.

"Nobody else has one", Mr McCarthy said.

Above all, with the clout of RBOS behind it, Mr McCarthy believes that as the number one bank in the North and the third largest in the South, the Irish operations are strategically placed to grow, in particular its mortgage and small firms businesses.

While not disclosing the amount involved in the shake-up in Ulster Bank, he said that the figure involved was "substantial".

He said that it was also a further indication of how seriously RBOS is taking its Irish operations following the €887m paid to take over First Active.

It is thought unlikely that Fred Goodwin, the chief executive at RBOS, will make a bid for National Irish Bank when it is put up for sale.

Mr McCarthy could not or would not comment on that, but repeated that with the might of RBOS behind it, Ulster Bank was well set to cause a stir in the Irish market in the years ahead.