Once EU gives approval, troubled bank will emerge with new name

ANGLO Irish Bank will re-emerge under a new name and business model, if and when its restructuring plan is approved by the European Commission.

“The new bank will have to be re-branded in order to emphasise the fact that it is a different animal,” Anglo’s non-executive chairman, Alan Dukes told the Joint Oireachtas Committee on Finance and Public Service, yesterday.

Mr Dukes – who formally took over as Anglo chairman this week – said that there were no plans for the bank to become a mutual or retail bank, “as both would have significant costs”, but that its new form would be “a medium-sized commercial bank”.

Chief executive Mike Aynsley added Ireland would remain the company’s core marketplace, but that its remaining overseas operations – in Britain and the US – would remain as important divisions.

Anglo chiefs told yesterday’s committee that 600 jobs have gone – through natural attrition and voluntary redundancy – to bring the company’s workforce down to 1,200 and costs have been cut by 18%.

They added that the EU restructuring plan should be finalised over the next two or three months.

In his introductory address, Mr Dukes told the committee that Anglo “has changed very, very significantly” since its virtual collapse at the end of 2008 and subsequent nationalisation in early 2009.

Anglo made a pre-tax loss of €12.7bn for the 15 months to the end of last December and wrote off €15.1bn in bad loans; with €35.6bn of such loans bound for NAMA.

Regarding ongoing investigations into Anglo – including the one being carried out by the Office of the Director of Corporate Enforcement (ODCE) – management said yesterday that they were co-operating fully with the processes.

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