Danske Bank has withdrawn its banking facilities in Ireland.

The withdrawal of banking facilities by Danske Bank is bad news for Irish consumers, but a number of international investors will take it as a sign that the pillar banks will inevitably return to profit.

Merrion Capital banking analyst, Ciaran Callaghan, said the “bull” train of thought is that the fewer players in the market the better it is for the two pillar banks, AIB and Bank of Ireland.

“You are left with the pillar banks, the bull argument is that they are reasserting their dominance in the market,” he said.