National Irish Bank employees get reassurance from Australian parent

NATIONAL IRISH BANK (NIB) will not be sold off by its Australian parent, employees were told yesterday.

The Irish Bank Officials’ Association (IBOA), which represents staff at NIB and Northern Bank, its sister bank in Northern Ireland, said National Australia Bank chief executive John Stewart had given it “firm assurances” that both banks had a future within the NAB group.

IBOA general secretary Larry Broderick headed a delegation that met with Mr Stewart at a conference in New Zealand yesterday. Mr Broderick said he heard detailed plans for NAB’s operations in Europe, which include both Irish banks as well as British banks Clydesdale and Yorkshire, and was told that NIB and Northern had “pivotal” roles to play in the group’s expansion programme.

Market speculation has suggested that NAB was considering offloading NIB, which reported pre-tax profits of €36.5 million in the year ended September 2003, more than double the previous year. NIB employs about 700 people in 59 branches and 12 business centres. The Irish bank has come through a difficult period after a number of high-profile setbacks, which included investigations into the sale of offshore investment products and overcharging certain customers.

“Mr Stewart was anxious to reassure the IBOA that he had no plans to offload either bank and, to the contrary, was personally committed to growing the business and envisaged both banks increasing their market share in the coming years,” said Mr Broderick.

Mr Stewart took on the job of NAB chief executive in February, when he succeeded Frank Cicutto, who stepped down after a rogue trading scandal that cost the group over Aus$360 million (€220 million). He has ordered a wide-ranging review of the organisation and has already replaced a number of senior executives in the wake of the scandal.

The IBOA said it was pleased to receive Mr Stewart’s assurances and also secured commitments from senior executives to engage with the IBOA on issues that would be relevant to its members. The union welcomed the comprehensive meeting with Mr Stewart.