David Duffy eyes return to Ireland after AIB exit

Departing AIB chief executive David Duffy has his sights set on a return to Ireland before he has even assumed his new role as head of UK-based Clydesdale Bank.

Mr Duffy, who announced his decision to step down as chief executive last month, says while his role with the British bank will see him take a hiatus from the Irish banking system, his goal is to return thereafter.

Mr Duffy’s resignation came as somewhat of a surprise when it was announced, only a few months after signing a new contract with the 99.8% State-owned bank last summer.

The Department of Finance yesterday confirmed that a document advising staff how to respond to specific media enquiries regarding Mr Duffy’s resignation has been circulated.

The questions for which suggested answers were provided include whether or not there was a clash of personalities between Mr Duffy and the bank’s new chairman Richard Pym who the document says “has a reputation for being tough and hands-on”.

Details of the document were first released to TV3 News under Freedom of Information.

Meanwhile, Finance Minister Michael Noonan has said a shortlist of candidates to replace Mr Duffy has been drawn up. It is believed internal and external candidates are among those being considered.

Mr Noonan said it is “absolutely in the national interest” that the post is filled with the best candidate.

Mr Duffy joined AIB at the height of the financial crisis in 2011 and has overseen the stabilisation of the bank which required a €21bn taxpayer bailout to avoid collapse.

“In terms of the bank’s profitability, he has surpassed expectations. If he were to stay on, he would have to stay in the next phase, which will probably take four or five years.

“In the interest of his own career and personal life, he thought that commitment was too long,” said Mr Noonan in January.

“He’s staying on in the bank for about six months, and I’ll be meeting the chairman later this week and be discussing with him and Finance officials, the process and procedure for seeking out somebody to replace David Duffy,” Mr Noonan added.