AIB quits Jersey and Isle of Man

One-hundred and seventy people across the Isle of Man and Jersey face an uncertain future on the back of AIB’s decision to cease its operations on the islands.

The bank has announced that it is pulling out of Jersey and Isle of Man after at least 30 years operating in the two island nations.

A statement from the bank said: “The decision to wind-down the business by the end of next year is part of an ongoing strategic review being undertaken by AIB. It forms part of the overall plan to become a smaller, domestically-focused bank. A consultation period with staff will begin immediately.”

It is understood there will be a 30-day consultation process after which a staff package will be agreed. The bank has two subsidiaries, AIB Bank (CI) Limited, and AIB International Savings Limited, in these locations.

AIB Bank (CI) Limited is in Jersey and also in the Isle of Man. It employs 56 people in Jersey and 68 in the Isle of Man.

AIB International Savings Limited is only in the Isle of Man where 46 people are employed.

AIB has had a presence in Jersey for 30 years and Isle of Man for 35 years.

The staff had been serving some 20,000 AIB customers across the two islands. The customers had €2bn on deposit with the bank. AIB said that its loan book in the two islands was valued at €400m.

All of AIB’s customers will receive a letter next week advising them on alternative banking arrangements.

AIB Jersey and Isle of Man chief executive Joe Moynihan said that the global economic crisis had impacted on the viability of the bank’s offshore operations. They will be facilitated with banking services until alternative arrangements are put in place.

“Ongoing uncertainty in financial markets since 2009 has had implications for the business and created difficulties that challenge the viability of the offshore business model for AIB.

“The decision has been taken following lengthy and due consideration. I would like to thank our excellent management team and staff in the business over a long period. The orderly wind-down process of the business will begin today.”