AIB boss tells minister: Don’t compare us to Cromwell

AIB chief Eugene Sheehy has today rejected comparisons between top bankers and Oliver Cromwell.

He was responding to comments from Minister for Transport Noel Dempsey at the Fianna Fáil Árd Fheis. In a no-holds-barred speech, Minister Dempsey said bankers had endangered Ireland’s economic survival.

“There’s no parallel in history for the damage they have done to this nation — except perhaps Cromwell. And even Cromwell was motivated by reasons other than personal gain,” said Minister Dempsey.

However, after bad financial results posted for AIB today, Mr Sheehy said he had not acted like the feared English military leader.

“I know people are angry out there. But we are a major employer in Ireland with 13,500 staff and I certainly don’t regard any of our staff as Roundheads,” he stated.

The Roundheads were Cromwell’s 17th Century supporters and troops.

Despite calls for a clear-out of top bankers, the chief executive said he wanted to lead a recovery in AIB. He revealed his salary had been cut by 25%, with his bonuses scrapped.

“I believe we have a good board and a very committed management team,” said Mr Sheehy. AIB reported today that its pre-tax profits fell by more than 60% last year. Pre-tax profits were just more than €1bn, compared with €2.5bn in 2007.

The bank revealed some decisions, particularly in relation to lending to the construction sector, had hurt its business.

Mr Sheehy added: “The building cycle went on for a very long time. I regret some of the loans that were made towards the end of that cycle.”

The bank said it expects its business environment to remain extremely difficult this year. AIB shares have lost more than 90% of their value in the last year and the bank has set aside €1.8bn to cover bad debts, up from just €106m in 2007.

Article courtesy of the Evening Echo newspaper.