Merrill Lynch Bank in Ireland warns on Brexit

The directors of Merill Lynch International Bank in Ireland have fired a warning shot about the effects a hard Brexit could have on its business.

The bank which is owned by Bank of America operates a European head office in Dublin and a branch office in London.

Its 70 staff are well- rewarded for their work. New accounts show that they shared a pay pot of $26m (€24.5m), or an average of $370,000.

The international bank once had $483bn in assets based here but this has shrunk to $4.9bn.

The directors have warned of the consequences of a hard Brexit.

“If the terms of the exit limit the ability of Bank of America’s entities to conduct business in the EU or otherwise result in a significant increase in economic barriers between the UK and the EU, those changes could impact the company’s business, financial condition and operational model,” they said.

Before the Brexit referendum, the bank was scaling back its operations here, reducing its payroll to 70 people from 173 last year.

In 2010, it employed almost 2,050 people. The new accounts show that Merrill Lynch International posted pre-tax profits of $130.34m last year. It had a loss of $25m in 2015.

The bank’s shareholder funds fell by almost $1bn to $4.99m.

The directors said it is now almost “de-risked” from global markets and global banking activity and no longer originates new business.

It retains a small rates and currencies business where the market risk is hedged.

The directors also point out that the bank also retains a small global markets and global banking portfolio which is being run off.