Overseas banks feel the pain of Irish property downturn

IT’S not just Irish investors who are being stung by the collapse of the property market in what was once western Europe’s most dynamic economy.

Royal Bank of Scotland, which bought First Active in 2004 in what was the largest overseas takeover of an Irish bank, has said it will cut 750 jobs. Danske Bank said provisions for impaired Irish loans rose by more than 10 times in the third quarter.

“They were chasing the bubble, and now they are paying the price for it,” said Alex Potter, an analyst at Collins Stewart in London.