ACC operations under review

ACC BANK has confirmed that its operations are under review.

This is owing to the current global economic downturn.

Amid speculation about its future and the possibilities of job losses and closures, the bank — which acts, these days, as the Irish division of Dutch financial services company, Rabobank — said, via a brief statement: “ACC Bank is reviewing its operations in light of the current economic climate, as are many other financial institutions.

“No decisions have been made, and the bank will make no further comment on speculation.”

Just last month, Rabobank said that ACC would remain a valued part of its international subsidiary network.

This statement followed on from ACC — whose main customer base consists mostly of small businesses and farmers — reporting an after-tax loss of €244 million for 2008.

That loss figure was down significantly from a post-tax profit of €39.9m generated in 2007.

Last year also saw a slight decline — to €6.5 billion — in the value of loans to its customers.

At the time of the results, ACC’s chief executive, Rob Hartog, said that although the figures were a disappointment, the bank remained well placed to manage its business and address the issues in its loan book.

He added that ACC also continued to enjoy the full support of its parent.

Rabobank’s chairman, Bert Heemskerk, was also quoted at results time as saying that the group management had no interest in selling ACC.